‘‘(3) provide transportation over, or by means
of, an extended or additional railroad line; or
‘‘(4) in the case of a person other than a rail
carrier, acquire a railroad line or acquire or operate
an extended or additional railroad line,
only if the Panel issues a certificate authorizing such ac-
tivity under subsection (c).
‘‘(b) A proceeding to grant authority under sub-
section (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 proceed-
ing.
‘‘(c) The Panel shall issue a certificate authorizing
activities for which such authority is requested in an appli-
cation filed under subsection (b) unless the Panel finds
that such activities are inconsistent with the public con-
venience and necessity. Such certificate may approve the
application as filed, or with modifications, and may re-
quire compliance with conditions the Panel finds necessary
in the public interest.
‘‘(d)(1) When a certificate has been issued by the
Panel under this section authorizing the construction or
extension of a railroad line, no other rail carrier may block
any construction or extension authorized by such certifi-
cate 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 deter-
mination.
‘‘§ 10702. Short line purchases by Class II and Class
III rail carriers
‘‘(a) A Class II or Class III rail carrier providing
transportation subject to the jurisdiction of the Panel
under this part may acquire or operate an extended or
additional rail line under this section only if the Panel is-
sues a certificate authorizing such activity under sub-
section (c).
‘‘(b) A proceeding to grant authority under sub-
section (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 proceed-
ing.
‘‘(c) The Panel shall issue a certificate authorizing
activities for which such authority is requested in an appli-
cation filed under subsection (b) unless the Panel finds
that such activities are inconsistent with the public con-
venience and necessity. Such certificate may approve the
application as filed, or with modifications, and may re-
quire compliance with conditions the Panel finds necessary
in the public interest.
‘‘(d) The Panel shall require any Class II rail carrier
which receives a certificate under subsection (c) of this
section to provide a fair and equitable arrangement for
the protection of the interests of employees who may be
affected thereby to the same extent as an arrangement
established pursuant to section 11126(b) of this title. The
Panel shall not require such an arrangement from a Class
III rail carrier which receives a certificate under sub-
section (c) of this section.
‘‘(e) For purposes of this section, the terms ‘Class
II rail carrier’ and ‘Class III rail carrier’ have the meaning
given those terms by the Panel.
‘‘§ 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 in-
tends 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
subject 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 aban-
donment or discontinuance;
‘‘(B) a statement indicating that each inter-
ested 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
provide to each interested party an estimate of the
minimum purchase price, calculated in accordance
with section 10704 of this title and (iii) the name
and business address of the person who is author-
ized 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
abandonment 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 signifi-
cant use (as designated by the Panel) of the railroad
line during the 12 months preceding the filing of the
notice 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 re-
cent 30 days prior to the date the notice of intent
is filed.
‘‘(b)(1) Except as provided in subsection (d), aban-
donment and discontinuance may occur as provided in sec-
tion 10704.
‘‘(2) 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 pro-
visions established under sections 11126(a) and 24706(c)
of this title.
‘‘(c)(1) In this subsection, the term ‘potentially sub-
ject to abandonment’ has the meaning given the term in
regulations 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
indirectly, 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 aban-
don or discontinue under subsection (a) of this sec-
tion.
‘‘(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
condition 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 4 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
expiration of the 4-month period described in subsection
(b), finds that one or more financially responsible persons
(including a governmental authority) have offered to pur-
chase 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 ac-
cordance with section 10703.
‘‘(2) If the Panel finds that such an offer or offers
to purchase have been made within such period, abandon-
ment 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 compensa-
tion 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 mutu-
ally agreed, all facilities on the line or portion nec-
essary 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 Panel’s decision. In such a case, the abandonment
or discontinuance 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
request that the Panel establish the conditions and
amount of compensation before the 40th day after the ex-
piration of the 4-month period described in subsection (b).
If no agreement on sale is reached within such 40-day pe-
riod and the Panel has not been requested to establish
the conditions and amount of compensation, any other
offeror whose offer was made within the 4-month period
described in subsection (b) may request that the Panel es-
tablish the conditions and amount of compensation. If the
Panel has established the conditions and amount of com-
pensation, and the original offer has been withdrawn, any
other offeror whose offer was made within the 4-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 agreement 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 consumma-
tion 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 aban-
don 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 pro-
duction or transmission, or recreation. If the Panel finds
that the rail properties proposed to be abandoned are ap-
propriate for public purposes and not required for contin-
ued rail operations, the properties may be sold, leased, ex-
changed, or otherwise disposed 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 rea-
sonable terms, for sale for public purposes.
‘‘§ 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.The Panel
does not have authority under this chapter over construc-
tion, acquisition, operation, abandonment, or discontinu-
ance of spur, industrial, team, switching, or side tracks.
‘‘§ 10707. Railroad development
‘‘(a) In this section, the term ‘financially responsible
person’ means a person who—
‘‘(1) is capable of paying the constitutional min-
imum value of the railroad line proposed to be ac-
quired; and
‘‘(2) is able to assure that adequate transpor-
tation will be provided over such line for a period of
not less than 3 years.
Such term includes a governmental authority but does not
include a Class I or Class II rail carrier.
‘‘(b)(1) When the Panel finds that—
‘‘(A)(i) the public convenience and necessity re-
quire or permit the sale of a particular railroad line
under this section; or
‘‘(ii) a railroad line is on a system diagram map
as required under section 10703 of this title, but the
rail carrier owning such line has not filed a notice
of intent to abandon such line under section 10703
of this title before an application to purchase such
line, or any required preliminary filing with respect
to such application, is filed under this section; and
‘‘(B) an application to purchase such line has
been filed by a financially responsible person,
the Panel shall require the rail carrier owning the railroad
line to sell such line to such financially responsible person
at a price not less than the constitutional minimum value.
‘‘(2) For purposes of this subsection, the constitu-
tional minimum value of a particular railroad line shall
be presumed to be not less than the net liquidation value
of such line or the going concern value of such line, which-
ever is greater.
‘‘(c)(1) For purposes of this section, the Panel may
determine that the public convenience and necessity re-
quire or permit the sale of a railroad line if the Panel
determines, after a hearing on the record, that—
‘‘(A) the rail carrier operating such line refuses
within a reasonable time to make the necessary ef-
forts to provide adequate service to shippers who
transport traffic over such line;
‘‘(B) the transportation over such line is inad-
equate for the majority of shippers who transport
traffic over such line;
‘‘(C) the sale of such line will not have a signifi-
cantly adverse financial effect on the rail carrier op-
erating such line;
‘‘(D) the sale of such line will not have an ad-
verse effect on the overall operational performance
of the rail carrier operating such line; and
‘‘(E) the sale of such line will be likely to result
in improved railroad transportation for shippers that
transport traffic over such line.
‘‘(2) In a proceeding under this subsection, the bur-
den of proving that the public convenience and necessity
require or permit the sale of a particular railroad line is
on the person filing the application to acquire such line.
If the Panel finds under this subsection that the public
convenience and necessity require or permit the sale of a
particular railroad line, the Panel shall concurrently notify
the parties of such finding and publish such finding in
the Federal Register.
‘‘(d) In the case of any railroad line subject to sale
under subsection (a) of this section, the Panel shall, upon
the request of the acquiring carrier, require the selling
carrier to provide to the acquiring carrier trackage rights
to allow a reasonable interchange with the selling carrier
or to move power equipment or empty rolling stock be-
tween noncontiguous feeder lines operated by the acquir-
ing carrier. The Panel shall require the acquiring carrier
to provide the selling carrier reasonable compensation for
any such trackage rights.
‘‘(e) The Panel shall require, to the maximum extent
practicable, the use of the employees who would normally
have performed work in connection with a railroad line
subject to a sale under this section.
‘‘(f) In the case of a railroad line which carried less
than 3,000,000 gross ton miles of traffic per mile in the
preceding calendar year, whenever a purchasing carrier
under this section petitions the Panel for joint rates appli-
cable to traffic moving over through routes in which the
purchasing carrier may practicably participate, the Panel
shall, within 30 days after the date such petition is filed
and pursuant to section 10505(a) of this title, require the
establishment of reasonable joint rates and divisions over
such route.
‘‘(g)(1) Any person operating a railroad line acquired
under this section may elect to be exempt from any of
the provisions of this part, except that such a person may
not be exempt from the provisions of chapter 105 of this
title with respect to transportation under a joint rate.
‘‘(2) The provisions of paragraph (1) of this sub-
section shall apply to any line of railroad which was aban-
doned during the 18-month period immediately prior to
the effective date of the Staggers Rail Act of 1980 and
was subsequently purchased by a financially responsible
person.
‘‘(h) If a purchasing carrier under this section pro-
poses to sell or abandon all or any portion of a purchased
railroad line, such purchasing carrier shall offer the right
of first refusal with respect to such line or portion thereof
to the carrier which sold such line under this section. Such
offer shall be made at a price equal to the sum of the
price paid by such purchasing carrier to such selling car-
rier for such line or portion thereof and the fair market
value (less deterioration) of any improvements made, as
adjusted to reflect inflation.
‘‘(i) Any person operating a railroad line acquired
under this section may determine preconditions, such as
payment of a subsidy, which must be met by shippers in
order to obtain service over such lines, but such operator
must notify the shippers on the line of its intention to
impose such preconditions.
‘‘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 contracts authorized under section 10509 of this
title before responding to reasonable requests for service.
Commitments which deprive a carrier of its ability to re-
spond to reasonable requests for common carrier service
are not reasonable.
‘‘(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 20 days have expired after 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 sub-
ject to such increased rates or changed terms.
‘‘(d) The Panel shall, by regulation, establish rules
to implement this section. Final regulations shall be
adopted by the Panel not later than 180 days after the
date of the enactment of the ICC Termination Act of
1995.
‘‘§ 10902. Use of terminal facilities
‘‘(a) The Panel may require terminal facilities, in-
cluding 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 with-
out substantially impairing the ability of the rail carrier
owning the facilities or entitled to use the facilities to han-
dle its own business. The rail carriers are responsible for
establishing the conditions and compensation for use of
the facilities. However, if the rail carriers cannot agree,
the Panel may establish conditions and compensation for
use of the facilities under the principle controlling com-
pensation 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
appropriate, 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 com-
petitive rail service. The rail carriers entering into such
an agreement shall establish the conditions and compensa-
tion applicable to such agreement, but, if the rail carriers
cannot agree upon such conditions and compensation
within a reasonable period of time, the Panel may estab-
lish such conditions 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
interests 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 con-
ditions, 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, prac-
ticability, justification, and compensation to be paid for
the connection. 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 fur-
nish 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 carrier has materially failed to furnish that serv-
ice. The Panel may begin a proceeding under this para-
graph when an interested 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 pre-
sented, 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
equipment, including a return equal to the rail car-
rier’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
person; 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
determining the rate of compensation, the Panel shall con-
sider the transportation use of each type of freight car,
the national level of ownership of each type of freight car,
and other factors that affect the adequacy of the national
freight car supply.
‘‘§ 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 pub-
lic. 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 sub-
chapter 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 estab-
lish the terms for them in a later proceeding.
‘‘(c) When there is a shortage of equipment, conges-
tion of traffic, or other emergency declared by the Panel,
it may prescribe temporary through routes that are desir-
able in the public interest on its own initiative or on appli-
cation without 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
carriers
‘‘(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 pref-
erence or priority to the movement of certain traffic, the
Panel shall direct that preference or priority be given to
that traffic.
‘‘(2) When the President, during time of war or
threatened 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 trans-
portation subject to the jurisdiction of the Panel under
this part shall adopt every means within their control to
facilitate and expedite 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, re-
lated 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 con-
form such system to generally accepted accounting prin-
ciples, 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
property 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 deprecia-
tion charge on a class of property other than that
prescribed 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 furnish-
ing 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 pre-
scribe, 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
period 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 burden-
some means by which the required information may be de-
veloped for regulatory purposes. To the maximum extent
practicable, the Panel shall conform such rules to gen-
erally accepted accounting 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 modi-
fications in such system unless, within 60 days after the
date of notification, the Panel finds such modifications to
be inconsistent with the rules promulgated by the Panel
under section 10961 of this title.
‘‘(b) For purposes of determining whether the cost
accounting 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 compli-
ance with such rules. Such documents, papers, and records
(and any copies thereof) shall not be subject to the manda-
tory disclosure 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, com-
munities, 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 require-
ments consistent with generally accepted accounting prin-
ciples uniformly applied to such carriers. Such require-
ments shall be cost effective and compatible with and not
duplicative of the managerial and responsibility account-
ing requirements 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 accordance with the cost accounting
principles established by the Railroad Accounting Prin-
ciples 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 ac-
counting principles established by the Board or under gen-
erally 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 ap-
proval.
‘‘11125. Consolidation, merger, and acquisition of control: procedure.
‘‘11126. Employee protective arrangements in transactions involving rail car-
riers.
‘‘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 evidenc-
ing the mortgage, lease, conditional sale, or bailment of
or security interest in railroad cars, locomotives, or other
rolling stock, or accessories used on such railroad cars,
locomotives, or other rolling stock (including super-
structures and racks), intended for a use related to inter-
state commerce shall be filed with the Panel in order to
perfect the security interest that is the subject of such
instrument. An assignment of a right or interest under
one of those instruments and an amendment to that in-
strument 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 acknowl-
edged or verified under Panel regulations. When filed
under this section, that document is notice to, and enforce-
able against, all persons. A document filed under this sec-
tion does not have to be filed, deposited, registered, or re-
corded under another law of the United States, a State
(or its political subdivisions), 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, guarantors, 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
section. 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 evidenc-
ing the mortgage, lease, conditional sale, or bailment of
or security interest in railroad cars, locomotives, or other
rolling stock, or accessories used on such railroad cars,
locomotives, or other rolling stock (including super-
structures 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
domiciled 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 gov-
erned by this section.
‘‘(g) The Panel shall collect, maintain, and keep open
for public inspection a railway equipment register consist-
ent with the manner and format maintained by the Inter-
state Commerce Commission as of the date of the enact-
ment of the ICC Termination Act of 1995.
‘‘SUBCHAPTER II—COMBINATIONS
‘‘§ 11121. Scope of authority
‘‘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
transaction, own and operate property, and exercise con-
trol or franchises acquired through the transaction with-
out the approval of a State authority. A rail carrier, cor-
poration, or person participating in that approved or ex-
empted 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.
‘‘§ 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
without 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 earn-
ings—
‘‘(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 car-
riers.
‘‘(c) The Panel may begin a proceeding under this
section 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
result is reached, only with the approval and authorization
of the Panel under this subchapter. In addition to other
transactions, each of the following transactions are consid-
ered achievements of control or management:
‘‘(1) A transaction by a rail carrier that has the
effect of putting that rail carrier and person affili-
ated with it, taken together, in control of another
rail carrier.
‘‘(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 affili-
ated with a rail carrier) that has the effect of put-
ting those persons and rail carriers and persons af-
filiated with any of them, or with any of those affili-
ated rail carriers, taken together, in control of an-
other rail carrier.
‘‘(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 au-
thority. 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 pro-
posed transaction is located and shall notify those rail car-
riers. The Panel shall hold a public hearing unless the
Panel determines 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 includ-
ing, 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 af-
fected by the proposed transaction; and
‘‘(5) whether the proposed transaction would
have an adverse effect on competition among rail
carriers in the affected region or in the national rail
system.
‘‘(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 track-
age rights and access to other facilities. Any trackage
rights and related conditions imposed to alleviate anti-
competitive effects of the transaction shall provide for op-
erating terms and compensation levels to ensure that such
effects are alleviated. When the transaction contemplates
a guaranty or assumption 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 trans-
action 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
railroads, 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 like-
ly to be substantial lessening of competition, cre-
ation 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 trans-
action outweigh the public interest in meeting sig-
nificant 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 Attorney General.
‘‘(e) No transaction described in section 11126(b)
may have the effect of avoiding a collective bargaining
agreement or shifting work from a rail carrier with a col-
lective bargaining agreement to a rail carrier without a
collective bargaining agreement.
‘‘(f)(1) To the extent provided in this subsection, a
proceeding under this subchapter relating to a transaction
involving at least one Class I rail carrier shall not be con-
sidered an adjudication required by statute to be deter-
mined on the record after opportunity for an agency hear-
ing, 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 sub-
section, subject to the requirements of paragraph (3) of
this subsection.
‘‘(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 con-
cerning the merits of a proceeding described in paragraph
(1) shall promptly place a written summary of the oral
communication 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 rejec-
tion 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
‘‘(1) Written comments about an application,
including 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
applications 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 evi-
dentiary proceedings.
‘‘(d) For all applications under this section other
than those specified in subsections (b) and (c) of this sec-
tion, the following conditions apply:
‘‘(1) Written comments about an application,
including 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 evi-
dentiary proceedings.
‘‘§ 11126. Employee protective arrangements in trans-
actions involving rail carriers
‘‘(a) Except as otherwise provided in this section,
when approval is sought for a transaction under sections
11124 and 11125 of this title, the Panel shall require the
rail carrier to provide a fair arrangement at least as pro-
tective 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 approv-
ing the transaction must require that the employees of the
affected 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).
‘‘(b) When approval is sought under sections 11124
and 11125 for a transaction involving one Class II and
one or more Class III rail carriers, there shall be an ar-
rangement as required under subsection (a) of this sec-
tion, except that the arrangement shall be limited to one
year of severance pay, which shall not exceed the amount
of earnings from the railroad employment of that employee
during the 12-month period immediately preceding the
date on which the application for approval of such trans-
action is filed with the Panel. The amount of such sever-
ance pay shall be reduced by the amount of earnings from
railroad employment of that employee with the acquiring
carrier during the 12-month period immediately following
the effective date of the transaction. The parties may
agree to terms other than as provided in this subsection.
‘‘(c) When approval is sought under sections 11124
and 11125 for a transaction involving only Class III rail
carriers, this section shall not apply.
‘‘(d) For purposes of this section, the terms ‘Class
II rail carrier’ and ‘Class III rail carrier’ have the meaning
given those terms by the Panel.
‘‘§ 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
property and land used primarily for agricultural
purposes 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 ju-
risdiction has to the true market value of the other
commercial and industrial property.
‘‘(2) Levy or collect a tax on an assessment
that may not be made under paragraph (1) of this
subsection.
‘‘(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 jurisdic-
tion.
‘‘(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
without regard to the amount in controversy or citizenship
of the parties, a district court of the United States has
jurisdiction, concurrent with other jurisdiction of courts
of the United States and the States, to prevent a violation
of subsection (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 ex-
ceeds by at least 5 percent the ratio of assessed value to
true market value of other commercial and industrial
property in the same assessment 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 industrial property cannot be deter-
mined 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 viola-
tion 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
property 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
regularly assigned duties as such an employee on a rail-
road 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 res-
idence.
‘‘(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: 
INVES-
TIGATIONS, 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) Except as otherwise provided in this part, the
Panel may begin an investigation under this part only on
complaint. If the Panel finds that a rail carrier is violating
this part, the Panel shall take appropriate action to com-
pel 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 de-
termines does not state reasonable grounds for investiga-
tion and action. However, the Panel may not dismiss a
complaint made against a rail carrier providing transpor-
tation subject to the jurisdiction of the Panel under this
part because of the absence of direct damage to the com-
plainant.
‘‘(c) A formal investigative proceeding begun by the
Panel under subsection (a) of this section is dismissed
automatically unless it is concluded by the Panel with ad-
ministrative 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 per-
mit issued under this part, and to prosecute a person vio-
lating 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 in a United States District Court to enforce
that order under this subsection.
‘‘(b) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part is liable
for damages sustained by a person as a result of an act
or omission of that carrier in violation of this part.
‘‘(c)(1) A person may file a complaint with the Panel
under section 11501(b) of this title or bring a civil action
under subsection (b) of this section to enforce liability
against a rail carrier providing transportation subject to
the jurisdiction of the Panel under this part.
‘‘(2) When the Panel makes an award under sub-
section (b) of this section, the Panel shall order the rail
carrier to pay the amount awarded by a specific date. The
Panel may order a rail carrier providing transportation
subject to the jurisdiction of the Panel under this part
to pay damages only when the proceeding is on complaint.
The person for whose benefit an order of the Panel requir-
ing the payment of money is made may bring a civil action
to enforce that order under this paragraph if the rail car-
rier does not pay the amount awarded by the date pay-
ment was ordered to be made.
‘‘(d)(1) When a person begins a civil action under
subsection (b) of this section to enforce an order of the
Panel requiring the payment of damages by a rail carrier
providing transportation subject to the jurisdiction of the
Panel under this part, the text of the order of the Panel
must be included in the complaint. In addition to the dis-
trict courts of the United States, a State court of general
jurisdiction having jurisdiction of the parties has jurisdic-
tion to enforce an order under this paragraph. The find-
ings 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 district—
‘‘(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
carrier runs.
In a civil action under this paragraph, the plaintiff is liable
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 operating 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 at-
torney’s fee as a part of the damages for which a rail car-
rier 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 transpor-
tation 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
within 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
notice is given to the claimant by the rail carrier of dis-
allowance of any part of the claim specified in the notice
if a written claim is given to the rail carrier within that
limitation 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 collec-
tion is made within the appropriate period.
‘‘(d) A person must begin a civil action to enforce
an order of the Panel against a rail carrier for the pay-
ment 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 pro-
viding transportation or service subject to the jurisdiction
of the Panel under this part are liable to the person enti-
tled to recover under the receipt or bill of lading. The li-
ability 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 trans-
ported 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
transportation nearest the destination but does not include
a rail carrier providing only a switching service at the des-
tination.
‘‘(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 ex-
cept as provided in this subsection. A limitation of liability
or of the amount of recovery or representation or agree-
ment in a receipt, bill of lading, contract, or rule in viola-
tion 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 car-
ried 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.
100
‘‘(B) In this section, ‘judicial district’ means (i) in
the case of a United States district court, a judicial dis-
trict of the United States, and (ii) in the case of a State
court, the applicable geographic area over which such
court exercises jurisdiction.
‘‘(e) A rail carrier may not provide by rule, contract,
or otherwise, a period of less than 9 months for filing a
claim against it under this section and a period of less
than 2 years for bringing a civil action against it under
this section. The period for bringing a civil action is com-
puted from the date the carrier gives a person written no-
tice that the carrier has disallowed any part of the claim
specified in the notice. For the purposes of this sub-
section—
‘‘(1) an offer of compromise shall not constitute
a disallowance of any part of the claim unless the
carrier, in writing, informs the claimant that such
part of the claim is disallowed and provides reasons
for such disallowance; and
‘‘(2) communications received from a carrier’s
insurer shall not constitute a disallowance of any
part of the claim unless the insurer, in writing, in-
forms the claimant that such part of the claim is
disallowed, provides reasons for such disallowance,
101
and informs the claimant that the insurer is acting
on behalf of the carrier.
‘‘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 juris-
diction 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 viola-
tion. A separate violation occurs for each day the violation
continues.
‘‘(b) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part, or a re-
ceiver 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
102
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 Govern-
ment 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
submit 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 required 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 les-
sor, receiver, or trustee of that rail carrier, violating sec-
103
tion 10944(b)(1) of this title, is liable to the United States
Government 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,
receiver, or trustee of that rail carrier, a person furnishing
cars, and an officer, agent, or employee of one of them,
required to make a report to the Panel or answer a ques-
tion that does not make the report or does not specifically,
completely, 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-
104
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
anything 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 sub-
ject 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;
105
‘‘(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 sub-
ject to the jurisdiction of the Panel under this part,
or an officer, agent, or employee of that rail carrier,
or another 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 re-
ceives,
information described in subsection (b) without the con-
sent 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
106
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 trans-
actions 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
authority 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 ad-
just 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
107
of this title by a rail carrier providing transportation sub-
ject 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, impris-
oned for not more than one year, or both.
‘‘§ 11706. General criminal penalty when specific
penalty 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 acting for or employed by the corporation that,
alone or with another person, willfully violates this part
or an order prescribed under this part, shall be fined not
more than $5,000. However, if the violation is for dis-
crimination 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 oc-
curs each day a violation of section 11122 of this title con-
tinues.
108
‘‘§ 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
chapter apply to that violation. When acting in the scope
of their employment, the actions and omissions of individ-
uals acting for or employed by that rail carrier are consid-
ered to 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.
109
‘‘13102. Definitions.
‘‘13103. Remedies as cumulative.
‘‘§ 13101. Transportation policy
‘‘(a) IN GENERAL.—To ensure the development, co-
ordination, and preservation of a transportation system
that meets the transportation needs of the United States,
including 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 inher-
ent advantage of each mode of transportation;
‘‘(B) to promote safe, adequate, economi-
cal, 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 mat-
ters; and
‘‘(F) to encourage fair wages and working
conditions in the transportation industry;
110
‘‘(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 car-
rier transportation system and to require fair
and expeditious decisions when required;
‘‘(C) meet the needs of shippers, receivers,
passengers, and consumers;
‘‘(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
equipment and energy resources;
‘‘(F) enable efficient and well-managed
carriers to earn adequate profits, attract cap-
ital, and maintain fair wages and working con-
ditions;
‘‘(G) provide and maintain service to small
communities and small shippers and intrastate
bus services;
111
‘‘(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—
‘‘(A) to cooperate with the States on trans-
portation matters for the purpose of encourag-
ing the States to exercise intrastate regulatory
jurisdiction 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
Regulatory Reform Act of 1982 are not nul-
lified by State regulatory actions.
112
‘‘(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.
‘‘(2) CARRIER.—The term ‘carrier’ means a
motor carrier, a water carrier, and a freight for-
warder.
‘‘(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 effec-
tive 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).
113
‘‘(4) CONTROL.—The term ‘control’, when re-
ferring to a relationship between persons, includes
actual control, legal control, and the power to exer-
cise 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
‘foreign motor carrier’ means a person (including a
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 vehi-
cle under an agreement or contract entered into
with a motor carrier of property (other than a
motor private carrier or a motor carrier of
property described in subparagraph (A)).
‘‘(6) FOREIGN MOTOR PRIVATE CARRIER.—The
term ‘foreign motor private carrier’ means a person
114
(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
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 pro-
vides for assembling and consolidating, ship-
ments and performs or provides for break-bulk
and distribution operations of the shipments;
115
‘‘(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 transpor-
tation 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 ‘house-
hold goods’, as used in connection with transpor-
tation, means personal effects and property used or
to be used in a dwelling, when a part of the equip-
ment or supply of such dwelling, and similar prop-
erty 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
purchased by the householder with intent to use
in his or her dwelling, or
‘‘(B) arranged and paid for by another
party.
116
‘‘(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 vehi-
cle when—
‘‘(A) the transportation is as provided in
section 13501 of this title;
‘‘(B) the person is the owner, lessee, or
bailee of the property being transported; and
‘‘(C) the property is being transported for
sale, lease, rent, or bailment or to further a
commercial 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
117
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
transportation subject to jurisdiction under chapter
135 involving 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
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 Co-
lumbia.
‘‘(19) TRANSPORTATION.—The term ‘transpor-
tation’ includes—
‘‘(A) a motor vehicle, vessel, warehouse,
wharf, pier, dock, yard, property, facility, in-
118
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, 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.
119
‘‘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 car-
rying out this part. The Secretary may prescribe regula-
tions 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 busi-
ness 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 wit-
ness 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.
120
‘‘(2) ENFORCEMENT.—The district courts of the
United States have jurisdiction to enforce a sub-
poena issued under this section. Trial is in the dis-
trict in which the proceeding is conducted. The court
may punish a refusal to obey a subpoena as a con-
tempt 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 testimony of a witness by deposition and may re-
quire the witness to produce records at any time
after a proceeding is at issue on petition and an-
swer.
‘‘(2) SUBPOENA.—If a witness fails to be de-
posed or to produce records under paragraph (1) of
this subsection, the Secretary may subpoena the wit-
ness 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
121
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 writ-
ing by the party or the attorney of that party pro-
posing to take a deposition to the opposing party or
the attorney of record of that party, whoever is near-
est. 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 testi-
mony taken. The transcript shall be subscribed by
the deponent.
‘‘(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.
122
‘‘(e) WITNESS FEES.—Each witness summoned be-
fore the Secretary or whose deposition is taken under this
section and the individual taking the deposition are enti-
tled 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 no-
tice 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
designate, in writing, an agent by name and post office
address 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 provid-
ing transportation under this part shall also file the des-
ignation with the appropriate authority of each State in
123
which it operates. The designation may be changed at any
time in the same manner as originally made.
‘‘(c) NOTICE.—A notice to a motor carrier, freight
forwarder, or broker shall be served personally or by mail
on the motor carrier, freight forwarder, or broker or on
its designated 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 consid-
ered to be the time when the notice is served. If a motor
carrier, freight forwarder, or broker does not have a des-
ignated agent, service 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-
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
jurisdiction may be served in an action brought against
that carrier or broker. The designation shall be in writing
124
and filed with the Department of Transportation. If a des-
ignation 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.
‘‘SUBCHAPTER I—MOTOR CARRIER
TRANSPORTATION
‘‘§ 13501. General jurisdiction
‘‘The Secretary and the Panel have jurisdiction, as
specified in this part, over transportation by motor carrier
and the procurement of that transportation, to the extent
125
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
territory 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.
‘‘§ 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—
126
‘‘(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 com-
ply, with respect to all transportation provided be-
tween Alaska and the other State, with the require-
ments of this part related to rates and practices ap-
plicable 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
terminal 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;
‘‘(ii) a water carrier subject to juris-
diction under subchapter II of this chapter;
or
127
‘‘(iii) a freight forwarder subject to
jurisdiction under subchapter III of this
chapter; and
‘‘(C) is incidental to transportation or
service provided by the carrier or freight for-
warder 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 pro-
vided by paragraph (2) of this subsection, neither
the Secretary nor the Panel has jurisdiction under
this subchapter over transportation by motor vehicle
provided in a terminal area when the transpor-
tation—
‘‘(A) is a transfer, collection, or delivery;
and
128
‘‘(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
PRINCIPAL.—Transportation exempt from jurisdic-
tion under paragraph (1) of this subsection is con-
sidered transportation provided by the carrier or
service provided by the freight forwarder for whom
the transportation was provided and is subject to ju-
risdiction under chapter 105 of this title when pro-
vided for such a rail carrier, under this subchapter
when provided for such a motor carrier, under sub-
chapter II of this chapter when provided for such a
water carrier, and under subchapter III of this chap-
ter when provided for such a freight forwarder.
129
‘‘§ 13504. Exempt motor carrier transportation en-
tirely in one State
‘‘Neither the Secretary nor the Panel has jurisdiction
under this subchapter over transportation, except trans-
portation of household goods, by a motor carrier operating
solely 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 operating solely within the State of Hawaii, trans-
portation exempt 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
transportation of property by motor vehicle for com-
pensation provided by a person who is a member of
130
a corporate family for other members of such cor-
porate 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
specified places;
‘‘(3) a motor vehicle owned or operated by or
for a hotel and only transporting hotel patrons be-
tween 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
131
‘‘(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
transportation 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 farm-
er, 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
132
between those places, measured by ton-
nage; 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 asso-
ciation or federation 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 there-
of);
‘‘(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
vegetables, cocoa beans, coffee beans, tea, ba-
nanas, or hemp, or wool imported from a for-
eign 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
byproducts thereof not intended for human con-
133
sumption, other than fish or shellfish that have
been treated for preserving, such as canned,
smoked, pickled, spiced, corned, or kippered
products; and
‘‘(E) livestock and poultry feed and agri-
cultural seeds and plants, if such products (ex-
cluding products otherwise exempt under this
paragraph) are transported to a site of agricul-
tural production or to a business enterprise en-
gaged 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 trans-
ported 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 vehi-
cle in lieu of transportation by aircraft because of
adverse weather conditions or mechanical failure of
134
the aircraft or other causes due to circumstances be-
yond the control of the carrier or shipper;
‘‘(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 com-
mute 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 vehi-
cles);
‘‘(12) transportation of natural, crushed, vesic-
ular 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
powdered glass.
‘‘(b) EXEMPT UNLESS OTHERWISE NECESSARY.—
Except 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-
135
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
that is adjacent to, and commercially a part of, the
municipality or municipalities, except—
‘‘(A) when the transportation is under
common control, management, or arrangement
for a continuous carriage or shipment to or
from a place outside the municipality, munici-
palities, 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 jurisdiction under this part only if the
motor carrier operating the motor vehicle also
is lawfully providing 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
136
transportation provided by a person authorized to
transport passengers by motor vehicle under an ap-
plication pending, or registration issued, under this
part; or
‘‘(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 sta-
tus of such exempt property or the regulated status of the
property 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
section 15(a) of the Agricultural Marketing Act (12
U.S.C. 1141j(a))) or a federation of cooperative associa-
tions shall prepare and maintain such records relating to
137
transportation provided by such association or federation,
in such form as the Secretary or the Panel may require
by regulation to carry out the provisions of such section
13506(a)(5). The Secretary or the Panel, or an employee
designated by 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 co-
operative association or federation of cooperative associa-
tions described in subsection (a) of this section to file re-
ports with the Secretary or the Panel containing answers
to questions about transportation provided by such asso-
ciation 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 cooperative association or federation of cooperative asso-
ciations described in subsection (a).
‘‘(d) REPORTING PENALTIES.—
138
‘‘(1) IN GENERAL.—A person required to make
a report to the Secretary or the Panel, answer a
question, or maintain a record under this section, or
an officer, agent, or employee of that person, that—
‘‘(A) does not make the report;
‘‘(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.
139
‘‘(e) EVASION PENALTIES.—A person, or an officer,
employee, or agent of that person, that by any means
knowingly and willfully tries to evade compliance with the
provisions 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.
‘‘(f) RECORDKEEPING PENALTIES.—A person re-
quired to make a report, answer a question, or maintain
a record under this section, or an officer, agent, or em-
ployee 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 an-
swered;
‘‘(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
140
‘‘(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.
‘‘SUBCHAPTER II—WATER CARRIER
TRANSPORTATION
‘‘§ 13521. General jurisdiction
‘‘(a) GENERAL RULES.—The Secretary and the
Panel have jurisdiction over transportation insofar as
water carriers are concerned—
‘‘(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
141
and a place outside the United States, to the extent
that—
‘‘(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) LIMITATION.—The Panel may not exempt a
water carrier from the application of, or compliance with,
sections 13701 and 13702 for transportation in noncontig-
uous domestic trade.
142
‘‘(c) 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 freight forwarder undertakes to provide, or is au-
thorized or required under this part to provide, to the ex-
tent transportation 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 under-
taken by a freight forwarder using transportation of an
air carrier subject to part A of subtitle VII of this title.
143
‘‘SUBCHAPTER IV—AUTHORITY TO EXEMPT
‘‘§ 13541. Authority to exempt transportation or serv-
ices
‘‘(a) IN GENERAL.—In any matter subject to juris-
diction under this part, the Secretary or the Panel, as ap-
plicable, 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, 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
service 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.
144
‘‘(d) REVOCATION.—The Secretary or Panel, as ap-
plicable, 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-
age, insurance, safety fitness, or activities approved under
section 13703 or 14302 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. Payment of rates.
‘‘13708. Billing and collecting practices.
‘‘13709. Procedures for resolving claims involving unfiled, negotiated transpor-
tation rates.
‘‘13710. Additional billing and collecting practices.
‘‘13711. Alternative procedure for resolving undercharge disputes.
‘‘13712. Government traffic.
‘‘13713. Food and grocery transportation.
‘‘§ 13701. Requirements for reasonable rates, classi-
fications, through routes, rules, and prac-
tices for certain transportation
‘‘(a) REASONABLENESS.—
145
‘‘(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,
‘‘(B) a rate for a movement by or with a
water carrier in noncontiguous domestic trade,
or
‘‘(C) rates, rules, and classifications made
collectively by motor carriers under agreement
pursuant to section 13703,
must be reasonable.
‘‘(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
violation of subsection (a), the Panel shall prescribe the
rate, classification, rule, practice, through route, or divi-
sion of joint rates to be applied for such transportation
or service.
‘‘(c) ZONE OF REASONABLENESS.—
146
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, a rate or division of a carrier for service in
noncontiguous domestic trade is reasonable if the
aggregate of increases and decreases in any such
rate or division 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 pro-
posed rate or division.
‘‘(2) ADJUSTMENTS TO THE ZONE.—The per-
centage 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 dur-
ing the most recent 1-year period before the date the
rate or division in question first took effect.
‘‘§ 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;
147
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
service, 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
public 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
plainly—
‘‘(A) the carriers that are parties to it;
148
‘‘(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 de-
termine 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.
‘‘(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 car-
riers to change rates, classifications, rules, and prac-
tices without filing complete tariffs under this sub-
section that cover matter that is not being changed
when the Panel finds that action to be consistent
with the public interest. Those carriers may either—
149
‘‘(A) publish new tariffs that incorporate
changes, or
‘‘(B) plainly indicate the proposed changes
in the tariffs then in effect and make the tariffs
as changed available 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 in-
spection 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 given notice that the tariff is available for in-
spection in its bill of lading or by other actual notice
to individuals whose shipments are subject to the
tariff.
‘‘(3) REQUIREMENTS.—A carrier that main-
tains 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.
150
‘‘(4) INCORPORATION BY REFERENCE.—A car-
rier may incorporate by reference the rates, terms,
and other conditions of a tariff in agreements cover-
ing the transportation of household goods.
‘‘(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
submitted to the Panel for resolution.
‘‘(d) INVALIDATION.—The Panel may invalidate a
tariff 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.—
‘‘(1) AUTHORITY TO ENTER.—A motor carrier
providing transportation or service subject to juris-
diction under chapter 135 may enter into an agree-
ment with one or more such carriers to establish—
‘‘(A) through routes and joint rates;
‘‘(B) rates for the transportation of house-
hold goods;
‘‘(C) classifications;
‘‘(D) mileage guides;
‘‘(E) rules;
151
‘‘(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,
initiation, or establishment of matters described
in subparagraphs (A) through (G).
‘‘(2) SUBMISSION OF AGREEMENT TO PANEL;
APPROVAL.—An agreement entered into under sub-
section (a) may be submitted by any carrier or car-
riers that are parties to such agreement to the Panel
for approval and may be approved by the Panel only
if it finds that such agreement is in the public inter-
est.
‘‘(3) CONDITIONS.—The Panel may require
compliance with reasonable conditions consistent
with this part to assure that the agreement furthers
the transportation policy set forth in section 13101.
‘‘(4) INDEPENDENTLY ESTABLISHED RATES.—
Any carrier which is a party to an agreement under
paragraph (1) is not, and may not be precluded,
from independently establishing its own rates, classi-
fication, and mileages or from adopting and using a
noncollectively made classification or mileage guide.
152
‘‘(5) INVESTIGATIONS.—
‘‘(A) REASONABLENESS.—The Panel may
suspend and investigate the reasonableness of
any rate, rule, classification, or rate adjustment
of general application made pursuant to an
agreement under this section.
‘‘(B) ACTIONS NOT IN THE PUBLIC INTER-
EST.—The Panel may investigate any action
taken pursuant to an agreement approved
under this section. If the Panel finds that the
action is not in the public interest, the Panel
may take such measures as may be necessary to
protect the public interest with regard to the
action, including issuing an order directing the
parties to cease and desist or modify the action.
‘‘(6) EFFECT OF APPROVAL.—If the Panel ap-
proves the agreement or renews approval of the
agreement, 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 ap-
153
proved 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 organiza-
tion’s compliance with this section.
‘‘(c) REVIEW.—The Panel may review an agreement
approved under this section, on its own initiative or on
request, and shall change the conditions of approval or
terminate 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 re-
newal. The Panel shall approve the renewal unless it finds
that the renewal is not in the public interest. Parties to
154
the agreement may continue to undertake activities pursu-
ant to the previously approved agreement while the re-
newal request is pending.
‘‘(e) EXISTING AGREEMENTS.—Agreements approved
under former section 10706(b) and in effect on the day
before the effective date of this section shall be treated
for purposes of this section as approved by the Panel
under this section beginning on such effective date.
‘‘(f) LIMITATIONS ON STATUTORY CONSTRUCTION.—
‘‘(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) INDUSTRY STANDARD GUIDES.—
‘‘(1) IN GENERAL.—
‘‘(A) 
PUBLIC
AVAILABILITY.—Routes,
rates, classifications, mileage guides, and rules
established under agreements approved under
155
this section shall be published and made avail-
able for public inspection upon request.
‘‘(B) PARTICIPATION OF CARRIERS.—
‘‘(i) IN GENERAL.—A motor carrier of
property whose routes, rates, classifica-
tions, mileage guides, rules, or packaging
are determined or governed by publications
established under agreements approved
under this section must participate in the
determining or governing publication for
such provisions to apply.
‘‘(ii) POWER
OF
ATTORNEY.—The
motor carrier of property shall issue a
power of attorney to the publishing agent
and, upon its acceptance, the agent shall
issue a written certification to the motor
carrier affirming its participation in the
governing publication, and the certification
shall be made available for public inspec-
tion.
‘‘(2) MILEAGE LIMITATION.—No carrier subject
to jurisdiction under subchapter I or III of chapter
135 may enforce collection of its mileage rates un-
less such carrier—
156
‘‘(A) uses an independent publication of
mileage that is developed independently of any
other publication of mileage developed by any
other carrier and that can be examined by any
interested person upon reasonable request; or
‘‘(B) is a participant in a publication of
mileages formulated under an agreement ap-
proved under this section.
‘‘(h) SINGLE LINE RATE DEFINED.—In this section,
the term ‘single line rate’ means a rate, charge, or allow-
ance proposed by a single motor carrier that is applicable
only over its line and for which the transportation can be
provided 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
providing transportation of household goods subject
to jurisdiction under subchapter I of chapter 135
may establish a rate for the transportation of house-
hold goods which is based on the carrier’s written,
binding estimate of charges for providing such trans-
portation.
157
‘‘(2) NONPREFERENTIAL; 
NONPREDATORY.—
Any rate established under this subsection must be
available 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
providing transportation of household goods subject
to jurisdiction under subchapter I of chapter 135
may establish rates for the transportation of house-
hold goods which guarantee that the carrier will pick
up and deliver such household goods at the times
specified in the contract for such services and pro-
vide a penalty or per diem payment in the event the
carrier fails to pick up or deliver such household
goods at the specified time. The charges, if any, for
such guarantee and penalty provision may vary to
reflect one or more options available to meet a par-
ticular 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, dur-
158
ing any period such rate is in effect under para-
graph (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 household 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
jurisdiction under subchapter I of chapter 135 shall estab-
lish 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.
‘‘(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 ju-
risdiction 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 prop-
erty by a shipper or consignor to a consignee other than
159
the shipper 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 con-
signee 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 additional 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
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
transported. The beneficial owner is liable for all rates
when the property is reconsigned or diverted by an agent
but is refused or abandoned at its ultimate destination if
160
the agent gave the carrier in the reconsignment or diver-
sion order a notice of agency and the name and address
of the beneficial owner. A consignee giving the carrier er-
roneous information about the identity of the beneficial
owner of the property is liable for the additional rates.
‘‘§ 13707. Payment of rates
‘‘(a) TRANSFER OF POSSESSION UPON PAYMENT.—
Except as provided in subsection (b), a carrier providing
transportation or service subject to jurisdiction under this
part shall give up possession at the destination of the
property transported by it only when payment for the
transportation or service is made.
‘‘(b) EXCEPTIONS.—
‘‘(1) REGULATIONS.—Under regulations of the
Secretary governing the payment for transportation
and service and preventing discrimination, those car-
riers may give up possession at destination of prop-
erty transported by them before payment for the
transportation or service. The regulations of the Sec-
retary may provide for weekly or monthly payment
for transportation provided by motor carriers and
for periodic payment for transportation provided by
water carriers.
‘‘(2) EXTENSIONS
OF
CREDIT
TO
GOVERN-
MENTAL
ENTITIES.—Such a carrier (including a
161
motor carrier being used by a household goods
freight forwarder) may extend credit for transport-
ing property for the United States Government, a
State, a territory or possession of the United States,
or a political subdivision of any of them.
‘‘§ 13708. Billing and collecting practices
‘‘(a) DISCLOSURE.—A motor carrier subject to juris-
diction under subchapter I of chapter 135 shall disclose,
when a document is presented or electronically transmit-
ted 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 any
transportation service and shall also disclose, at such time,
whether and to whom any allowance or reduction in
charges is made.
‘‘(b) FALSE
OR MISLEADING INFORMATION.—No
person may cause a motor carrier to present false or mis-
leading 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 doc-
ument presented for payment to the person responsible di-
162
rectly to the motor carrier that a reduction, allowance, or
other adjustment may apply.
‘‘§ 13709. Procedures for resolving claims involving
unfiled, negotiated transportation rates
‘‘(a) TRANSPORTATION PROVIDED AT RATES OTHER
THAN LEGAL TARIFF 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 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 under subchapter I of
chapter 135, or by a party representing such a car-
rier 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 per-
son 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 appli-
cation of this section; and
163
‘‘(B) with respect to the claim—
‘‘(i) the person was offered a trans-
portation rate by the carrier or freight for-
warder other than that legally on file with
the Interstate Commerce Commission or
the Panel, as required, for the transpor-
tation service;
‘‘(ii) the person tendered freight to
the carrier or freight forwarder in reason-
able reliance upon the offered transpor-
tation rate;
‘‘(iii) the carrier or freight forwarder
did not properly or timely file with the
Interstate Commerce Commission or the
Panel, as required, 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.
‘‘(2) FORUM FOR RESOLUTION OF SHOWINGS.—
If there is a dispute as to the showing under para-
164
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
carrier or freight forwarder.
‘‘(3) EFFECT
OF
SATISFACTION
OF
CLAIMS
UNDER DISPUTE RESOLUTION PROCEDURE.—Satis-
faction 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 before the effective date of this section, or chap-
ter 149.
‘‘(b) CLAIMS
INVOLVING
SHIPMENTS
WEIGHING
10,000 POUNDS OR LESS.—A person from whom the ad-
ditional 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 pay-
ment of 20 percent of the difference between the carrier’s
applicable and effective tariff rate and the rate originally
billed and paid. In the event that a dispute arises as to
the rate that was legally applicable to the shipment, such
dispute shall be resolved by the Panel.
165
‘‘(c) CLAIMS
INVOLVING
SHIPMENTS
WEIGHING
MORE THAN 10,000 POUNDS.—A person from whom the
additional legally applicable and effective tariff rate or
charges are sought may elect to satisfy the claim, if the
shipments each weighed more than 10,000 pounds, by
payment of 15 percent of the difference between the car-
rier’s applicable and effective tariff rate and the rate origi-
nally 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.
‘‘(d) CLAIMS
INVOLVING
PUBLIC
WAREHOUSE-
MEN.—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 carrier’s applicable and effective tariff rate and the
rate originally billed and paid if such person is a public
warehouseman. In the event that a dispute arises as to
the rate that was legally applicable to the shipment, such
dispute shall be resolved by the 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 sub-
sections (b), (c) or (d), the person may pursue all rights
and remedies existing under this part or, for transpor-
166
tation provided before the effective date of this section,
all rights and remedies that existed 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 rea-
sonableness 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
proceed under subsection (b), (c), or (d). Except as
provided in paragraphs (2), (3), and (4), such elec-
tion may be made at any time.
‘‘(2) DEMANDS FOR PAYMENT INITIALLY MADE
AFTER DECEMBER 3, 1993.—If the carrier or freight
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
167
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
BEFORE
DECEMBER
4, 1993.—If the carrier or
freight forwarder or party representing such carrier
or freight forwarder has filed, before December 4,
1993, a suit for the collection of additional freight
charges 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 90th day following the date
on which such notification is received.
‘‘(4) DEMANDS FOR PAYMENT MADE BEFORE
DECEMBER 4, 1993.—If the carrier or freight for-
warder or party representing such carrier or freight
forwarder has demanded the payment of additional
freight charges, and has not filed a suit for the col-
lection of such additional freight charges, before De-
168
cember 4, 1993, and notifies the person from whom
additional freight charges are sought of the provi-
sions 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 CON-
CERNS, CHARITABLE ORGANIZATIONS, AND RECYCLABLE
MATERIALS.—
‘‘(1) 
IN
GENERAL.—Notwithstanding 
sub-
sections (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 dif-
ference between the carrier’s applicable and effective
tariff rate and the rate originally billed and paid—
‘‘(A) if such person qualifies as a small-
business concern under the Small Business Act
(15 U.S.C. 631 et seq.),
‘‘(B) if such person is an organization
which is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code, or
169
‘‘(C) if the cargo involved in the claim is
recyclable materials.
‘‘(2) RECYCLABLE
MATERIALS
DEFINED.—In
this subsection, the term ‘recyclable materials’
means waste products for recycling or reuse in the
furtherance of recognized pollution control pro-
grams.
‘‘§ 13710. Additional billing and collecting practices
‘‘(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 applicable to its shipment or agreed
to between the shipper and carrier may have been
based.
‘‘(2) REASONABLENESS OF RATES; COLLECTING
ADDITIONAL CHARGES.—When the applicability or
reasonableness of the rates 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 provisions are reasonable or
applicable based on the record before it.
170
‘‘(3) BILLING DISPUTES.—
‘‘(A) INITIATED BY MOTOR CARRIERS.—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 addi-
tion to those originally billed within 180 days of
the receipt of the original bill in order to have
the right to collect such charges.
‘‘(B) INITIATED BY SHIPPERS.—If a ship-
per seeks to contest the charges originally billed
or additional charges subsequently billed, the
shipper may request that the Panel determine
whether the charges billed must be paid. A
shipper must contest the original bill or subse-
quent bill within 180 days of receipt of the bill
in order to have the right to contest such
charges.
‘‘(4) VOIDING OF CERTAIN TARIFFS.—Any tar-
iff on file with the Interstate Commerce Commission
171
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 Com-
merce Commission on the effective date of this sec-
tion 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
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 that was pro-
vided prior to the effective date of this section was pro-
vided in its common carrier or contract carrier capacity
and the parties are not able to resolve the dispute consen-
sually, the Panel shall resolve the dispute.
‘‘§ 13711. 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
household goods carrier) providing transportation subject
to jurisdiction under subchapter I of chapter 135 or, be-
172
fore the effective date of this section, to have provided
transportation that was subject to jurisdiction under sub-
chapter II of chapter 105, as in effect on the day 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 (1) the applicable rate that was lawfully
in effect pursuant to a tariff that was filed in accordance
with this chapter or, with respect to transportation pro-
vided before the effective date of this section, in accord-
ance with chapter 107, as in effect on the date the trans-
portation was provided, by the carrier or freight forwarder
applicable to such transportation service, and (2) the ne-
gotiated rate for such transportation service if the carrier
or freight forwarder is no longer transporting property be-
tween places described in section 13501(1) or is transport-
ing property between places described in section 13501(1)
for the purpose of avoiding application of this section.
‘‘(b) JURISDICTION OF PANEL.—
‘‘(1) DETERMINATION.—The Panel shall have
jurisdiction to make a determination of whether or
not attempting to charge or the charging of a rate
by a motor carrier or freight forwarder or party rep-
resenting a motor carrier or freight forwarder is an
173
unreasonable practice under subsection (a). If the
Panel determines that attempting to charge or the
charging of the rate is an unreasonable practice
under subsection (a), the carrier, freight forwarder,
or party may not collect the difference described in
subsection (a) between 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
transportation rate by the carrier or freight for-
warder or party other than that legally on file
with the Interstate Commerce Commission or
the Panel, as required, at the time of the move-
ment for the transportation service;
‘‘(B) whether the person tendered freight
to the carrier or freight forwarder in reasonable
reliance upon the offered transportation rate;
‘‘(C) whether the carrier or freight for-
warder did not properly or timely file with the
Interstate Commerce Commission or the Panel,
as required, a tariff providing for such trans-
portation rate or failed to enter into an agree-
ment for contract carriage;
174
‘‘(D) whether the transportation rate was
billed and collected by the carrier or freight for-
warder; and
‘‘(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 rea-
sonableness of the practice of a motor carrier, freight for-
warder, or party described in subsection (a) to attempt
to charge or to charge the difference described in sub-
section (a) between the applicable rate and the negotiated
rate for the transportation service in addition to those
charges already billed and collected for the transportation
service, the person shall not have to pay any additional
compensation to the carrier, freight forwarder, or party
until the Panel has made a determination as to the reason-
ableness of the practice 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
requirements of sections 10761(a) and 10762, as in effect
on the day before such effective date, as such sections re-
175
late to a filed tariff rate and other general tariff require-
ments.
‘‘(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 transportation or service, section 13709 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.
‘‘(g) APPLICABILITY TO PENDING CASES.—This sec-
tion shall apply to all cases and proceedings pending on
the effective date of this section.
‘‘§ 13712. 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 Gov-
ernment can be obtained from a carrier lawfully operating
in the area where the transportation would be provided.
176
‘‘§ 13713. Food and grocery transportation
‘‘(a) CERTAIN COMPENSATION PROHIBITED.—Not-
withstanding any other provision of law, it shall not be
unlawful for a seller of food and grocery products using
a uniform zone delivered pricing system to compensate a
customer who picks up purchased food and grocery prod-
ucts at the shipping point of the seller if such compensa-
tion is available to all customers of the seller on a non-
discriminatory 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
Congress that any savings accruing to a customer by rea-
son 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 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 jurisdic-
tion under subchapter I of that chapter, only if the person
177
is registered under this chapter to provide the transpor-
tation 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-
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
established by the Secretary under section
31144; and
‘‘(C) the minimum financial responsibility
requirements established by the Secretary pur-
suant to sections 13906 and 31138.
‘‘(2) CONSIDERATION
OF
EVIDENCE; 
FIND-
INGS.—The Secretary shall consider and, to the ex-
tent applicable, make findings on, any evidence dem-
onstrating that the registrant is unable to comply
with the requirements of subparagraph (A), (B), or
(C) of paragraph (1).
178
‘‘(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
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
financial 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 recip-
ient of governmental assistance to provide special or
charter transportation subject to jurisdiction under
subchapter I of chapter 135 as a motor carrier of
passengers if the Secretary finds that the recipient
meets the requirements of subsection (a)(1), unless
the Secretary finds, on the basis of evidence pre-
sented by any person objecting to the registration,
179
that the transportation 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 as a motor carrier of passengers if the Sec-
retary 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
TRANSPOR-
TATION.—The Secretary shall register under
subsection (a)(1) a public recipient of govern-
180
mental assistance to provide regular-route
transportation subject to jurisdiction under sub-
chapter I of chapter 135 as a motor carrier of
passengers if the Secretary finds that the recip-
ient meets the requirements 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.
‘‘(C) TREATMENT OF CERTAIN PUBLIC RE-
CIPIENTS.—Any public recipient of govern-
mental assistance which is providing or seeking
to provide transportation of passengers subject
to jurisdiction under subchapter I of chapter
135 shall, for purposes of this part, be treated
as a person which is providing or seeking to
provide transportation of passengers subject to
such jurisdiction.
‘‘(3) INTRASTATE TRANSPORTATION.—A motor
carrier of passengers that is registered by the Sec-
retary under subsection (a) is authorized to provide
regular-route transportation entirely in one State as
a motor carrier of passengers if such intrastate
transportation is to be provided on a route over
181
which the carrier provides interstate transportation
of passengers.
‘‘(4) PREEMPTION REGARDING CERTAIN SERV-
ICE.—No State or political subdivision thereof and
no interstate agency or other political agency of 2 or
more States shall enact or enforce any law, rule, reg-
ulation, standard or other provision having the force
and effect of law relating to the provision of pickup
and delivery of express packages, newspapers, or
mail in a commercial zone if the shipment has had
or will have a prior or subsequent movement by bus
in intrastate commerce and, if a city within the com-
mercial zone, is served by a motor carrier of pas-
sengers providing regular-route transportation of
passengers subject to jurisdiction under subchapter
I of chapter 135.
‘‘(5) TREATMENT.—Any intrastate transpor-
tation authorized by this subsection shall be treated
as transportation subject to jurisdiction under sub-
chapter I of chapter 135 until such time as the car-
rier takes such action as is necessary to establish
under the laws of such State rates, rules, and prac-
tices applicable to such transportation, but in no
case later than the 30th day following the date on
which the motor carrier of passengers first begins
182
providing transportation entirely in one State under
this paragraph.
‘‘(6) SPECIAL
OPERATIONS.—This subsection
shall not apply to any regular-route transportation
of passengers provided entirely in one State which is
in the nature of a special operation.
‘‘(7) SUSPENSION OR REVOCATION.—Intrastate
transportation authorized under this subsection may
be suspended or revoked by the Secretary under sec-
tion 13905 of this title at any time.
‘‘(8) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) PUBLIC
RECIPIENT
OF
GOVERN-
MENTAL ASSISTANCE.—The term ‘public recipi-
ent of governmental assistance’ means—
‘‘(i) any State,
‘‘(ii) any municipality or other politi-
cal subdivision of a State,
‘‘(iii) any public agency or instrumen-
tality of one or more States and munici-
palities and political subdivisions of a
State,
‘‘(iv) any Indian tribe,
‘‘(v) any corporation, board, or other
person owned or controlled by any entity
183
described in clause (i), (ii), (iii), or (iv),
and
which before, on, or after the effective date of
this subsection received governmental assistance
for the purchase or operation of any bus.
‘‘(B) PRIVATE
RECIPIENT
OF
GOVERN-
MENT ASSISTANCE.—The term ‘private recipi-
ent of government assistance’ means any person
(other than a person described in subparagraph
(A)) who before, on, or after the effective date
of this paragraph received governmental finan-
cial assistance in the form of a subsidy for the
purchase, lease, or operation of any bus.
‘‘(c) RESTRICTIONS
ON MOTOR CARRIERS DOMI-
CILED IN OR OWNED OR CONTROLLED BY NATIONALS OF
A CONTIGUOUS FOREIGN COUNTRY.—
‘‘(1) PREVENTION OF DISCRIMINATORY PRAC-
TICES.—If the President, or the delegate thereof, de-
termines that an act, policy, or practice of a foreign
country contiguous to the United States, or any po-
litical subdivision or any instrumentality of any such
country is unreasonable or discriminatory and bur-
dens or restricts United States transportation com-
panies providing, or seeking to provide, motor car-
184
rier transportation to, from, or within such foreign
country, the President or such delegate may—
‘‘(A) seek elimination of such practices
through consultations; or
‘‘(B) notwithstanding any other provision
of law, suspend, modify, amend, condition, or
restrict operations, including geographical re-
striction of operations, in the United States by
motor carriers of property or passengers domi-
ciled in such foreign country or owned or con-
trolled by persons of such foreign country.
‘‘(2) EQUALIZATION OF TREATMENT.—Any ac-
tion taken under paragraph (1)(A) to eliminate an
act, policy, or practice shall be so devised so as to
equal to the extent possible the burdens or restric-
tions imposed by such foreign country on United
States transportation companies.
‘‘(3) REMOVAL OR MODIFICATION.—The Presi-
dent, or the delegate thereof, may remove or modify
in whole or in part any action taken under para-
graph (1)(A) if the President or such delegate deter-
mines that such removal or modification is consist-
ent with the obligations of the United States under
a trade agreement or with United States transpor-
tation policy.
185
‘‘(4) PROTECTION OF EXISTING OPERATIONS.—
Unless and until the President, or the delegate
thereof, makes a determination under paragraph (1)
or (3), nothing in this subsection shall affect—
‘‘(A) operations of motor carriers of prop-
erty or passengers domiciled in any contiguous
foreign country or owned or controlled by per-
sons of any contiguous foreign country per-
mitted in the commercial zones along the Unit-
ed States-Mexico border as such zones were de-
fined on the day before the effective date of this
section; or
‘‘(B) any existing restrictions on oper-
ations of motor carriers of property or pas-
sengers domiciled in any contiguous foreign
country or owned or controlled by persons of
any contiguous foreign country or any modifica-
tions thereof pursuant to section 6 of the Bus
Regulatory Reform Act of 1982.
‘‘(5) PUBLICATION; 
COMMENT.—Unless the
President, or the delegate thereof, determines that
expeditious action is required, the President shall
publish in the Federal Register any determination
under paragraph (1) or (3), together with a descrip-
tion of the facts on which such a determination is
186
based and any proposed action to be taken pursuant
to paragraph (1)(B) or (3), and provide an oppor-
tunity for public comment.
‘‘(6) DELEGATION TO SECRETARY.—The Presi-
dent may delegate any or all authority under this
subsection to the Secretary, who shall consult with
other agencies as appropriate. In accordance with
the directions of the President, the Secretary may
issue regulations to enforce this subsection.
‘‘(7) CIVIL ACTIONS.—Either the Secretary or
the Attorney General may bring a civil action in an
appropriate district court of the United States to en-
force this subsection or a regulation prescribed or
order issued under this subsection. The court may
award appropriate relief, including injunctive relief.
‘‘(8) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—This subsection shall not be construed as af-
fecting the requirement for all foreign motor carriers
operating in the United States to comply with all ap-
plicable laws and regulations pertaining to fitness,
safety of operations, financial responsibility, and
taxes imposed by section 4481 of the Internal Reve-
nue Code of 1986.
‘‘(d) MOTOR CARRIER DEFINED.—In this section
and sections 13905 and 13906, the term ‘motor carrier’
187
includes foreign motor carriers and foreign motor private
carriers.
‘‘§ 13903. Registration of freight forwarders
‘‘(a) IN GENERAL.—The Secretary shall register a
person to provide service subject to jurisdiction under sub-
chapter III of chapter 135 as a freight forwarder if the
Secretary finds that the person is willing and able to pro-
vide the service and to comply with this part and applica-
ble regulations of the Secretary and the Panel.
‘‘(b) REGISTRATION AS CARRIER REQUIRED.—The
freight forwarder may provide transportation as the car-
rier itself only if the freight forwarder also has registered
to provide transportation as a carrier under this chapter.
‘‘§ 13904. Registration of brokers
‘‘(a) IN GENERAL.—The Secretary shall register,
subject to section 13906(b), a person to be a broker for
transportation of property subject to jurisdiction under
subchapter I of chapter 135, if the Secretary finds that
the person is willing and able to be a broker for transpor-
tation and to comply with this part and applicable regula-
tions of the Secretary .
‘‘(b) LIMITATION.—The broker may provide trans-
portation itself only if the broker also has registered to
provide transportation as a carrier under this chapter.
188
‘‘(c) REGULATIONS TO PROTECT SHIPPERS.—Regu-
lations of the Secretary applicable to brokers registered
under this section shall provide for the protection of ship-
pers by motor vehicle.
‘‘(d) BOND AND INSURANCE.—The Secretary may
impose on brokers for motor carriers of passengers such
requirements for bonds or insurance or both as the Sec-
retary determines are needed to protect passengers and
carriers dealing with such brokers.
‘‘§ 13905. Effective periods of registration
‘‘(a) PERSON HOLDING ICC AUTHORITY.—Any per-
son having authority to provide transportation or service
as a motor carrier, freight forwarder, or broker under this
title, as in effect on the day before the effective date of
this section, shall be deemed, for purposes of this part,
to be registered to provide such transportation or service
under this part.
‘‘(b) IN GENERAL.—Each registration issued under
section 13902, 13903, or 13904 shall be effective from
the date specified by the Secretary and shall remain in
effect, except as otherwise provided in this part.
‘‘(c) SUSPENSION, AMENDMENTS, AND
REVOCA-
TIONS.—On application of the registrant, the Secretary
may amend or revoke a registration. On complaint or on
the Secretary’s own initiative and after notice and an op-
189
portunity for a proceeding, the Secretary may suspend,
amend, or revoke any part of the registration of a motor
carrier, broker, or freight forwarder for willful failure to
comply with this part, an applicable regulation or order
of the Secretary or of the Panel, or a condition of its reg-
istration.
‘‘(d) PROCEDURE.—Except on application of the reg-
istrant, the Secretary may revoke a registration of a motor
carrier, freight forwarder, or broker, only after—
‘‘(1) the Secretary has issued an order to the
registrant under section 14701 requiring compliance
with this part, a regulation of the Secretary, or a
condition of the registration; and
‘‘(2) the registrant willfully does not comply
with the order for a period of 30 days.
‘‘(e) EXPEDITED PROCEDURE.—
‘‘(1) PROTECTION OF SAFETY.—Without regard
to subchapter II of chapter 5 of title 5, the Sec-
retary may suspend the registration of a motor car-
rier, a freight forwarder, or a broker for failure to
comply with safety requirements of the Secretary or
the safety fitness requirements pursuant to section
13904(c), 13906, or 31144, of this title, or an order
or regulation of the Secretary prescribed under those
sections.
190
‘‘(2) IMMINENT HAZARD TO PUBLIC HEALTH.—
Without regard to subchapter II of chapter 5 of title
5, the Secretary may suspend a registration of a
motor carrier of passengers if the Secretary finds
that such carrier has been conducting unsafe oper-
ations which are an imminent hazard to public
health or property.
‘‘(3) NOTICE; PERIOD
OF
SUSPENSION.—The
Secretary may suspend under this subsection the
registration only after giving notice of the suspen-
sion to the registrant. The suspension remains in ef-
fect until the registrant complies with those applica-
ble sections or, in the case of a suspension under
paragraph (2), until the Secretary revokes such sus-
pension.
‘‘§ 13906. Security of motor carriers, brokers, and
freight forwarders
‘‘(a) MOTOR CARRIER REQUIREMENTS.—
‘‘(1) LIABILITY
INSURANCE
REQUIREMENT.—
The Secretary may register a motor carrier under
section 13902 only if the registrant files with the
Secretary a bond, insurance policy, or other type of
security approved by the Secretary, in an amount
not less than such amount as the Secretary pre-
scribes pursuant to, or as is required by, sections
191
31138 and 31139, and the laws of the State or
States in which the registrant is operating, to the
extent applicable. The security must be sufficient to
pay, not more than the amount of the security, for
each final judgment against the registrant for bodily
injury to, or death of, an individual resulting from
the negligent operation, maintenance, or use of
motor vehicles, or for loss or damage to property
(except property referred to in paragraph (3) of this
subsection), or both. A registration remains in effect
only as long as the registrant continues to satisfy
the security requirements of this paragraph.
‘‘(2) AGENCY REQUIREMENT.—A motor carrier
shall comply with the requirements of sections
13303 and 13304. To protect the public, the Sec-
retary may require any such motor carrier to file the
type of security that a motor carrier is required to
file under paragraph (1) of this subsection. This
paragraph only applies to a foreign motor private
carrier and foreign motor carrier operating in the
United States to the extent that such carrier is pro-
viding transportation between places in a foreign
country or between a place in one foreign country
and a place in another foreign country.
192
‘‘(3) TRANSPORTATION INSURANCE.—The Sec-
retary may require a registered motor carrier to file
with the Secretary a type of security sufficient to
pay a shipper or consignee for damage to property
of the shipper or consignee placed in the possession
of the motor carrier as the result of transportation
provided under this part. A carrier required by law
to pay a shipper or consignee for loss, damage, or
default for which a connecting motor carrier is re-
sponsible is subrogated, to the extent of the amount
paid, to the rights of the shipper or consignee under
any such security.
‘‘(b) BROKER REQUIREMENTS.—The Secretary may
register a person as a broker under section 13904 only
if the person files with the Secretary a bond, insurance
policy, or other type of security approved by the Secretary
to ensure that the transportation for which a broker ar-
ranges is provided. The registration remains in effect only
as long as the broker continues to satisfy the security re-
quirements of this subsection.
‘‘(c) FREIGHT FORWARDER REQUIREMENTS.—
‘‘(1) LIABILITY
INSURANCE.—The Secretary
may register a person as a freight forwarder under
section 13903 of this title only if the person files
with the Secretary a bond, insurance policy, or other
193
type of security approved by the Secretary. The se-
curity must be sufficient to pay, not more than the
amount of the security, for each final judgment
against the freight forwarder for bodily injury to, or
death of, an individual, or loss of, or damage to,
property (other than property referred to in para-
graph (2) of this subsection), resulting from the neg-
ligent operation, maintenance, or use of motor vehi-
cles by or under the direction and control of the
freight forwarder when providing transfer, collection,
or delivery service under this part.
‘‘(2) FREIGHT FORWARDER INSURANCE.—The
Secretary may require a registered freight forwarder
to file with the Secretary a bond, insurance policy,
or other type of security approved by the Secretary
sufficient to pay, not more than the amount of the
security, for loss of, or damage to, property for
which the freight forwarder provides service.
‘‘(3) EFFECTIVE
PERIOD.—The freight for-
warder’s registration remains in effect only as long
as the freight forwarder continues to satisfy the se-
curity requirements of this subsection.
‘‘(d) TYPE OF INSURANCE.—The Secretary may de-
termine the type and amount of security filed under this
section. A motor carrier may submit proof of qualifications
194
as a self-insurer to satisfy the security requirements of
this section. The Secretary shall adopt regulations govern-
ing the standards for approval as a self-insurer. Motor
carriers which have been granted authority to self-insure
as of the effective date of this section shall retain that
authority unless, for good cause shown and after notice
and an opportunity for a hearing, the Secretary finds that
the authority must be revoked.
‘‘(e) NOTICE OF CANCELLATION OF INSURANCE.—
The Secretary shall issue regulations requiring the sub-
mission to the Secretary of notices of insurance cancella-
tion sufficiently in advance of actual cancellation so as to
enable the Secretary to promptly revoke the registration
of any carrier or broker after the effective date of the can-
cellation.
‘‘(f) FORM OF ENDORSEMENT.—The Secretary shall
also prescribe the appropriate form of endorsement to be
appended to policies of insurance and surety bonds which
will subject the insurance policy or surety bond to the full
security limits of the coverage required under this section.
‘‘§ 13907. Household goods agents
‘‘(a) CARRIERS RESPONSIBLE FOR AGENTS.—Each
motor carrier providing transportation of household goods
shall be responsible for all acts or omissions of any of its
agents which relate to the performance of household goods
195
transportation services (including accessorial or terminal
services) and which are within the actual or apparent au-
thority of the agent from the carrier or which are ratified
by the carrier.
‘‘(b) STANDARD
FOR SELECTING AGENTS.—Each
motor carrier providing transportation of household goods
shall use due diligence and reasonable care in selecting
and maintaining agents who are sufficiently knowledge-
able, fit, willing, and able to provide adequate household
goods transportation services (including accessorial and
terminal services) and to fulfill the obligations imposed
upon them by this part and by such carrier.
‘‘(c) ENFORCEMENT.—
‘‘(1) COMPLAINT.—Whenever the Secretary has
reason to believe from a complaint or investigation
that an agent providing household goods transpor-
tation services (including accessorial and terminal
services) under the authority of a motor carrier pro-
viding transportation of household goods has vio-
lated section 14901(e) or 14912 or is consistently
not fit, willing, and able to provide adequate house-
hold goods transportation services (including acces-
sorial and terminal services), the Secretary may
issue to such agent a complaint stating the charges
and containing notice of the time and place of a
196
hearing which shall be held no later than 60 days
after service of the complaint to such agent.
‘‘(2) RIGHT TO DEFEND.—The agent shall have
the right to appear at such hearing and rebut the
charges contained in the complaint.
‘‘(3) ORDER.—If the agent does not appear at
the hearing or if the Secretary finds that the agent
has violated section 14901(e) or 14912 or is consist-
ently not fit, willing, and able to provide adequate
household goods transportation services (including
accessorial and terminal services), the Secretary may
issue an order to compel compliance with the re-
quirement that the agent be fit, willing, and able.
Thereafter, the Secretary may issue an order to
limit, condition, or prohibit such agent from any in-
volvement in the transportation or provision of serv-
ices incidental to the transportation of household
goods if, after notice and an opportunity for a hear-
ing, the Secretary finds that such agent, within a
reasonable time after the date of issuance of a com-
pliance order under this section, but in no event less
than 30 days after such date of issuance, has will-
fully failed to comply with such order.
‘‘(4) HEARING.—Upon filing of a petition with
the Secretary by an agent who is the subject of an
197
order issued pursuant to the second sentence of
paragraph (3) of this subsection and after notice, a
hearing shall be held with an opportunity to be
heard. At such hearing, a determination shall be
made whether the order issued pursuant to para-
graph (3) of this subsection should be rescinded.
‘‘(5) COURT REVIEW.—Any agent adversely af-
fected or aggrieved by an order of the Secretary is-
sued under this subsection may seek relief in the ap-
propriate United States court of appeals as provided
by and in the manner prescribed in chapter 158 of
title 28, United States Code.
‘‘(d) LIMITATION ON APPLICABILITY OF ANTITRUST
LAWS.—
‘‘(1) IN GENERAL.—The antitrust laws, as de-
fined in the first section of the Clayton Act (15
U.S.C. 12), do not apply to discussions or agree-
ments between a motor carrier providing transpor-
tation of household goods and its agents (whether or
not an agent is also a carrier) related solely to—
‘‘(A) rates for the transportation of house-
hold goods under the authority of the principal
carrier;
‘‘(B) accessorial, terminal, storage, or
other charges for services incidental to the
198
transportation of household goods transported
under the authority of the principal carrier;
‘‘(C) allowances relating to transportation
of household goods under the authority of the
principal carrier; and
‘‘(D) ownership of a motor carrier provid-
ing transportation of household goods by an
agent or membership on the board of directors
of any such motor carrier by an agent.
‘‘(2) PANEL REVIEW.—The Panel, upon its own
initiative or request, shall review any activities un-
dertaken under paragraph (1) and shall modify or
terminate the activity if necessary to protect the
public interest.
‘‘(e) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) HOUSEHOLD
GOODS.—The term ‘house-
hold goods’ has the meaning such term had under
section 10102(11) of this title, as in effect on the
day before the effective date of this section.
‘‘(2) TRANSPORTATION.—The term ‘transpor-
tation’ means transportation that would be subject
to the jurisdiction of the Interstate Commerce Com-
mission under subchapter II of chapter 105 of this
199
title, as in effect on the day before such effective
date, if such subchapter were still in effect.
‘‘§ 13908. Registration and other reforms
‘‘(a) REGULATIONS
REPLACING
CERTAIN
PRO-
GRAMS.—The Secretary, in cooperation with the States,
and after notice and opportunity for public comment, shall
issue regulations to replace the current Department of
Transportation identification number system, the single
State registration system under section 14504, the reg-
istration system contained in this chapter, and the finan-
cial responsibility information system under section 13906
with a single, on-line, Federal system. The new system
shall serve as a clearinghouse and depository of informa-
tion on and identification of all foreign and domestic
motor carriers, brokers, and freight forwarders, and others
required to register with the Department as well as infor-
mation on safety fitness and compliance with required lev-
els of financial responsibility. In issuing the regulations,
the Secretary shall consider whether or not to integrate
the requirements of section 13304 into the new system
and may integrate such requirements into the new system.
‘‘(b) FACTORS TO BE CONSIDERED.—In conducting
the rulemaking under subsection (a), the Secretary shall,
at a minimum, consider the following factors:
200
‘‘(1) Funding for State enforcement of motor
carrier safety regulations.
‘‘(2) Whether the existing single State registra-
tion system is duplicative and burdensome.
‘‘(3) The justification and need for collecting
the statutory fee for such system under section
14504(c)(2)(B)(iv).
‘‘(4) The public safety.
‘‘(5) The efficient delivery of transportation
services.
‘‘(6) How, and under what conditions, to extend
the registration system to motor private carriers and
to carriers exempt under sections 13502, 13503, and
13506.
‘‘(c) FEE SYSTEM.—The Secretary may establish,
under section 9701 of title 31, a fee system for registra-
tion and filing evidence of financial responsibility under
the new system under subsection (a). Fees collected under
the fee system shall cover the costs of operating and up-
grading the registration system, including all personnel
costs associated with the system. Fees collected under this
subsection may be credited to the Department of Trans-
portation appropriations account for purposes for which
such fees are collected, and shall be available for expendi-
ture until expended.
201
‘‘(d) STATE REGISTRATION PROGRAMS.—If the Sec-
retary determines that no State should require insurance
filings or collect fees for such filings (including filings and
fees authorized under section 14504), the Secretary may
prevent any State or political subdivision thereof, or any
political authority of 2 or more States, from imposing any
insurance filing requirements or fees that are for the same
purposes as filings or fees the Secretary requires under
the new system under subsection (a).
‘‘(e) DEADLINE
FOR
CONCLUSION; MODIFICA-
TIONS.—Not later than 24 months after the effective date
of this section, the Secretary—
‘‘(1) shall conclude the rulemaking under this
section;
‘‘(2) may implement such changes under this
section as the Secretary considers appropriate and in
the public interest; and
‘‘(3) shall transmit to Congress a report on any
findings of the rulemaking and the changes being
implemented under this section, together with such
recommendations for legislative language necessary
to conform this part to such changes.
‘‘CHAPTER 141—OPERATIONS OF
CARRIERS
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘Sec.
202
‘‘14101. Providing transportation and service.
‘‘14102. Leased motor vehicles.
‘‘14103. Loading and unloading motor vehicles.
‘‘14104. Household goods carrier operations.
‘‘SUBCHAPTER II—REPORTS AND RECORDS
‘‘14121. Definitions.
‘‘14122. Records: form; inspection; preservation.
‘‘14123. Financial reporting.
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘§ 14101. Providing transportation and service
‘‘(a) ON REASONABLE REQUEST.—A carrier provid-
ing transportation or service subject to jurisdiction under
chapter 135 shall provide the transportation or service on
reasonable request. In addition, a motor carrier shall pro-
vide safe and adequate service, equipment, and facilities.
‘‘(b) CONTRACTS WITH SHIPPERS.—
‘‘(1) IN GENERAL.—A carrier providing trans-
portation or service subject to jurisdiction under
chapter 135 may enter into a contract with a ship-
per, other than for the movement of household goods
described in section 13102(9)(A), to provide speci-
fied services under specified rates and conditions. If
the shipper, in writing, expressly waives all rights
and remedies under this part for the transportation
covered by the contract, the transportation provided
under the contract shall not be subject to this part
and may not be subsequently challenged on the
ground that it violates a provision of this part.
203
‘‘(2) REMEDY FOR BREACH OF CONTRACT.—
The exclusive remedy for any alleged breach of a
contract entered into under this subsection shall be
an action in an appropriate State court or United
States district court, unless the parties otherwise
agree.
‘‘§ 14102. Leased motor vehicles
‘‘(a) GENERAL AUTHORITY
OF SECRETARY.—The
Secretary may require a motor carrier providing transpor-
tation subject to jurisdiction under subchapter I of chapter
135 that uses motor vehicles not owned by it to transport
property under an arrangement with another party to—
‘‘(1) make the arrangement in writing signed
by the parties specifying its duration and the com-
pensation to be paid by the motor carrier;
‘‘(2) carry a copy of the arrangement in each
motor vehicle to which it applies during the period
the arrangement is in effect;
‘‘(3) inspect the motor vehicles and obtain li-
ability and cargo insurance on them; and
‘‘(4) have control of and be responsible for op-
erating those motor vehicles in compliance with re-
quirements prescribed by the Secretary on safety of
operations and equipment, and with other applicable
204
law as if the motor vehicles were owned by the
motor carrier.
‘‘(b) RESPONSIBLE PARTY FOR LOADING AND UN-
LOADING.—The Secretary shall require, by regulation,
that any arrangement, between a motor carrier of property
providing transportation subject to jurisdiction under sub-
chapter I of chapter 135 and any other person, under
which such other person is to provide any portion of such
transportation by a motor vehicle not owned by the carrier
shall specify, in writing, who is responsible for loading and
unloading the property onto and from the motor vehicle.
‘‘§ 14103. Loading and unloading motor vehicles
‘‘(a) SHIPPER
RESPONSIBLE
FOR
ASSISTING.—
Whenever a shipper or receiver of property requires that
any person who owns or operates a motor vehicle trans-
porting property in interstate commerce (whether or not
such transportation is subject to jurisdiction under sub-
chapter I of chapter 135) be assisted in the loading or
unloading of such vehicle, the shipper or receiver shall be
responsible for providing such assistance or shall com-
pensate the owner or operator for all costs associated with
securing and compensating the person or persons provid-
ing such assistance.
‘‘(b) COERCION PROHIBITED.—It shall be unlawful
to coerce or attempt to coerce any person providing trans-
205
portation of property by motor vehicle for compensation
in interstate commerce (whether or not such transpor-
tation is subject to jurisdiction under subchapter I of
chapter 135) to load or unload any part of such property
onto or from such vehicle or to employ or pay one or more
persons to load or unload any part of such property onto
or from such vehicle; except that this subsection shall not
be construed as making unlawful any activity which is not
unlawful under the National Labor Relations Act or the
Act of March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et
seq.), commonly known as the Norris-LaGuardia Act.
‘‘§ 14104. Household goods carrier operations
‘‘(a) GENERAL REGULATORY AUTHORITY.—
‘‘(1) PAPERWORK
MINIMIZATION.—The Sec-
retary may issue regulations, including regulations
protecting individual shippers, in order to carry out
this part with respect to the transportation of house-
hold goods by motor carriers subject to jurisdiction
under subchapter I of chapter 135. The regulations
and paperwork required of motor carriers providing
transportation of household goods shall be mini-
mized to the maximum extent feasible consistent
with the protection of individual shippers.
‘‘(2) PERFORMANCE STANDARDS.—
206
‘‘(A) IN
GENERAL.—Regulations of the
Secretary protecting individual shippers shall
include, where appropriate, reasonable perform-
ance standards for the transportation of house-
hold goods subject to jurisdiction under sub-
chapter I of chapter 135.
‘‘(B) FACTORS TO CONSIDER.—In estab-
lishing performance standards under this para-
graph, the Secretary shall take into account at
least the following—
‘‘(i) the level of performance that can
be achieved by a well-managed motor car-
rier transporting household goods;
‘‘(ii) the degree of harm to individual
shippers which could result from a viola-
tion of the regulation;
‘‘(iii) the need to set the level of per-
formance at a level sufficient to deter
abuses which result in harm to consumers
and violations of regulations;
‘‘(iv) service requirements of the car-
riers;
‘‘(v) the cost of compliance in relation
to the consumer benefits to be achieved
from such compliance; and
207
‘‘(vi) the need to set the level of per-
formance at a level designed to encourage
carriers to offer service responsive to ship-
per needs.
‘‘(3) LIMITATIONS ON STATUTORY CONSTRUC-
TION.—Nothing in this section shall be construed to
limit the Secretary’s authority to require reports
from motor carriers providing transportation of
household goods or to require such carriers to pro-
vide specified information to consumers concerning
their past performance.
‘‘(b) ESTIMATES.—
‘‘(1) AUTHORITY TO PROVIDE WITHOUT COM-
PENSATION.—Every motor carrier providing trans-
portation of household goods subject to jurisdiction
under subchapter I of chapter 135, upon request of
a prospective shipper, may provide the shipper with
an estimate of charges for transportation of house-
hold goods and for the proposed services. The Sec-
retary shall not prohibit any such carrier from
charging a prospective shipper for providing a writ-
ten, binding estimate for the transportation and pro-
posed services.
‘‘(2) APPLICABILITY
OF
ANTITRUST
LAWS.—
Any charge for an estimate of charges provided by
208
a motor carrier to a shipper for transportation of
household goods subject to jurisdiction under sub-
chapter I of chapter 135 shall be subject to the anti-
trust laws, as defined in the first section of the Clay-
ton Act (15 U.S.C. 12).
‘‘(c) FLEXIBILITY IN WEIGHING SHIPMENTS.—The
Secretary shall issue regulations that provide motor car-
riers providing transportation of household goods subject
to jurisdiction under subchapter I of chapter 135 with the
maximum possible flexibility in weighing shipments, con-
sistent with assurance to the shipper of accurate weighing
practices. The Secretary shall not prohibit such carriers
from backweighing shipments or from basing their charges
on the reweigh weights if the shipper observes both the
tare and gross weighings (or, prior to such weighings,
waives in writing the opportunity to observe such
weighings) and such weighings are performed on the same
scale.
‘‘SUBCHAPTER II—REPORTS AND RECORDS
‘‘§ 14121. Definitions
‘‘In this subchapter, the following definitions apply:
‘‘(1) CARRIER AND BROKER.—The terms ‘car-
rier’ and ‘broker’ include a receiver or trustee of a
carrier and broker, respectively.
209
‘‘(2) ASSOCIATION.—The term ‘association’
means an organization maintained by or in the in-
terest of a group of carriers or brokers providing
transportation or service subject to jurisdiction
under chapter 135 that performs a service, or en-
gages in activities, related to transportation under
this part.
‘‘§ 14122. Records: form; inspection; preservation
‘‘(a) FORM
OF RECORDS.—The Secretary or the
Panel, as applicable, may prescribe the form of records
required to be prepared or compiled under this subchapter
by carriers and brokers, including records related to move-
ment of traffic and receipts and expenditures of money.
‘‘(b) RIGHT
OF INSPECTION.—The Secretary or
Panel, or an employee designated by the Secretary or
Panel, may on demand and display of proper credentials—
‘‘(1) inspect and examine the lands, buildings,
and equipment of a carrier or broker; and
‘‘(2) inspect and copy any record of—
‘‘(A) a carrier, broker, or association; and
‘‘(B) a person controlling, controlled by, or
under common control with a carrier if the Sec-
retary or Panel, as applicable, considers inspec-
tion relevant to that person’s relation to, or
transaction with, that carrier.
210
‘‘(c) PERIOD FOR PRESERVATION OF RECORDS.—
The Secretary or Panel, as applicable, may prescribe the
time period during which operating, accounting, and fi-
nancial records must be preserved by carriers and brokers.
‘‘§ 14123. Financial reporting
‘‘(a) IN GENERAL.—The Secretary shall require
Class I motor carriers, and may require Class II motor
carriers, to file with the Secretary annual financial and
safety reports, the form and substance of which shall be
prescribed by the Secretary; except that, at a minimum,
such reports shall include balance sheets and income state-
ments.
‘‘(b) MATTERS TO BE COVERED.—In determining
the matters to be covered by any reports to be filed under
subsection (a), the Secretary shall consider—
‘‘(1) safety needs;
‘‘(2) the need to preserve confidential business
information and trade secrets and prevent competi-
tive harm;
‘‘(3) private sector, academic, and public use of
information in the reports; and
‘‘(4) the public interest.
‘‘(c) EXEMPTION FROM PUBLIC RELEASE.—
‘‘(1) IN GENERAL.—The Secretary shall allow,
upon request, a filer of a report under subsection (a)