176
graph (2) of this subsection), resulting from the neg-
ligent operation, maintenance, or use of motor vehi-
cles by or under the direction and control of the
freight forwarder when providing transfer, collection,
or delivery service under this part.
‘‘(2) FREIGHT FORWARDER INSURANCE.—The
Secretary may require a registered freight forwarder
to file with the Secretary a bond, insurance policy,
or other type of security approved by the Secretary
sufficient to pay, not more than the amount of the
security, for loss of, or damage to, property for
which the freight forwarder provides service.
‘‘(3) EFFECTIVE
PERIOD.—The freight for-
warder’s registration remains in effect only as long
as the freight forwarder continues to satisfy the se-
curity requirements of this subsection.
‘‘(d) TYPE OF INSURANCE.—The Secretary may de-
termine the type and amount of security filed under this
section. A motor carrier may submit proof of qualifications
as a self-insurer to satisfy the security requirements of
this section. The Secretary shall adopt regulations govern-
ing the standards for approval as a self-insurer. Motor
carriers which have been granted authority to self-insure
as of the effective date of this section shall retain that
authority unless, for good cause shown and after notice
177
and an opportunity for a hearing, the Secretary finds that
the authority must be revoked.
‘‘(e) NOTICE OF CANCELLATION OF INSURANCE.—
The Secretary shall issue regulations requiring the sub-
mission to the Secretary of notices of insurance cancella-
tion sufficiently in advance of actual cancellation so as to
enable the Secretary to promptly revoke the registration
of any carrier or broker after the effective date of the can-
cellation.
‘‘(f) FORM OF ENDORSEMENT.—The Secretary shall
also prescribe the appropriate form of endorsement to be
appended to policies of insurance and surety bonds which
will subject the insurance policy or surety bond to the full
security limits of the coverage required under this section.
‘‘§ 13907. Household goods agents
‘‘(a) CARRIERS RESPONSIBLE FOR AGENTS.—Each
motor carrier providing transportation of household goods
subject to jurisdiction under subchapter I of chapter 135
shall be responsible for all acts or omissions of any of its
agents which relate to the performance of household goods
transportation services (including accessorial or terminal
services) subject to jurisdiction under subchapter I of
chapter 135 and which are within the actual or apparent
authority of the agent from the carrier or which are rati-
fied by the carrier.
178
‘‘(b) STANDARD
FOR SELECTING AGENTS.—Each
motor carrier providing transportation of household goods
subject to jurisdiction under subchapter I of chapter 135
shall use due diligence and reasonable care in selecting
and maintaining agents who are sufficiently knowledge-
able, fit, willing, and able to provide adequate household
goods transportation services (including accessorial and
terminal services) and to fulfill the obligations imposed
upon them by this part and by such carrier.
‘‘(c) ENFORCEMENT.—
‘‘(1) COMPLAINT.—Whenever the Secretary has
reason to believe from a complaint or investigation
that an agent providing household goods transpor-
tation services (including accessorial and terminal
services) under the authority of a motor carrier pro-
viding transportation of household goods subject to
jurisdiction under subchapter I of chapter 135 has
violated section 14901(e) or 14912 or is consistently
not fit, willing, and able to provide adequate house-
hold goods transportation services (including acces-
sorial and terminal services), the Secretary may
issue to such agent a complaint stating the charges
and containing notice of the time and place of a
hearing which shall be held no later than 60 days
after service of the complaint to such agent.
179
‘‘(2) RIGHT TO DEFEND.—The agent shall have
the right to appear at such hearing and rebut the
charges contained in the complaint.
‘‘(3) ORDER.—If the agent does not appear at
the hearing or if the Secretary finds that the agent
has violated section 14901(e) or 14912 or is consist-
ently not fit, willing, and able to provide adequate
household goods transportation services (including
accessorial and terminal services), the Secretary may
issue an order to compel compliance with the re-
quirement that the agent be fit, willing, and able.
Thereafter, the Secretary may issue an order to
limit, condition, or prohibit such agent from any in-
volvement in the transportation or provision of serv-
ices incidental to the transportation of household
goods subject to jurisdiction under subchapter I of
chapter 135 if, after notice and an opportunity for
a hearing, the Secretary finds that such agent, with-
in a reasonable time after the date of issuance of a
compliance order under this section, but in no event
less than 30 days after such date of issuance, has
willfully failed to comply with such order.
‘‘(4) HEARING.—Upon filing of a petition with
the Secretary by an agent who is the subject of an
order issued pursuant to the second sentence of
180
paragraph (3) of this subsection and after notice, a
hearing shall be held with an opportunity to be
heard. At such hearing, a determination shall be
made whether the order issued pursuant to para-
graph (3) of this subsection should be rescinded.
‘‘(5) COURT REVIEW.—Any agent adversely af-
fected or aggrieved by an order of the Secretary is-
sued under this subsection may seek relief in the ap-
propriate United States court of appeals as provided
by and in the manner prescribed in chapter 158 of
title 28, United States Code.
‘‘(d) LIMITATION ON APPLICABILITY OF ANTITRUST
LAWS.—
‘‘(1) IN GENERAL.—The antitrust laws, as de-
fined in the first section of the Clayton Act (15
U.S.C. 12), do not apply to discussions or agree-
ments between a motor carrier providing transpor-
tation of household goods subject to jurisdiction
under subchapter I of chapter 135 and its agents
(whether or not an agent is also a carrier) related
solely to—
‘‘(A) rates for the transportation of house-
hold goods under the authority of the principal
carrier;
181
‘‘(B) accessorial, terminal, storage, or
other charges for services incidental to the
transportation of household goods transported
under the authority of the principal carrier;
‘‘(C) allowances relating to transportation
of household goods under the authority of the
principal carrier; and
‘‘(D) ownership of a motor carrier provid-
ing transportation of household goods subject to
jurisdiction under subchapter I of chapter 135
by an agent or membership on the board of di-
rectors of any such motor carrier by an agent.
‘‘(2) PANEL REVIEW.—The Panel, upon its own
initiative or request, shall review any activities un-
dertaken under paragraph (1) and shall modify or
terminate the activity if necessary to protect the
public interest.
‘‘§ 13908. Registration and other reforms
‘‘(a) REGULATIONS
REPLACING
CERTAIN
PRO-
GRAMS.—The Secretary, in cooperation with the States,
shall issue regulations to replace the current Department
of Transportation identification number system, the single
State registration system under section 14504, the reg-
istration system contained in chapter 139, and the finan-
cial responsibility information system under section 13906
182
with a single system. The new system shall serve as a
clearinghouse and depository of information on and identi-
fication of all foreign and domestic motor carriers, bro-
kers, freight forwarders, and others required to register
with the Department as well as information on safety fit-
ness and compliance with required levels of financial re-
sponsibility.
‘‘(b) FACTORS TO BE CONSIDERED.—In conducting
the rulemaking under subsection (a) with respect to the
single State registration system under section 14504, the
Secretary shall, at a minimum, consider the following fac-
tors:
‘‘(1) Funding for State enforcement of motor
carrier safety regulations.
‘‘(2) Whether the existing single State registra-
tion system is duplicative and burdensome.
‘‘(3) The justification and need for collecting
the statutory fee for such system under section
14504(c)(2)(B)(iv).
‘‘(4) The public safety.
‘‘(5) The efficient delivery of transportation
services.
‘‘(c) FEE SYSTEM.—The Secretary may establish fees
as part of any system implemented under subsection (a).
The system operation and upgrade, including all personnel
183
costs associated with the system, shall be fully supported
by user fees collected.
‘‘(d) DEADLINE
FOR
CONCLUSION; MODIFICA-
TIONS.—Not later than 18 months after the effective date
of this section, the Secretary—
‘‘(1) shall conclude the rulemaking under this
section;
‘‘(2) may implement such changes under this
section as the Secretary considers appropriate and in
the public interest; and
‘‘(3) shall transmit to Congress a report on any
findings of the rulemaking and the changes being
implemented under this section, together with such
recommendations for legislative language necessary
to conform this part to such changes.
‘‘CHAPTER 141—OPERATIONS OF
CARRIERS
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘Sec.
‘‘14101. Providing transportation and service.
‘‘14102. Leased motor vehicles.
‘‘14103. Loading and unloading motor vehicles.
‘‘14104. Household goods carrier operations.
‘‘SUBCHAPTER II—REPORTS AND RECORDS
‘‘14121. Definitions.
‘‘14122. Records: form; inspection; preservation.
‘‘14123. Financial reporting.
184
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘§ 14101. Providing transportation and service
‘‘(a) ON REASONABLE REQUEST.—A carrier provid-
ing transportation or service subject to jurisdiction under
chapter 135 shall provide the transportation or service on
reasonable request. In addition, a motor carrier shall pro-
vide safe and adequate service, equipment, and facilities.
‘‘(b) CONTRACTS WITH SHIPPERS.—
‘‘(1) IN GENERAL.—A carrier providing trans-
portation or service subject to jurisdiction under
chapter 135 may enter into a contract with a ship-
per, other than for the movement of household goods
described in section 13102(9)(A), to provide speci-
fied services under specified rates and conditions. If
the shipper, in writing, expressly waives all rights
and remedies under this part for the transportation
covered by the contract, the transportation provided
under the contract shall not be subject to this part
and may not be subsequently challenged on the
ground that it violates a provision of this part.
‘‘(2) REMEDY FOR BREACH OF CONTRACT.—
The exclusive remedy for any alleged breach of a
contract entered into under this subsection shall be
an action in an appropriate State court or United
185
States district court, unless the parties otherwise
agree.
‘‘§ 14102. Leased motor vehicles
‘‘(a) GENERAL AUTHORITY
OF SECRETARY.—The
Secretary may require a motor carrier providing transpor-
tation subject to jurisdiction under subchapter I of chapter
135 that uses motor vehicles not owned by it to transport
property under an arrangement with another party to—
‘‘(1) make the arrangement in writing signed
by the parties specifying its duration and the com-
pensation to be paid by the motor carrier;
‘‘(2) carry a copy of the arrangement in each
motor vehicle to which it applies during the period
the arrangement is in effect;
‘‘(3) inspect the motor vehicles and obtain li-
ability and cargo insurance on them; and
‘‘(4) have control of and be responsible for op-
erating those motor vehicles in compliance with re-
quirements prescribed by the Secretary on safety of
operations and equipment, and with other applicable
law as if the motor vehicles were owned by the
motor carrier.
‘‘(b) RESPONSIBLE PARTY FOR LOADING AND UN-
LOADING.—The Secretary shall require, by regulation,
that any arrangement, between a motor carrier of property
186
providing transportation subject to jurisdiction under sub-
chapter I of chapter 135 and any other person, under
which such other person is to provide any portion of such
transportation by a motor vehicle not owned by the carrier
shall specify, in writing, who is responsible for loading and
unloading the property onto and from the motor vehicle.
‘‘§ 14103. Loading and unloading motor vehicles
‘‘(a) SHIPPER
RESPONSIBLE
FOR
ASSISTING.—
Whenever a shipper or receiver of property requires that
any person who owns or operates a motor vehicle trans-
porting property in interstate commerce (whether or not
such transportation is subject to jurisdiction under sub-
chapter I of chapter 135) be assisted in the loading or
unloading of such vehicle, the shipper or receiver shall be
responsible for providing such assistance or shall com-
pensate the owner or operator for all costs associated with
securing and compensating the person or persons provid-
ing such assistance.
‘‘(b) COERCION PROHIBITED.—It shall be unlawful
to coerce or attempt to coerce any person providing trans-
portation of property by motor vehicle for compensation
in interstate commerce (whether or not such transpor-
tation is subject to jurisdiction under subchapter I of
chapter 135) to load or unload any part of such property
onto or from such vehicle or to employ or pay one or more
187
persons to load or unload any part of such property onto
or from such vehicle; except that this subsection shall not
be construed as making unlawful any activity which is not
unlawful under the National Labor Relations Act or the
Act of March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et
seq.), commonly known as the Norris-LaGuardia Act.
‘‘§ 14104. Household goods carrier operations
‘‘(a) GENERAL REGULATORY AUTHORITY.—
‘‘(1) PAPERWORK
MINIMIZATION.—The Sec-
retary may issue regulations, including regulations
protecting individual shippers, in order to carry out
this part with respect to the transportation of house-
hold goods by motor carriers subject to jurisdiction
under subchapter I of chapter 135. The regulations
and paperwork required of motor carriers providing
transportation of household goods shall be mini-
mized to the maximum extent feasible consistent
with the protection of individual shippers.
‘‘(2) PERFORMANCE STANDARDS.—
‘‘(A) IN
GENERAL.—Regulations of the
Secretary protecting individual shippers shall
include, where appropriate, reasonable perform-
ance standards for the transportation of house-
hold goods subject to jurisdiction under sub-
chapter I of chapter 135.
188
‘‘(B) FACTORS TO CONSIDER.—In estab-
lishing performance standards under this para-
graph, the Secretary shall take into account at
least the following:
‘‘(i) the level of performance that can
be achieved by a well-managed motor car-
rier transporting household goods;
‘‘(ii) the degree of harm to individual
shippers which could result from a viola-
tion of the regulation;
‘‘(iii) the need to set the level of per-
formance at a level sufficient to deter
abuses which result in harm to consumers
and violations of regulations;
‘‘(iv) service requirements of the car-
riers;
‘‘(v) the cost of compliance in relation
to the consumer benefits to be achieved
from such compliance; and
‘‘(vi) the need to set the level of per-
formance at a level designed to encourage
carriers to offer service responsive to ship-
per needs.
‘‘(3) LIMITATIONS ON STATUTORY CONSTRUC-
TION.—Nothing in this section shall be construed to
190
‘‘(c) FLEXIBILITY IN WEIGHING SHIPMENTS.—The
Secretary shall issue regulations that provide motor car-
riers providing transportation of household goods subject
to jurisdiction under subchapter I of chapter 135 with the
maximum possible flexibility in weighing shipments, con-
sistent with assurance to the shipper of accurate weighing
practices. The Secretary shall not prohibit such carriers
from backweighing shipments or from basing their charges
on the reweigh weights if the shipper observes both the
tare and gross weighings (or, prior to such weighings,
waives in writing the opportunity to observe such
weighings) and such weighings are performed on the same
scale.
‘‘SUBCHAPTER II—REPORTS AND RECORDS
‘‘§ 14121. Definitions
‘‘In this subchapter, the following definitions apply:
‘‘(1) CARRIER AND BROKER.—The terms ‘car-
rier’ and ‘broker’ include a receiver or trustee of a
carrier and broker, respectively.
‘‘(2) ASSOCIATION.—The term ‘association’
means an organization maintained by or in the in-
terest of a group of carriers or brokers providing
transportation or service subject to jurisdiction
under chapter 135 that performs a service, or en-
191
gages in activities, related to transportation under
this part.
‘‘§ 14122. Records: form; inspection; preservation
‘‘(a) FORM
OF RECORDS.—The Secretary or the
Panel, as applicable, may prescribe the form of records
required to be prepared or compiled under this subchapter
by carriers and brokers, including records related to move-
ment of traffic and receipts and expenditures of money.
‘‘(b) RIGHT
OF INSPECTION.—The Secretary or
Panel, or an employee designated by the Secretary or
Panel, may on demand and display of proper credentials—
‘‘(1) inspect and examine the lands, buildings,
and equipment of a carrier or broker; and
‘‘(2) inspect and copy any record of—
‘‘(A) a carrier, broker, or association; and
‘‘(B) a person controlling, controlled by, or
under common control with a carrier if the Sec-
retary or Panel, as applicable, considers inspec-
tion relevant to that person’s relation to, or
transaction with, that carrier.
‘‘(c) PERIOD FOR PRESERVATION OF RECORDS.—
The Secretary or Panel, as applicable, may prescribe the
time period during which operating, accounting, and fi-
nancial records must be preserved by carriers.
192
‘‘§ 14123. Financial reporting
øTo be supplied¿
‘‘CHAPTER 143—FINANCE
‘‘Sec.
‘‘14301. Security interests in certain motor vehicles.
‘‘14302. Pooling and division of transportation or earnings.
‘‘§ 14301. Security interests in certain motor vehicles
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means a truck of rated capacity (gross vehicle
weight) of at least 10,000 pounds, a highway tractor
of rated capacity (gross combination weight) of at
least 10,000 pounds, a property-carrying trailer or
semitrailer with at least one load-carrying axle of at
least 10,000 pounds, or a motor bus with a seating
capacity of at least 10 individuals.
‘‘(2) LIEN CREDITOR.—The term ‘lien creditor’
means a creditor having a lien on a motor vehicle
and includes an assignee for benefit of creditors
from the date of assignment, a trustee in a case
under title 11 from the date of filing of the petition
in that case, and a receiver in equity from the date
of appointment of the receiver.
‘‘(3) SECURITY INTEREST.—The term ‘security
interest’ means an interest (including an interest es-
tablished by a conditional sales contract, mortgage,
193
equipment trust, or other lien or title retention con-
tract, or lease) in a motor vehicle when the interest
secures payment or performance of an obligation.
‘‘(4) PERFECTION.—The term ‘perfection’, as
related to a security interest, means taking action
(including public filing, recording, notation on a cer-
tificate of title, and possession of collateral by the
secured party), or the existence of facts, required
under law to make a security interest enforceable
against general creditors and subsequent lien credi-
tors of a debtor, but does not include compliance
with requirements related only to the establishment
of a valid security interest between the debtor and
the secured party.
‘‘(b) REQUIREMENTS FOR PERFECTION OF SECURITY
INTEREST.—A security interest in a motor vehicle owned
by, or in the possession and use of, a carrier registered
under section 13902 of this title and owing payment or
performance of an obligation secured by that security in-
terest is perfected in all jurisdictions against all general,
and subsequent lien, creditors of, and all persons taking
a motor vehicle by sale (or taking or retaining a security
interest in a motor vehicle) from, that carrier when—
‘‘(1) a certificate of title is issued for a motor
vehicle under a law of a jurisdiction that requires or
194
permits indication, on a certificate or title, of a secu-
rity interest in the motor vehicle if the security in-
terest is indicated on the certificate;
‘‘(2) a certificate of title has not been issued
and the law of the State where the principal place
of business of that carrier is located requires or per-
mits public filing or recording of, or in relation to,
that security interest if there has been such a public
filing or recording; and
‘‘(3) a certificate of title has not been issued
and the security interest cannot be perfected under
paragraph (2) of this subsection, if the security in-
terest has been perfected under the law (including
the conflict of laws rules) of the State where the
principal place of business of that carrier is located.
‘‘§ 14302. Pooling and division of transportation or
earnings
‘‘(a) APPROVAL REQUIRED.—A carrier providing
transportation subject to jurisdiction under subchapter I
of chapter 135 of this title may not agree or combine with
another such carrier to pool or divide traffic or services
or any part of their earnings without the approval of the
Panel under this section.
‘‘(b) STANDARDS FOR APPROVAL.—The Panel may
approve and authorize an agreement or combination be-
195
tween or among motor carriers of passengers, or between
a motor carrier of passengers and a rail carrier of pas-
sengers if the carriers involved assent to the pooling or
division and the Panel finds that a pooling or division of
traffic, services, or earnings—
‘‘(1) will be in the interest of better service to
the public or of economy of operation; and
‘‘(2) will not unreasonably restrain competition.
‘‘(c) PROCEDURE.—
‘‘(1) APPLICATION.—Any motor carrier of prop-
erty may apply to the Panel for approval of an
agreement or combination with another such carrier
to pool or divide traffic or any services or any part
of their earnings by filing such agreement or com-
bination with the Panel not less than 50 days before
its effective date.
‘‘(2) DETERMINATION OF IMPORTANCE AND RE-
STRAINT ON COMPETITION.—Prior to the effective
date of the agreement or combination, the Panel
shall determine whether the agreement or combina-
tion is of major transportation importance and
whether there is substantial likelihood that the
agreement or combination will unduly restrain com-
petition. If the Panel determines that neither of
these 2 factors exists, it shall, prior to such effective
196
date and without a hearing, approve and authorize
the agreement or combination, under such rules and
regulations as the Panel may issue, and for such
consideration between such carriers and upon such
terms and conditions as shall be found by the Panel
to be just and reasonable.
‘‘(3) HEARING.—If the Panel determines either
that the agreement or combination is of major trans-
portation importance or that there is substantial
likelihood that the agreement or combination will
unduly restrain competition, the Panel shall hold a
hearing concerning whether the agreement or com-
bination will be in the interest of better service to
the public or of economy in operation and whether
it will unduly restrain competition and shall suspend
operation of such agreement or combination pending
such hearing and final decision thereon. After such
hearing, the Panel shall indicate to what extent it
finds that the agreement or combination will be in
the interest of better service to the public or of econ-
omy in operation and will not unduly restrain com-
petition and if assented to by all the carriers in-
volved, shall to that extent, approve and authorize
the agreement or combination, under such rules and
regulations as the Panel may issue, and for such
197
consideration between such carriers and upon such
terms and conditions as shall be found by the Panel
to be just and reasonable.
‘‘(4) SPECIAL RULES FOR HOUSEHOLD GOODS
CARRIERS.—In the case of an application for Panel
approval of an agreement or combination between a
motor carrier providing transportation of household
goods and its agents to pool or divide traffic or serv-
ices or any part of their earnings, such agreement
or combination shall be presumed to be in the inter-
est of better service to the public and of economy in
operation and not to restrain competition unduly if
the practices proposed to be carried out under such
agreement or combination are the same as or similar
to practices carried out under agreements and com-
binations between motor carriers providing transpor-
tation of household goods to pool or divide traffic or
service of any part of their earnings approved by the
Interstate Commerce Commission before the effec-
tive date of this section.
‘‘(5) STREAMLINING
AND
SIMPLIFYING.—The
Panel shall streamline, simplify, and expedite, to the
maximum extent practicable, the process (including
any paperwork) for submission and approval of ap-
plications under this section for agreements and
198
combinations between motor carriers providing
transportation of household goods and their agents.
‘‘(d) CONDITIONS.—The Panel may impose condi-
tions governing the pooling or division and may approve
and authorize payment of a reasonable consideration be-
tween the carriers.
‘‘(e) INITIATION OF PROCEEDING.—The Panel may
begin a proceeding under this section on its own initiative
or on application.
‘‘(f) EFFECT OF APPROVAL.—A carrier may partici-
pate in an arrangement approved by or exempted by the
Panel under this section without the approval of any other
Federal, State, or municipal body. A carrier participating
in an approved or exempted arrangement is exempt from
the antitrust laws and from all other law, including State
and municipal law, as necessary to let that person carry
out the arrangement.
‘‘CHAPTER 145—FEDERAL-STATE RELATIONS
‘‘Sec.
‘‘14501. Federal authority over intrastate transportation.
‘‘14502. Tax discrimination against motor carrier transportation property.
‘‘14503. Withholding State and local income tax by certain carriers.
‘‘14504. Registration of motor carriers by a State.
‘‘14505. State tax.
‘‘§ 14501. Federal authority over intrastate transpor-
tation
‘‘(a) MOTOR CARRIERS OF PASSENGERS.—No State
or political subdivision thereof and no interstate agency
199
or other political agency of two or more States shall enact
or enforce any law, rule, regulation, standard, or other
provision having the force and effect of law relating to
scheduling of interstate or intrastate transportation (in-
cluding discontinuance or reduction in the level of service)
provided by motor carrier of passengers subject to juris-
diction under subchapter I of chapter 135 of this title on
an interstate route or relating to the implementation of
any change in the rates for such transportation or for any
charter transportation except to the extent that notice, not
in excess of 30 days, of changes in schedules may be re-
quired. This subsection shall not apply to intrastate com-
muter bus operations.
‘‘(b) FREIGHT FORWARDERS AND BROKERS.—
‘‘(1) GENERAL
RULE.—Subject to paragraph
(2) of this subsection, no State or political subdivi-
sion thereof and no intrastate agency or other politi-
cal agency of two or more States shall enact or en-
force any law, rule, regulation, standard, or other
provision having the force and effect of law relating
to intrastate rates, intrastate routes, or intrastate
services of any freight forwarder or broker.
‘‘(2) CONTINUATION
OF
HAWAII’S
AUTHOR-
ITY.—Nothing in this subsection and the amend-
ments made by the Surface Freight Forwarder De-
200
regulation Act of 1986 shall be construed to affect
the authority of the State of Hawaii to continue to
regulate a motor carrier operating within the State
of Hawaii.
‘‘(c) MOTOR CARRIERS OF PROPERTY.—
‘‘(1) GENERAL RULE.—Except as provided in
paragraphs (2) and (3), a State, political subdivision
of a State, or political authority of 2 or more States
may not enact or enforce a law, regulation, or other
provision having the force and effect of law related
to a price, route, or service of any motor carrier
(other than a carrier affiliated with a direct air car-
rier covered by section 41713(b)(4)) or any motor
private carrier, broker, or freight forwarder with re-
spect to the transportation of property.
‘‘(2) MATTERS
NOT
COVERED.—Paragraph
(1)—
‘‘(A) shall not restrict the safety regulatory
authority of a State with respect to motor vehi-
cles, the authority of a State to impose highway
route controls or limitations based on the size
or weight of the motor vehicle or the hazardous
nature of the cargo, or the authority of a State
to regulate motor carriers with regard to mini-
mum amounts of financial responsibility relat-
201
ing to insurance requirements and self-insur-
ance authorization;
‘‘(B) does not apply to the transportation
of household goods; and
‘‘(C) does not apply to the authority of a
State or a political subdivision of a State to
enact or enforce a law, regulation, or other pro-
vision relating to the price of for-hire motor ve-
hicle transportation by a tow truck, if such
transportation is performed—
‘‘(i) at the request of a law enforce-
ment officer; or
‘‘(ii) without the prior consent or au-
thorization of the owner or operator of the
motor vehicle.
‘‘(3) STATE STANDARD TRANSPORTATION PRAC-
TICES.—
‘‘(A) CONTINUATION.—Paragraph (1) shall
not affect any authority of a State, political
subdivision of a State, or political authority of
2 or more States to enact or enforce a law, reg-
ulation, or other provision, with respect to the
intrastate transportation of property by motor
carriers, related to—
‘‘(i) uniform cargo liability rules,
202
‘‘(ii) uniform bills of lading or receipts
for property being transported,
‘‘(iii) uniform cargo credit rules, or
‘‘(iv) antitrust immunity for joint line
rates or routes, classifications, and mileage
guides,
if such law, regulation, or provision meets the
requirements of subparagraph (B).
‘‘(B) REQUIREMENTS.—A law, regulation,
or provision of a State, political subdivision, or
political authority meets the requirements of
this subparagraph if—
‘‘(i) the law, regulation, or provision
covers the same subject matter as, and
compliance with such law, regulation, or
provision is no more burdensome than
compliance with, a provision of this part or
a regulation issued by the Secretary or the
Panel under this part; and
‘‘(ii) the law, regulation, or provision
only applies to a carrier upon request of
such carrier.
‘‘(C) 
ELECTION.—Notwithstanding 
any
other provision of law, a carrier affiliated with
a direct air carrier through common controlling
203
ownership may elect to be subject to a law, reg-
ulation, or provision of a State, political sub-
division, or political authority under this para-
graph.
‘‘(4) This subsection shall not apply with re-
spect to the State of Hawaii until August 22, 1997.
‘‘§ 14502. Tax discrimination against motor carrier
transportation property
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) ASSESSMENT.—The term ‘assessment’
means valuation for a property tax levied by a taxing
district.
‘‘(2) ASSESSMENT
JURISDICTION.—The term
‘assessment jurisdiction’ means a geographical area
in a State used in determining the assessed value of
property for ad valorem taxation.
‘‘(3) MOTOR CARRIER TRANSPORTATION PROP-
ERTY.—The term ‘motor carrier transportation
property’ means property, as defined by the Sec-
retary, owned or used by a motor carrier providing
transportation in interstate commerce whether or
not such transportation is subject to jurisdiction
under subchapter I of chapter 135.
204
‘‘(4) COMMERCIAL
AND
INDUSTRIAL
PROP-
ERTY.—The term ‘commercial and industrial prop-
erty’ means property, other than transportation
property and land used primarily for agricultural
purposes or timber growing, devoted to a commercial
or industrial use, and subject to a property tax levy.
‘‘(b) ACTS BURDENING INTERSTATE COMMERCE.—
The following acts unreasonably burden and discriminate
against interstate commerce and a State, subdivision of
a State, or authority acting for a State or subdivision of
a State may not do any of them:
‘‘(1) EXCESSIVE VALUATION OF PROPERTY.—
Assess motor carrier transportation property at a
value that has a higher ratio to the true market
value of the motor carrier transportation property
than the ratio that the assessed value of other com-
mercial and industrial property in the same assess-
ment jurisdiction has to the true market value of the
other commercial and industrial property.
‘‘(2) TAX ON ASSESSMENT.—Levy or collect a
tax on an assessment that may not be made under
paragraph (1).
‘‘(3) AD VALOREM TAX.—Levy or collect an ad
valorem property tax on motor carrier transportation
property at a tax rate that exceeds the tax rate ap-
205
plicable to commercial and industrial property in the
same assessment jurisdiction.
‘‘(c) JURISDICTION.—
‘‘(1) IN
GENERAL.—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, concur-
rent with other jurisdiction of courts of the United
States and the States, to prevent a violation of sub-
section (b) of this section.
‘‘(2) LIMITATION IN RELIEF.—Relief may be
granted under this subsection only if the ratio of as-
sessed value to true market value of motor carrier
transportation property exceeds by at least 5 per-
cent, the ratio of assessed value to true market value
of other commercial and industrial property in the
same assessment jurisdiction.
‘‘(3) BURDEN OF PROOF.—The burden of proof
in determining assessed value and true market value
is governed by State law.
‘‘(4) VIOLATION.—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 can-
not be determined to the satisfaction of the district
206
court through the random-sampling method known
as a sales assessment ratio study (to be carried out
under statistical principles applicable to such a
study), the court shall find, as a violation of this sec-
tion—
‘‘(A) an assessment of the motor carrier
transportation property at a value that has a
higher ratio to the true market value of the
motor carrier transportation property than the
assessment value of all other property subject
to a property tax levy in the assessment juris-
diction has to the true market value of all such
other property; and
‘‘(B) the collection of ad valorem property
tax on the motor carrier transportation prop-
erty at a tax rate that exceeds the tax ratio rate
applicable to taxable property in the taxing dis-
trict.
‘‘§ 14503. Withholding State and local income tax by
certain carriers
‘‘(a) SINGLE STATE TAX WITHHOLDING.—
‘‘(1) IN GENERAL.—No part of the compensa-
tion paid by a motor carrier providing transportation
subject to jurisdiction under subchapter I of chapter
135 or by a motor private carrier to an employee
207
who performs regularly assigned duties in 2 or more
States as such an employee with respect to a motor
vehicle 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 resi-
dence.
‘‘(2) EMPLOYEE DEFINED.—In this subsection,
the term ‘employee’ has the meaning given such
term in section 31132.
‘‘(b) SPECIAL RULES.—
‘‘(1) CALCULATION OF EARNINGS.—In this sub-
section, an employee is deemed to have earned more
than 50 percent of pay in a State or subdivision of
that State in which the time worked by the employee
in the State or subdivision is more than 50 percent
of the total time worked by the employee while em-
ployed during the calendar year.
‘‘(2) WATER CARRIERS.—A water carrier pro-
viding transportation subject to jurisdiction under
subchapter II of chapter 135 shall file income tax
information returns and other reports only with—
‘‘(A) the State and subdivision of residence
of the employee (as shown on the employment
records of the carrier); and
208
‘‘(B) the State and subdivision in which
the employee earned more than 50 percent of
the pay received by the employee from the car-
rier during the preceding calendar year.
‘‘(3) APPLICABILITY
TO
SAILORS.—This sub-
section applies to pay of a master, officer, or sailor
who is a member of the crew on a vessel engaged in
foreign, coastwise, intercoastal, or noncontiguous
trade or in the fisheries of the United States.
‘‘(c) FILING OF INFORMATION.—A motor and motor
private carrier withholding pay from an employee under
subsection (a) of this section shall file income tax informa-
tion returns and other reports only with the State and
subdivision of residence of the employee.
‘‘§ 14504. Registration of motor carriers by a State
‘‘(a) DEFINITIONS.—In this section, the terms
‘standards’ and ‘amendments to standards’ mean the
specification of forms and procedures required by regula-
tions of the Secretary to prove the lawfulness of transpor-
tation by motor carrier referred to in section 13501.
‘‘(b) GENERAL RULE.—The requirement of a State
that a motor carrier, providing transportation subject to
jurisdiction under subchapter I of chapter 135 and provid-
ing transportation in that State, must register with the
State is not an unreasonable burden on transportation re-
209
ferred to in section 13501 when the State registration is
completed under standards of the Secretary under sub-
section (c). When a State registration requirement im-
poses obligations in excess of the standards of the Sec-
retary, the part in excess is an unreasonable burden.
‘‘(c) SINGLE STATE REGISTRATION SYSTEM.—
‘‘(1) IN GENERAL.—The Secretary shall main-
tain standards for implementing a system under
which—
‘‘(A) a motor carrier is required to register
annually with only one State by providing evi-
dence of its Federal registration under chapter
139;
‘‘(B) the State of registration shall fully
comply with standards prescribed under this
section; and
‘‘(C) such single State registration shall be
deemed to satisfy the registration requirements
of all other States.
‘‘(2) SPECIFIC REQUIREMENTS.—
‘‘(A) EVIDENCE OF FEDERAL REGISTRA-
TION; PROOF
OF
INSURANCE; PAYMENT
OF
FEES.—Under the standards of the Secretary
implementing the single State registration sys-
tem described in paragraph (1) of this sub-
210
section, only a State acting in its capacity as
registration State under such single State sys-
tem may require a motor carrier registered by
the Secretary under this part—
‘‘(i) to file and maintain evidence of
such Federal registration;
‘‘(ii) to file satisfactory proof of re-
quired insurance or qualification as a self-
insurer;
‘‘(iii) to pay directly to such State fee
amounts in accordance with the fee system
established under subparagraph (B)(iv) of
this paragraph, subject to allocation of fee
revenues among all States in which the
carrier operates and which participate in
the single State registration system; and
‘‘(iv) to file the name of a local agent
for service of process.
‘‘(B) RECEIPTS; FEE SYSTEM.—The stand-
ards of the Secretary—
‘‘(i) shall require that the registration
State issue a receipt, in a form prescribed
under the standards, reflecting that the
carrier has filed proof of insurance as pro-
vided under subparagraph (A)(ii) of this
211
paragraph and has paid fee amounts in ac-
cordance with the fee system established
under clause (iv) of this subparagraph;
‘‘(ii) shall require that copies of the
receipt issued under clause (i) of this sub-
paragraph be kept in each of the carrier’s
commercial motor vehicles;
‘‘(iii) shall not require decals, stamps,
cab cards, or any other means of register-
ing or identifying specific vehicles operated
by the carrier;
‘‘(iv) shall establish a fee system for
the filing of proof of insurance as provided
under subparagraph (A)(ii) of this para-
graph that—
‘‘(I) will be based on the number
of commercial motor vehicles the car-
rier operates in a State and on the
number of States in which the carrier
operates;
‘‘(II) will minimize the costs of
complying with the registration sys-
tem; and
‘‘(III) will result in a fee for each
participating State that is equal to
212
the fee, not to exceed $10 per vehicle,
that such State collected or charged
as of November 15, 1991; and
‘‘(v) shall not authorize the charging
or collection of any fee for filing and main-
taining a certificate or permit under sub-
paragraph (A)(i) of this paragraph.
‘‘(C) PROHIBITED FEES.—The charging or
collection of any fee under this section that is
not in accordance with the fee system estab-
lished under subparagraph (B)(iv) of this para-
graph shall be deemed to be a burden on inter-
state commerce.
‘‘(D) LIMITATION
ON
PARTICIPATION
BY
STATES.—Only a State which, as of January 1,
1991, charged or collected a fee for a vehicle
identification stamp or number under part 1023
of title 49, Code of Federal Regulations, shall
be eligible to participate as a registration State
under this subsection or to receive any fee reve-
nue under this subsection.
‘‘§ 14505. State tax
‘‘A State or political subdivision thereof may not col-
lect or levy a tax, fee, head charge, or other charge on—
213
‘‘(1) a passenger traveling in interstate com-
merce by motor carrier;
‘‘(2) the transportation of a passenger traveling
in interstate commerce by motor carrier;
‘‘(3) the sale of passenger transportation in
interstate commerce by motor carrier; or
‘‘(4) the gross receipts derived from such trans-
portation.
‘‘CHAPTER 147—ENFORCEMENT;
INVESTIGATIONS; RIGHTS; REMEDIES
‘‘Sec.
‘‘14701. General authority.
‘‘14702. Enforcement by the regulatory authority.
‘‘14703. Enforcement by the Attorney General.
‘‘14704. Rights and remedies of persons injured by carriers or brokers.
‘‘14705. Limitation on actions by and against carriers.
‘‘14706. Liability of carriers under receipts and bills of lading.
‘‘14707. Private enforcement of registration requirement.
‘‘14708. Dispute settlement program for household goods carriers.
‘‘14709. Tariff reconciliation rules for motor carriers of property.
‘‘§ 14701. General authority
‘‘(a) INVESTIGATIONS.—The Secretary or the Panel,
as applicable, may begin an investigation under this part
on the Secretary’s or the Panel’s own initiative or on com-
plaint. If the Secretary or Panel, as applicable finds that
a carrier or broker is violating this part, the Secretary
or Panel, as applicable, shall take appropriate action to
compel compliance with this part. If the Secretary finds
that a foreign motor carrier or foreign motor private car-
rier is violating chapter 139, the Secretary shall take ap-
214
propriate action to compel compliance with that chapter.
The Secretary or Panel, as applicable, may take action
under this subsection only after giving the carrier or
broker notice of the investigation and an opportunity for
a proceeding.
‘‘(b) COMPLAINTS.—A person, including a govern-
mental authority, may file with the Secretary or Panel,
as applicable, a complaint about a violation of this part
by a carrier providing, or broker for, transportation or
service subject to jurisdiction under this part or a foreign
motor carrier or foreign motor private carrier providing
transportation registered under section 13902 of this title.
The complaint must state the facts that are the subject
of the violation. The Secretary or Panel, as applicable,
may dismiss a complaint that it determines does not state
reasonable grounds for investigation and action.
‘‘(c) DEADLINE.—A formal investigative proceeding
begun by the Secretary or Panel under subsection (a) of
this section is dismissed automatically unless it is con-
cluded with administrative finality by the end of the 3d
year after the date on which it was begun.
‘‘§ 14702. Enforcement by the regulatory authority
‘‘(a) IN GENERAL.—The Secretary or the Panel, as
applicable, may bring a civil action—
‘‘(1) to enforce section 14103 of this title; or
216
‘‘§ 14703. Enforcement by the Attorney General
‘‘The Attorney General may, and on request of either
the Secretary of Transportation or Intermodal Surface
Transportation Panel shall, bring court proceedings—
‘‘(1) to enforce this part or a regulation or
order of the Secretary or Panel or terms of registra-
tion under this part; and
‘‘(2) to prosecute a person violating this part or
a regulation or order of the Secretary or Panel or
term of registration under this part.
‘‘§ 14704. Rights and remedies of persons injured by
carriers or brokers
‘‘(a) ENFORCEMENT OF ORDER.—A person injured
because a carrier or broker providing transportation or
service subject to jurisdiction under chapter 135 does not
obey an order of the Secretary or the Panel, as applicable,
under this part, except an order for the payment of money,
may bring a civil action to enforce that order under this
subsection.
‘‘(b) LIABILITY AND DAMAGES.—
‘‘(1) 
LIABILITY
FOR
EXCEEDING
TARIFF
RATE.—A carrier providing transportation or service
subject to jurisdiction under chapter 135 is liable to
a person for amounts charged that exceed the appli-
cable rate for transportation or service contained in
a tariff in effect under section 13702 of this title.
217
‘‘(2) DAMAGES FOR VIOLATIONS.—A carrier or
broker providing transportation or service subject to
jurisdiction under chapter 135 is liable for damages
sustained by a person as a result of an act or omis-
sion of that carrier or broker in violation of this
part.
‘‘(c) ELECTION.—
‘‘(1) COMPLAINT TO DOT OR PANEL; CIVIL AC-
TION.—A person may file a complaint with the
Panel or the Secretary, as applicable, under section
14701(b) of this title or bring a civil action under
subsection (b)(1) or (2) of this section to enforce li-
ability against a carrier or broker providing trans-
portation or service subject to jurisdiction under
chapter 135. A person may bring a civil action for
injunctive relief for violations of sections 14102 and
14103.
‘‘(2) ORDER OF DOT OR PANEL.—
‘‘(A) IN
GENERAL.—When the Panel or
Secretary, as applicable, makes an award under
subsection (b) of this section, the Panel or Sec-
retary, as applicable, shall order the carrier to
pay the amount awarded by a specific date. The
Panel or Secretary, as applicable, may order a
carrier or broker providing transportation or
218
service subject to jurisdiction under chapter
135 to pay damages only when the proceeding
is on complaint.
‘‘(B) ENFORCEMENT BY CIVIL ACTION.—
The person for whose benefit an order of the
Panel or Secretary requiring the payment of
money is made may bring a civil action to en-
force that order under this paragraph if the
carrier or broker does not pay the amount
awarded by the date payment was ordered to be
made.
‘‘(d) PROCEDURE.—
‘‘(1) IN GENERAL.—When a person begins a
civil action under subsection (b) of this section to
enforce an order of the Panel or Secretary requiring
the payment of damages by a carrier or broker pro-
viding transportation or service subject to jurisdic-
tion under chapter 135 of this title, the text of the
order of the Panel or Secretary must be included in
the complaint. In addition to the district courts of
the United States, a State court of general jurisdic-
tion having jurisdiction of the parties has jurisdic-
tion to enforce an order under this paragraph. The
findings and order of the Panel or Secretary are
competent evidence of the facts stated in them. Trial
219
in a civil action brought in a district court of the
United States under this paragraph is in the judicial
district in which the plaintiff resides or in which the
principal operating office of the carrier or broker is
located. 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) PARTIES.—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 carriers that
are parties to the order awarding damages may be
joined as defendants. Trial in the action is in the ju-
dicial 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 prin-
cipal operating office when that defendant is not in
the district in which the action is brought. A judg-
ment ordering recovery may be made in favor of any
of those plaintiffs against the defendant found to be
liable to that plaintiff.
‘‘(3) ATTORNEY’S
FEES.—The district court
shall award a reasonable attorney’s fee as a part of
the damages for which a carrier or broker is found
liable under this subsection. The district court shall
220
tax and collect that fee as a part of the costs of the
action.
‘‘§ 14705. Limitation on actions by and against car-
riers
‘‘(a) IN GENERAL.—A carrier providing transpor-
tation or service subject to jurisdiction under chapter 135
must begin a civil action to recover charges for transpor-
tation or service provided by the carrier within 18 months
after the claim accrues.
‘‘(b) OVERCHARGES.—A person must begin a civil ac-
tion to recover overcharges within 18 months after the
claim accrues. If the claim is against a carrier providing
transportation subject to jurisdiction under chapter 135
and an election to file a complaint with the Panel or Sec-
retary, as applicable, is made under section 14704(c)(1),
the complaint must be filed within 3 years after the claim
accrues.
‘‘(c) DAMAGES.—A person must file a complaint with
the Panel or Secretary, as applicable, to recover damages
under section 14704(b)(2) of this title within 2 years after
the claim accrues.
‘‘(d) EXTENSIONS.—The limitation periods under
subsection (b) of this section are extended for 6 months
from the time written notice is given to the claimant by
the carrier of disallowance of any part of the claim speci-
221
fied in the notice if a written claim is given to the carrier
within those limitation periods. The limitation periods
under subsection (b) of this section and the 2-year period
under subsection (c) of this section are extended for 90
days from the time the carrier begins a civil action under
subsection (a) of this section to recover charges related
to the same transportation or service, or collects (without
beginning a civil action under that subsection) the charge
for that transportation or service if that action is begun
or collection is made within the appropriate period.
‘‘(e) PAYMENT.—A person must begin a civil action
to enforce an order of the Panel or Secretary against a
carrier for the payment of money within 1 year after the
date the order required the money to be paid.
‘‘(f) GOVERNMENT TRANSPORTATION.—This section
applies to transportation for the United States Govern-
ment. The time limitations under this section are ex-
tended, as related to transportation for or on behalf of
the United States Government, for 3 years from the later
of the date of—
‘‘(1) payment of the rate for the transportation
or service involved;
‘‘(2) subsequent refund for overpayment of that
rate; or
222
‘‘(3) deduction made under section 3726 of title
31.
‘‘(g) ACCRUAL DATE.—A claim related to a shipment
of property accrues under this section on delivery or ten-
der of delivery by the carrier.
‘‘§ 14706. Liability of carriers under receipts and bills
of lading
‘‘(a) GENERAL LIABILITY.—
‘‘(1) MOTOR
CARRIERS
AND
FREIGHT
FOR-
WARDERS.—A carrier providing transportation or
service subject to jurisdiction under subchapter I or
III of chapter 135 shall issue a receipt or bill of lad-
ing for property it receives for transportation under
this part. That carrier and any other carrier that de-
livers the property and is providing transportation or
service subject to jurisdiction under subchapter I or
III of chapter 135 or chapter 105 are liable to the
person entitled to recover under the receipt or bill of
lading. The liability imposed under this paragraph is
for the actual loss or injury to the property caused
by (A) the receiving carrier, (B) the delivering car-
rier, or (C) another carrier over whose line or route
the property is transported in the United States or
from a place in the United States to a place in an
adjacent foreign country when transported under a
223
through bill of lading and, except in the case of a
freight forwarder, applies to property reconsigned or
diverted under a tariff filed under section 13702 of
this title. Failure to issue a receipt or bill of lading
does not affect the liability of a carrier. A delivering
carrier is deemed to be the carrier performing the
line-haul transportation nearest the destination but
does not include a carrier providing only a switching
service at the destination.
‘‘(2) FREIGHT
FORWARDER.—A freight for-
warder is both the receiving and delivering carrier.
When a freight forwarder provides service and uses
a motor carrier providing transportation subject to
jurisdiction under subchapter I of chapter 135 to re-
ceive property from a consignor, the motor carrier
may execute the bill of lading or shipping receipt for
the freight forwarder with its consent. With the con-
sent of the freight forwarder, a motor carrier may
deliver property for a freight forwarder on the
freight forwarder’s bill of lading, freight bill, or ship-
ping receipt to the consignee named in it, and re-
ceipt for the property may be made on the freight
forwarder’s delivery receipt.
‘‘(b) APPORTIONMENT.—The carrier issuing the re-
ceipt or bill of lading under subsection (a) of this section
224
or delivering the property for which the receipt or bill of
lading was issued is entitled to recover from the 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) SPECIAL RULES.—
‘‘(1) LIMITATION
OF
LIABILITY
BY
CON-
TRACT.—A carrier may limit or be exempt from li-
ability imposed under subsection (a) of this section
by a mutual written agreement, that is referred to
in the receipt, bill of lading, or contract for the
transportation involved entered into with the ship-
per, to limit liability to a specified amount.
‘‘(2) WATER CARRIERS.—If loss or injury to
property occurs while it is in the custody of a water
carrier, the liability of that carrier is determined by
its bill of lading and the law applicable to water
transportation. The liability of the initial or deliver-
ing carrier is the same as the liability of the water
carrier.
‘‘(d) CIVIL ACTIONS.—
‘‘(1) AGAINST DELIVERING CARRIER.—A civil
action under this section may be brought against a
225
delivering carrier (other than a rail carrier) in a dis-
trict court of the United States or in a State court.
Trial, if the action is brought in a district court of
the United States is in a judicial district, and if in
a State court, is in a State through which the de-
fendant carrier operates.
‘‘(2) AGAINST
CARRIER
RESPONSIBLE
FOR
LOSS.—A civil action under this section may be
brought 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.
‘‘(3) JURISDICTION OF COURTS.—A civil action
under this section may be brought in a United
States district court or in a State court.
‘‘(4) JUDICIAL
DISTRICT
DEFINED.—In this
section, ‘judicial district’ means—
‘‘(A) in the case of a United States district
court, a judicial district of the United States;
and
‘‘(B) in the case of a State court, the ap-
plicable geographic area over which such court
exercises jurisdiction.
‘‘(e) MINIMUM PERIOD FOR FILING CLAIMS.—
‘‘(1) IN GENERAL.—A carrier may not provide
by rule, contract, or otherwise, a period of less than
226
9 months for filing a claim against it under this sec-
tion and a period of less than 2 years for bringing
a civil action against it under this section. The pe-
riod 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.
‘‘(2) SPECIAL RULES.—For the purposes of this
subsection—
‘‘(A) an offer of compromise shall not con-
stitute a disallowance of any part of the claim
unless the carrier, in writing, informs the claim-
ant that such part of the claim is disallowed
and provides reasons for such disallowance; and
‘‘(B) communications received from a car-
rier’s insurer shall not constitute a disallowance
of any part of the claim unless the insurer, in
writing, informs the claimant that such part of
the claim is disallowed, provides reason for such
disallowance, and informs the claimant that the
insurer is acting on behalf of the carrier.
‘‘(f) LIMITING LIABILITY OF HOUSEHOLD GOODS
CARRIERS TO DECLARED VALUE.—A carrier or group of
carriers subject to jurisdiction under subchapter I or III
of chapter 135 may petition the Panel to modify, elimi-
227
nate, or establish rates for the transportation of household
goods under which the liability of the carrier for that prop-
erty is limited to a value established by written declaration
of the shipper or by a written agreement.
‘‘(g) MODIFICATIONS AND REFORMS.—
‘‘(1) STUDY.—The Secretary shall conduct a
study to determine whether any modifications or re-
forms should be made to the loss and damage provi-
sions of this section.
‘‘(2) FACTORS
TO
CONSIDER.—In conducting
the study, the Secretary, at a minimum, shall con-
sider—
‘‘(A) the efficient delivery of transportation
services;
‘‘(B) international and intermodal har-
mony;
‘‘(C) the public interest; and
‘‘(D) the interest of carriers and shippers.
‘‘(3) REPORT.—Not later than 18 months after
the effective date of this section, the Secretary shall
submit to Congress a report on the results of the
study, together with any recommendations of the
Secretary (including legislative recommendations)
for implementing modifications or reforms identified
by the Secretary as being appropriate.
228
‘‘§ 14707. Private enforcement of registration require-
ment
‘‘(a) IN GENERAL.—If a person provides transpor-
tation by motor vehicle or service in clear violation of sec-
tion 13901–13904 or 13906, a person injured by the
transportation or service may bring a civil action to en-
force any such section. In a civil action under this sub-
section, trial is in the judicial district in which the person
who violated that section operates.
‘‘(b) PROCEDURE.—A copy of the complaint in a civil
action under subsection (a) shall be served on the Sec-
retary and a certificate of service must appear in the com-
plaint filed with the court. The Secretary may intervene
in a civil action under subsection (a). The Secretary may
notify the district court in which the action is pending that
the Secretary intends to consider the matter that is the
subject of the complaint in a proceeding before the Sec-
retary. When that notice is filed, the court shall stay fur-
ther action pending disposition of the proceeding before
the Secretary.
‘‘(c) ATTORNEY’S FEES.—In a civil action under sub-
section (a), the court may determine the amount of and
award a reasonable attorney’s fee to the prevailing party.
That fee is in addition to costs allowable under the Fed-
eral Rules of Civil Procedure.
229
‘‘§ 14708. Dispute settlement program for household
goods carriers
‘‘(a) OFFERING SHIPPERS ARBITRATION.—As a con-
dition of registration under section 13902 or 13903, a car-
rier providing transportation of household goods subject
to jurisdiction under subchapter I or III of chapter 135
must agree to offer to shippers neutral arbitration as a
means of settling disputes between such carriers and ship-
pers of household goods concerning the transportation of
household goods.
‘‘(b) ARBITRATION REQUIREMENTS.—
‘‘(1) PREVENTION OF SPECIAL ADVANTAGE.—
The arbitration that is offered must be designed to
prevent a carrier from having any special advantage
in any case in which the claimant resides or does
business at a place distant from the carrier’s prin-
cipal or other place of business.
‘‘(2) NOTICE OF ARBITRATION PROCEDURE.—
The carrier must provide the shipper an adequate
notice of the availability of neutral arbitration, in-
cluding a concise easy-to-read, accurate summary of
the arbitration procedure, any applicable fees, and
disclosure of the legal effects of election to utilize ar-
bitration. Such notice must be given to persons for
whom household goods are to be transported by the
230
carrier before such goods are tendered to the carrier
for transportation.
‘‘(3) PROVISION OF FORMS.—Upon request of a
shipper, the carrier must promptly provide such
forms and other information as are necessary for
initiating an action to resolve a dispute under arbi-
tration.
‘‘(4) INDEPENDENCE
OF
ARBITRATOR.—Each
person authorized to arbitrate or otherwise settle
disputes must be independent of the parties to the
dispute and must be capable, as determined under
such regulations as the Secretary may issue, to re-
solve such disputes fairly and expeditiously. The car-
rier must ensure that each person chosen to settle
the disputes is authorized and able to obtain from
the shipper or carrier any material and relevant in-
formation to the extent necessary to carry out a fair
and expeditious decision making process.
‘‘(5) LIMITATION ON FEES.—No fee of more
than $25 may be charged a shipper for instituting
an arbitration proceeding under this subsection. In
any case in which a shipper is charged a fee under
this paragraph for instituting an arbitration pro-
ceeding and such dispute is settled in favor of the
shipper, the person settling the dispute must refund
231
such fee to the shipper unless the person settling the
dispute determines that such refund is inappropri-
ate.
‘‘(6) REQUESTS.—The carrier must not require
the shipper to agree to utilize arbitration prior to
the time that a dispute arises. If the shipper re-
quests arbitration, such shall be binding on the par-
ties.
‘‘(7) ORAL PRESENTATION OF EVIDENCE.—The
arbitrator may provide for an oral presentation of a
dispute concerning transportation of household
goods by a party to the dispute (or a party’s rep-
resentative), but such oral presentation may be
made only if all parties to the dispute expressly
agree to such presentation and the date, time, and
location of such presentation.
‘‘(8) DEADLINE FOR DECISION.—The arbitrator
must, as expeditiously as possible but at least within
60 days of receipt of written notification of the dis-
pute, render a decision based on the information
gathered; except that, in any case in which a party
to the dispute fails to provide in a timely manner
any information concerning such dispute which the
person settling the dispute may reasonably require
to resolve the dispute, the arbitrator may extend
232
such 60-day period for a reasonable period of time.
A decision resolving a dispute may include any rem-
edies appropriate under the circumstances, including
repair, replacement, refund, reimbursement for ex-
penses, and compensation for damages.
‘‘(c) LIMITATION ON USE OF MATERIALS.—Materials
and information obtained in the course of a decision mak-
ing process to settle a dispute by arbitration under this
section may not be used to bring an action under section
14905.
‘‘(d) ATTORNEY’S FEES TO SHIPPERS.—In any court
action to resolve a dispute between a shipper of household
goods and a motor carrier providing transportation or
service subject to jurisdiction under subchapter I or III
of chapter 135 concerning the transportation of household
goods by such carrier, the shipper shall be awarded rea-
sonable attorney’s fees if—
‘‘(1) the shipper submits a claim to the carrier
within 120 days after the date the shipment is deliv-
ered or the date the delivery is scheduled, whichever
is later;
‘‘(2) the shipper prevails in such court action;
and
‘‘(3)(A) a decision resolving the dispute was not
rendered through arbitration under this section with-
233
in the period provided under subsection (b)(8) of
this section or an extension of such period under
such subsection; or
‘‘(B) the court proceeding is to enforce a deci-
sion rendered through arbitration under this section
and is instituted after the period for performance
under such decision has elapsed.
‘‘(e) ATTORNEY’S FEES TO CARRIERS.—In any court
action to resolve a dispute between a shipper of household
goods and a carrier providing transportation, or service
subject to jurisdiction under subchapter I or III of chapter
135 concerning the transportation of household goods by
such carrier, such carrier may be awarded reasonable at-
torney’s fees by the court only if the shipper brought such
action in bad faith—
‘‘(1) after resolution of such dispute through
arbitration under this section; or
‘‘(2) after institution of an arbitration proceed-
ing by the shipper to resolve such dispute under this
section but before—
‘‘(A) the period provided under subsection
(b)(8) for resolution of such dispute (including,
if applicable, an extension of such period under
such subsection) ends; and
234
‘‘(B) a decision resolving such dispute is
rendered.
‘‘(f) LIMITATION OF APPLICABILITY TO COLLECT-
ON-DELIVERY TRANSPORTATION.—The provisions of this
section shall apply only in the case of collect-on-delivery
transportation of those types of household goods.
‘‘§ 14709. Tariff reconciliation rules for motor car-
riers of property
‘‘Subject to review and approval by the Panel, motor
carriers subject to jurisdiction under subchapter I of chap-
ter 135 (other than motor carriers providing transpor-
tation of household goods) and shippers may resolve, by
mutual consent, overcharge and under-charge claims re-
sulting from incorrect tariff provisions or billing errors
arising from the inadvertent failure to properly and timely
file and maintain agreed upon rates, rules, or classifica-
tions in compliance with sections 10761 and 10762 of this
title as in effect on the day before the effective date of
this section. Resolution of such claims among the parties
shall not subject any party to the penalties for departing
from a filed tariff.
‘‘CHAPTER 149—CIVIL AND CRIMINAL PENALTIES
Sec.
‘‘14901. General civil penalties.
‘‘14902. Civil penalty for accepting rebates from carrier. .
‘‘14903. Tariff violations. .
‘‘14904. Additional rate violations.
‘‘14905. Penalties for violations of rules relating to loading and unloading
motor vehicles.
235
‘‘14906. Evasion of regulation of carriers and brokers.
‘‘14907. Record keeping and reporting violations. .
‘‘14908. Unlawful disclosure of information..
‘‘14909. Disobedience to subpoenas. .
‘‘14910. General criminal penalty when specific penalty not provided..
‘‘14911. Punishment of corporation for violations committed by certain individ-
uals. .
‘‘14912. Weight-bumping in household goods transportation .
‘‘14913. Conclusiveness of rates in certain prosecutions.
‘‘§ 14901. General civil penalties
‘‘(a) REPORTING AND RECORDKEEPING.—A person
required to make a report to the Secretary or the Panel,
answer a question, or make, prepare, or preserve a record
under this part concerning transportation subject to juris-
diction under subchapter I or III of chapter 135 or trans-
portation by a foreign carrier registered under section
13902, or an officer, agent, or employee of that person
that—
‘‘(1) does not make the report;
‘‘(2) does not specifically, completely, and
truthfully answer the question;
‘‘(3) does not make, prepare, or preserve the
record in the form and manner prescribed;
‘‘(4) does not comply with section 13901; or
‘‘(5) does not comply with section 13902(c);
is liable to the United States Government for a civil pen-
alty of not less than $500 for each violation and for each
additional day the violation continues; except that, in the
case of a person who is not registered under this part to
provide transportation of passengers, or an officer, agent,
236
or employee of such person, that does not comply with sec-
tion 13901 with respect to providing transportation of
passengers, the amount of the civil penalty shall not be
less than $2,000 for each violation and for each additional
day the violation continues.
‘‘(b) TRANSPORTATION OF HAZARDOUS WASTES.—
A person subject to jurisdiction under subchapter I of
chapter 135, or an officer, agent, or employee of that per-
son, and who is required to comply with section 13901
of this title but does not so comply with respect to the
transportation of hazardous wastes as defined by the En-
vironmental Protection Agency pursuant to section 3001
of the Solid Waste Disposal Act (but not including any
waste the regulation of which under the Solid Waste Dis-
posal Act has been suspended by Congress) shall be liable
to the United States for a civil penalty not to exceed
$20,000 for each violation.
‘‘(c) FACTORS
TO
CONSIDER
IN
DETERMINING
AMOUNT.—In determining and negotiating the amount of
a civil penalty under subsection (a) or (d) concerning
transportation of household goods, the degree of culpabil-
ity, any history of prior such conduct, the degree of harm
to shipper or shippers, ability to pay, the effect on ability
to do business, whether the shipper has been adequately
compensated before institution of the proceeding, and such
237
other matters as fairness may require shall be taken into
account.
‘‘(d) PROTECTION
OF HOUSEHOLD GOODS SHIP-
PERS.—If a carrier providing transportation of household
goods subject to jurisdiction under subchapter I or III of
chapter 135 or a receiver or trustee of such carrier fails
or refuses to comply with any regulation issued by the Sec-
retary or the Panel relating to protection of individual
shippers, such carrier, receiver, or trustee is liable to the
United States for a civil penalty of not less than $1,000
for each violation and for each additional day during which
the violation continues.
‘‘(e) VIOLATION RELATING TO TRANSPORTATION OF
HOUSEHOLD GOODS.—Any person that knowingly en-
gages in or knowingly authorizes an agent or other per-
son—
‘‘(1) to falsify documents used in the transpor-
tation of household goods subject to jurisdiction
under subchapter I or III of chapter 135 which evi-
dence the weight of a shipment; or
‘‘(2) to charge for accessorial services which are
not performed or for which the carrier is not entitled
to be compensated in any case in which such services
are not reasonably necessary in the safe and ade-
quate movement of the shipment;
238
is liable to the United States for a civil penalty of not
less than $2,000 for each violation and of not less than
$5,000 for each subsequent violation. Any State may bring
a civil action in the United States district courts to compel
a person to pay a civil penalty assessed under this sub-
section.
‘‘(f) VENUE.—Trial in a civil action under sub-
sections (a) through (e) of this section is in the judicial
district in which—
‘‘(1) the carrier or broker has its principal of-
fice;
‘‘(2) the carrier or broker was authorized to
provide transportation or service under this part
when the violation occurred;
‘‘(3) the violation occurred; or
‘‘(4) 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 of-
fender may be found.
‘‘§ 14902. Civil penalty for accepting rebates from car-
rier
‘‘A person—
‘‘(1) delivering property to a carrier providing
transportation or service subject to jurisdiction
under chapter 135 for transportation under this part
239
or for whom that carrier will transport the property
as consignor or consignee for that person from a
State or territory or possession of the United States
to another State or possession, territory, or to a for-
eign country; and
‘‘(2) knowingly accepting or receiving by any
means a rebate or offset against the rate for trans-
portation for, or service of, that property contained
in a tariff required under section 13702;
is liable to the United States Government for a civil pen-
alty in an amount equal to 3 times the amount of money
that person accepted or received as a rebate or offset and
3 times the value of other consideration accepted or re-
ceived as a rebate or offset. In a civil action under this
section, all money or other consideration received by the
person during a period of 6 years before an action is
brought under this section may be included in determining
the amount of the penalty, and if that total amount is
included, the penalty shall be 3 times that total amount.
‘‘§ 14903. Tariff violations
‘‘(a) CRIMINAL PENALTY FOR UNDERCHARGING.—A
person that knowingly offers, grants, gives, solicits, ac-
cepts, or receives by any means transportation or service
provided for property by a carrier subject to jurisdiction
under chapter 135 at less than the rate in effect under
240
section 13702 shall be fined at least $1,000 but not more
than $20,000, imprisoned for not more than 2 years, or
both.
‘‘(b) GENERAL CRIMINAL PENALTY.—A carrier pro-
viding transportation or service subject to jurisdiction
under chapter 135 or an officer, director, receiver, trustee,
lessee, agent, or employee of a corporation that is subject
to jurisdiction under that chapter, that willfully does not
observe its tariffs as required under section 13702, shall
be fined at least $1,000 but not more than $20,000, im-
prisoned for not more than 2 years, or both.
‘‘(c) ACTIONS OF AGENTS AND EMPLOYEES.—When
acting in the scope of their employment, the actions and
omissions of persons acting for or employed by a carrier
or shipper that is subject to subsection (a) or (b) of this
section are considered to be the actions and omissions of
that carrier or shipper as well as that person.
‘‘(d) VENUE.—Trial in a criminal action under this
section is in the judicial district in which any part of the
violation is committed or through which the transportation
is conducted.
‘‘§ 14904. Additional rate violations
‘‘(a) REBATES BY AGENTS.—A person, or an officer,
employee, or agent of that person, that—
241
‘‘(1) knowingly offers, grants, gives, solicits, ac-
cepts, or receives a rebate for concession, in violation
of a provision of this part related to motor carrier
transportation subject to jurisdiction under sub-
chapter I of chapter 135; or
(2) by any means knowingly and willfully as-
sists or permits another person to get transportation
that is subject to jurisdiction under that subchapter
at less than the rate in effect for that transportation
under section 13702,
shall be fined at least $200 for the first violation and at
least $250 for a subsequent violation.
‘‘(b) UNDERCHARGING.—
‘‘(1) FREIGHT
FORWARDER.—A freight for-
warder providing service subject to jurisdiction
under subchapter III of chapter 135, or an officer,
agent, or employee of that freight forwarder, that
knowingly and willfully assists a person in getting,
or willingly permits a person to get, service provided
under that subchapter at less than the rate in effect
for that service under section 13702, shall be fined
not more than $500 for the first violation and not
more than $2,000 for a subsequent violation.
‘‘(2) AGENTS
AND
OTHERS.—A person that
knowingly and willfully by any means gets, or at-
242
tempts to get, service provided under subchapter III
of chapter 135 at less than the rate in effect for that
service under section 13702, shall be fined not more
than $500 for the first violation and not more than
$2,000 for a subsequent violation.
‘‘§ 14905. Penalties for violations of rules relating to
loading and unloading motor vehicles
‘‘(a) CIVIL PENALTIES.—Any person who knowingly
authorizes, consents to, or permits a violation of sub-
section (a) or (b) of section 14103 or who knowingly vio-
lates subsection (a) of such section is liable to the United
States Government for a civil penalty of not more than
$10,000 for each violation.
‘‘(b) CRIMINAL PENALTIES.—Any person who know-
ingly violates section 14103(b) of this title shall be fined
not more than $10,000, imprisoned for not more than 2
years, or both.
‘‘§ 14906. Evasion of regulation of carriers and bro-
kers
‘‘A person, or an officer, employee, or agent of that
person that by any means knowingly and willfully tries to
evade regulation provided under this part for carriers or
brokers shall be fined at least $200 for the first violation
and at least $250 for a subsequent violation.
243
‘‘§ 14907. Record keeping and reporting violations
‘‘A person required to make a report to the Secretary
or the Panel, as applicable, answer a question, or make,
prepare, or preserve a record under this part about trans-
portation subject to jurisdiction under subchapter I or III
of chapter 135, or an officer, agent, or employee of that
person, that—
‘‘(1) willfully does not make that report;
‘‘(2) willfully does not specifically, completely,
and truthfully answer that question in 30 days from
the date the Secretary or Panel, as applicable, re-
quires the question to be answered;
‘‘(3) willfully does not make, prepare, or pre-
serve that record in the form and manner pre-
scribed;
‘‘(4) knowingly and willfully falsifies, destroys,
mutilates, or changes that report or record;
‘‘(5) knowingly and willfully files a false report
or record;
‘‘(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 makes, prepares,
or preserves a record in violation of an applicable
regulation or order of the Secretary or Panel;
shall be fined not more than $5,000.
244
‘‘§ 14908. Unlawful disclosure of information
‘‘(a) DISCLOSURE OF SHIPMENT AND ROUTING IN-
FORMATION.—
‘‘(1) VIOLATIONS.—A carrier or broker provid-
ing transportation subject to jurisdiction under sub-
chapter I, II, or III of chapter 135 or an officer, re-
ceiver, trustee, lessee, or employee of that carrier or
broker, or another person authorized by that carrier
or broker to receive information from that carrier or
broker may not knowingly disclose to another per-
son, except the shipper or consignee, and another
person may not solicit, or knowingly receive, infor-
mation about the nature, kind, quantity, destination,
consignee, or routing of property tendered or deliv-
ered to that carrier or broker for transportation pro-
vided under this part without the consent of the
shipper or consignee if that information may be used
to the detriment of the shipper or consignee or may
disclose improperly to a competitor the business
transactions of the shipper or consignee.
‘‘(2) FINE; VENUE.—A person violating para-
graph (1) of this subsection shall be fined not less
than $2,000. Trial in a criminal action under this
paragraph is in the judicial district in which any
part of the violation is committed.
245
‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—
This part does not prevent a carrier or broker providing
transportation subject to jurisdiction under chapter 135
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 carrier or its agent to adjust
mutual traffic accounts in the ordinary course of
business.
‘‘§ 14909. Disobedience to subpoenas
‘‘A person not obeying a subpoena or requirement of
the Secretary or the Panel to appear and testify or
produce records shall be fined not less than $5,000, im-
prisoned for not more than 1 year, or both.
‘‘§ 14910. General criminal penalty when specific pen-
alty not provided
‘‘When another criminal penalty is not provided
under this chapter, a person that knowingly and willfully
violates a provision of this part or a regulation or order
prescribed under this part, or a condition of a registration
under this part related to transportation that is subject
to jurisdiction under subchapter I or III of chapter 135
246
or a condition of a registration under section 13902, shall
be fined at least $500 for the first violation and at least
$500 for a subsequent violation. A separate violation oc-
curs each day the violation continues.
‘‘§ 14911. 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 carrier providing transpor-
tation or service subject to jurisdiction under chapter 135
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 employ-
ment, the actions and omissions of individuals acting for
or employed by that carrier are considered to be the ac-
tions and omissions of that carrier as well as that individ-
ual.
‘‘§ 14912. Weight-bumping in household goods trans-
portation
‘‘(a) WEIGHT-BUMPING DEFINED.—For the pur-
poses of this section, ‘weight-bumping’ means the knowing
and willful making or securing of a fraudulent weight on
a shipment of household goods which is subject to jurisdic-
tion under subchapter I or III of chapter 135.
247
‘‘(b) PENALTY.—Any individual who has been found
to have committed weight-bumping shall, for each offense,
be fined at least $1,000 but not more than $10,000, im-
prisoned for not more than 2 years, or both.
‘‘§ 14913. Conclusiveness of rates in certain prosecu-
tions
‘‘When a carrier publishes or files a particular rate
under section 13702 or participates in such a rate, the
published or filed rate is conclusive proof against that car-
rier, its officers, and agents that it is the legal rate for
that transportation or service in a proceeding begun under
section 14902 or 14903. A departure, or offer to depart,
from that published or filed rate is a violation of those
sections.’’.
SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.
(a) MULTIPLE INSURERS.—Section 31138(c) of title
49, United States Code, is amended by adding at the end
thereof the following new paragraph:
‘‘(3) A motor carrier may obtain the required
amount of financial responsibility from more than
one source provided the cumulative amount is equal
to the minimum requirements of this section.’’.
(b) LOWER COVERAGE PERMITTED FOR CERTAIN
OPERATIONS.—Section 31138 of such title is amended by
adding at the end thereof the following:
248
‘‘(f) LOWER COVERAGE PERMITTED FOR CERTAIN
OPERATIONS.—Under regulations promulgated by the
Secretary, the minimum amount set forth in subsection
(b)(1) shall not apply to motor vehicles used, under a pro-
gram funded in whole or in part with a Federal transit
grant, to provide supplemental para-transit services for
the elderly and disabled.’’.
(c) 
TRANSPORTERS
OF
PROPERTY.—Section
31139(e) of such title is amended by adding at the end
thereof the following:
‘‘(3) A motor carrier may obtain the required
amount of financial responsibility from more than
one source provided the cumulative amount is equal
to the minimum requirements of this section.’’.
(d) COMMERCIAL MOTOR VEHICLE DEFINED.—Sec-
tion 31132(1) of such title is amended—
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and
(2) by striking subparagraph (B) and inserting
the following:
‘‘(B) is designed or used to transport pas-
sengers for compensation, but excluding vehicles
providing taxicab service and having a capacity
of not more than 6 passengers and not operated
on a regular route or between specified places;
249
‘‘(C) is designed or used to transport more
than 15 passengers, including the driver, and is
not used to transport passengers for compensa-
tion; or’’.
(e) SELF-INSURANCE RULES.—The Secretary of
Transportation shall continue to enforce the rules and reg-
ulations of the Interstate Commerce Commission, as in ef-
fect on July 1, 1995, governing the qualifications for ap-
proval of a motor carrier as a self-insurer, until such time
as the Secretary finds it in the public interest to revise
such rules. The revised rules must provide for—
(1) continued ability of motor carriers to qualify
as self-insurers; and
(2) the continued qualification of all carriers
then so qualified under the terms and conditions set
by the Interstate Commerce Commission or Sec-
retary at the time of qualification.
TITLE II—TRANSPORTATION
ADJUDICATION PANEL
SEC. 201. TITLE 49 AMENDMENT.
(a) AMENDMENT.—Subtitle I of title 49, United
States Code, is amended by adding at the end the follow-
ing new chapter:
250
‘‘CHAPTER 7—TRANSPORTATION
ADJUDICATION PANEL
‘‘SUBCHAPTER I—ESTABLISHMENT
Sec.
‘‘701. Establishment of Panel.
‘‘702. Functions.
‘‘703. Administrative provisions.
‘‘704. Annual report.
‘‘705. Authorization of appropriations.
‘‘706. Reporting official action.
‘‘SUBCHAPTER II—ADMINISTRATIVE
‘‘721. Powers.
‘‘722. Panel action.
‘‘723. Service of notice in panel proceedings.
‘‘724. Service of process in court proceedings.
‘‘725. National organization of State commissions.
‘‘726. Administrative support.
‘‘727. Definitions.
‘‘SUBCHAPTER I—ESTABLISHMENT
‘‘§ 701. Establishment of Panel
‘‘(a) ESTABLISHMENT.—There is hereby established
within the Department of Transportation the Transpor-
tation Adjudication Panel.
‘‘(b) MEMBERSHIP.—(1) The Panel shall consist of
3 members, to be appointed by the President, by and with
the advice and consent of the Senate. Not more than 2
members may be appointed from the same political party.
‘‘(2) At any given time, at least 2 members of the
Panel shall be individuals with professional standing and
demonstrated knowledge in the fields of transportation or
transportation regulation, and at least one member shall
be an individual with professional or business experience
in the private sector.
251
‘‘(3) The term of each member of the Panel shall be
5 years and shall begin when the term of the predecessor
of that member ends. An individual appointed to fill a va-
cancy occurring before the expiration of the term for which
the predecessor of that individual was appointed, shall be
appointed for the remainder of that term. When the term
of office of a member ends, the member may continue to
serve until a successor is appointed and qualified, but for
a period not to exceed one year. The President may re-
move a member for inefficiency, neglect of duty, or malfea-
sance in office.
‘‘(4) On the effective date of this section, the mem-
bers of the Interstate Commerce Commission then serving
unexpired terms shall become members of the Panel, to
serve for a period of time equal to the remainder of the
term for which they were originally appointed to the Inter-
state Commerce Commission.
‘‘(5) No individual may serve as a member of the
Panel for more than 2 terms, including service as a mem-
ber of the Interstate Commerce Commission. In the case
of an individual appointed to fill a vacancy occurring be-
fore the expiration of the term for which the predecessor
of that individual was appointed, such individual may not
be appointed for more than one additional term.
252
‘‘(6) A member of the Panel may not have a pecu-
niary interest in, hold an official relation to, or own stock
in or bonds of, a carrier providing transportation by any
mode and may not engage in another business, vocation,
or employment.
‘‘(7) A vacancy in the membership of the Panel does
not impair the right of the remaining members to exercise
all of the powers of the Panel. The Panel may designate
a member to act as Director during any period in which
there is no Director designated by the President.
‘‘(c) DIRECTOR.—(1) There shall be at the head of
the Panel a Director, who shall be designated by the Presi-
dent from among the members of the Panel. The Panel
shall be administered under the supervision and direction
of the Director. The Director shall receive compensation
at the rate prescribed for level III of the Executive Sched-
ule under section 5314 of title 5.
‘‘(2) Subject to the general policies, decisions, find-
ings, and determinations of the Panel the Director shall
be responsible for administering the Panel. The Director
may delegate the powers granted under this paragraph to
an officer, employee, or office of the Panel. The Director
shall—
‘‘(A) appoint and supervise, other than regular
and full time employees in the immediate offices of
253
another member, the officers and employees of the
Panel, including attorneys to provide legal aid and
service to the Panel and its members, and to rep-
resent the Panel in any case in court;
‘‘(B) appoint the heads of offices with the ap-
proval of the Panel;
‘‘(C) distribute Panel responsibilities among of-
ficers and employees and offices of the Panel;
‘‘(D) prepare requests for appropriations for
the Panel and submit those requests to the Presi-
dent and Congress with the prior approval of the
Panel; and
‘‘(E) supervise the expenditure of funds allo-
cated by the Panel for major programs and pur-
poses.
‘‘§ 702. Functions
‘‘Except as otherwise provided in the ICC Termi-
nation Act of 1995, or the amendments made thereby, the
Panel shall perform all functions that, immediately before
the effective date of such Act, were functions of the Inter-
state Commerce Commission or were performed by any of-
ficer or employee of the Interstate Commerce Commission
in the capacity as such officer or employee.
254
‘‘§ 703. Administrative provisions
‘‘(a) EXECUTIVE REORGANIZATION.—Chapter 9 of
title 5, United States Code, shall apply to the Panel in
the same manner as it does to an independent regulatory
agency.
‘‘(b) OPEN MEETINGS.—For purposes of section
552b of title 5, United States Code, the Panel shall be
deemed to be an agency.
‘‘(c) INDEPENDENCE.—In the performance of their
functions, the members, employees, and other personnel
of the Panel shall not be responsible to or subject to the
supervision or direction of any officer, employee, or agent
of any other part of the Department of Transportation.
‘‘(d) REPRESENTATION BY ATTORNEYS.—Attorneys
designated by the Director of the Panel may appear for,
and represent the Panel in, any civil action brought in con-
nection with any function carried out by the Panel pursu-
ant to this chapter or subtitle IV or as otherwise author-
ized by law.
‘‘(e) ADMISSION TO PRACTICE.—Subject to section
500 of title 5, the Panel may regulate the admission of
individuals to practice before it and may impose a reason-
able admission fee.
‘‘(f) BUDGET REQUESTS.—In each annual request
for appropriations by the President, the Secretary of
Transportation shall identify the portion thereof intended
255
for the support of the Panel and include a statement by
the Panel—
‘‘(1) showing the amount requested by the
Panel in its budgetary presentation to the Secretary
and the Office of Management and Budget; and
‘‘(2) an assessment of the budgetary needs of
the Panel.
‘‘(g) DIRECT TRANSMITTAL
TO CONGRESS.—The
Panel shall transmit to Congress copies of budget esti-
mates, requests, and information (including personnel
needs), legislative recommendations, prepared testimony
for congressional hearings, and comments on legislation
at the same time they are sent to the Secretary of Trans-
portation. An officer of an agency may not impose condi-
tions on or impair communications by the Panel with Con-
gress, or a committee or member of Congress, about the
information.
‘‘§ 704. Annual report
‘‘The Panel shall annually transmit to the Congress
a report on its activities.
‘‘§ 705. Authorization of appropriations
‘‘There are authorized to be appropriated to the Sec-
retary of Transportation for the activities of the Panel—
‘‘(1) $8,421,000 for fiscal year 1996;
‘‘(2) $12,000,000 for fiscal year 1997; and
256
‘‘(3) $12,000,000 for fiscal year 1998.
‘‘§ 706. Reporting official action
‘‘(a) The Panel shall make a written report of each
proceeding conducted on complaint or on its own initiative
and furnish a copy to each party to that proceeding. The
report shall include the findings, conclusions, and the
order of the Panel and, if damages are awarded, the find-
ings of fact supporting the award. The Panel may have
its reports published for public use. A published report
of the Panel is competent evidence of its contents.
‘‘(b)(1) When action of the Panel in a matter related
to a rail carrier is taken by the Panel, an individual mem-
ber of the Panel, or another individual or group of individ-
uals designated to take official action for the Panel, the
written statement of that action (including a report, order,
decision and order, vote, notice, letter, policy statements,
or regulation) shall indicate—
‘‘(A) the official designation of the individual or
group taking the action;
‘‘(B) the name of each individual taking, or
participating in taking, the action; and
‘‘(C) the vote or position of each participating
individual.
‘‘(2) If an individual member of a group taking an
official action referred to in paragraph (1) of this sub-
257
section does not participate in it, the written statement
of the action shall indicate that the member did not par-
ticipate. An individual participating in taking an official
action is entitled to express the views of that individual
as part of the written statement of the action. In addition
to any publication of the written statement, it shall be
made available to the public under section 552(a) of title
5.
‘‘SUBCHAPTER II—ADMINISTRATIVE
‘‘§ 721. Powers
‘‘(a) The Panel shall carry out this chapter and sub-
title IV. Enumeration of a power of the Panel in this chap-
ter or subtitle IV does not exclude another power the
Panel may have in carrying out this chapter or subtitle
IV. The Panel may prescribe regulations in carrying out
this chapter and subtitle IV.
‘‘(b) The Panel may—
‘‘(1) inquire into and report on the manage-
ment of the business of carriers providing, and bro-
kers for, transportation and services subject to sub-
title IV;
‘‘(2) inquire into and report on the manage-
ment of the business of a person controlling, con-
trolled by, or under common control with those car-
riers or brokers to the extent that the business of
258
that person is related to the management of the
business of that carrier or broker; and
‘‘(3) obtain from those carriers, brokers, and
persons information the Panel decides is necessary
to carry out subtitle IV.
‘‘(c)(1) The Panel may subpoena witnesses and
records related to a proceeding of the Panel from any
place in the United States, to the designated place of the
proceeding. If a witness disobeys a subpoena, the Panel,
or a party to a proceeding before the Panel, may petition
a court of the United States to enforce that subpoena.
‘‘(2) The district courts of the United States have
jurisdiction to enforce a subpoena issued under this sec-
tion. Trial is in the district in which the proceeding is con-
ducted. The court may punish a refusal to obey a sub-
poena as a contempt of court.
‘‘(d)(1) In a proceeding, the Panel may take the testi-
mony of a witness by deposition and may order the witness
to produce records. A party to a proceeding pending before
the Panel may take the testimony of a witness by deposi-
tion and may require the witness to produce records at
any time after a proceeding is at issue on petition and
answer.
‘‘(2) If a witness fails to be deposed or to produce
records under paragraph (1) of this subsection, the Panel
259
may subpoena the witness to take a deposition, produce
the records, or both.
‘‘(3) 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 proceed-
ing.
‘‘(4) Before taking a deposition, reasonable notice
must be given in writing by the party or the attorney of
that party proposing to take a deposition to the opposing
party or the attorney of record of that party, whoever is
nearest. The notice shall state the name of the witness
and the time and place of taking the deposition.
‘‘(5) The testimony of a person deposed under this
subsection shall be taken under oath. The person taking
the deposition shall prepare, or cause to be prepared, a
transcript of the testimony taken. The transcript shall be
subscribed by the deponent.
‘‘(6) The testimony of a witness who is in a foreign
country may be taken by deposition before an officer or
person designated by the Panel or agreed on by the parties
260
by written stipulation filed with the Panel. A deposition
shall be filed with the Panel promptly.
‘‘(e) Each witness summoned before the Panel or
whose deposition is taken under this section and the indi-
vidual taking the deposition are entitled to the same fees
and mileage paid for those services in the courts of the
United States.
‘‘§ 722. Panel action
‘‘(a) Unless otherwise provided in subtitle IV, the
Panel may determine, within a reasonable time, when its
actions, other than an action ordering the payment of
money, take effect.
‘‘(b) An action of the Panel remains in effect under
its own terms or until superseded. The Panel may change,
suspend, or set aside any such action on notice. Notice
may be given in a manner determined by the Panel. A
court of competent jurisdiction may suspend or set aside
any such action.
‘‘(c) The Panel may, at any time on its own initiative
because of material error, new evidence, or substantially
changed circumstances—
‘‘(1) reopen a proceeding;
‘‘(2) grant rehearing, reargument, or reconsid-
eration of an action of the Panel; or
‘‘(3) change an action of the Panel.
261
An interested party may petition to reopen and reconsider
an action of the Panel under this subsection under regula-
tions of the Panel.
‘‘(d) Notwithstanding subtitle IV, an action of the
Panel under this section is final on the date on which it
is served, and a civil action to enforce, enjoin, suspend,
or set aside the action may be filed after that date.
‘‘§ 723. Service of notice in Panel proceedings
‘‘(a) A carrier providing transportation subject to the
jurisdiction of the Panel under subtitle IV shall designate
an agent in the District of Columbia, on whom service of
notices in a proceeding before, and of actions of, the Panel
may be made.
‘‘(b) A designation under subsection (a) of this sec-
tion shall be in writing and filed with the Panel.
‘‘(c) Except as otherwise provided, notices of the
Panel shall be served on its designated agent at the office
or usual place of residence in the District of Columbia of
that agent. A notice of action of the Panel shall be served
immediately on the agent or in another manner provided
by law. If that carrier does not have a designated agent,
service may be made by posting the notice in the office
of the Panel.
‘‘(d) In a proceeding involving the lawfulness of clas-
sifications, rates, or practices of a rail carrier that has
262
not designated an agent under this section, service of no-
tice of the Panel on an attorney in fact for the carrier
constitutes service of notice on the carrier.
‘‘§ 724. Service of process in court proceedings
‘‘(a) A carrier providing transportation subject to the
jurisdiction of the Panel under subtitle IV shall designate
an agent in the District of Columbia on whom service of
process in an action before a district court may be made.
Except as otherwise provided, process in an action before
a district court shall be served on the designated agent
of that carrier at the office or usual place of residence
in the District of Columbia of that agent. If the carrier
does not have a designated agent, service may be made
by posting the notice in the office of the Panel.
‘‘(b) A designation under this section may be changed
at any time in the same manner as originally made.
‘‘§ 725. National organization of State commissions
‘‘The Administrator of General Services shall assign
space and facilities for the use of the national organization
of the State commissions and their representatives. The
space and facilities shall be available for the use of the
State commissions and their representatives cooperating
with the Panel or with another department, agency, or in-
strumentality of the United States Government. The rent-