To amend title 49, United States Code, relating to responsibility for intermodal equipment compliance with commercial motor vehicle safety requirements, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intermodal Equipment Safety and 
Responsibility Act of 2003''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Promoting safety on our Nation's highways is a national 
        priority. The Department of Transportation has promulgated the 
        Federal Motor Carrier Safety Regulations to further this 
        purpose. The systematic maintenance, repair, and inspection of 
        equipment traveling in interstate commerce are an integral part 
        of the safety regime.
            (2) Intermodal transportation plays a significant role in 
        expanding our Nation's commerce. The Nation's economy depends 
        heavily upon the ability to transport goods via the various 
        modes of transportation.
            (3) Motor carriers and their drivers often receive 
        trailers, chassis, containers and other pieces of intermodal 
        equipment to be transported in interstate commerce. Motor 
        carriers do not, however, possess the requisite level of 
        control or authority over this intermodal equipment to perform 
        the systematic maintenance, repair and inspection necessary to 
        ensure compliance with the Federal Motor Carrier Safety 
        Regulations and to ensure the safety of our Nation's highways.
            (4) As a result of roadside inspections, motor carriers and 
        their drivers are cited and fined for violations of the Federal 
        Motor Carrier Safety Regulations attributable to intermodal 
        equipment that motor carriers and their drivers neither 
        systematically maintain nor have the opportunity to 
        systematically maintain. Additionally, violations of the 
        Federal Motor Carrier Safety Regulations attributable to 
        intermodal equipment are assigned to the motor carrier's safety 
        record. Congress should exercise its power to ensure that only 
        those parties who control the equipment, thus having the 
        opportunity and authority to systematically maintain, repair 
        and inspect intermodal equipment, assume responsibility for the 
        safety of that equipment as it travels in interstate commerce.

SEC. 3. DEFINITIONS.

    Section 5901 of title 49, United States Code, is amended by adding 
at the end the following:
            ``(9) Motor carrier.--The term `motor carrier' means a 
        person providing motor vehicle transportation for compensation 
        or a motor private carrier as that term is defined in chapter 
        131 of this title.
            ``(10) Equipment.--The term `equipment' means equipment 
        commonly used in the road transport of intermodal freight, 
        including trailers, chassis, containers and associated devices, 
        and used as an instrumentality of foreign or interstate 
        commerce.
            ``(11) Equipment interchange agreement.--The term 
        `equipment interchange agreement' means a written document 
        executed by an equipment controller or its agent and a motor 
        carrier which establishes the responsibilities and liabilities 
        of both parties as they relate to the interchange of the 
        equipment.
            ``(12) Equipment controller.--The term `equipment 
        controller' means any party with any legal right, title, or 
        interest in the equipment, except that a motor carrier is not 
        an equipment controller only because of providing or arranging 
        for any part of the intermodal transportation of the equipment. 
        In no instance shall a motor carrier who has not been 
        contractually delegated responsibility for systematic 
        maintenance and repair of equipment be considered a controller 
        of that equipment.
            ``(13) Interchange.--The term `interchange' means the act 
        of providing equipment to a motor carrier for the purpose of 
        transporting the equipment for loading or unloading by any 
        party or repositioning the equipment for the benefit of the 
        equipment controller. Such term does not mean the leasing of 
        equipment to a motor carrier for use in the motor carrier's 
        over-the-road freight hauling operations.
            ``(14) Federal motor carrier safety regulations.--The term 
        `Federal Motor Carrier Safety Regulations' means the 
        regulations promulgated by the United States Department of 
        Transportation governing the condition and maintenance of 
        commercial motor vehicles as set forth in title 49 of the Code 
        of Federal Regulations.''.

SEC. 4. JURISDICTION OVER EQUIPMENT CONTROLLERS.

    Chapter 59 of title 49, United States Code, is further amended by 
adding at the end the following:
``Sec. 5910. Jurisdiction over equipment controller
    ``The authority of the Secretary of Transportation to prescribe 
regulations on commercial motor vehicle safety under section 31136 
shall apply to controllers of equipment that is interchanged or 
intended to be interchanged.''.

SEC. 5. EQUIPMENT CONTROLLER RESPONSIBILITY.

    Chapter 59 of title 49, United States Code, is further amended by 
adding at the end the following:
``Sec. 5911. Equipment inspection, repair, and maintenance
    ``(a) Notwithstanding any provision in an equipment interchange 
agreement to the contrary, an equipment controller shall be responsible 
and held liable for the systematic inspection, maintenance, and repair 
of equipment interchanged or intended for interchange. An equipment 
controller shall, each time prior to offering a motor carrier agent the 
equipment for interchange, inspect the equipment and provide such 
maintenance on, and make such repairs to, the equipment to ensure such 
equipment complies with all applicable Federal Motor Carrier Safety 
Regulations at all times. At no time shall a motor carrier agent be 
offered equipment that has not been inspected and repaired as necessary 
to comply with such regulations.
    ``(b) In the event that a repair to the equipment interchanged is 
required while in a motor carrier's possession in order to comply with 
the Federal Motor Carrier Safety Regulations, the equipment controller 
shall promptly reimburse the motor carrier for the actual expenses 
incurred and time spent by the motor carrier for the necessary repair.
    ``(c) The equipment controller shall not be liable under subsection 
(b) if the motor carrier's negligence or willful misconduct caused the 
condition requiring repair under subsection (b).''.

SEC. 6. SAFETY COMPLIANCE.

    Chapter 59 of title 49, United States Code, is further amended by 
adding at the end the following:
``Sec. 5912. Compliance with safety regulations
    ``(a) Equipment Controller Liability.--Notwithstanding any 
provision in an equipment interchange agreement to the contrary, the 
equipment controller shall be liable for all violations of the Federal 
Motor Carrier Safety Regulations attributable to the controller's 
equipment and shall pay any applicable fines, penalties, and damages 
resulting from the equipment's violation of such regulations; except 
that the equipment controller shall not be liable for violations of 
such regulations attributable to the controller's equipment that are 
proximately caused by the motor carrier's or motor carrier's agent's 
negligence or willful misconduct.
    ``(b) Motor Carrier's Limited Liability.--Except as provided in 
subsection (a), a motor carrier and any motor carrier agent who 
receives equipment through interchange shall not be liable for any 
violation of the Federal Motor Carrier Safety Regulations attributable 
to that equipment.
    ``(c) Limitation on Effect.--No record or report of a violation of 
the Federal Motor Carrier Safety Regulations, whether issued by a 
Federal, State, or local law enforcement authority, attributable to 
equipment interchanged shall have any effect on a motor carrier's 
overall safety rating or safety status measurement system score, as 
determined by the Federal Motor Carrier Safety Administration, or on a 
motor carrier's agent's driving record unless such violation was 
proximately caused by the motor carrier's or motor carrier's agent's 
negligence or willful misconduct.
    ``(d) Procedure for Records Corrections.--The Secretary of 
Transportation shall establish, within 6 months of the date of 
enactment of this section, an expedited procedure to correct records or 
reports of violations that should not have impacted a motor carrier or 
a motor carrier agent under subsection (c).''.

SEC. 7. AUTHORITY TO INSPECT.

    Chapter 59 of title 49, United States Code, is further amended by 
adding at the end the following:
``Sec. 5913. Authority to inspect
    ``(a) The Secretary of Transportation is authorized to enter into 
the facility of an equipment controller to inspect and determine if 
equipment intended to be interchanged for use on a public highway 
complies with all applicable Federal Motor Carrier Safety Regulations.
    ``(b) The Secretary shall establish and implement with appropriate 
staffing an inspection and audit program at facilities of equipment 
controllers to determine the compliance of equipment intended to be 
interchanged for use on a public highway with the Federal Motor Carrier 
Safety Regulations. Inspection of equipment and the equipment's 
corresponding maintenance records shall take place no less than once 
every 3 months.
    ``(c) Equipment that fails to comply with the Federal Motor Carrier 
Safety Regulations during the inspection in subsection (b) shall be 
placed out of service and shall not be used on a public highway until 
such time as repairs have been completed. Repairs of equipment placed 
out of service shall be documented in the equipment's corresponding 
maintenance records.
    ``(d) The Secretary may establish fines against equipment 
controllers for violations of section 5911.''.

SEC. 8. PENALTIES FOR RETALIATION.

    Chapter 59 of title 49, United States Code, is further amended by 
adding at the end the following:
``Sec. 5914. Penalties for retaliation
    ``(a) An equipment controller shall not take any action to 
threaten, coerce, discipline, discriminate, or otherwise retaliate 
against a motor carrier or motor carrier agent who requests maintenance 
or repair of equipment intended for interchange in order to comply with 
the Federal Motor Carrier Safety Regulations.
    ``(b) For purposes of this section, `retaliation' shall include, 
but not be limited to, failing to provide compliant equipment within 60 
minutes from the time an agent for a motor carrier that has been 
requested to pick up equipment arrives to pick up such equipment.
    ``(c) An equipment controller who violates subsection (a) shall be 
liable to the United States Government for a civil penalty of up to 
$10,000 for each violation.''.

SEC. 9. DELEGATION OF MAINTENANCE RESPONSIBILITY.

    Chapter 59 of title 49, United States Code, is further amended by 
adding at the end the following:
``Sec. 5915. Maintenance responsibility
    ``An equipment controller is prohibited from delegating its 
responsibility to systematically maintain and repair equipment intended 
for interchange to a motor carrier or motor carrier agent in an 
equipment interchange agreement.''.

SEC. 10. COMPATIBILITY OF STATE LAWS.

    (a) In General.--Chapter 59 of title 49, United States Code, is 
further amended by adding at the end the following:
``Sec. 5916. Compatibility of State laws
    ``(a) Except as provided in subsection (b) and unless authorized by 
another law of the United States, a law, regulation, order, or other 
requirement of a State, political subdivision of a State, or Indian 
tribe is preempted if complying with a requirement of the State, 
political subdivision, or tribe and a requirement of this chapter or a 
regulation prescribed under this chapter is not possible.
    ``(b) A law, regulation, order, or other requirement of a State, 
political subdivision of a State, or Indian tribe shall remain in 
effect if compatible with this chapter or any regulations prescribed 
under this chapter but more stringent.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:

``5910. Jurisdiction over equipment controller.
``5911. Equipment inspection, repair, and maintenance.
``5912. Compliance with safety regulations.
``5913. Authority to inspect.
``5914. Penalties for retaliation.
``5915. Maintenance responsibility.
``5916. Compatibility of State laws.''.

SEC. 11. IMPLEMENTING REGULATIONS.

    (a) Federal Regulations.--The Secretary of Transportation, after 
notice and opportunity for comment, shall issue regulations, as 
appropriate, implementing the provisions of this Act. The regulations 
shall be issued as part of the Federal Motor Carrier Safety 
Regulations. The implementing regulations shall include provisions to--
            (1) identify controllers of equipment interchanged or 
        intended for interchange;
            (2) match such equipment readily to its controller through 
        a unique identifying number;
            (3) ensure that each equipment controller maintains a 
        system of maintenance and repair records;
            (4) evaluate equipment controllers' compliance with the 
        Federal Motor Carrier Safety Regulations;
            (5) prohibit equipment controllers who fail to attain 
        satisfactory compliance with such regulations from authorizing 
        the placement of equipment on the public highways;
            (6) consider the effect that adequate maintenance 
        facilities may have on the resulting safe condition of 
        equipment;
            (7) provide for a process by which motor carriers and 
        agents may anonymously petition the Federal Motor Carrier 
        Safety Administration to undertake an investigation of a 
        noncompliant equipment controller;
            (8) establish administrative procedures to resolve disputes 
        arising under this Act, including the amendments made by this 
        Act; and
            (9) establish the inspection and audit program 5913(b) of 
        title 49, United States Code.
    (b) Deadlines.--The regulations required under subsection (a) shall 
be developed pursuant to a rulemaking proceeding initiated within 120 
days after the date of enactment of this Act and shall be issued not 
later than one year after such date of enactment. Effective on the date 
of enactment of this Act, and until such time as final regulations are 
issued, no motor carrier or motor carrier agent may be issued a 
citation for violations on equipment interchanged (as defined in 
section 5901 of title 49, United States Code) to them except by the 
provisions of this Act.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $7,000,000 for each of 
fiscal years 2004, 2005, 2006, 2007, and 2008 to the Federal Motor 
Carrier Safety Administration for the establishment and implementation 
of the inspection program under section 5913 of title 49, United States 
Code.

SEC. 13. EFFECTIVE DATE.

    Sections 3, 4, 5, 6, 7, 8, 9, and 10 of this Act shall be effective 
30 days after the date of enactment of this Act.

Summary: Intermodal Equipment Safety and Responsibility Act of 2003 - Subjects an equipment controller to liability for the systematic inspection, maintenance, and repair of equipment interchanged or intended for interchange.

 Requires an equipment controller: (1) prior to offering a motor carrier agent the equipment for interchange, to inspect the equipment and perform maintenance and repairs to the equipment to ensure that it complies with all applicable Federal Motor Carrier Safety Regulations; and (2) to promptly reimburse the motor carrier for actual expenses incurred and time spent by the motor carrier for any repair required to interchanged equipment to comply with the Regulations while in a motor carrier's possession.

Makes an equipment controller liable for all violations of the Regulations attributable to the controller's equipment. Directs the controller to pay any applicable fines, penalties, and damages resulting from such violations, except for violations attributable to the controller's equipment that are proximately caused by the motor carrier's negligence or willful misconduct.

Authorizes the Secretary of Transportation to conduct inspections.

Prohibits an equipment controller from: (1) retaliating against a motor carrier who requests maintenance or repair of equipment intended for interchange to comply with the Regulations; and (2) delegating its responsibility to systematically maintain and repair equipment intended for interchange to a motor carrier in an equipment interchange agreement.