‘‘10101. Rail transportation policy.
‘‘10102. Definitions.
‘‘10103. Remedies are exclusive.
‘‘§ 10101. Rail transportation policy
‘‘In regulating the railroad industry, it is the policy
of the United States Government—
‘‘(1) to allow, to the maximum extent possible,
competition and the demand for services to establish
reasonable rates for transportation by rail;
‘‘(2) to minimize the need for Federal regu-
latory control over the rail transportation system
and to require fair and expeditious regulatory deci-
sions when regulation is required;
‘‘(3) to promote a safe and efficient rail trans-
portation system by allowing rail carriers to earn
adequate revenues, as determined by the Panel;
‘‘(4) to ensure the development and continu-
ation of a sound rail transportation system with ef-
fective competition among rail carriers and with
other modes, to meet the needs of the public and the
national defense;
‘‘(5) to foster sound economic conditions in
transportation and to ensure effective competition
and coordination between rail carriers and other
modes;
‘‘(6) to maintain reasonable rates where there is
an absence of effective competition and where rail
rates provide revenues which exceed the amount nec-
essary to maintain the rail system and to attract
capital;
‘‘(7) to reduce regulatory barriers to entry into
and exit from the industry;
‘‘(8) to operate transportation facilities and
equipment without detriment to the public health
and safety;
‘‘(9) to encourage honest and efficient manage-
ment of railroads;
‘‘(10) to require rail carriers, to the maximum
extent practicable, to rely on individual rate in-
creases, and to limit the use of increases of general
applicability;
‘‘(11) to encourage fair wages and safe and
suitable working conditions in the railroad industry;
‘‘(12) to avoid undue concentrations of market
power and to prohibit unlawful discrimination;
‘‘(13) to ensure the availability of accurate cost
information in regulatory proceedings, while mini-
mizing the burden on rail carriers of developing and
maintaining the capability of providing such infor-
mation; and
‘‘(14) to encourage and promote energy con-
servation.
‘‘§ 10102. Definitions
‘‘In this part—
‘‘(1) ‘car service’ includes (A) the use, control,
supply, movement, distribution, exchange, inter-
change, and return of locomotives, cars, other vehi-
cles, and special types of equipment used in the
transportation of property by a rail carrier, and (B)
the supply of trains by a rail carrier;
‘‘(2) ‘control’, when referring to a relationship
between persons, includes actual control, legal con-
trol, and the power to exercise control, through or
by (A) common directors, officers, stockholders, a
voting trust, or a holding or investment company, or
(B) any other means;
‘‘(3) ‘Panel’ means the Transportation Adju-
dication Panel;
‘‘(4) ‘person’, in addition to its meaning under
section 1 of title 1, includes a trustee, receiver, as-
signee, or personal representative of a person;
‘‘(5) ‘rail carrier’ means a person providing
railroad transportation for compensation, but does
not include street, suburban, or interurban electric
railways not operated as part of the general system
of rail transportation;
‘‘(6) ‘railroad’ includes—
‘‘(A) a bridge, car float, lighter, and ferry
used by or in connection with a railroad;
‘‘(B) the road used by a rail carrier and
owned by it or operated under an agreement;
and
‘‘(C) a switch, spur, track, terminal, termi-
nal facility, and a freight depot, yard, and
ground, used or necessary for transportation;
‘‘(7) ‘rate’ means a rate, fare, or charge for
transportation;
‘‘(8) ‘State’ means a State of the United States
and the District of Columbia;
‘‘(9) ‘transportation’ includes—
‘‘(A) a locomotive, car, vehicle, yard, prop-
erty, facility, instrumentality, or equipment of
any kind related to the movement of passengers
or property, or both, by rail, regardless of own-
ership or an agreement concerning use; and
‘‘(B) services related to that movement, in-
cluding receipt, delivery, elevation, transfer in
transit, refrigeration, icing, ventilation, storage,
handling, and interchange of passengers and
property; and
‘‘(10) ‘United States’ means the States of the
United States and the District of Columbia.
‘‘§10103. Remedies are exclusive
‘‘Except as otherwise provided in this part, the rem-
edies provided under this part are exclusive and preempt
the remedies provided under any Federal or State statute.
‘‘CHAPTER 103—JURISDICTION
‘‘Sec.
‘‘10301. General jurisdiction.
‘‘10302. Authority to exempt rail carrier transportation.
‘‘§ 10301. General jurisdiction
‘‘(a)(1) Subject to this chapter and other law, the
Panel has jurisdiction over transportation by rail carrier
that is—
‘‘(A) only by railroad; or
‘‘(B) by railroad and water, when the transpor-
tation is under common control, management, or ar-
rangement for a continuous carriage or shipment.
‘‘(2) Jurisdiction under paragraph (1) applies only to
transportation in the United States between a place in—
‘‘(A) a State and a place in the same or an-
other State;
‘‘(B) a State and a place in a territory or pos-
session of the United States;
‘‘(C) a territory or possession of the United
States and a place in another such territory or pos-
session;
‘‘(D) a territory or possession of the United
States and another place in the same territory or
possession;
‘‘(E) the United States and another place in
the United States through a foreign country; or
‘‘(F) the United States and a place in a foreign
country.
‘‘(b) This part does not affect the power of a State
to exercise its police power, unless the State requirement
is inconsistent with an order of the Panel issued under
this part or is prohibited under this part.
‘‘(c) The jurisdiction of the Panel over—
‘‘(1) transportation by rail carriers, and the
remedies provided in this part with respect to rates,
classifications, rules, practices, and facilities of such
carriers; and
‘‘(2) the construction, acquisition, operation,
abandonment, or discontinuance of spur, industrial,
team, switching, or side tracks, or facilities, even if
the tracks are located, or intended to be located, en-
tirely in one State,
is exclusive.
‘‘§ 10302. Authority to exempt rail carrier transpor-
tation
‘‘(a) In a matter related to a rail carrier providing
transportation subject to the jurisdiction of the Panel
under this part, the Panel, to the maximum extent consist-
ent with this part, shall exempt a person, class of persons,
or a transaction or service whenever the Panel finds that
the application of a provision of this part—
‘‘(1) is not necessary to carry out the transpor-
tation policy of section 10101 of this title; and
‘‘(2) either—
‘‘(A) the transaction or service is of limited
scope; or
‘‘(B) the application of the provision is not
needed to protect shippers from the abuse of
market power.
‘‘(b) The Panel may, where appropriate, begin a pro-
ceeding under this section on its own initiative or on appli-
cation by the Secretary of Transportation or an interested
party. The Panel shall, within 90 days after receipt of any
such application, approve or disapprove such application.
If the application is approved, the Panel shall begin an
appropriate proceeding as soon as practicable. If the appli-
cation is disapproved, the reasons for the disapproval shall
be published in the Federal Register. Any proceeding
begun as a result of an application under this subsection
shall be completed within one year after it is begun.
‘‘(c) The Panel may specify the period of time during
which an exemption granted under this section is effective.
‘‘(d) The Panel may revoke an exemption, to the ex-
tent it specifies, when it finds that application of a provi-
sion of this part to the person, class, or transportation
is necessary to carry out the transportation policy of sec-
tion 10101 of this title.
‘‘(e) No exemption order issued pursuant to this sec-
tion shall operate to relieve any rail carrier from an obliga-
tion to provide contractual terms for liability and claims
which are consistent with the provisions of section 11506
of this title. Nothing in this subsection or section 11506
of this title shall prevent rail carriers from offering alter-
native terms nor give the Panel the authority to require
any specific level of rates or services based upon the provi-
sions of section 11506 of this title.
‘‘(f) The Panel may exercise its authority under this
section to exempt transportation that is provided by a rail
carrier.
‘‘(g) The Panel may not exercise its authority under
this section to relieve a rail carrier of its obligation to pro-
tect the interests of employees as required by this part.
‘‘CHAPTER 105—RATES
‘‘SUBCHAPTER I—GENERAL AUTHORITY
‘‘10501. Standards for rates, classifications, through routes, rules, and prac-
tices.
‘‘10502. Authority for rail carriers to establish rates, classifications, rules, and
practices.
‘‘10503. Authority for rail carriers to establish through routes.
‘‘10504. Authority and criteria: rates, classifications, rules, and practices pre-
scribed by Panel.
‘‘10505. Authority: through routes, joint classifications, rates, and divisions pre-
scribed by Panel.
‘‘10506. Rate agreements: exemption from antitrust laws.
‘‘10507. Determination of market dominance in rail rate proceedings.
‘‘10508. Inflation-based rate increases.
‘‘10509. Contracts.
‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES
‘‘10521. Government traffic.
‘‘10522. Emergency rates.
‘‘10523. Car utilization.
‘‘SUBCHAPTER III—LIMITATIONS
‘‘10541. Prohibitions against discrimination by rail carriers.
‘‘10542. Facilities for interchange of traffic.
‘‘10543. Continuous carriage of freight.
‘‘10544. Transportation services or facilities furnished by shipper.
‘‘10545. Demurrage charges.
‘‘SUBCHAPTER I—GENERAL AUTHORITY
‘‘§ 10501. Standards for rates, classifications, through
routes, rules, and practices
‘‘(a) A through route established by a rail carrier
must be reasonable. Divisions of joint rates by rail carriers
must be made without unreasonable discrimination
against a participating carrier and must be reasonable.
‘‘(b) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part may not
discriminate in its rates against a connecting line of an-
other rail carrier providing transportation subject to the
jurisdiction of the Panel under this part or unreasonably
discriminate against that line in the distribution of traffic
that is not routed specifically by the shipper.
‘‘(c) Except as provided in subsection (d) of this sec-
tion and unless a rate is prohibited by a provision of this
part, a rail carrier providing transporation subject to the
jurisdiction of the Panel under this part may establish any
rate for transportation or other service provided by the
rail carrier.
‘‘(d)(1) If the Panel determines, under section 10507
of this title, that a rail carrier has market dominance over
the transportation to which a particular rate applies, the
rate established by such carrier for such transportation
must be reasonable.
‘‘(2) In determining whether a rate established by a
rail carrier is reasonable for purposes of this section, the
Panel shall recognize the policy of this part that rail car-
riers shall earn adequate revenues, as established by the
Panel under section 10504(a)(2) of this title.
‘‘(3) The Panel shall, within one year after the date
of the enactment of this paragraph, complete the pending
Interstate Commerce Commission non-coal rate guidelines
proceeding to establish simplified and expedited proce-
dures for the determination of rate reasonableness cases
in which a full presentation of constrained market pricing
evidence is impractical.
‘‘§ 10502. Authority for rail carriers to establish rates,
classifications, rules, and practices
‘‘A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part
shall establish—
‘‘(1) rates, including divisions of joint rates,
and classifications for transportation and service it
may provide under this part; and
‘‘(2) rules and practices on matters related to
that transportation or service.
‘‘§ 10503. Authority for rail carriers to establish
through routes
‘‘Rail carriers providing transportation subject to the
jurisdiction of the Panel under this part shall establish
through routes with each other, shall establish rates and
classifications applicable to those routes, and shall estab-
lish rules for their operation and provide—
‘‘(1) reasonable facilities for operating the
through route; and
‘‘(2) reasonable compensation to persons enti-
tled to compensation for services related to the
through route.
‘‘§ 10504. Authority and criteria: rates, classifications,
rules, and practices prescribed by Panel
‘‘(a)(1) When the Panel, after a full hearing, decides
that a rate charged or collected by a rail carrier for trans-
portation subject to the jurisdiction of the Panel under
this part, or that a classification, rule, or practice of that
carrier does or will violate this part, the Panel may pre-
scribe the maximum rate, classification, rule, or practice
to be followed. The Panel may order the carrier to stop
the violation. When a rate, classification, rule, or practice
is prescribed under this subsection, the affected carrier
may not publish, charge, or collect a different rate and
shall adopt the classification and observe the rule or prac-
tice prescribed by the Panel.
‘‘(2) The Panel shall maintain and revise as nec-
essary standards and procedures for establishing revenue
levels for rail carriers providing transportation subject to
its jurisdiction under this part that are adequate, under
honest, economical, and efficient management, to cover
total operating expenses, including depreciation and obso-
lescence, plus a reasonable and economic profit or return
(or both) on capital employed in the business. The Panel
shall make an adequate and continuing effort to assist
those carriers in attaining revenue levels prescribed under
this paragraph. Revenue levels established under this
paragraph should—
‘‘(A) provide a flow of net income plus deprecia-
tion adequate to support prudent capital outlays, as-
sure the repayment of a reasonable level of debt,
permit the raising of needed equity capital, and
cover the effects of inflation; and
‘‘(B) attract and retain capital in amounts ade-
quate to provide a sound transportation system in
the United States.
‘‘(3) On the basis of the standards and procedures
described in paragraph (2), the Panel shall annually deter-
mine which rail carriers are earning adequate revenues.
‘‘(b) The Panel may begin a proceeding under this
section on its own initiative or on complaint. A complaint
under subsection (a) of this section must be made under
section 11501 of this title, but the proceeding may also
be in extension of a complaint pending before the Panel.
‘‘§ 10505. Authority: through routes, joint classifica-
tions, rates, and divisions prescribed by
Panel
‘‘(a)(1) The Panel may, and shall when it considers
it desirable in the public interest, prescribe through
routes, joint classifications, joint rates, the division of
joint rates, and the conditions under which those routes
must be operated, for a rail carrier providing transpor-
tation subject to the jurisdiction of the Panel under this
part.
‘‘(2) The Panel may require a rail carrier to include
in a through route substantially less than the entire length
of its railroad and any intermediate railroad operated with
it under common management or control if that intermedi-
ate railroad lies between the terminals of the through
route only when—
‘‘(A) required under sections 10541, 10542, or
11101 of this title;
‘‘(B) inclusion of those lines would make the
through route unreasonably long when compared
with a practicable alternative through route that
could be established; or
‘‘(C) the Panel decides that the proposed
through route is needed to provide adequate, and
more efficient or economic, transportation.
The Panel shall give reasonable preference, subject to this
subsection, to the rail carrier originating the traffic when
prescribing through routes.
‘‘(b) The Panel shall prescribe the division of joint
rates to be received by a rail carrier providing transpor-
tation subject to its jurisdiction under this part when it
decides that a division of joint rates established by the
participating carriers under section 10503 of this title, or
under a decision of the Panel under subsection (a) of this
section, does or will violate section 10501 of this title.
‘‘(c) If a division of a joint rate prescribed under a
decision of the Panel is later found to violate section
10501 of this title, the Panel may decide what division
would have been reasonable and order adjustment to be
made retroactive to the date the complaint was filed, the
date the order for an investigation was made, or a later
date that the Panel decides is justified. The Panel may
make a decision under this subsection effective as part of
its original decision.
‘‘§ 10506. Rate agreements: exemption from antitrust
laws
‘‘(a)(1) In this subsection—
‘‘(A) the term ‘affiliate’ means a person control-
ling, controlled by, or under common control or own-
ership with another person and ‘ownership’ refers to
equity holdings in a business entity of at least 5 per-
cent;
‘‘(B) the term ‘single-line rate’ refers to a rate
or allowance proposed by a single rail carrier that is
applicable only over its line and for which the trans-
portation (exclusive of terminal services by switch-
ing, drayage or other terminal carriers or agencies)
can be provided by that carrier; and
‘‘(C) the term ‘practicably participates in the
movement’ shall have such meaning as the Panel
shall by regulation prescribe.
‘‘(2)(A) A rail carrier providing transportation sub-
ject to the jurisdiction of the Panel under this part that
is a party to an agreement of at least 2 rail carriers that
relates to rates (including charges between rail carriers
and compensation paid or received for the use of facilities
and equipment), classifications, divisions, or rules related
to them, or procedures for joint consideration, initiation,
publication, or establishment of them, shall apply to the
Panel for approval of that agreement under this sub-
section. The Panel shall approve the agreement only when
it finds that the making and carrying out of the agreement
will further the transportation policy of section 10101 of
this title and may require compliance with conditions nec-
essary to make the agreement further that policy as a con-
dition of its approval. If the Panel approves the agree-
ment, it may be made and carried out under its terms
and under the conditions required by the Panel, and the
Sherman Act (15 U.S.C. 1, et seq.), the Clayton Act (15
U.S.C. 12, et seq.), the Federal Trade Commission Act
(15 U.S.C. 41, et seq.), sections 73 and 74 of the Wilson
Tariff Act (15 U.S.C. 8 and 9), and the Act of June 19,
1936 (15 U.S.C. 13, 13a, 13b, 21a) do not apply to par-
ties and other persons with respect to making or carrying
out the agreement. However, the Panel may not approve
or continue approval of an agreement when the conditions
required by it are not met or if it does not receive a veri-
fied statement under subparagraph (B) of this paragraph.
‘‘(B) The Panel may approve an agreement under
subparagraph (A) of this paragraph only when the rail
carriers applying for approval file a verified statement
with the Panel. Each statement must specify for each rail
carrier that is a party to the agreement—
‘‘(i) the name of the carrier;
‘‘(ii) the mailing address and telephone number
of its headquarter’s office; and
‘‘(iii) the names of each of its affiliates and the
names, addresses, and affiliates of each of its offi-
cers and directors and of each person, together with
an affiliate, owning or controlling any debt, equity,
or security interest in it having a value of at least
$1,000,000.
‘‘(3)(A) An organization established or continued
under an agreement approved under this subsection shall
make a final disposition of a rule or rate docketed with
it by the 120th day after the proposal is docketed. Such
an organization may not—
‘‘(i) permit a rail carrier to discuss, to partici-
pate in agreements related to, or to vote on single-
line rates proposed by another rail carrier, except
that for purposes of general rate increases and
broad changes in rates, classifications, rules, and
practices only, if the Panel finds at any time that
the implementation of this clause is not feasible, it
may delay or suspend such implementation in whole
or in part;
‘‘(ii) permit a rail carrier to discuss, to partici-
pate in agreements related to, or to vote on rates re-
lated to a particular interline movement unless that
rail carrier practicably participates in the movement;
or
‘‘(iii) if there are interline movements over two
or more routes between the same end points, permit
a carrier to discuss, to participate in agreements re-
lated to, or to vote on rates except with a carrier
which forms part of a particular single route. If the
Panel finds at any time that the implementation of
this clause is not feasible, it may delay or suspend
such implementation in whole or in part.
‘‘(B)(i) In any proceeding in which a party alleges
that a rail carrier voted or agreed on a rate or allowance
in violation of this subsection, that party has the burden
of showing that the vote or agreement occurred. A showing
of parallel behavior does not satisfy that burden by itself.
‘‘(ii) In any proceeding in which it is alleged that a
carrier was a party to an agreement, conspiracy, or com-
bination in violation of a Federal law cited in subsection
(a)(2)(A) of this section or of any similar State law, proof
of an agreement, conspiracy, or combination may not be
inferred from evidence that two or more rail carriers acted
together with respect to an interline rate or related matter
and that a party to such action took similar action with
respect to a rate or related matter on another route or
traffic. In any proceeding in which such a violation is al-
leged, evidence of a discussion or agreement between or
among such rail carrier and one or more other rail car-
riers, or of any rate or other action resulting from such
discussion or agreement, shall not be admissible if the dis-
cussion or agreement—
‘‘(I) was in accordance with an agreement ap-
proved under paragraph (2) of this subsection; or
‘‘(II) concerned an interline movement of the
rail carrier, and the discussion or agreement would
not, considered by itself, violate the laws referred to
in the first sentence of this clause.
In any proceeding before a jury, the court shall determine
whether the requirements of subclause (I) or (II) are satis-
fied before allowing the introduction of any such evidence.
‘‘(C) An organization described in subparagraph (A)
of this paragraph shall provide that transcripts or sound
recordings be made of all meetings, that records of votes
be made, and that such transcripts or recordings and vot-
ing records be submitted to the Panel and made available
to other Federal agencies in connection with their statu-
tory responsibilities over rate bureaus, except that such
material shall be kept confidential and shall not be subject
to disclosure under section 552 of title 5, United States
Code.
‘‘(4) Notwithstanding any other provision of this sub-
section, one or more rail carriers may enter into an agree-
ment, without obtaining prior Panel approval, that pro-
vides solely for compilation, publication, and other dis-
tribution of rates in effect or to become effective. The
Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15
U.S.C. 12 et seq.), the Federal Trade Commission Act (15
U.S.C. 41 et seq.), sections 73 and 74 of the Wilson Tariff
Act (15 U.S.C. 8 and 9), and the Act of June 19, 1936
(15 U.S.C. 13, 13a, 13b, 21a) shall not apply to parties
and other persons with respect to making or carrying out
such agreement. However, the Panel may, upon applica-
tion or on its own initiative, investigate whether the par-
ties to such an agreement have exceeded its scope, and
upon a finding that they have, the Panel may issue such
orders as are necessary, including an order dissolving the
agreement, to ensure that actions taken pursuant to the
agreement are limited as provided in this paragraph.
‘‘(5)(A) Whenever two or more shippers enter into
an agreement to discuss among themselves that relates to
the amount of compensation such shippers propose to be
paid by rail carriers providing transportation subject to
the jurisdiction of the Panel under this part, for use by
such rail carriers of rolling stock owned or leased by such
shippers, the shippers shall apply to the Panel for approval
of that agreement under this paragraph. The Panel shall
approve the agreement only when it finds that the making
and carrying out of the agreement will further the trans-
portation policy set forth in section 10101 of this title and
may require compliance with conditions necessary to make
the agreement further that policy as a condition of ap-
proval. If the Panel approves the agreement, it may be
made and carried out under its terms and under the terms
required by the Panel, and the antitrust laws set forth
in paragraph (2) of this subsection do not apply to parties
and other persons with respect to making or carrying out
the agreement. The Panel shall approve or disapprove an
agreement under this paragraph within one year after the
date application for approval of such agreement is made.
‘‘(B) If the Panel approves an agreement described
in subparagraph (A) of this paragraph and the shippers
entering into such agreement and the rail carriers propos-
ing to use rolling stock owned or leased by such shippers,
under payment by such carriers or under a published al-
lowance, are unable to agree upon the amount of com-
pensation to be paid for the use of such rolling stock, any
party directly involved in the negotiations may require
that the matter be settled by submitting the issues in dis-
pute to the Panel. The Panel shall render a binding deci-
sion, based upon a standard of reasonableness and after
taking into consideration any past precedents on the sub-
ject matter of the negotiations, no later than 90 days after
the date of the submission of the dispute to the Panel.
‘‘(C) Nothing in this paragraph shall be construed to
change the law in effect prior to the effective date of the
Staggers Rail Act of 1980 with respect to the obligation
of rail carriers to utilize rolling stock owned or leased by
shippers.
‘‘(b) The Panel may require an organization estab-
lished or continued under an agreement approved under
this section to maintain records and submit reports. The
Panel may inspect a record maintained under this section.
‘‘(c) The Panel may review an agreement approved
under subsection (a) of this section and shall change the
conditions of approval or terminate it when necessary to
comply with the public interest and subsection (a). The
Panel shall postpone the effective date of a change of an
agreement under this subsection for whatever period it de-
termines to be reasonably necessary to avoid unreasonable
hardship.
‘‘(d) The Panel may begin a proceeding under this
section on its own initiative or on application. Action of
the Panel under this section—
‘‘(1) approving an agreement;
‘‘(2) denying, ending, or changing approval;
‘‘(3) prescribing the conditions on which ap-
proval is granted; or
‘‘(4) changing those conditions,
has effect only as related to application of the antitrust
laws referred to in subsection (a) of this section.
‘‘(e) The Panel shall review each agreement approved
under subsection (a) of this section periodically, but at
least once every 3 years—
‘‘(1) to determine whether the agreement or an
organization established or continued under one of
those agreements still complies with the require-
ments of that subsection and the public interest; and
‘‘(2) to evaluate the success and effect of that
agreement or organization on the consuming public
and the national rail freight transportation system.
If the Panel finds that an agreement or organization does
not conform to the requirements of that subsection, it
shall end or suspend its approval.
‘‘(f)(1) The Federal Trade Commission, in consulta-
tion with the Antitrust Division of the Department of Jus-
tice, shall prepare periodically an assessment of, and shall
report to the Panel on—
‘‘(A) possible anticompetitive features of—
‘‘(i) agreements approved or submitted for
approval under subsection (a) of this section;
and
‘‘(ii) an organization operating under those
agreements; and
‘‘(B) possible ways to alleviate or end an anti-
competitive feature, effect, or aspect in a manner
that will further the goals of this part and of the
transportation policy of section 10101 of this title.
‘‘(2) Reports received by the Panel under this sub-
section shall be published and made available to the public
under section 552(a) of title 5.
‘‘§ 10507. Determination of market dominance in rail
rate proceedings
‘‘(a) In this section, ‘market dominance’ means an
absence of effective competition from other rail carriers
or modes of transportation for the transportation to which
a rate applies.
‘‘(b) When a rate for transportation by a rail carrier
providing transportation subject to the jurisdiction of the
Panel under this part is challenged as being unreasonably
high, the Panel shall determine whether the rail carrier
proposing the rate has market dominance over the trans-
portation to which the rate applies. The Panel may make
that determination on its own initiative or on complaint.
A finding by the Panel that the rail carrier does not have
market dominance is determinative in a proceeding under
this part related to that rate or transportation unless
changed or set aside by the Panel or set aside by a court
of competent jurisdiction.
‘‘(c) When the Panel finds in any proceeding that a
rail carrier proposing or defending a rate for transpor-
tation has market dominance over the transportation to
which the rate applies, it may then determine that rate
to be unreasonable if it exceeds a reasonable maximum
for that transportation. However, a finding of market
dominance does not establish a presumption that the pro-
posed rate exceeds a reasonable maximum.
‘‘(d)(1) In this subsection—
‘‘(A) the term ‘fixed and variable cost’ means
all cost incurred by rail carriers in the transpor-
tation of freight, but limiting the return on equity
capital to a rate equal to the embedded cost of debt;
‘‘(B) the term ‘cost recovery percentage’ means
the lowest revenue-variable cost percentage which, if
all movements that produced revenues resulting in
revenue-variable cost percentages in excess of the
cost recovery percentage are deemed to have pro-
duced only revenues resulting in the cost recovery
percentage, would produce revenues which would be
equal, when combined with total revenues produced
by all other traffic transported by rail carrier, to the
total fixed and variable cost of the transportation of
all traffic by rail carrier; and
‘‘(C) for purposes of determining the cost recov-
ery percentage only, the term ‘revenue-variable cost
percentage’ means the quotient, expressed as a per-
centage figure, obtained by dividing the total reve-
nues produced by the transportation of all traffic re-
ceived by rail carriers for rail transportation by the
total variable cost of such transportation.
‘‘(2) In making a determination under this section,
the Panel shall find that the rail carrier establishing the
fied by the Panel as necessary to compensate for inflation-
ary cost increases.
‘‘§ 10509. Contracts
‘‘(a) One or more rail carriers providing transpor-
tation subject to the jurisdiction of the Panel under this
part may enter into a contract with one or more pur-
chasers of rail services to provide specified services under
specified rates and conditions.
‘‘(b) A party to a contract entered into under this
section shall have no duty in connection with services pro-
vided under such contract other than those duties specified
by the terms of the contract.
‘‘(c)(1) A contract that is authorized by this section,
and transportation under such contract, shall not be sub-
ject to this part, and may not be subsequently challenged
before the Panel or in any court on the grounds that such
contract violates a provision of this part.
‘‘(2) The exclusive remedy for any alleged breach of
a contract entered into under this section shall be an ac-
tion in an appropriate State court or United States dis-
trict court, unless the parties otherwise agree.
‘‘(d) Documents, papers, and records (and any copies
thereof) relating to a contract described in subsection (a)
shall not be subject to the mandatory disclosure require-
ments of section 552 of title 5.
‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES
‘‘§ 10521. Government traffic
‘‘A rail carrier providing transportation or service for
the United States Government may transport property for
the United States Government without charge or at a rate
reduced from the applicable commercial rate. Section 3709
of the Revised Statutes (41 U.S.C. 5) does not apply when
transportation for the United States Government can be
obtained from a rail carrier lawfully operating in the area
where the transportation would be provided.
‘‘§ 10522. Emergency rates
‘‘(a) The Panel may authorize a rail carrier providing
transportation or service subject to its jurisdiction under
this part to give reduced rates for service and transpor-
tation of property to or from an area in the United States
to provide relief during emergencies. When the Panel
takes action under this subsection, it must—
‘‘(1) define the area of the United States in
which the reduced rates will apply;
‘‘(2) specify the period during which the re-
duced rates are to be in effect; and
‘‘(3) define the class of persons entitled to the
reduced rates.
‘‘(b) The Panel may specify those persons entitled to
reduced rates by reference to those persons designated as
being in need of relief by the United States Government
or by a State government authorized to assist in providing
relief during the emergency. The Panel may act under this
section without regard to subchapter II of chapter 5 of
title 5.
‘‘§ 10523. Car utilization
‘‘In order to encourage more efficient use of freight
cars, notwithstanding any other provision of this part, rail
carriers shall be permitted to establish premium charges
for special services or special levels of services not other-
wise applicable to the movement. The Panel shall facilitate
development of such charges so as to increase the utiliza-
tion of equipment.
‘‘SUBCHAPTER III—LIMITATIONS
‘‘§ 10541. Prohibitions against discrimination by rail
carriers
‘‘(a) A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part
may not subject a person, place, port, or type of traffic
to unreasonable discrimination.
‘‘(b) This section shall not apply to—
‘‘(1) contracts described in section 10509 of
this title; or
‘‘(2) rail rates applicable to different routes.
‘‘§ 10542. Facilities for interchange of traffic
‘‘A rail carrier providing transportation subject to the
jurisdiction of the Panel under this part shall provide rea-
sonable, proper, and equal facilities that are within its
power to provide for the interchange of traffic between,
and for the receiving, forwarding, and delivering of pas-
sengers and property to and from, its respective line and
a connecting line of another rail carrier.
‘‘§ 10543. Continuous carriage of freight
‘‘A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part
may not enter a combination or arrangement to prevent
the carriage of freight from being continuous from the
place of shipment to the place of destination whether by
change of time schedule, carriage in different cars, or by
other means. The carriage of freight by those rail carriers
is considered to be a continuous carriage from the place
of shipment to the place of destination when a break of
bulk, stoppage, or interruption is not made in good faith
for a necessary purpose, and with the intent of avoiding
or unnecessarily interrupting the continuous carriage or
of evading this part.
‘‘§ 10544. Transportation services or facilities fur-
nished by shipper
‘‘A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part
may publish a charge or allowance for transportation or
service for property when the owner of the property, di-
rectly or indirectly, furnishes a service related to or an
instrumentality used in the transportation or service. The
Panel may prescribe the maximum reasonable charge or
allowance a rail carrier subject to its jurisdiction may pay
for a service or instrumentality furnished under this sec-
tion. The Panel may begin a proceeding under this section
on its own initiative or on application.
‘‘§ 10545. Demurrage charges
‘‘A rail carrier providing transportation subject to the
jurisdiction of the Panel under this part shall compute de-
murrage charges, and establish rules related to those
charges, in a way that fulfills the national needs related
to—
‘‘(1) freight car use and distribution; and
‘‘(2) maintenance of an adequate supply of
freight cars to be available for transportation of
property.
‘‘CHAPTER 107—LICENSING
‘‘10701. Authorizing construction and operation of railroad lines.
‘‘10702. Finance and construction transactions by Class II and Class III rail
carriers and noncarriers.
‘‘10703. Filing and procedure for notice of intent to abandon or discontinue.
‘‘10704. Offers to purchase to avoid abandonment and discontinuance.
‘‘10705. Offering abandoned rail properties for sale for public purposes.
‘‘10706. Exception.
‘‘§ 10701. Authorizing construction and operation of
railroad lines
‘‘(a) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part may—
‘‘(1) construct an extension to any of its rail-
road lines;
‘‘(2) construct an additional railroad line;
‘‘(3) acquire or operate an extended or addi-
tional railroad line; or
‘‘(4) provide transportation over, or by means
of, an extended or additional railroad line;
only if the Panel issues a certificate authorizing such 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 or section 10702 authorizing the
construction or extension of a railroad line, no other rail
carrier may block any construction or extension authorized
by such certificate by refusing to permit the carrier to
cross its property if—
‘‘(A) the construction does not unreasonably
interfere with the operation of the crossed line;
‘‘(B) the operation does not materially interfere
with the operation of the crossed line; and
‘‘(C) the owner of the crossing line compensates
the owner of the crossed line.
‘‘(2) If the parties are unable to agree on the terms
of operation or the amount of payment for purposes of
paragraph (1) of this subsection, either party may submit
the matters in dispute to the Panel for determination. The
Panel shall make a determination under this paragraph
within 90 days after the dispute is submitted for deter-
mination.
‘‘(e) Subsections (a), (b), and (c) of this section shall
only apply to Class I rail carriers.
‘‘§ 10702. Finance and construction transactions by
Class II and Class III rail carriers and
noncarriers
‘‘(a)(1) A Class II or Class III rail carrier providing
transportation subject to the jurisdiction of the Panel
under this part, or a noncarrier, may—
‘‘(A) construct an extension of any of its rail-
road lines;
‘‘(B) construct an additional railroad line; or
‘‘(C) acquire or operate a railroad line,
only if the Panel issues a certificate authorizing such ac-
tivity under subsection (c).
‘‘(2) A certificate issued by the Panel under sub-
section (c) shall also be required for—
‘‘(A) a Class II or Class III rail carrier provid-
ing transportation subject to the jurisdiction of the
Panel under this part, or a noncarrier to provide
transportation over, or by means of, a railroad line
by trackage rights, lease, or joint ownership or joint
use of the railroad line (and terminals incidental
thereto);
‘‘(B) a consolidation or merger of the properties
or franchises of at least 2 Class II or Class III rail
carriers into one corporation for the ownership,
management, and operation of the previously sepa-
rately owned properties;
‘‘(2) the anticompetitive effects of the trans-
action outweigh the public interest in meeting sig-
nificant transportation needs.
Such certificate may approve the application as filed, or
with modifications, and may require compliance with con-
ditions the Panel finds necessary in the public interest.
‘‘(d) When a person is involved in a transaction for
which approval is sought under this section, the Panel
shall require such person to protect the interest of affected
employees to an extent equal to the protection required
under sections 2 through 5 of the Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2101–2104).
‘‘(e) The authority of the Panel over transactions de-
scribed in subsection (a)(2) is exclusive. A rail carrier or
corporation participating in or resulting from such a
transaction may carry out the transaction, own and oper-
ate property, and exercise control or franchises acquired
through the transaction without the approval of a State
authority. A rail carrier, corporation, or person participat-
ing in that transaction is exempt from the antitrust laws
and from all other law, including State and municipal law,
as necessary to let that rail carrier, corporation, or person
carry out the transaction, hold, maintain, and operate
property and exercise control or franchises acquired
through the transaction.
‘‘§ 10703. Filing and procedure for notice of intent to
abandon or discontinue
‘‘(a)(1) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part who 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.
‘‘(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 paragraph (2), aban-
donment and discontinuance may occur as provided in sec-
tion 10704.
‘‘(2) If, after considering the scope of an abandon-
ment or discontinuance proposed in a notice of intent filed
under this section, the Panel considers it necessary, to im-
prove the viability of the lines included within the proposed
abandonment or discontinuance for possible sale or trans-
fer and continued operation, and to enhance competitive
alternatives in the event of such sale or transfer, the Panel
may require the filing of a new notice of intent which en-
larges the scope of the proposed abandonment or dis-
continuance.
‘‘(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.
‘‘§ 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 6 months after a notice of intent is filed
under section 10703, any person may offer to purchase
the railroad line that is the subject of such notice of intent.
Such offer shall be filed concurrently with the Panel. If
the offer to purchase is less than the minimum purchase
price stated pursuant to subsection (a)(1), the offer shall
explain the basis of the disparity, and the manner in which
the offer is calculated.
‘‘(c)(1) Unless the Panel, within 15 days after the
expiration of the 6-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.
‘‘(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 6-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 6-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 6-month
period described in subsection (b) may accept the Panel’s
decision within 20 days after such decision, and the Panel
shall require the carrier to enter into a sale agreement
with such offeror, if such sale 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.
‘‘CHAPTER 109—OPERATIONS
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘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 commitments under con-
tracts authorized under section 10509 of this title before
responding to reasonable requests for service.
‘‘(b) A rail carrier shall also provide to any person,
on reasonable request, rates and other service terms. The
response by a rail carrier to a request for rates and other
service terms shall be in writing and forwarded to the re-
questing person promptly after receipt of the request.
‘‘§ 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.
‘‘§ 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 ‘carrier’, ‘broker’, and ‘lessor’
include a receiver or trustee of a carrier, broker, and
lessor, respectively;
‘‘(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 Interstate Commerce Commission under this
part; and
‘‘(3) the term ‘association’ means an organiza-
tion maintained by or in the interest of a group of
rail carriers or brokers providing transportation or
service subject to the jurisdiction of the Commission
under this part that performs a service, or engages
in activities, related to transportation under this
part.
‘‘§ 10942. Uniform accounting system
‘‘The Panel may prescribe a uniform accounting sys-
tem for classes of rail carriers providing, and brokers for,
transportation subject to the jurisdiction of the Panel
under this part. To the maximum extent practicable, the
Panel shall conform such system to generally accepted ac-
counting principles, and shall administer this subchapter
in accordance with such principles.
‘‘§ 10943. Depreciation charges
‘‘The Panel shall, for a class of rail carriers providing
transportation subject to its jurisdiction under this part,
prescribe, and change when necessary, those classes of
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, brokers, and lessors, in-
cluding 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, broker, or lessor;
and
‘‘(2) inspect and copy any record of—
‘‘(A) a rail carrier, broker, lessor, or asso-
ciation; 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, brokers, lessors, and persons
furnishing cars.
‘‘§ 10945. Reports by rail carriers, lessors, and asso-
ciations
‘‘(a) The Panel may require rail carriers, brokers, les-
sors, and associations, or classes of them as the Panel may
prescribe, to file annual, periodic, and special reports with
the Panel containing answers to questions asked by it.
‘‘(b)(1) An annual report shall contain an account,
in as much detail as the Panel may require, of the affairs
of the rail carrier, broker, 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
‘‘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
railroad cars, locomotives, or other rolling stock, intended
for a use related to interstate commerce shall be filed with
the Panel. An assignment of a right or interest under one
of those instruments and an amendment to that instru-
ment or assignment including a release, discharge, or sat-
isfaction of any part of it shall also be filed with the Panel.
The instrument, assignment, or amendment must be in
writing, executed by the parties to it, and acknowledged
or verified under Panel regulations. When filed under this
section, that document is notice to, and enforceable
against, all persons. A document filed under this section
does not have to be filed, deposited, registered, or recorded
under 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.
‘‘SUBCHAPTER II—COMBINATIONS
‘‘§ 11121. Scope of authority
‘‘(a) The authority of the Panel under this sub-
chapter is exclusive. A rail carrier or corporation partici-
pating 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 exer-
cise control or franchises acquired through the transaction
without the approval of a State authority. A rail carrier,
corporation, or person participating in that approved or
exempted 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.
‘‘(b) The requirement to obtain the approval or au-
thorization of the Panel under this subchapter shall only
apply to transactions involving at least one Class I rail
carrier, and shall not apply to transactions described in
section 10702.
‘‘§ 11122. Limitation on pooling and division of trans-
portation or earnings
‘‘(a) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part may not
agree or combine with another of those rail carriers to pool
or divide traffic or services or any part of their earnings
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
Panel under this part may be carried out only with the
approval and authorization of the Panel:
‘‘(1) Consolidation or merger of the properties
or franchises of at least 2 rail carriers into one cor-
poration for the ownership, management, and oper-
ation of the previously separately owned properties.
‘‘(2) A purchase, lease, or contract to operate
property of another rail carrier by any number of
rail carriers.
‘‘(3) Acquisition of control of a rail carrier by
any number of rail carriers.
‘‘(4) Acquisition of control of at least 2 rail car-
riers by a person that is not a rail carrier.
‘‘(5) Acquisition of control of a rail carrier by
a person that is not a rail carrier but that controls
any number of rail carriers.
‘‘(6) Acquisition by a rail carrier of trackage
rights over, or joint ownership in or joint use of, a
railroad line (and terminals incidental to it) owned
or operated by another rail carrier.
‘‘(b) A person may carry out a transaction referred
to in subsection (a) of this section or participate in achiev-
ing the control or management, including the power to ex-
ercise control or management, in a common interest of
more than one of those rail carriers, regardless of how that
result is reached, only with the approval and authorization
of the Panel under this subchapter. In addition to other
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. Any trackage rights conditions imposed to alle-
viate anticompetitive effects of the transaction shall pro-
vide for compensation levels to ensure that such effects
are alleviated. When the transaction contemplates a guar-
anty 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 transaction only
if it finds that the guaranty, assumption, or increase is
consistent with the public interest. The Panel may require
inclusion of other rail carriers located in the area involved
in the transaction if they apply for inclusion and the Panel
finds their inclusion to be consistent with the public inter-
est.
‘‘(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 Secretary of Trans-
portation.
‘‘(e)(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
served on the Attorney General, who may decide to
intervene as a party to the proceeding. That decision
must be made by the 15th day after the date of re-
ceipt of the written comments, and if the decision is
to intervene, preliminary comments about the appli-
cation must be sent to the Panel by the end of the
15th day after the date of receipt of the written
comments.
‘‘(2) The Panel shall require that applications
inconsistent with an application, notice of which was
published under subsection (a) of this section, and
applications for inclusion in the transaction, be filed
with it by the 90th day after publication of notice
under that subsection.
‘‘(3) The Panel must conclude evidentiary pro-
ceedings by the end of the 6th month after the date
of publication of notice under subsection (a) of this
section. The Panel must issue a final decision by the
90th day after the date on which it concludes the
evidentiary proceedings.
‘‘(c) If the application involves a transaction other
than the merger or control of at least two Class I rail-
roads, as defined by the Panel, which the Panel has deter-
mined to be of regional or national transportation signifi-
cance, 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 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
‘‘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 protective of the interests of employees who are
affected by the transaction as the terms imposed under
this section before February 5, 1976, and the terms estab-
lished under section 24706(c) of this title. Notwithstand-
ing this part, the arrangement may be made by the rail
carrier and the authorized representative of its employees.
The arrangement and the order approving the transaction
must require that the employees of the 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).
‘‘§ 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—
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) The Panel may begin an investigation under this
part on its own initiative or on complaint. If the Panel
finds that a rail carrier is violating this part, the Panel
shall take appropriate action to compel compliance with
this part.
‘‘(b) A person, including a governmental authority,
may file with the Panel a complaint about a violation of
this part by a rail carrier providing transportation or serv-
ice subject to the jurisdiction of the Panel under this part.
The complaint must state the facts that are the subject
of the violation. The Panel may dismiss a complaint it 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 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) this section to enforce an order of the Panel
requiring the payment of damages by a rail carrier provid-
ing 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 district
courts of the United States, a State court of general juris-
diction having jurisdiction of the parties has jurisdiction
to enforce an order under this paragraph. The findings
and order of the Panel are competent evidence of the facts
stated in them. Trial in a civil action brought in a district
court of the United States under this paragraph is in the
judicial district—
‘‘(A) in which the plaintiff resides;
‘‘(B) in which the principal operating office of
the rail carrier is located; or
‘‘(C) if a rail carrier, through which the rail-
road 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-
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.
‘‘(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 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 sec-
tion. The period for bringing a civil action is computed
from the date the carrier gives a person written notice that
the carrier has disallowed any part of the claim specified
in the notice. For the purposes of this subsection—
‘‘(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,
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 individ-
uals.
‘‘§ 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
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-
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 or protective services against heat or cold, and an
officer, agent, or employee of one of them, required to
make a report to the Panel or answer a question 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 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, vehicles, or vessels used in the transpor-
tation of property, 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;
‘‘(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
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
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.
‘‘§ 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.
‘‘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;
‘‘(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;
‘‘(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
100
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.
‘‘(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, and, for purposes of sections 13902, 13905,
101
and 13906, the term includes foreign motor carriers
and foreign motor private carriers.
‘‘(3) CONTRACT CARRIAGE.—The term ‘contract
carriage’ means—
‘‘(A) for transportation provided before the
effective date of this section, service provided
pursuant to a permit issued under section
10923, as in effect on the day before the 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).
‘‘(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)—
102
‘‘(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
(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
103
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;
‘‘(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-
104
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.
‘‘(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—
105
‘‘(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
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
motor-water transportation subject to jurisdiction
under chapter 135 of this title involving traffic origi-
nating in or destined to Alaska, Hawaii, or a terri-
tory or possession of the United States.
‘‘(15) PANEL.—The term ‘Panel’ means the
Transportation Adjudication Panel.
106
‘‘(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-
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.
107
‘‘(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.
‘‘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
108
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.
‘‘(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-
109
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
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.
110
‘‘(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.
‘‘(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
111
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 motor
carrier, a broker, or a freight forwarder providing trans-
portation or service subject to jurisdiction under chapter
135 of this title 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 authority of each State in which it oper-
ates having jurisdiction to regulate transportation by
motor vehicle in intrastate commerce on the highways of
that State. The designation may be changed at any time
in the same manner as originally made.
‘‘(c) NOTICE.—A notice to a motor carrier, freight
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-
112
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
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.
113
‘‘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 shall have jurisdiction,
as specified in this part, over transportation by motor car-
rier and the procurement of that transportation, to the
extent 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;
114
‘‘(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—
‘‘(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.
115
‘‘§ 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
‘‘(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-
116
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
‘‘(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.
117
‘‘(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.
‘‘§ 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.
118
‘‘§ 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
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—
119
‘‘(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
‘‘(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
120
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
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;
121
‘‘(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-
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-
122
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
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
123
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-
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
124
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
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.
125
‘‘§ 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
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—
126
‘‘(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.—
‘‘(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
127
‘‘(C) does not maintain the record in the
form and manner prescribed under this section;
is liable to the United States Government for a civil
penalty of not more than $500 for each violation
and for not more than $250 for each additional day
the violation continues.
‘‘(2) VENUE.—Trial in a civil action under
paragraph (1) shall be in the judicial district in
which—
‘‘(A) the cooperative association or federa-
tion of cooperative associations has its principal
office;
‘‘(B) the violation occurred; or
‘‘(C) the offender is found.
Process in the action may be served in the judicial
district of which the offender is an inhabitant or in
which the offender may be found.
‘‘(e) EVASION PENALTIES.—A person, or an officer,
employee, or agent of that person, that by any means
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
128
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
‘‘(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.
129
‘‘SUBCHAPTER II—WATER CARRIER
TRANSPORTATION
‘‘§ 13521. General jurisdiction
‘‘(a) GENERAL RULES.—The Secretary has jurisdic-
tion over transportation insofar as water carriers are con-
cerned—
‘‘(1) by water carrier between a place in a State
and a place in another State, even if part of the
transportation is outside the United States;
‘‘(2) by water carrier and motor carrier from a
place in a State to a place in another State; except
that if part of the transportation is outside the Unit-
ed States, the Secretary only has jurisdiction over
that part of the transportation provided—
‘‘(A) by motor carrier that is in the United
States; and
‘‘(B) by water carrier that is from a place
in the United States to another place in the
United States; and
‘‘(3) by water carrier or by water carrier and
motor carrier between a place in the United States
and a place outside the United States, to the extent
that—
130
‘‘(A) when the transportation is by motor
carrier, the transportation is provided in the
United States;
‘‘(B) when the transportation is by water
carrier to a place outside the United States, the
transportation is provided by water carrier from
a place in the United States to another place in
the United States before transshipment from a
place in the United States to a place outside
the United States; and
‘‘(C) when the transportation is by water
carrier from a place outside the United States,
the transportation is provided by water carrier
from a place in the United States to another
place in the United States after transshipment
to a place in the United States from a place
outside the United States.
‘‘(b) DEFINITIONS.—In this section, the terms ‘State’
and ‘United States’ include the territories 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
131
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.
‘‘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
132
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.
‘‘(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-
133
age, insurance, safety fitness, or activities approved under
section 
13703 
or 
not 
terminated 
under 
section
13907(d)(2).
‘‘CHAPTER 137—RATES AND THROUGH ROUTES
‘‘Sec.
‘‘13701. Requirements for reasonable rates, classifications, through routes,
rules, and practices for certain transportation.
‘‘13702. Tariff requirement for certain transportation.
‘‘13703. Certain collective activities; exemption from antitrust laws. .
‘‘13704. Household goods rates—estimates; guarantees of service.
‘‘13705. Requirements for through routes among motor carriers of passengers.
‘‘13706. Liability for payment of rates.
‘‘13707. Billing and collecting practices. .
‘‘13708. Procedures for resolving claims involving unfiled, negotiated transpor-
tation rates.
‘‘13709. Additional motor carrier undercharge provisions.
‘‘13710. Alternative procedure for resolving undercharge disputes.
‘‘13711. Government traffic.
‘‘13712. Food and grocery transportation.
‘‘§ 13701. Requirements for reasonable rates, classi-
fications, through routes, rules, and prac-
tices for certain transportation
‘‘(a) REASONABLENESS.—
‘‘(1) CERTAIN HOUSEHOLD GOODS TRANSPOR-
TATION; JOINT RATES INVOLVING WATER TRANSPOR-
TATION.—A rate, classification, rule, or practice re-
lated to transportation or service provided by a car-
rier subject to jurisdiction under subchapters I or
III of chapter 135 of this title for transportation or
service involving—
‘‘(A) a movement of household goods de-
scribed in section 13102(9)(A), or
134
‘‘(B) a joint rate for a through movement
with a water carrier in noncontiguous domestic
trade,
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.
‘‘§ 13702. Tariff requirement for certain transpor-
tation
‘‘(a) SURFACE TRANSPORTATION COVERED.—A car-
rier subject to jurisdiction under subchapters I or III of
chapter 135 of this title may provide transportation or
service that is—
‘‘(1) under a joint rate for a through movement
in noncontiguous domestic trade, or
‘‘(2) for movement of household goods described
in section 13102(9)(A),
135
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;
136
‘‘(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) 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—
‘‘(A) publish new tariffs that incorporate
changes, or
‘‘(B) plainly indicate the proposed changes
in the tariffs then in effect and kept open for
public inspection.
‘‘(c) TARIFF
REQUIREMENTS
FOR
HOUSEHOLD
GOODS CARRIERS.—
‘‘(1) IN GENERAL.—A carrier providing trans-
portation described in subsection (a)(2) shall main-
tain rates and related rules and practices in a tariff.
137
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.
‘‘(4) INCORPORATION BY REFERENCE.—A car-
rier may incorporate by reference the rates, terms,
and other conditions in a tariff in agreements cover-
ing the transportation of households described in
section 13102(9)(B).
‘‘(5) COMPLAINTS.—A complaint that a rate or
related rule or practice maintained in a tariff under
this subsection violates section 13701(a) may be
submitted to the Panel for resolution.
138
‘‘(d) INVALIDATION.—The Panel may invalidate a
tariff prepared by a carrier or carriers under this section
(other than subsection (e)) if that tariff violates this sec-
tion or a regulation of the Panel carrying out this section.
‘‘(e) PORT-TO-PORT TRANSPORTATION.—
‘‘(1) IN GENERAL.—
‘‘(A) FILING REQUIREMENT.—Except with
regard to bulk cargo, forest products, recycled
metal scrap, waste paper, and paper waste,
each water common carrier subject to jurisdic-
tion under subchapter II of chapter 135 per-
forming transportation in domestic offshore
commerce shall file with the Panel, and keep
open to public inspection, tariffs showing all its
rates, charges, classifications, rules, and prac-
tices between all points or ports on its own
route and on any through transportation route
that has been established. Such carriers shall
not be required to state separately or otherwise
reveal in tariff filings the inland divisions of a
through rate. Such tariffs shall—
‘‘(i) state the places between which
cargo will be carried;
‘‘(ii) list each classification of cargo in
use;
139
‘‘(iii) state separately each terminal or
other charge, privilege, or facility under
the control of the carrier and any rules or
regulations that in any way change, affect,
or determine any part of the aggregate of
the rates or charges; and
‘‘(iv) include sample copies of any loy-
alty contract, bill of lading, contract of af-
freightment, or other document evidencing
the transportation agreement.
‘‘(B) AVAILABILITY.—Copies of tariffs
shall be made available to any person, and a
reasonable charge may be assessed for them.
‘‘(2) TIME-VOLUME
RATES.—Rates shown in
tariffs filed under paragraph (1) may vary with the
volume of cargo offered over a specified period of
time.
‘‘(3) RATES.—No new or initial rate required to
be filed under this subsection, or change in an exist-
ing rate required to be filed under this subsection,
that results in an increased cost to a shipper may
become effective earlier than 30 days after filing of
the rate with the Panel; except that the Panel, for
good cause, may allow such a new or initial rate or
change to become effective in less than 30 days. A
140
change in such an existing rate that results in a de-
creased cost to the shipper may become effective
upon publication and filing of the rate with the
Panel.
‘‘§ 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 described in section 13102(9)(A);
‘‘(C) classifications;
‘‘(D) mileage guides;
‘‘(E) rules;
‘‘(F) divisions;
‘‘(G) rate adjustments of general applica-
tion based on industry average carrier costs (so
long as there is no discussion of individual mar-
kets or particular single-line rates); or
‘‘(H) procedures for joint consideration,
initiation, or establishment of matters described
in subparagraphs (A) through (G).
141
‘‘(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) INVESTIGATIONS.—The Panel may sus-
pend and investigate the reasonableness of any clas-
sification or rate adjustment of general application
made pursuant to an agreement under this section.
‘‘(5) EFFECT OF APPROVAL.—If the Panel ap-
proves the agreement or renews approval of the
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-
142
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.
143
‘‘(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) MILEAGE RATE LIMITATION.—No carrier sub-
ject to jurisdiction under subchapter I or III of chapter
135 may enforce collection of its mileage rates unless such
carrier—
‘‘(1) uses an independent publication of mileage
(other than a publication referred to in paragraph
(2)) which can be examined by any interested person
upon reasonable request; or
144
‘‘(2) is a participant in a publication of mile-
ages formulated under an agreement approved under
this section.
‘‘(h) SINGLE LINE RATE DEFINED.—In this section,
the term ‘single line rate’ means a rate, charge, or 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.
‘‘(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.—
145
‘‘(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-
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
146
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
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
147
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
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.
148
‘‘§ 13707. Billing and collecting practices
‘‘(a) TIMING.—A motor carrier subject to jurisdiction
under subchapter I of chapter 135 shall disclose, when a
document is presented or electronically transmitted for
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 transpor-
tation service.
‘‘(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-
rectly to the motor carrier that a reduction, allowance, or
other adjustment may apply.
‘‘§ 13708. Procedures for resolving claims involving
unfiled, negotiated transportation rates
‘‘(a) TRANSPORTATION PROVIDED BEFORE EFFEC-
TIVE DATE.—
‘‘(1) IN GENERAL.—When a claim is made by
a motor carrier of property (other than a household
149
goods carrier) providing transportation subject to ju-
risdiction under subchapter II of chapter 105, as in
effect on the day before the effective date of this sec-
tion, by a freight forwarder (other than a household
goods freight forwarder), or by a party representing
such a carrier or freight forwarder regarding the col-
lection of rates or charges for such transportation in
addition to those originally billed and collected by
the carrier or freight forwarder for such transpor-
tation, the person against whom the claim is made
may elect to satisfy the claim under the provisions
of subsection (b), (c), or (d), upon showing that—
‘‘(A) the carrier or freight forwarder is no
longer transporting property or is transporting
property for the purpose of avoiding the appli-
cation of this section; and
‘‘(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 for
the transportation service;
‘‘(ii) the person tendered freight to
the carrier or freight forwarder in reason-
150
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 a tariff
providing for such transportation rate or
failed to enter into an agreement for con-
tract 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-
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-
151
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.
‘‘(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 .
‘‘(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.
152
‘‘(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 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
153
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
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
154
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-
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.
155
‘‘(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
‘‘(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.
156
‘‘§ 13709. Additional motor carrier undercharge pro-
visions
‘‘(a) MISCELLANEOUS PROVISIONS.—
‘‘(1) INFORMATION
RELATING
TO
BASIS
OF
RATE.—A motor carrier of property (other than a
motor carrier providing transportation in noncontig-
uous domestic trade) shall provide to the shipper, on
request of the shipper, a written or electronic copy
of the rate, classification, rules, and practices, upon
which any rate agreed to between the shipper and
carrier may have been based.
‘‘(2) REASONABLENESS OF RATES; COLLECTING
ADDITIONAL CHARGES.—With respect to transpor-
tation provided before the effective date of this sec-
tion, 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. In those cases where
a motor carrier (other than a motor carrier provid-
ing transportation of household goods or in non-
contiguous 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
157
over those billed and collected must be paid. A car-
rier must issue any bill for charges in addition to
those originally billed within 180 days of the receipt
of the original bill in order to have the right to col-
lect such charges.
‘‘(3) CHARGES
BEFORE
EFFECTIVE
DATE.—
With respect to transportation provided before the
effective date of this section, if a shipper seeks to
contest the charges originally billed or additional
charges 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 subsequent 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
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
158
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.
‘‘§ 13710. Alternative procedure for resolving under-
charge disputes
‘‘(a) GENERAL RULE.—It shall be an unreasonable
practice for a motor carrier of property (other than a
household goods carrier) providing transportation that
was subject to jurisdiction under subchapter II of chapter
105 before the effective date of this section, a freight for-
warder (other than a household goods freight forwarder),
or a party representing such a carrier or freight forwarder
to attempt to charge or to charge for a transportation
service the difference between the applicable rate that was
lawfully in effect pursuant to a tariff that was filed in
accordance with chapter 107 of this title by the carrier
or freight forwarder applicable to such transportation
159
service and the negotiated rate for such transportation
service if the carrier or freight forwarder is no longer
transporting property between places described in section
13501(1) of this title or is transporting property between
places described in section 13501(1) of this title for the
purpose of avoiding application of this 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
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
161
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, relating to
a filed tariff rate and other general tariff requirements,
as in effect on the day before such effective date.
‘‘(e) NONAPPLICABILITY OF NEGOTIATED RATE DIS-
PUTE RESOLUTION PROCEDURE.—If a person elects to
seek enforcement of subsection (a) with respect to a rate
for a transportation or service, section 13708 shall not
apply to such rate.
‘‘(f) DEFINITIONS.—In this section, the term ‘‘nego-
tiated rate’’ means a rate, charge, classification, or rule
agreed upon by a motor carrier or freight forwarder and
a shipper through negotiations pursuant to which no tariff
was lawfully and timely filed and for which there is written
evidence of such agreement.
‘‘§ 13711. Government traffic
‘‘A carrier providing transportation or service for the
United States Government may transport property or indi-
162
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.
‘‘§ 13712. 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 motor carrier brokers.
‘‘13905. Effective periods of registration.
‘‘13906. Security of motor carriers, brokers, and freight forwarders.
‘‘13907. Household goods agents.
‘‘13908. Registration and other reforms.
163
‘‘§ 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
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-
164
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).
‘‘(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) 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
165
which the carrier provides interstate transportation
of passengers.
‘‘(2) PREEMPTION
REGARDING
CERTAIN
EX-
PRESS SERVICE.—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, regulation, 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 commercial zone, is served by a
motor carrier of passengers providing regular-route
transportation of passengers subject to jurisdiction
under subchapter I of chapter 135.
‘‘(3) TREATMENT.—Except as provided in sec-
tion 14501(a), any intrastate transportation author-
ized by this subsection shall be treated as transpor-
tation subject to jurisdiction under subchapter I of
chapter 135 until the 30th day following the date on
which the motor carrier of passengers first begins
providing transportation entirely in one State under
this paragraph and the carrier takes such action as
is necessary to establish under the laws of such
166
State rates, rules, and practices applicable to such
transportation.
‘‘(4) 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.
‘‘(5) 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.
‘‘(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-
rier transportation to, from, or within such foreign
country, the President or such delegate may—
‘‘(A) seek elimination of such practices
through consultations; or
167
‘‘(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.
‘‘(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—
168
‘‘(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
based and any proposed action to be taken pursuant
to paragraph (1)(B) or (3) and provide an oppor-
tunity for public comment.
169
‘‘(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.
‘‘§ 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-
170
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 motor carrier 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.—
‘‘(1) REGISTRATION AS CARRIER REQUIRED.—
The broker may provide transportation itself only if
the broker also has registered to provide transpor-
tation as a carrier under this chapter.
‘‘(2) EXCEPTION.—This subsection does not
apply to a motor carrier registered under this chap-
ter or to an employee or agent of the motor carrier
to the extent the transportation is to be provided en-
tirely by the motor carrier, with other registered
motor carriers, or with rail or water carriers.
171
‘‘(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) 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.
‘‘(b) 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-
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.
172
‘‘(c) 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 of the registrant; and
‘‘(2) the registrant willfully does not comply
with the order for a period of 30 days.
‘‘(d) 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.
‘‘(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-
173
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
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
174
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.
‘‘(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
175
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
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-