ICC Termination Act of 1995
PL 104-88 (H.R.2539), enacted 12/29/1995

PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 803 
Public Law 104-88 
104th Congress 
An Act 
To abolish the Interstate Commerce Commission, to amend subtitle IV of title 
_. 
„_ ^_-_ 
49, United States Code, to reform economic regulation of transportation, and 
——'-
for other purposes. 
[H.R. 2539] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
ICC Termination 
Act of 1995 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
Government 
(a) SHORT TITLE.—This Act may be cited as the "ICC Termi- ^^fT^^IJPf- / 
.. 
A 1. c if\r\izn 
49 UbC 101 note. 
nation Act of 1995 . 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of conttjnts. 
Sec. 2. Effective date. 
TITLE I—ABOLITION OF INTERSTATE COMMERCE COMMISSION 
Sec. 101. Abolition. 
Sec. 102. Rail provisions. 
Sec. 103. Motor carrier, water carrier, and freight forwarder provisions. 
Sec. 104. Miscellaneous motor carrier provisions. 
Sec. 105. Creditability of annual leave for purposes of meeting minimiun eligibility 
requirements for an immediate annuity. 
Sec. 106. Pipeline carrier provisions. 
TITLE II—SURFACE TRANSPORTATION BOARD 
Sec. 201. Title 49 amendment. 
Sec. 202. Reorganization. 
Sec. 203. Transfer of assets and personnel. 
Sec. 204. Saving provisions. 
Sec. 205. References. 
TITLE III—(CONFORMING AMENDMENTS 
Subtitle A—^Amendments to United States Code 
Sec. 301. Title 5 amendments. 
Sec. 302. Title 11 amendments. 
Sec. 303. Title 18 amendments. 
Sec. 304. Internal Revenue Code of 1986 amendments. 
Sec. 305. Title 28 amendments. 
Sec. 306. Title 31 amendments. 
Sec. 307. Title 39 amendments. 
Sec. 308. Title 49 amendments. 
Subtitle B—Other Amendments 
Sec. 311. Agricultural Adjustment Act of 1938 amendments. 
Sec. 312. Animal Welfare Act aiaendment. 
Sec. 313. Federal Election Campaign Act of 1971 amendments. 
Sec. 314. Fair Credit Reporting Act amendment. 
Sec. 315. Equal Credit Opportunity Act amendment. 
Sec. 316. Fair Debt Collection Practices Act amendment. 
Sec. 317. National Trails System Act amendments. 
Sec. 318. Clayton Act amendments. 
Sec. 319. Inspector General Act of 1978 amendment. 
Sec. 320. Energy PoUcy Act of 1992 amendments. 
109 STAT. 804 
PUBLIC LAW 104-88—DEC. 29, 1995 
Sec. 321. Merchant Marine Act, 1920, amendments. 
Sec. 322. Railway Labor Act amendments. 
Sec. 323. Railroad Retirement Act of 1974 amendments. 
Sec. 324. Railroad Unemployment Insurance Act amendments. 
Sec. 325. Emergency Rail Services Act of 1970 amendments. 
Sec. 326. Alaska Railroad Transfer Act of 1982 amendments. 
Sec. 327. Regional Rail Reorganization Act of 1973 amendments. 
Sec. 328. Mimaukee Railroad Restructuring Act amendment. 
Sec. 329. Rock 
Island 
Railroad 
Transition 
and Employee 
Assistance Act 
amendments. 
Sec. 330. Railroad Revitalization and Regulatory Reform Act of 1976 amendments. 
Sec. 331. Northeast Rail Service Act of 1981 amendments. 
Sec. 332. Conrail Privatization Act amendment. 
Sec. 333. Migrant and Seasonal Agricultural Worker Protection Act amendments. 
Sec. 334. Federal Aviation Administration Authorization Act of 1994. 
Sec. 335. Termination of certain maritime authority. 
Sec. 336. Armored Car Industry Reciprocity Act of 1993 amendments. 
Sec. 337. Labor Management Relations Act, 1947 amendment. 
Sec. 338. Inlands Waterway Revenue Act of 1978 amendment. 
Sec. 339. Noise Control Act of 1972 amendment. 
Sec. 340. Fair Labor Standards Act of 1938 amendment. 
TITLE IV—MISCELLANEOUS PROVISIONS 
Sec. 401. Certain commercial space launch activities. 
Sec. 402. Destruction of motor vehicles or motor vehicle facilities; wrecking trains. 
Sec. 403. Violation of grade-crossing laws and regulations. 
Sec. 404. Miscellaneous title 23 amendments. 
Sec. 405. Technical amendments. 
Sec. 406. Fiber dnun packaging. 
Sec. 407. Noncontiguous domestic trade study. 
Sec. 408. Federal Highway Administration rulemaking. 
49 u s e 701 note. 
SEC. 2. EFFECTIVE DATE. 
Except as otherwise provided in this Act, this Act shall take 
effect on J a n u a r y 1, 1996. 
TITLE I—ABOLITION OF INTERSTATE 
COMMERCE COMMISSION 
49 u s e 701 note. 
SEC. 101. ABOLITION. 
The Interstate Commerce Commission is abolished. 
SEC. 102. RAIL PROVISIONS. 
(a) AMENDMENT.—Subtitle IV of title 49, United States Code, 
is amended to read as follows: 
"SUBTITLE IV—INTERSTATE 
TRANSPORTATION 
"PART A—RAIL 
"OHAPTPR. 
Sec 
"101. GENERAL PROVISIONS 
10101 
"105. JURISDICTION 
10501 
"107. RATES 
10701 
"109. LICENSING 
10901 
"111. OPERATIONS 
11101 
"113. FINANCE 
11301 
"115. FEDERAL-STATE RELATIONS 
11501 
"117. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES .... 11701 
"119. CIVIL AND CRIMINAL PENALTIES 
11901 
"PART B—MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
FORWARDERS 
"131. GENERAL PROVISIONS 
13101 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 805 
"CHAPTKR 
SGC 
"133. ADMINISTRATIVE PROVISIONS 
13301 
"135. JURISDICTION 
13501 
"137. RATES AND THROUGH ROUTES 
13701 
"139. REGISTRATION 
13901 
"141. OPERATIONS OF CARRIERS 
14101 
"143. FINANCE 
14301 
"145. FEDERAL-STATE RELATIONS 
14501 
"147. ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES 
14701 
"149. CIVIL AND CRIMINAL PENALTIES 
14901 
"PART C—PIPELINE CARRIERS 
^'OHAPXPR. 
Sec 
"151. GENERAL PROVISIONS 
15101 
"153. JURISDICTION 
15301 
"155. RATES AND TARIFFS 
15501 
"157. OPERATIONS OF CARRIERS 
15701 
"159. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES .... 15901 
"16L CIVIL AND CRIMINAL PENALTIES 
16101 
"PART A—RAIL 
"CHAPTER 101—GENERAL PROVISIONS 
"Sec. 
"10101. Rail transportation policy. 
"10102. Definitions. 
'*§ 10101. Rail transportation policy 
"In regulating the railroad industry, it is the policy of the 
United States Government— 
"(1) to allow, to the msiximum extent possible, competition 
and the demand for services to establish reasonable rates for 
transportation by rail; 
"(2) to minimize the need for Federal regulatory control 
over the rail transportation system and to require fair and 
expeditious regulatory decisions when regulation is required; 
"(3) to promote a safe and efficient rail transportation 
system by allowing rail carriers to earn adequate revenues, 
as determined by the Board; 
"(4) to ensure the development and continuation of a sound 
rail transportation system with effective competition among 
rail carriers and with other modes, to meet the needs of the 
public and the national defense; 
"(5) to foster sound economic conditions in transportation 
and to ensure effective competition and coordination between 
rail carriers and other modes; 
. "(6) to maintain reasonable rates where there is an absence 
of effective competition and where rail rates provide revenues 
which exceed the amount necessary to maintain the rail system 
and to attract capital; 
"(7) to reduce regulatory barriers to entry into and exit 
from the industry; 
"(8) to operate transportation facilities and equipment with-
out detriment to the public health and safety; 
"(9) to encourage honest and efficient management of rail-
roads; 
"(10) to require rail carriers, to the maximum extent prac-
ticable, to rely on individual rate increases, and to limit the 
use of increases of general applicability; 
"(11) to encourage fair wages and safe and suitable working 
conditions in the railroad industry; 
109 STAT. 806 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(12) to prohibit predatory pricing and practices, to avoid 
undue concentrations of market power, and to prohibit unlawful 
discrimination; 
"(13) to ensure the availability of accurate cost information 
in regulatory proceedings, while minimizing the burden on 
rail carriers of developing and maintaining the capability of 
providing such information; 
"(14) to encourage and promote energy conservation; and 
"(15) to provide for the expeditious handling and resolution 
of all proceedings required or permitted to be brought under 
this part. 
"§ 10102. Definitions 
"In this part— 
"(1) 'Board' means the Surface Transportation Board; 
"(2) 'car service' includes (A) the use, control, supply, move-
ment, distribution, exchange, interchange, and return of loco-
motives, cars, other vehicles, and special types of equipment 
used in the transportation of property by a rail carrier, and 
(B) the supply of trains by a rail carrier; 
"(3) 'control', when referring to a relationship between per-
sons, includes actual control, legal control, and the power to 
exercise control, through or by (A) common directors, officers, 
stockholders, a voting trust, or a holding or investment com-
pany, or (B) any other means; 
"(4) 'person', in addition to its meaning under section 1 
of title 1, includes a trustee, receiver, assignee, or personal 
representative of a person; 
"(5) 'rail carrier' means a person providing common carrier 
railroad transportation for compensation, but does not include 
street, suburban, or interurban electric railways not operated 
as part of the general system of rail transportation; 
"(6) 'railroad' includes— 
"(A) a bridge, car float, lighter, ferry, and intermodal 
equipment used by or in connection with a railroad; 
"(B) the road used by a rail carrier and owned by 
it or operated under an agreement; and 
"(C) a switch, spur, track, terminal, terminal facility, 
and a freight depot, yard, and ground, used or necessary 
for transportation; 
"(7) 'rate' means a rate or charge for transportation; 
"(8) 'State' means a State of the United States and the 
District of Columbia; 
"(9) 'transportation' includes— 
"(A) a locomotive, car, vehicle, vessel, warehouse, 
wharf, pier, dock, yard, property, facility, instrumentality, 
or equipment of any kind related to the movement of pas-
sengers or property, or both, by rail, regardless of owner-
ship or an agreement concerning use; and 
"(B) services related to that movement, including 
receipt, delivery, elevation, transfer in transit, refrigera-
tion, icing, ventilation, storage, handling, and interchange 
of passengers and property; and 
"(10) 'United States' means the States of the United States 
and the District of Columbia. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 807 
"CHAPTER 105-^JURISDICTION 
"Sec. 
"10501. General jurisdiction. 
"10502. Authority to exempt rail carrier transportation. 
"§10501. General jurisdiction 
"(a)(1) Subject to this chapter, the Board has jurisdiction over 
transportation by rail carrier that is— 
"(A) only by railroad; or 
"(B) by railroad and water, when the transportation is 
under common control, management, or arrangement for a 
continuous carriage or shipment. 
"(2) Jurisdiction under paragraph (1) applies only to transpor-
tation in the United States between a place in— 
"(A) a State and a place in the same or another State 
as part of the interstate rail network; 
"(B) a State and a place in a territory or possession of 
the United States; 
"(C) a territory or possession of the United States and 
a place in another such territory or possession; 
"(D) a territory or possession of the United States and 
another place in the same territory or possession; 
"(E) the United States and another place in the United 
States through a foreign country; or 
"(F) the United States and a place in a foreign country. 
"(b) The jurisdiction of the Board over— 
"(1) transportation by rail carriers, and the remedies pro-
vided in this part with respect to rates, classifications, rules 
(including car service, interchange, and other operating rules), 
practices, routes, services, and facilities of such carriers; and 
"(2) the construction, acquisition, operation, abandonment, 
or discontinuance of spur, industrial, team, switching, or side 
tracks, or facilities, even if the tracks are located, or intended 
to be located, entirely in one State, 
is exclusive. Except as otherwise provided in this part, the remedies 
provided under this part with respect to regulation of rail transpor-
tation are exclusive and preempt the remedies provided under 
Federal or State law. 
"(c)(1) In this subsection— 
"(A) the term 'local governmental authority'— 
"(i) has the same meaning given that term by section 
5302(a) of this title; and 
"(ii) includes a person or entity that contracts with 
the local governmental authority to provide transportation 
services; and 
"(B) the term 'mass transportation' means transportation 
services described in section 5302(a) of this title that are pro-
vided by rail. 
"(2) Except as provided in paragraph (3), the Board does not 
have jurisdiction under tliis part over mass transportation provided 
by a local governmental authority. 
"(3)(A) Notwithstanding paragraph (2) of this subsection, a 
local governmental authority, described in paragraph (2), is subject 
to applicable laws of the United States related to— 
"(i) safety; 
"(ii) the representation of employees for collective bargain-
ing; and 
109 STAT. 808 
PUBLIC LAW 104-88—DEC. 29, 1995 
Federal Register, 
publication. 
Federal Register, 
publication. 
"(iii) employment, retirement, annuity, and unemplo3nnent 
systems or other provisions related to dealings between employ-
ees and employers. 
"(B) The Board has jurisdiction under sections 11102 and 11103 
of this title over transportation provided by a local governmental 
authority only if the Board finds that such governmental authority 
meets all of the standards and requirements for being a rail carrier 
providing transportation subject to the jurisdiction of the Interstate 
Commerce Commission that were in effect immediately before the 
effective date of the ICC Termination Act of 1995. The enactment 
of the ICC Termination Act of 1995 shall neither expand nor con-
tract coverage of employees and employers by the Railway Labor 
Act, the Railroad Retirement Act of 1974, the Railroad Retirement 
Tax Act, and the Railroad Unemployment Insurance Act. 
'^§ 10502. Authority to exempt rail carrier transportation 
"(a) In a matter related to a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part, the Board, 
to the maximum extent consistent with this part, shall exempt 
a person, class of persons, or a transaction or service whenever 
the Board finds that the application in whole or in part of a 
provision of this part— 
"(1) is not necessary to carry out the transportation policy 
of section 10101 of this title; and 
"(2) either— 
"(A) the transaction or service is of limited scope; or 
"(B) the application in whole or in part of the provision 
is not needed to protect shippers from the abuse of market 
power, 
"(b) The Board may, where appropriate, begin a proceeding 
under this section on its own initiative or on application by the 
Secretary of Transportation or an interested party. The Board shall, 
within 90 days after receipt of any such application, determine 
whether to begin an appropriate proceeding. If the Board decides 
not to begin a class exemption proceeding, the reasons for the 
decision shall be published in the Federal Register. Any proceeding 
begun as a result of an application under this subsection shall 
be completed within 9 months after it is begun. 
"(c) The Board may specify the period of time during which 
an exemption granted under this section is effective. 
"(d) The Board may revoke an exemption, to the extent it 
specifies, when it finds that application in whole or in part of 
a provision of this part to the person, class, or transportation 
is necessary to carry out the transportation policy of section 10101 
of this title. The Board shall, within 90 days after receipt of a 
request for revocation under this subsection, determine whether 
to begin an appropriate proceeding. If the Board decides not to 
begin a proceeding to revoke a class exemption, the reasons for 
the decision shall be published in the Federal Register. Any proceed-
ing begun as a result of a request under this subsection shall 
be completed within 9 months after it is begun. 
"(e) No exemption order issued pursuant to this section shall 
operate to relieve any rail carrier from an obligation to provide 
contractual terms for liability and claims which are consistent with 
the provisions of section 11706 of this title. Nothing in this sub-
section or section 11706 of this title shall prevent rail carriers 
from offering alternative terms nor give the Board the authority 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 809 
to require any specific level of rates or services based upon the 
provisions of section 11706 of this title. 
"(f) The Board may exercise its authority under this section 
to exempt transportation that is provided by a rail carrier as part 
of a continuous intermodal movement. 
"(g) The Board may not exercise its authority under this section 
to relieve a rail carrier of its obligation to protect the interests 
of employees as required by this part. 
"CHAPTER 107—RATES 
"SUBCHAPTER I—GENERAL AUTHORITY 
"Sec. 
"10701. Standards for rates, classifications, through routes, rules, and practices. 
"10702. Authority for rail carriers to establish rates, classifications, rules, and prac-
tices. 
"10703. Authority for rail carriers to establish through routes. 
"10704. Authority and criteria: rates, classifications, rules, and practices prescribed 
by Board. 
"10705. Authority: through routes, joint classifications, rates, and divisions pre-
scribed by Board. 
"10706. Rate agreements: exemption from antitrust laws. 
"10707. Determination of market dominance in rail rate proceedings. 
"10708. Rail cost adjustment factor. 
"10709. Contracts. 
"SUBCHAPTER II—SPECIAL CIRCUMSTANCES 
"10721. Government traffic. 
"10722. Car utilization. 
"SUBCHAPTER III—LIMITATIONS 
"10741. Prohibitions against discrimination by rail carriers. 
"10742. Facilities for interchange of traffic. 
"10743. Liability for payment of rates. 
"10744. Continuous carriage of freight. 
"10745. Transportation services or facilities furnished by shipper. 
"10746. Demurrage charges. 
"10747. Designation of certain routes by shippers. 
"SUBCHAPTER I—GENERAL AUTHORITY 
*
*
§ 10701. Standards for rates, classiHcations, through routes, 
rules, and practices 
"(a) A through route established by a rail carrier must be 
reasonable. Divisions of joint rates by rail carriers must be made 
without unreasonable discrimination against a participating carrier 
and must be reasonable. 
"(b) A rail carrier providing transportation subject to the juris-
diction of the Board under this part may not discriminate in its 
rates against a connecting line of another rail carrier providing 
transportation subject to the jurisdiction of the Board under this 
part or unreasonably discriminate against that line in the distribu-
tion of traffic that is not routed specifically by the shipper. 
"(c) Except as provided in subsection (d) of this section and 
unless a rate is prohibited by a provision of this part, a rail 
carrier providing transportation subject to the jurisdiction of the 
Board under this part may establish any rate for transportation 
or other service provided by the rail carrier. 
"(d)(1) If the Board determines, under section 10707 of this 
title, that a rail carrier has market dominance over the transpor-
tation to which a particular rate applies, the rate established by 
such carrier for such transportation must be reasonable. 
109 STAT. 810 
PUBLIC LAW 104^88—DEC. 29, 1995 
"(2) In determining whether a rate established by a rail carrier 
is reasonable for purposes of this section, the Board shall give 
due consideration to— 
"(A) the amount of traffic which is transported at revenues 
which do not contribute to going concern value and the efforts 
made to minimize such traffic; 
"(B) the amount of traffic which contributes only marginally 
to fixed costs and the extent to which, if any, rates on such 
traffic can be changed to maximize the revenues from such 
traffic; and 
"(C) the carrier's mix of rail traffic to determine whether 
one commodity is paying an unreasonable share of the carrier's 
overall revenues, 
recognizing the policy of this part that rail carriers shall earn 
adequate revenues, as established by the Board under section 
10704(a)(2) of this title. 
"(3) The Board shall, within one year after the effective date 
of this paragraph, complete the pending Interstate Commerce 
Commission non-coal rate guidelines proceeding to establish a sim-
plified and expedited method for determining the reasonableness 
of challenged rail rates in those cases in which a full stand-alone 
cost presentation is too costly, given the value of the case. 
*
*
§ 10702. Authority for rail carriers to establish rates, classi-
fications, rules, and practices 
"A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part shall establish reason-
able— 
"(1) rates, to the extent required by section 10707, divisions 
of joint rates, and classifications for transportation and service 
it may provide under this part; and 
"(2) rules and practices on matters related to that transpor-
tation or service. 
*
*
§ 10703. Authority for rail carriers to establish through 
routes 
"Rail carriers providing transportation subject to the jurisdic-
tion of the Board under this part shall establish through routes 
(including physical connections) with each other and with water 
carriers providing transportation subject to chapter 137, shall estab-
lish rates and classifications applicable to those routes, and shall 
establish rules for their operation and provide— 
"(1) reasonable facilities for operating the through route; 
and 
"(2) reasonable compensation to persons entitled to com-
pensation for services related to the through route. 
*
*
§ 10704. Authority and criteria: rates, classifications, rules, 
and practices prescribed by Board 
"(a)(1) When the Board, after a full hearing, decides that a 
rate charged or collected by a rail carrier for transportation subject 
to the jurisdiction of the Board under this part, or that a classifica-
tion, rule, or practice of that carrier, does or will violate this 
part, the Board may prescribe the maximum rate, classification, 
rule, or practice to be followed. The Board may order the carrier 
to stop the violation. When a rate, classification, rule, or practice 
is prescribed under this subsection, the affected carrier may not 
••f^.^^k'"} 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 811 
publish, charge, or collect a different rate and shall adopt the 
classification and observe the rule or practice prescribed by the 
Board. 
"(2) The Board shall maintain and revise as necessary stand-
ards and procedures for establishing revenue levels for rail carriers 
providing transportation subject to its jurisdiction under this part 
that are adequate, under honest, economical, and efficient manage-
ment, to cover total operating expenses, including depreciation and 
obsolescence, plus a reasonable and economic profit or return (or 
both) on capital employed in the business. The Board shall make 
an adequate and continuing effort to assist those carriers in attain-
ing revenue levels prescribed under this paragraph. Revenue levels 
established under this paragraph should— 
"(A) provide a flow of net income plus depreciation adequate 
to support prudent capital outlays, assure the repajmaent of 
a reasonable level of debt, permit the raising of needed equity 
capital, and cover the effects of inflation; and 
"(B) attract and retain capital in amounts adequate to 
provide a sound transportation system in the United States. 
"(3) On the basis of the standards and procedures described 
in paragraph (2), the Board shall annually determine which rail 
carriers are earning adequate revenues. 
"(b) The Board may begin a proceeding under this section 
only on complaint. A complaint under subsection (a) of this section 
must be made under section 11701 of this title, but the proceeding 
may also be in extension of a complaint pending before the Board. 
"(c) In a proceeding to challenge the reasonableness of a rate, 
the Board shall make its determination as to the reasonableness 
of the challenged rate— 
"(1) within 9 months after the close of the administrative 
record if the determination is based upon a stand-alone cost 
presentation; or 
"(2) within 6 months after the close of the administrative 
record if the determination is based upon the methodology 
adopted by the Board pursuant to section 10701(d)(3). 
"(d) Within 9 months after the effective date of the ICC Termi-
nation Act of 1995, the Board shall establish procedures to ensure 
expeditious handling of challenges to the reasonableness of railroad 
rates. The procedures shall include appropriate measures for avoid-
ing delay in the discovery and evidentiary phases of such proceed-
ings and exemption or revocation proceedings, including appropriate 
sanctions for such delay, and for ensuring prompt disposition of 
motions and interlocutory administrative appeals. 
*
*
§ 10705. Authority: through routes, joint 
classifications, 
rates, and divisions prescribed by Board 
"(a)(1) The Board may, and shall when it considers it desirable 
in the public interest, prescribe through routes, joint classifications, 
joint rates, the division of joint rates, and the conditions under 
which those routes must be operated, for a rail carrier providing 
transportation subject to the jurisdiction of the Board under this 
part. 
"(2) The Board may require a rail carrier to include in a 
through route substantially less than the entire length of its railroad 
and any intermediate railroad operated with it under common 
management or control if that intermediate railroad lies between 
the terminals of the through route only when— 
109 STAT. 812 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(A) required under section 10741, 10742, or 11102 of this 
title; 
"(B) inclusion of those lines would make the through route 
unreasonably long when compared with a practicable alter-
native through route that could be established; or 
"(C) the Board decides that the proposed through route 
is needed to provide adequate, and more efficient or economic, 
transportation. 
The Board shall give reasonable preference, subject to this sub-
section, to the rail carrier originating the traffic when prescribing 
through routes. 
"(b) The Bo£ird shall prescribe the division of joint rates to 
be received by a rail carrier providing transportation subject to 
its jurisdiction under this part when it decides that a division 
of joint rates established by the participating carriers under section 
10703 of this title, or under a decision of the Board under subsection 
(a) of this section, does or will violate section 10701 of this title. 
"(c) If a division of a joint rate prescribed under a decision 
of the Board is later found to violate section 10701 of this title, 
the Board may decide what division would have been reasonable 
and order adjustment to be made retroactive to the date the com-
plaint was filed, the date the order for an investigation was made, 
or a later date that the Board decides is justified. The Board 
may make a decision under this subsection effective as part of 
its original decision. 
^§10706. Rate agreements: exemption from antitrust laws 
"(a)(1) In this subsection— 
"(A) the term 'affiUate' means a person controlling, con-
trolled by, or under common control or ownership with another 
person and 'ownership' refers to equity holdings in a business 
entity of at least 5 percent; 
"(B) the term 'single-line rate* refers to a rate or allowance 
proposed by a single rail carrier that is applicable only over 
its line and for which the transportation (exclusive of terminal 
services by switching, drayage or other terminal carriers or 
agencies) can be provided by that carrier; and 
"(C) the term 'practicably participates in the movement' 
shall have such meaning as the Board shall by regulation 
prescribe. 
"(2)(A) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part that is a party to an 
agreement of at least 2 rail carriers that relates to rates (including 
charges between rail carriers and compensation paid or received 
for the use of facilities and equipment), classifications, divisions, 
or rules related to them, or procedures for joint consideration, 
initiation, publication, or establishment of them, shall apply to 
the Board for approval of that agreement under this subsection. 
The Board shall approve the agreement only when it finds that 
the making and carrjdng out of the agreement will further the 
transportation policy of section 10101 of this title and may require 
compliance with conditions necessary to make the agreement fur-
ther that policy as a condition of its approval. If the Board approves 
the agreement, it may be made and carried out under its terms 
and under the conditions required by the Board, and the Sherman 
Act (15 U.S.C. 1, et seq.), the Clayton Act (15 U.S.C. 12, et seq.), 
the Federal Trade Commission Act (15 U.S.C. 41, et seq.), sections 
^'&«»^-" 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 813 
73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), and 
the Act of June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) do not 
apply to parties and other persons with respect to making or carry-
ing out the agreement. However, the Board may not approve or 
continue approval of an agreement when the conditions required 
by it are not met or if it does not receive a verified statement 
under subparagraph (B) of this paragraph. 
"(B) The Board may approve an agreement under subparagraph 
(A) of this paragraph only when the rail carriers applying for 
approval file a verified statement with the Board. Each statement 
must specify for each rail carrier that is a party to the agreement— 
"(i) the name of the carrier; 
"(ii) the mailing address and telephone number of its head-
quarter's office; and . 
"(iii) the names of each of its affiliates and the names, 
addresses, and affiliates of each of its officers and directors 
and of each person, together with an affiliate, owning or control-
ling any debt, equity, or security interest in it having a value 
ofat least $1,000,000. 
"(3)(A) An organization established or continued under an 
agreement approved under this subsection shall make a final dis-
position of a rule or rate docketed with it by the 120th day after 
the proposal is docketed. Such an organization may not— 
"(i) permit a rail carrier to discuss, to participate in agree-
ments related to, or to vote on single-line rates proposed by 
another rail carrier, except that for purposes of general rate 
increases and broad changes in rates, classifications, rules, 
and practices only, if the Board finds at any time that the 
implementation of this clause is not feasible, it may delay 
or suspend such implementation in whole or in part; 
"(ii) permit a rail carrier to discuss, to participate in agree-
ments related to, or to vote on rates related to a particular 
interline movement unless that rail carrier practicably partici-
pates in the movement; or 
"(iii) if there are interline movements over two or more 
routes between the same end points, permit a carrier to discuss, 
to participate in agreements related to, or to vote on rates 
except with a carrier which forms part of a particular single 
route. If the Board finds at any time that the implementation 
of this clause is not feasible, it may delay or suspend such 
implementation in whole or in part. 
"(B)(i) In any proceeding in which a party alleges that a rail 
carrier voted or agreed on a rate or allowance in violation of 
this subsection, that party has the burden of showing that the 
vote or agreement occurred. A showing of parallel behavior does 
not satisfy that burden by itself. 
"(ii) In any proceeding in which it is alleged that a carrier 
was a party to an agreement, conspiracy, or combination in violation 
of a Federal law cited in subsection (a)(2)(A) of this section or 
of any similar State law, proof of an agreement, conspiracy, or 
combination may not be inferred from evidence that two or more 
rail carriers acted together with respect to an interline rate or 
related matter and that a party to such action took similar action 
with respect to a rate or related matter on another route or traffic. 
In any proceeding in which such a violation is alleged, evidence 
of a discussion or agreement between or among such rail carrier 
and one or more other rail carriers, or of any rate or other action 
109 STAT. 814 
PUBLIC LAW 104^88—DEC. 29, 1995 
resulting from such discussion or agreement, shall not be admissible 
if the discussion or agreement— 
"(I) was in accordance with an agreement approved under 
paragraph (2) of this subsection; or 
"(II) concerned an interline movement of the rail carrier, 
and the discussion or agreement would not, considered by itself, 
violate the laws referred to in the first sentence of this clause. 
In any proceeding before a jury, the court shall determine whether 
the requirements of subclause (I) or (II) are satisfied before allowing 
the introduction of any such evidence. 
Records. 
"(C) An organization described in subparagraph (A) of this 
Confidentiality. 
paragraph shall provide that transcripts or sound recordings be 
made of all meetings, that records of votes be made, and that 
such transcripts or recordings and voting records be submitted 
to the Board and made available to other Federal agencies in 
connection with their statutory responsibilities over rate bureaus, 
except that such material shall be kept confidential and shall not 
be subject to disclosure under section 552 of title 5, United States 
Code. 
"(4) Notwithstanding any other provision of this subsection, 
one or more rail carriers may enter into an agreement, without 
obtaining prior Board approval, that provides solely for compilation, 
publication, and other distribution of rates in effect or to become 
effective. The Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act 
(15 U.S.C. 12 et seq.), the Federal Trade Commission Act (15 
U.S.C. 41 et seq.), sections 73 and 74 of the Wilson Tariff Act 
(15 U.S.C. 8 and 9), and the Act of June 19, 1936 (15 U.S.C. 
13, 13a, 13b, 21a) shall not apply to parties and other persons 
with respect to making or carrying out such agreement. However, 
the Board may, upon application or on its own initiative, investigate 
whether the parties to such an agreement have exceeded its scope, 
and upon a finding that they have, the Board may issue such 
orders as are necessary, including an order dissolving the agree-
ment, to ensure that actions taken pursuant to the agreement 
are limited as provided in this paragraph. 
"(5)(A) Whenever two or more shippers enter into an agreement 
to discuss among themselves that relates to the amount of com-
pensation such shippers propose to be paid by rail carriers providing 
transportation subject to the jurisdiction of the Board under this 
part, for use by such rail carriers of rolling stock owned or leased 
by such shippers, the shippers shall apply to the Board for approval 
of that agreement under this paragraph. The Board shall approve 
the agreement only when it finds that the making and carrying 
out of the agreement will further the transportation policy set 
forth in section 10101 of this title and may require compliance 
with conditions necessary to make the agreement further that policy 
as a condition of approval. If the Board approves the agreement, 
it may be made and carried out under its terms and under the 
terms required by the Board, and the antitrust laws set forth 
in paragraph (2) of this subsection do not apply to parties and 
other persons with respect to making or carrying out the agreement. 
The Board shall approve or disapprove an agreement under this 
paragraph within one year after the date application for approval 
of such agreement is made. 
"(B) If the Board approves an agreement described in subpara-
graph (A) of this paragraph and the shippers entering into such 
agreement and the rail carriers proposing to use rolling stock owned 
" ' % B S ^ ' ' 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 815 
or leased by such shippers, under payment by such carriers or 
under a pubUshed allowance, are unable to agree upon the amount 
of compensation to be paid for the use of such rolling stock, any 
party directly involved in the negotiations may require that the 
matter be settled by submitting the issues in dispute to the Board. 
The Board shall render a binding decision, based upon a standard 
of reasonableness and after taking into consideration any past 
precedents on the subject matter of the negotiations, no later than 
90 days after the date of the submission of the dispute to the 
Board. 
"(C) Nothing in this paragraph shall be construed to change 
the law in effect prior to the effective date of the Staggers Rail 
Act of 1980 with respect to the obligation of rail carriers to utilize 
rolling stock owned or leased by shippers. 
"(b) The Board may require an organization established or 
continued under an agreement approved under this section to main-
tain records and submit reports. The Board may inspect a record 
maintained under this section. 
"(c) The Board may review an agreement approved under sub-
section (a) of this section and shall change the conditions of approval 
or terminate it when necessary to comply with the public interest 
and subsection (a). The Board shall postpone the effective date 
of a change of an agreement under this subsection for whatever 
period it determines to be reasonably necessary to avoid unreason-
able hardship. 
"(d) The Board may begin a proceeding under this section 
on its own initiative or on application. Action of the Board under 
this section— 
"(1) approving an agreement; 
"(2) denying, ending, or changing approval; 
"(3) prescribing the conditions on which approval is 
granted; or 
"(4) changing those conditions, 
has effect only as related to application of the antitrust laws referred 
to in subsection (a) of this section. 
"(e)(1) The Federal Trade Commission, in consultation with Reports, 
the Antitrust Division of the Department of Justice, shall prepare 
periodically an assessment of, and shall report to the Board on— 
"(A) possible anticompetitive features of— 
"(i) agreements approved or submitted for approval 
under subsection (a) of this section; and 
"(ii) an organization operating under those agreements; 
and 
"(B) possible ways to alleviate or end an anticompetitive 
feature, effect, or aspect in a manner that will further the 
goals of this part and of the transportation policy of section 
10101 of this title. 
"(2) Reports received by the Board under this subsection shall 
be published and made available to the public under section 552(a) 
of title 5. 
'*§ 10707. Determination of market dominance in rail rate 
proceedings 
"(a) In this section, "market dominance' means an absence of 
effective competition from other rail carriers or modes of transpor-
tation for the transportation to which a rate applies. 
109 STAT. 816 
PUBLIC LAW 104-88—DEC. 29, 1995 
Publication. 
"(b) When a rate for transportation by a rail carrier providing 
transportation subject to the jurisdiction of the Board under this 
part is challenged as being unreasonably high, the Board shall 
determine whether the rail carrier proposing the rate has market 
dominance over the transportation to which the rate applies. The 
Board may make that determination on its own initiative or on 
complaint. A finding by the Board that the rail carrier does not 
have market dominance is determinative in a proceeding under 
this part related to that rate or transportation unless changed 
or set aside by the Board or set aside by a court of competent 
jurisdiction. 
"(c) When the Board finds in any proceeding that a rail carrier 
proposing or defending a rate for transportation has market domi-
nance over the transportation to which the rate applies, it may 
then determine that rate to be unreasonable if it exceeds a reason-
able maximum for that transportation. However, a finding of market 
dominance does not establish a presumption that the proposed 
rate exceeds a reasonable maximum. 
"(d)(1)(A) In making a determination under this section, the 
Board shall find that the rail carrier establishing the challenged 
rate does not have market dominance over the transportation to 
which the rate applies if such rail carrier proves that the rate 
charged results in a revenue-variable cost percentage for such 
transportation that is less than 180 percent. 
"(B) For purposes of this section, variable costs for a rail carrier 
shall be determined only by using such carrier's unadjusted costs, 
calculated using the Uniform Rail Costing System cost finding 
methodology (or an alternative methodology adopted by the Board 
in lieu thereof) and indexed quarterly to account for current wage 
and price levels in the region in which the carrier operates, with 
adjustments specified by the Board. A rail carrier may meet its 
burden of proof under this subsection by establishing its variable 
costs in accordance with this paragraph, but a shipper may rebut 
that showing by evidence of such type, and in accordance with 
such burden of proof, as the Board shall prescribe. 
"(2) A finding by the Board that a rate charged by a rail 
carrier results in a revenue-variable cost percentage for the 
transportation to which the rate applies that is equal to or greater 
than 180 percent does not establish a presumption that— 
"(A) such rail carrier has or does not have market domi-
nance over such transportation; or 
"(B) the proposed rate exceeds or does not exceed a reason-
able maximum. 
*
*
§ 10708. Rail cost adjustment factor 
"(a) The Board shall, as often as practicable, but in no event 
less often than quarterly, publish a rail cost adjustment factor 
which shall be a fraction, the numerator of which is the latest 
published Index of Railroad Costs (which index shall be compiled 
or verified by the Board, with appropriate adjustments to reflect 
the change in composition of railroad costs, including the quality 
and mix of material and labor) and the denominator of which 
is the same index for the fourth quarter of every fifth year, begin-
ning with the fourth quarter of 1992. 
"(b) The rail cost adjustment factor published by the Board 
under subsection (a) of this section shall take into account changes 
in railroad productivity. The Board shall also publish a similar 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 817 
index that does not take into account changes in railroad 
productivity. 
«§ 10709. Contracts 
"(a) One or more rail carriers providing transportation subject 
to the jurisdiction of the Board under this part may enter into 
a contract with one or more purchasers of rail services to provide 
specified services under specified rates and conditions. 
"(b) A party to a contract entered into under this section shall 
have no duty in connection with services provided under such 
contract other than those duties specified by the terms of the 
contract. 
"(c)(1) A contract that is authorized by this section, and 
transportation under such contract, shall not be subject to this 
part, and may not be subsequently challenged before the Board 
or in any court on the grounds that such contract violates a provi-
sion of this part. 
"(2) The exclusive remedy for any alleged breach of a contract 
entered into under this section shall be an action in an appropriate 
State court or United States district court, unless the parties other-
wise agree. This section does not confer original jurisdiction on 
the district courts of the United States based on section 1331 
or 1337 of title 28, United States Code. 
"(d)(1) A summary of each contract for the transportation of 
agricultural products (including grain, as defined in section 3 of 
the United States Grain Standards Act (7 U.S.C. 75) and products 
thereof) entered into under this section shall be filed with the 
Board, containing such nonconfidential information as the Board 
prescribes. The Board shall publish special rules for such contracts 
in order to ensure that the essential terms of the contract are 
available to the general public. 
"(2) Documents, papers, and records (and any copies thereof) 
relating to a contract described in subsection (a) shall not be subject 
to the mandatory disclosure requirements of section 552 of title 
5. 
"(e) Any lawful contract between a rail carrier and one or 
more purchasers of rail service that was in effect on the effective 
date of the Staggers Rail Act of 1980 shall be considered a contract 
authorized by this section, 
"(f) A rail carrier that enters into a contract as authorized 
by this section remains subject to the common carrier obligation 
set forth in section 11101, with respect to rail transportation not 
provided under such a contract. 
"(g)(1) No later than 30 days after the date of filing of a 
summary of a contract under this section, the Board may, on 
complaint, begin a proceeding to review such contract on the 
grounds described in this subsection. 
"(2)(A) A complaint may be filed under this subsection— 
"(i) by a shipper on the grounds that such shipper individ-
ually will be harmed because the proposed contract unduly 
impairs the ability of the contracting rail carrier or carriers 
to meet their common carrier obligations to the complainant 
under section 11101 of this title; or 
"(ii) by a port only on the grounds that such port individ-
ually will be harmed because the proposed contract will result 
in unreasonable discrimination against such port. 
Publication. 
Public 
information. 
Rules. 
99-194 O - 95 - 27: QL 3 Part 1 
109 STAT. 818 
PUBLIC LAW 10^88—DEC. 29, 1995 
"(B) In addition to the grounds for a complaint described in 
subparagraph (A) of this paragraph, a complaint may be filed by 
a shipper of agricultural commodities on the grounds that such 
shipper individually will be harmed because— 
"(i) the rail carrier has unreasonably discriminated by 
refusing to enter into a contract with such shipper for rates 
and services for the transportation of the same type of commod-
ity under similar conditions to the contract at issue, and that 
shipper was ready, willing, and able to enter into such a con-
tract at a time essentially contemporaneous with the period 
during which the contract at issue was offered; or 
"(ii) the proposed contract constitutes a destructive competi-
tive practice under this part. 
In making a determination under clause (ii) of this subparagraph, 
the Board shall consider the difference between contract rates and 
published single car rates. 
"(C) For purposes of this paragraph, the term 'unreasonable 
discrimination' has the same meaning as such term has under 
section 10741 of this title. 
"(3)(A) Within 30 days after the date a proceeding is commenced 
under paragraph (1) of this subsection, or within such shorter 
time period after such date as the Board may establish, the Board 
shall determine whether the contract that is the subject of such 
proceeding is in violation of this section. 
"(B) If the Board determines, on the basis of a complaint 
filed under paragraph (2)(B)(i) of this subsection, that the grounds 
for a complaint described in such paragraph have been established 
with respect to a rail carrier, the Board shall, subject to the provi-
sions of this section, order such rail carrier to provide rates and 
service substantially similar to the contract at issue with such 
differentials in terms and conditions as are justified by the evidence. 
"(h)(1) Any rail carrier may, in accordance with the terms 
of this section, enter into contracts for the transportation of agricul-
tural commodities (including forest products, but not including wood 
pulp, wood chips, pulpwood or paper) involving the utilization of 
carrier owned or leased equipment not in excess of 40 percent 
of the capacity of such carrier's owned or leased equipment by 
major car type (plain boxcars, covered hopper cars, gondolas and 
open top hoppers, coal cars, bulkhead flatcars, pulpwood rackcars, 
and flatbed equipment, including TOFC/COFC). 
"(2) The Board may, on request of a rail carrier or other 
party or on its own initiative, grant such relief from the limitations 
of paragraph (1) of this subsection as the Board considers appro-
priate, if it appears that additional equipment may be made avail-
able without impairing the rail carrier's ability to meet its common 
carrier obligations under section 11101 of this title. 
Termination 
"(3)(A) This subsection shall cease to be effective after Septem-
date. 
ber 30, 1998. 
"(B) Before October 1, 1997, the National Grain Car Council 
and the Railroad-Shipper Transportation Advisory Council shall 
make recommendations to Congress on whether to extend the 
effectiveness of or otherwise modify this subsection. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 819t 
"SUBCHAPTER II—SPECIAL CIRCUMSTANCES 
"§ 10721. Government traffic 
"A rail carrier providing transportation or service for the United 
States Government may transport property or individuals for the 
United States Government without charge or at a rate reduced 
from the applicable commercial rate. Section 3709 of the Revised 
Statutes (41 U.S.C. 5) does not apply when transportation for 
the United States Government can be obtained from a rail carrier 
lawfully operating in the area where the transportation would be 
provided. 
*
*
§ 10722. Car utilization 
"In order to encourage more efficient use of freight cars, not-
withstanding any other provision of this part, rail carriers shall 
be permitted to establish premium charges for special services 
or special levels of services not otherwise applicable to the move-
ment. The Board shall facilitate development of such charges so 
as to increase the utilization of equipment. 
"SUBCHAPTER III—LIMITATIONS 
'*§ 10741. Prohibitions against discrimination by rail carriers 
"(a)(1) A rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part may not subject 
a person, place, port, or type of traffic to unreasonable discrimina-
tion. 
"(2) For purposes of this section, a rail carrier engages in 
unreasonable discrimination when it charges or receives from a 
person a different compensation for a service rendered, or to be 
rendered, in transportation the rail carrier may perform under 
this part than it charges or receives from another person for 
performing a like and contemporaneous service in the transpor-
tation of a like kind of traffic under substantially similar cir-
cumstances. 
"(b) This section shall not apply to— 
"(1) contracts described in section 10709 of this title; 
"(2) rail rates applicable to different routes; or 
"(3) discrimination against the traffic of another carrier 
providing transportation by any mode. 
"(c) Differences between rates, classifications, rules, and prac-
tices of rail carriers do not constitute a violation of this section 
if such differences result from different services provided by rail 
carriers. 
''§ 10742. Facilities for interchange of traffic 
"A rail carrier providing transportation subject to the jurisdic-
tion of the Board under this part shall provide reasonable, proper, 
and equal facilities that are within its power to provide for the 
interchange of traffic between, and for the receiving, forwarding, 
and delivering of passengers and property to and from, its respective 
line and a connecting line of another rail carrier or of a water 
carrier providing transportation subject to chapter 137. 
*
*
§ 10743. Liability for payment of rates 
"(a)(1) Liability for payment of rates for transportation for 
a shipment of property by a shipper or consignor to a consignee 
109 STAT. 820 
PUBLIC LAW 104-88—DEC. 29, 1995 
other than the shipper or consignor, is determined under this sub-
section when the transportation is provided by a rail carrier under 
this part. When the shipper or consignor instructs the rail carrier 
transporting the property to deliver it to a consignee that is an 
agent only, not having beneficial title to the property, the consignee 
is liable for rates billed at the time of delivery for which the 
consignee is otherwise liable, but not for additional rates that 
may be found to be due after delivery if the consignee gives written 
notice to the delivering carrier before delivery of the property— 
"(A) of the agency and absence of beneficial title; and 
"(B) of the name and address of the beneficial owner of 
the property if it is reconsigned or diverted to a place other 
than the place specified in the original bill of lading. 
"(2) When the consignee is liable only for rates billed at the 
time of delivery under paragraph (1) of this subsection, the shipper 
or consignor, or, if the property is reconsigned or diverted, the 
beneficial owner, is liable for those additional rates regardless of 
the bill of lading or contract under which the property was trans-
ported. The beneficial owner is liable for all rates when the property 
is reconsigned or diverted by an agent but is refused or abandoned 
at its ultimate destination if the agent gave the rail carrier in 
the reconsignment or diversion order a notice of agency and the 
name and address of the beneficial owner, A consignee giving the 
rail carrier, and a reconsignor or diverter giving a rail carrier, 
erroneous information about the identity of the beneficial owner 
of the property is liable for the additional rates. 
"(b) Liability for pajnnent of rates for transportation for a 
shipment of property by a shipper or consignor, named in the 
bill of lading as consignee, is determined under this subsection 
when the transportation is provided by a rail carrier under this 
part. When the shipper or consignor gives written notice, before 
delivery of the property, to the line-haul rail carrier that is to 
make ultimate delivery— 
"(1) to deliver the property to another party identified 
by the shipper or consignor as the beneficial owner of the 
property; and 
"(2) that delivery is to be made to that party on payment 
of all applicable transportation rates; 
that party is liable for the rates billed at the time of delivery 
and for additional rates that may be found to be due sifter delivery 
if that party does not pay the rates required to be paid under 
paragraph (2) of this subsection on delivery. However, if the party 
gives written notice to the delivering rail carrier before delivery 
that the party is not the beneficial owner of the property and 
gives the rail carrier the name and address of the beneficial owner, 
then the party is not liable for those additional rates. A shipper, 
consignor, or party to whom delivery is made that gives the deliver-
ing rail carrier erroneous information about the identity of the 
beneficial owner, is liable for the additional rates regardless of 
the bill of lading or contract under which the property was trans-
ported. This subsection does not apply to a prepaid shipment of 
property. 
"(c)(1) A rail carrier may bring an action to enforce liability 
under subsection (a) of this section. That rail carrier must bring 
the action during the period provided in section 11705(a) of this 
title or by the end of the 6th month after final judgment against 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 821 
it in an action against the consignee, or the beneficial owner named 
by the consignee or agent,, under that section. 
"(2) A rail carrier may bring an action to enforce liability 
under subsection (b) of this section. That carrier must bring the 
action during the period provided in section 11705(a) of this title 
or by the end of the 6th month after final judgment against it 
in an action against the shipper, consignor, or other party under 
that section. 
*
*
§ 10744. Continuous carriage of freight 
"A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part may not enter a 
combination or arrangement to prevent the carriage of freight from 
being continuous from the place of shipment to the place of destina-
tion whether by change of time schedule, carriage in different 
cars, or by other means. The carriage of freight by those rail 
carriers is considered to be a continuous carriage from the place 
of shipment to the place of destination when a break of bulk, 
stoppage, or interruption is not made in good faith for a necessary 
purpose, and with the intent of avoiding or unnecessarily interrupt-
ing the continuous carriage or of evading this part. 
"§ 10745. Transportation services or facilities furnished by 
shipper 
"A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part may establish a charge 
or allowance for transportation or service for property when the 
owner of the property, directly or indirectly, furnishes a service 
related to or an instrumentality used in the transportation or 
service. The Board may prescribe the maximum reasonable charge 
or allowance a rail carrier subject to its jurisdiction may pay for 
a service or instrumentality furnished under this section. The Board 
may begin a proceeding under this section on its own initiative 
or on application. 
*
*
§ 10746. Demurrage charges 
"A rail carrier providing transportation subject to the jurisdic-
tion of the Board under this part shall compute demurrage charges, 
and establish rules related to those charges, in a way that fulfills 
the national needs related to— 
"(1) freight car use and distribution; and 
"(2) maintenance of an adequate supply of freight cars 
to be available for transportation of property. 
"§ 10747. Designation of certain routes by shippers 
"(a)(1) When a person delivers property to a rail carrier for 
transportation subject to the jurisdiction of the Board under this 
part, the person may direct the rail carrier to transport the property 
over an established through route. When competing rail lines con-
stitute a part of the route, the person shipping the property may 
designate the lines over which the property will be transported. 
The designation must be in writing. A rail carrier may be directed 
to transport property over a particular through route when— 
"(A) there are at least 2 through routes over which the 
property could be transported; 
"(B) a through rate has been established for transportation 
over each of those through routes; and 
109 STAT. 822 
PUBLIC LAW 104r-88—DEC. 29, 1995 
"(C) the rail carrier is a party to those routes and rates. 
"(2) A rail carrier directed to route property transported under 
paragraph (1) of this subsection must issue a through bill of lading 
containing the routing instructions and transport the property 
according to the instructions. When the property is delivered to 
a connecting rail carrier, that rail carrier must also receive and 
transport it according to the routing instructions and deliver it 
to the next succeeding rail carrier or consignee according to the 
instructions. 
"(b) The Board may prescribe exceptions to the authority of 
a person to direct the movement of traffic under subsection (a) 
of this section. 
"CHAPTER 109^LICENSING 
Notice. 
Certificate. 
"Sec. 
"10901. Authorizing construction and operation of railroad lines. 
"10902. Short line purchases by Class II and Class III rail carriers. 
"10903. Filing and procedure for application to abandon or discontinue. 
"10904. Offers of financial assistance to avoid abandonment and discontinuance. 
"10905. Offering abandoned rail properties for sale for public purposes. 
"10906. Exception. 
"10907. Railroad development. 
'*§ 10901. Authorizing construction and operation of railroad 
lines 
"(a) A person may— 
"(1) construct an extension to any of its railroad lines; 
"(2) construct an additional railroad line; 
"(3) provide transportation over, or by means of, an 
extended or additional railroad line; or 
"(4) in the case of a person other than a rail carrier, 
acquire a railroad line or acquire or operate an extended or 
additional railroad line, 
only if the Board issues a certificate authorizing such activity 
under subsection (c). 
"(b) A proceeding to grant authority under subsection (a) of 
this section begins when an application is filed. On receiving the 
application, the Board shall give reasonable public notice, including 
notice to the Governor of any affected State, of the beginning 
of such proceeding. 
"(c) The Board shall issue a certificate authorizing activities 
for which such authority is requested in an application filed under 
subsection (b) unless the Board finds that such activities are 
inconsistent with the public convenience and necessity. Such certifi-
cate may approve the application as filed, or with modifications, 
and may require compliance with conditions (other than labor 
protection conditions) the Board finds necessary in the public 
interest. 
"(d)(1) When a certificate has been issued by the Board under 
this section authorizing the construction or extension of a railroad 
line, no other rail carrier may block any construction or extension 
authorized by such certificate by refusing to permit the carrier 
to cross its property if— 
"(A) the construction does not unreasonably interfere with 
the operation of the crossed line; 
"(B) the operation does not materially interfere with the 
operation of the crossed line; and 
PUBLIC LAW 104^88—DEC. 29, 1995 
109 STAT. 823 
"(C) the owner of the crossing Hne compensates the owner 
of the crossed Hne. 
"(2) If the parties are unable to agree on the terms of operation 
or the amount of pajnnent for purposes of paragraph (1) of this 
subsection, either party may submit the matters in dispute to 
the Board for determination. The Board shall make a determination 
under this paragraph within 120 days after the dispute is submitted 
for determination. 
'*§ 10902. Short line purchases by Class II and Class III rail 
carriers 
"(a) A Class II or Class III rail carrier providing transportation 
subject to the jurisdiction of the Board under this part may acquire 
or operate an extended or additional rail line under this section 
only if the Board issues a certificate authorizing such activity 
under subsection (c). 
"(b) A proceeding to grant authority under subsection (a) of 
this section begins when an application is filed. On receiving the Notice. 
application, the Board shall give reasonable public notice of the 
beginning of such proceeding. 
"(c) The Board shall issue a certificate authorizing activities Certificate. 
for which such authority is requested in an application filed under 
subsection (b) unless the Board finds that such activities are 
inconsistent with the public convenience and necessity. Such certifi-
cate may approve the application as filed, or with modifications, 
and may require compliance with conditions (other than labor 
protection conditions) the Board finds necessary in the public 
interest. 
"(d) The Board shall require any Class II rail carrier which 
receives a certificate under subsection (c) of this section to provide 
a fair and equitable arrangement for the protection of the interests 
of employees who may be affected thereby. The arrangement shall 
consist exclusively of one year of severance pay, which shall not 
exceed the amount of earnings from railroad employment of the 
employee during the 12-month period immediately preceding the 
date on which the application for such certificate is filed with 
the Board. The amount of such severance pay shall be reduced 
by the amount of earnings from railroad employment of the 
employee with the acquiring carrier during the 12-month period 
immediately following the effective date of the transaction to which 
the certificate applies. The parties may agree to terms other than 
as provided in this subsection. The Board shall not require such 
an arrangement from a Class III rail carrier which receives a 
certificate under subsection (c) of this section. 
''§ 10903. Filing and procedure for application to abandon 
or discontinue 
"(a)(1) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part who intends to— 
"(A) abandon any part of its railroad lines; or 
"(B) discontinue the operation of all rail transportation 
over any part of its railroad lines, 
must file an application relating thereto with the Board. An 
abandonment or discontinuance may be carried out only as author-
ized under this chapter. 
109 STAT. 824 
PUBLIC LAW 104.-88—DEC. 29, 1995 
Notice. 
Publication. 
Newspapers. 
Certification. 
Publication. 
"(2) When a rail carrier providing transportation subject to 
the jurisdiction of the Board under this part files an application, 
the application shall include— 
"(A) an accurate and understandable summary of the rail 
carrier's reasons for the proposed abandonment or discontinu-
ance; 
"(B) a statement indicating that each interested person 
is entitled to make recommendations to the Board on the future 
of the rail line; and 
"(C)(i) a statement that the line is available for subsidy 
or sale in accordance with section 10904 of this title, (ii) a 
statement that the rail carrier will promptly provide to each 
interested party an estimate of the annual subsidy and mini-
mum purchase price, calculated in accordance with section 
10904 of this title, and (iii) the name and business address 
of the person who is authorized to discuss the subsidy or 
sale terms for the rail carrier. 
"(3) The rail carrier shall— 
"(A) send by certified mail notice of the application to 
the chief executive officer of each State that would be directly 
affected by the proposed abandonment or discontinuance; 
"(B) post a copy of the notice in each terminal and station 
on each portion of a railroad line proposed to be abandoned 
or over which all transportation is to be discontinued; 
"(C) publish a copy of the notice for 3 consecutive weeks 
in a newspaper of general circulation in each county in which 
each such portion is located; 
"(D) mail a copy of the notice, to the extent practicable, 
to all shippers that have made significant use (as designated 
by the Board) of the railroad line during the 12 months preced-
ing the filing of the application; and 
"(E) attach to the application filed with the Board an 
affidavit certifying the manner in which subparagraphs (A) 
through (D) of this paragraph have been satisfied, and certifying 
that subparagraphs (A) through (D) have been satisfied within 
the most recent 30 days prior to the date the application 
is filed. 
"(b)(1) Except as provided in subsection (d), abandonment and 
discontinuance may occur as provided in section 10904. 
"(2) The Board shall require as a condition of any abandonment 
or discontinuance under this section provisions to protect the 
interests of employees. The provisions shall be at least as beneficial 
to those interests as the provisions established under sections 
11326(a) and 24706(c) of this title. 
"(c)(1) In this subsection, the term 'potentially subject to 
abandonment' has the meaning given the term in regulations of 
the Board. The regulations may include standards that vary by 
region of the United States and by railroad or group of railroads. 
"(2) Each rail carrier shall maintain a complete diagram of 
the transportation system operated, directly or indirectly, by the 
rail carrier. The rail carrier shall submit to the Board and publish 
amendments to its diagram that are necessary to maintain the 
accuracy of the diagram. The diagram shall— 
"(A) include a detailed description of each of its railroad 
lines potentially subject to abandonment; and 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 825 
"(B) identify each railroad line for which the rail carrier 
plans to file an application to abandon or discontinue under 
subsection (a) of this section. 
"(d) A rail carrier providing transportation subject to the juris-
diction of the Board under this part may— 
"(1) abandon any part of its railroad lines; or 
"(2) discontinue the operation of all rail transportation 
over any part of its railroad lines; 
only if the Board finds that the present or future public convenience 
and necessity require or permit the abandonment or discontinuance. 
In making the finding, the Board shall consider whether the 
abandonment or discontinuance will have a serious, adverse impact 
on rural and community development. 
"(e) Subject to this section and sections 10904 and 10905 of 
this title, if the Board— 
"(1) finds public convenience and necessity, it shall— 
"(A) approve the application as filed; or 
"(B) approve the application with modifications and 
require compliance with conditions that the Board finds 
are required by public convenience and necessity; or 
"(2) fails to find public convenience and necessity, it shall 
deny the application. 
*
*
§ 10904. Offers of financial assistance to avoid abandonment 
and discontinuance 
"(a) In this section— 
"(1) the term 'avoidable cost' means all expenses that would 
be incurred by a rail carrier in providing transportation that 
would not be incurred if the railroad line over which the 
transportation was provided were abandoned or if the transpor-
tation were discontinued. Expenses include cash inflows fore-
gone and cash outflows incurred by the rail carrier as a result 
of not abandoning or discontinuing the transportation. Cash 
inflows foregone and cash outflows incurred include— 
"(A) working capital and required capital expenditure; 
"(B) expenditures to eliminate deferred maintenance; 
"(C) the current cost of freight cars, locomotives, and 
other equipment; and 
"(D) the foregone tax benefits from not retiring prop-
erties from rail service and other effects of applicable Fed-
eral and State income taxes; and 
"(2) the term 'reasonable return' means— 
"(A) if a rail carrier is not in reorganization, the cost 
of capital to the rail carrier, as determined by the Board; 
and 
"(B) if a rail carrier is in reorganization, the mean 
cost of capital of rail carriers not in reorganization, as 
determined by the Board. 
"(b) Any rail carrier which has filed an application for abandon-
ment or discontinuance shall provide promptly to a party consider-
ing an offer of financial assistance and shall provide concurrently 
to the Board— 
"(1) an estimate of the annual subsidy and minimum pur-
chase price required to keep the line or a portion of the line 
in operation; 
109 STAT. 826 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(2) its most recent reports on the physical condition of 
that part of the railroad line involved in the proposed abandon-
ment or discontinuance; 
"(3) traffic, revenue, and other data necessary to determine 
the amount of annual financial assistance which would be 
required to continue rail transportation over that part of the 
railroad line; and 
"(4) any other information that the Board considers nec-
essary to allow a potential offeror to calculate an adequate 
subsidy or purchase offer. 
"(c) Within 4 months after an application is filed under section 
10903, any person may offer to subsidize or purchase the railroad 
line that is the subject of such application. Such offer shall be 
filed concurrently with the Board. If the offer to subsidize or pur-
chase is less than the carrier's estimate stated pursuant to sub-
section (b)(1), the offer shall explain the basis of the disparity, 
and the manner in which the offer is calculated. 
"(d)(1) Unless the Board, within 15 days after the expiration 
of the 4-month period described in subsection (c), finds that one 
or more financially responsible persons (including a governmental 
authority) have offered financial assistance regarding that part 
of the railroad line to be abandoned or over which all rail transpor-
tation is to be discontinued, abandonment or discontinuance may 
be carried out in accordance with section 10903. 
"(2) If the Board finds that such an offer or offers of financial 
assistance has been made within such period, abandonment or 
discontinuance shall be postponed until— 
"(A) the carrier and a financially responsible person have 
reached agreement on a transaction for subsidy or sale of 
the line; or 
"(B) the conditions and amount of compensation are estab-
lished under subsection (f). 
"(e) Except as provided in subsection (f)(3), if the rail carrier 
and a financially responsible person (including a governmental 
authority) fail to agree on the amount or terms of the subsidy 
or purchase, either party may, within 30 days after the offer is 
made, request that the Board establish the conditions and amount 
of compensation. 
"(^(1) Whenever the Board is requested to establish the condi-
tions and amount of compensation under this section— 
"(A) the Board shall render its decision within 30 days; 
"(B) for proposed sales, the Board shall determine the 
price £md other terms of sale, except that in no case shall 
the Board set a price which is below the fair market value 
of the line (including, unless otherwise mutually agreed, all 
facilities on the line or portion necessary to provide effective 
transportation services); and 
"(C) for proposed subsidies, the Board shall establish the 
compensation as the difference between the revenues attrib-
utable to that part of the railroad line and the avoidable cost 
of providing rail freight transportation on the line, plus a 
reasonable return on the value of the line. 
"(2) The decision of the Board shall be binding on both parties, 
except that the person who has offered to subsidize or purchase 
the line may withdraw his offer within 10 days of the Board's 
decision. In such a case, the abandonment or discontinuance may 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 827 
be carried out immediately, unless other offers are being considered 
pursuant to paragraph (3) of this subsection. 
"(3) If a rail carrier receives more than one offer to subsidize 
or purchase, it shall select the offeror with whom it wishes to 
transact business, and complete the subsidy or sale agreement, 
or request that the Board establish the conditions and amount 
of compensation before the 40th day after the expiration of the 
4-month period described in subsection (c). If no agreement on 
subsidy or sale is reached within such 40-day period and the Board 
has not been requested to establish the conditions and amount 
of compensation, any other offeror whose offer was made within 
the 4-month period described in subsection (c) may request that 
the Board establish the conditions and amount of compensation. 
If the Board has established the conditions and amount of com-
pensation, and the original offer has been withdrawn, any other 
offeror whose offer was made within the 4-month period described 
in subsection (c) may accept the Board's decision within 20 days 
after such decision, and the Board shall require the carrier to 
enter into a subsidy or sale agreement with such offeror, if such 
subsidy or sale agreement incorporates the Board's decision. 
"(4)(A) No purchaser of a line or portion of line sold under 
this section may transfer or discontinue service on such line prior 
to the end of the second year after consummation of the sale, 
nor may such purchaser transfer such line, except to the rail carrier 
from whom it was purchased, prior to the end of the fifth year 
after consummation of the sale. 
"(B) No subsidy arrangement approved under this section shall 
remain in effect for more than one year, unless otherwise mutually 
agreed by the parties. 
"(g) Upon abandonment of a railroad line under this chapter, 
the obligation of the rail carrier abandoning the line to provide 
transportation on that line, as required by section 11101(a), is 
extinguished. 
*'§ 10905. Offering abandoned rail properties for sale for pub-
lic purposes 
"When the Board approves an application to abandon or dis-
continue under section 10903, the Board shall find whether the 
rail properties that are involved in the proposed abandonment 
or discontinuance are appropriate for use for public purposes, 
including highways, other forms of mass transportation, conserva-
tion, energy production or transmission, or recreation. If the Board 
finds that the rail properties proposed to be abandoned are appro-
priate for public purposes and not required for continued rail oper-
ations, the properties may be sold, leased, exchanged, or otherwise 
disposed of only under conditions provided in the order of the 
Board. The conditions may include a prohibition on any such dis-
posal for a period of not more than 180 days after the effective 
date of the order, unless the properties have first been offered, 
on reasonable terms, for sale for public purposes. 
"§ 10906. Exception 
"Notwithstanding section 10901 and subchapter II of chapter 
113 of this title, and without the approval of the Board, a rail 
carrier providing transportation subject to the jurisdiction of the 
Board under this part may enter into arrangements for the joint 
ownership or joint use of spur, industrial, team, switching, or side 
109 STAT. 828 
PUBLIC LAW 104-88—DEC. 29, 1995 
tracks. The Board does not have authority under this chapter 
over construction, acquisition, operation, abandonment, or dis-
continuance of spur, industrial, team, switching, or side tracks. 
*'§ 10907. Railroad development 
"(a) In this section, the term 'financially responsible person' 
means a person who— 
"(1) is capable of paying the constitutional minimum value 
of the railroad line proposed to be acquired; and 
"(2) is able to assure that adequate transportation will 
be provided over such line for a period of not less than 3 
years. 
Such term includes a governmental authority but does not include 
a Class I or Class II rail carrier. 
"(b)(1) When the Board finds that— 
"(A)(i) the public convenience and necessity require or per-
mit the sale of a particular railroad line under this section; 
or 
"(ii) a railroad line is on a system diagram map as required 
under section 10903 of this title, but the rail carrier owning 
such line has not filed an application to abandon such line 
under section 10903 of this title before an application to pur-
chase such line, or any required preliminary filing with respect 
to such application, is filed under this section; and 
"(B) an application to purchase such line has been filed 
by a financially responsible person, 
the Board shall require the rail carrier owning the railroad line 
to sell such line to such financially responsible person at a price 
not less than the constitutional minimum value. 
"(2) For purposes of this subsection, the constitutional minimum 
value of a particular railroad line shall be presumed to be not 
less than the net liquidation value of such line or the going concern 
value of such line, whichever is greater. 
"(c)(1) For purposes of this section, the Board may determine 
that the public convenience and necessity require or permit the 
sale of a railroad line if the Board determines, after a hearing 
on the record, that— 
"(A) the rail carrier operating such line refuses within 
a reasonable time to make the necessary efforts to provide 
adequate service to shippers who transport traffic over such 
line; 
"(B) the transportation over such line is inadequate for 
the majority of shippers who transport traffic over such line; 
"(C) the sale of such line will not have a significantly 
adverse financial effect on the rail carrier operating such line; 
"(D) the sale of such line will not have an adverse effect 
on the overall operational performance of the rail carrier operat-
ing such line; and 
"(E) the sale of such line will be likely to result in improved 
railroad transportation for shippers that transport traffic over 
such line. 
"(2) In a proceeding under this subsection, the burden of proving 
that the public convenience and necessity require or permit the 
sale of a particular railroad line is on the person filing the applica-
Notification. 
tion to acquire such line. If the Board finds under this subsection 
Federal Register, that the public convenience and necessity require or permit the 
publication. 
g^j^ ^^ ^ particular railroad line, the Board shall concurrently 
PUBLIC LAW 104^88—DEC. 29, 1995 
109 STAT. 829 
notify the parties of such finding and pubUsh such finding in 
the Federal Register. 
"(d) In the case of any railroad line subject to sale under 
subsection (a) of this section, the Board shall, upon the request 
of the acquiring carrier, require the selling carrier to provide to 
the acquiring carrier trackage rights to allow a reasonable inter-
change with the selling carrier or to move power equipment or 
empty rolling stock between noncontiguous feeder lines operated 
by the acquiring carrier. The Board shall require the acquiring 
carrier to provide the selling carrier reasonable compensation for 
any such trackage rights. 
"(e) The Board shall require, to the maximum extent prac-
ticable, the use of the employees who would normally have per-
formed work in connection with a railroad line subject to a sale 
under this section. 
"(f) In the case of a railroad line which carried less than 
3,000,000 gross ton miles of traffic per mile in the preceding cal-
endar year, whenever a purchasing carrier under this section peti-
tions the Board for joint rates applicable to traffic moving over 
through routes in which the purchasing carrier may practicably 
participate, the Board shall, within 30 days after the date such 
petition is filed and pursuant to section 10705(a) of this title, 
require the establishment of reasonable joint rates and divisions 
over such route. 
"(g)(1) Any person operating a railroad line acquired under 
this section may elect to be exempt from any of the provisions 
of this part, except that such a person may not be exempt from 
the provisions of chapter 107 of this title with respect to transpor-
tation under a joint rate. 
"(2) The provisions of paragraph (1) of this subsection shall Applicability, 
apply to any line of railroad which was abandoned during the 
18-month period immediately prior to October 1, 1980, and was 
subsequently purchased by a financially responsible person. 
"(h) If a purchasing carrier under this section proposes to 
sell or abandon all or any portion of a purchased railroad line, 
such purchasing carrier shall offer the right of first refusal with 
respect to such line or portion thereof to the carrier which sold 
such line under this section. Such offer shall be made at a price 
equal to the sum of the price paid by such purchasing carrier 
to such selling carrier for such line or portion thereof and the 
fair market value (less deterioration) of any improvements made, 
as adjusted to reflect inflation. 
"(i) Any person operating a railroad line acquired under this 
section may determine preconditions, such as payment of a subsidy, 
which must be met by shippers in order to obtain service over 
such lines, but such operator must notify the shippers on the 
line of its intention to impose such preconditions. 
"CHAFIER 111—OPERATIONS 
"SUBCHAPTER I—GENERAL REQUIREMENTS 
"Sec. 
"11101. Common carrier transportation, service, and rates. 
"11102. Use of terminal facilities. 
"11103. Switch connections and tracks. 
"SUBCHAPTER II—CAR SERVICE 
"11121. Criteria. 
109 STAT. 830 
Publication. 
Public 
information. 
"11122. 
"11123. 
"11124. 
"11141. 
"11142. 
"11143. 
"11144. 
"11145. 
"11161. 
"11162. 
"11163. 
"11164. 
PUBLIC LAW 104-88—DEC. 29, 1995 
Compensation and practice. 
Situations requiring immediate action to serve the public. 
War emergencies; embargoes imposed by carriers. 
"SUBCHAPTER 
III—REPORTS 
AND 
RECORDS 
Definitions. 
Uniform accounting system. 
Depreciation charges. 
Records: form; inspection; preservation. 
Reports by rail carriers, lessors, and associations. 
"SUBCHAPTER IV—RAILROAD COST ACCOUNTING 
Implementation of cost accounting principles. 
Rail carrier cost accounting system. 
Cost availability. 
Accounting and cost reporting. 
"SUBCHAPTER I—GENERAL REQUIREMENTS 
Regulations. 
^'§ 11101. Common carrier transportation, service, and rates 
"(a) A rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part shall provide the 
transportation or service on reasonable request. A rail carrier shall 
not be found to have violated this section because it fulfills its 
reasonable commitments under contracts authorized under section 
10709 of this title before responding to reasonable requests for 
service. Commitments which deprive a carrier of its ability to 
respond to reasonable requests for common carrier service are not 
reasonable. 
"(b) A rail carrier shall also provide to any person, on request, 
the carrier's rates and other service terms. The response by a 
rail carrier to a request for the carrier's rates and other service 
terms shall be— 
"(1) in writing and forwarded to the requesting person 
promptly after receipt of the request; or 
"(2) promptly made available in electronic form. 
"(c) A rail carrier may not increase any common carrier rates 
or change any common carrier service terms unless 20 days have 
expired after written or electronic notice is provided to any person 
who, within the previous 12 months— 
"(1) has requested such rates or terms under subsection 
(b);or 
"(2) has made arrangements with the carrier for a shipment 
that would be subject to such increased rates or changed terms. 
"(d) With respect to transportation of agricultural products, 
in addition to the requirements of subsections (a), (b), and (c), 
a rail carrier shall publish, make available, and retain for public 
inspection its common carrier rates, schedules of rates, and other 
service terms, and any proposed and actual changes to such rates 
and service terms. For purposes of this subsection, agricultural 
products shall include grain as defined in section 3 of the United 
States Grain Standards Act (7 U.S.C. 75) and all products thereof, 
and fertilizer. 
"(e) A rail carrier shall provide transportation or service in 
accordance with the rates and service terms, £uid any changes 
thereto, as published or otherwise made available under subsection 
(b),(c),or(d). 
"(f) The Board shall, by regulation, establish rules to implement 
this section. The regulations shall provide for immediate disclosure 
and dissemination of rates and service terms, including classifica-
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 831 
tions, rules, and practices, and their effective dates. Final regula-
tions shall be adopted by the Board not later than 180 days after 
the effective date of the ICC Termination Act of 1995. 
""§ 11102. Use of terminal facilities 
"(a) The Board may require terminal facilities, including main-
line tracks for a reasonable distance outside of a terminal, owned 
by a rail carrier providing transportation subject to the jurisdiction 
of the Board under this part, to be used by another rail carrier 
if the Board finds that use to be practicable and in the public 
interest without substantially impairing the ability of the rail car-
rier owning the facilities or entitled to use the facilities to handle 
its own business. The rail carriers are responsible for establishing 
the conditions and compensation for use of the facilities. However, 
if the rail carriers cannot agree, the Board may establish conditions 
and compensation for use of the facilities under the principle 
controlling compensation in condemnation proceedings. The com-
pensation shall be paid or adequately secured before a rail carrier 
may begin to use the facilities of another rail carrier under this 
section. 
"(b) A rail carrier whose terminal facilities are required to 
be used by another rail carrier under this section is entitled to 
recover damages from the other rail carrier for injuries sustained 
as the result of compliance with the requirement or for compensa-
tion for the use, or both as appropriate, in a civil action, if it 
is not satisfied with the conditions for use of the facilities or 
if the amount of the compensation is not paid promptly. 
"(c)(1) The Board may require rail carriers to enter into recip-
rocal switching agreements, where it finds such agreements to 
be practicable and in the public interest, or where such agreements 
are necessary to provide competitive rail service. The rail carriers 
entering into such an agreement shall establish the conditions 
and compensation applicable to such agreement, but, if the rail 
carriers cannot agree upon such conditions and compensation within 
a reasonable period of time, the Board may establish such conditions 
and compensation. 
"(2) The Board may require reciprocal switching agreements 
entered into by rail carriers pursuant to this subsection to contain 
provisions for the protection of the interests of employees affected 
thereby. 
"(d) The Board shall complete any proceeding under subsection 
(a) or (b) within 180 days after the filing of the request for relief. 
'*§ 11103. Switch connections and tracks 
"(a) On application of the owner of a lateral branch line of 
railroad, or of a shipper tendering interstate traffic for transpor-
tation, a rail carrier providing transportation subject to the jurisdic-
tion of the Board under this part shall construct, maintain, and 
operate, on reasonable conditions, a switch connection to connect 
that branch line or private side track with its railroad and shall 
furnish cars to move that traffic to the best of its ability without 
discrimination in favor of or against the shipper when the connec-
tion— 
"(1) is reasonably practicable; 
"(2) can be made safely; and 
"(3) will furnish sufficient business to justify its construc-
tion and maintenance. 
109 STAT. 832 
PUBLIC LAW 104^88—DEC. 29, 1995 
"(b) If a rail carrier fails to install and operate a switch connec-
tion after application is made under subsection (a) of this section, 
the owner of the lateral branch line of railroad or the shipper 
may file a complaint with the Board under section 11701 of this 
title. The Board shall investigate the complaint and decide the 
safety, practicability, justification, and compensation to be paid 
for the connection. The Board may direct the rail carrier to comply 
with subsection (a) of this section only after a full hearing. 
"SUBCHAPTER II—CAR SERVICE 
"§11121. Criteria 
Safety. 
"(a)(1) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part shall furnish safe and 
adequate car service and establish, observe, and enforce reasonable 
rules and practices on car service. The Board may require a rail 
carrier to provide facilities and equipment that are reasonably 
necessary to furnish safe and adequate car service if the Board 
decides that the rail carrier has materially failed to furnish that 
service. The Board may begin a proceeding under this paragraph 
when an interested person files an application with it. The Board 
may act only after a hearing on the record and an affirmative 
finding, based on the evidence presented, that— 
"(A) providing the facilities or equipment will not materially 
and adversely affect the ability of the rail carrier to provide 
safe and adequate transportation; 
"(B) the amount spent for the facilities or equipment, 
including a return equal to the rail carrier's current cost of 
capital, will be recovered; and 
"(C) providing the facilities or equipment will not impair 
the ability of the rail carrier to attract adequate capital. 
"(2) The Board may require a rail carrier to file its car service 
rules with the Board. 
"(b) The Board may designate and appoint agents and agencies 
to make and carry out its directions related to car service and 
matters under sections 11123 and 11124(a)(1) of this title. 
"(c) The Board shall consult, as it considers necessary, with 
the National Grain Car Council on matters within the charter 
of that body. 
"§ 11122. Compensation and practice 
"(a) The regulations of the Board on car service shall encourage 
the purchase, acquisition, and efficient use of freight cars. The 
regulations may include— 
"(1) the compensation to be paid for the use of a locomotive, 
freight car, or other vehicle; 
"(2) the other terms of any arrangement for the use by 
a rail carrier of a locomotive, freight car, or other vehicle 
not owned by the rail carrier using the locomotive, freight 
car, or other vehicle, whether or not owned by another carrier, 
shipper, or third person; and 
"(3) sanctions for nonobservance. 
"(b) The rate of compensation to be paid for each type of 
freight car shall be determined by the expense of owning and 
maintaining that type of freight car, including a fair return on 
its cost giving consideration to current costs of capital, repairs, 
materials, parts, and labor. In determining the rate of compensa-
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 833 
tion, the Board shall consider the transportation use of each type 
of freight car, the national level of ownership of each type of 
freight car, and other factors that affect the adequacy of the national 
freight car supply. 
"§11123. Situations requiring immediate action to serve the 
public 
"(a) When the Board determines that shortage of equipment, 
congestion of traffic, unauthorized cessation of operations, or other 
failure of traffic movement exists which creates an emergency situa-
tion of such magnitude as to have substantial adverse effects on 
shippers, or on rail service in a region of the United States, or 
that a rail carrier providing transportation subject to the jurisdic-
tion of the Board under this part cannot transport the traffic 
offered to it in a manner that properly serves the public, the 
Board may, to promote commerce and service to the public, for 
a period not to exceed 30 days— 
"(1) direct the handling, routing, and movement of the 
traffic of a rail carrier and its distribution over its own or 
other railroad lines; 
"(2) require joint or common use of railroad facilities; 
"(3) prescribe temporary through routes; or 
"(4) give directions for— 
"(A) preference or priority in transportation; 
"(B) embargoes; or 
"(C) movement of traffic under permits. 
"(b)(1) Except with respect to proceedings under paragraph 
(2) of this subsection, the Board may act under this section on 
its own initiative or on application without regard to subchapter 
II of chapter 5 of title 5. 
"(2) Rail carriers may establish between themselves the terms 
of compensation for operations, and use of facilities and equipment, 
required under this section. When rail carriers do not agree on 
the terms of compensation under this section, the Board may estab-
lish the terms for them. The Board may act under subsection 
(a) before conducting a proceeding under this paragraph. 
"(3) When a rail carrier is directed under this section to operate 
the lines of another rail carrier due to that carrier's cessation 
of operations, compensation for the directed operations shall derive 
only from revenues generated by the directed operations. 
"(c)(1) The Board may extend any action taken under subsection 
(a) of this section beyond 30 days if the Board finds that a transpor-
tation emergency described in subsection (a) continues to exist. 
Action by the Board under subsection (a) of this section may not 
remain in effect for more than 240 days beyond the initial 30-
day period. 
"(2) The Board may not take action under this section that 
would— 
"(A) cause a rail carrier to operate in violation of this 
part; or 
"(B) impair substantially the ability of a rail carrier to 
serve its own customers adequately, or to fulfill its common 
carrier obligations. 
"(3) A rail carrier directed by the Board to take action under 
this section is not responsible, as a result of that action, for debts 
of any other rail carrier. 
109 STAT. 834 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(d) In carrying out this section, the Board shall require, to 
the maximum extent practicable, the use of employees who would 
normally have performed work in connection with the traffic subject 
to the action of the Board. 
'*§ 11124. War emergencies; embargoes imposed by carriers 
"(a)(1) When the President, during time of war or threatened 
war, notifies the Board that it is essential to the defense and 
security of the United States to give preference or priority to the 
movement of certain traffic, the Board shall direct that preference 
or priority be given to that traffic. 
"(2) When the President, during time of war or threatened 
war, demands that preference and precedence be given to the 
transportation of troops and material of war over all other traffic, 
all rail carriers providing transportation subject to the jurisdiction 
of the Board under this part shall adopt every means within their 
control to facilitate and expedite the military traffic. 
"(b) An embargo imposed by any such rail carrier does not 
apply to shipments consigned to agents of the United States Govern-
ment for its use. The rail carrier shall deliver those shipments 
as promptly as possible. 
"SUBCHAPTER 
III—REPORTS 
AND 
RECORDS 
"§ 11141. Definitions 
"In this subchapter— 
"(1) the terms 'rail carrier* and 'lessor* include a receiver 
or trustee of a rail carrier and lessor, respectively; 
"(2) the term 'lessor' means a person owning a railroad 
that is leased to and operated by a carrier providing transpor-
tation subject to the jurisdiction of the Board under this part; 
and 
"(3) the term 'association' means an organization main-
tained by or in the interest of a group of rail carriers providing 
transportation or service subject to the jurisdiction of the Board 
under this part that performs a service, or engages in activities, 
related to transportation under this part. 
'*§ 11142. Uniform accounting system 
"The Board may prescribe a uniform accounting system for 
classes of rail carriers providing transportation subject to the juris-
diction of the Board under this part. To the maximum extent 
practicable, the Board shall conform such system to generally 
accepted accounting principles, and shall administer this subchapter 
in accordance with such principles. 
'*§ 11143. Depreciation charges 
"The Board shajl, for a class of rail carriers providing transpor-
tation subject to its jurisdiction under this part, prescribe, and 
change when necessary, those classes of property for which deprecia-
tion charges may be included under operating expenses and a 
rate of depreciation that may be charged to a class of property. 
The Board may classify those rail carriers for purposes of this 
section. A rail carrier for whom depreciation charges and rates 
of depreciation are in effect under this section for any class of 
property may not— 
PUBLIC U^W 104^88—DEC. 29, 1995 
109 STAT. 835 
"(1) charge to operating expenses a depreciation charge 
on a class of property other than that prescribed by the Board; 
"(2) charge another rate of depreciation; or 
"(3) include other depreciation charges in 
operating 
expenses. 
*
*
§ 11144. Records: form; inspection; preservation 
"(a) The Board may prescribe the form of records required 
to be prepared or compiled under this subchapter— 
"(1) by rail carriers and lessors, including records related 
to movement of traffic and receipts and expenditures of money; 
and 
"(2) by persons furnishing cars to or for a rail carrier 
providing transportation subject to the jurisdiction of the Board 
under this part to the extent related to those cars or that 
service. 
"(b) The Board, or an employee designated by the Board, may 
on demand and display of proper credentials— 
"(1) inspect and examine the lands, buildings, and equip-
ment of a rail carrier or lessor; and 
"(2) inspect and copy any record of— 
"(A) a rail carrier, lessor, or association; 
"(B) a person controlling, controlled by, or under com-
mon control with a rail carrier if the Board considers 
inspection relevant to that person's relation to, or trans-
action with, that rail carrier; and 
"(C) a person furnishing cars to or for a rail carrier 
if the Board prescribed the form of that record. 
"(c) The Board may prescribe the time period during which 
operating, accounting, and financial records must be preserved by 
rail carriers, lessors, and persons furnishing cars. 
*
*
§ 11145. Reports by rail carriers, lessors, and associations 
"(a) The Board may require— 
"(1) rail carriers, lessors, and associations, or classes of 
them as the Board may prescribe, to file annual, periodic, 
and special reports with the Board containing answers to ques-
tions asked by it; and 
"(2) a person furnishing cars to a rail carrier to file reports 
with the Board containing answers to questions about those 
cars. 
"(b)(1) An annual report shall contain an account, in as much 
detail as the Board may require, of the affairs of the rail carrier, 
lessor, or association for the 12-month period ending on December 
31 of each year. 
"(2) An annual report shall be filed with the Board by the 
end of the third month after the end of the year for which the 
report is made unless the Board extends the filing date or changes 
the period covered by the report. The annual report and, if the 
Board requires, any other report made under this section, shall 
be made under oath. 
"SUBCHAPTER IV—RAILROAD COST ACCOUNTING 
*
*
§ 11161. Implementation of cost accounting principles 
'The Board shall periodically review its cost accounting rules 
and shall make such changes in those rules as are required to 
109 STAT. 836 
PUBLIC LAW 104-88—DEC. 29, 1995 
achieve the regulatory purposes of this part. The Board shall insure 
that the rules promulgated under this section are the most efficient 
and least burdensome means by which the required information 
may be developed for regulatory purposes. To the maximum extent 
practicable, the Board shall conform such rules to generally accepted 
accounting principles. 
'*§ 11162. Rail carrier cost accounting system 
"(a) Each rail carrier shall have and maintain a cost accounting 
system that is in compliance with the rules promulgated by the 
Board under section 11161 of this title. A rail carrier may, after 
notifying the Board, make modifications in such system unless, 
within 60 days after the date of notification, the Board finds such 
modifications to be inconsistent with the rules promulgated by 
the Board under section 11161 of this title. 
"(b) For purposes of determining whether the cost accounting 
system of a rail carrier is in compliance with the rules promulgated 
by the Board, the Board shall have the right to examine and 
make copies of any documents, papers, or records of such rail 
carrier relating to compliance with such rules. Such documents, 
papers, and records (and any copies thereof) shall not be subject 
to the mandatory disclosure requirements of section 552 of title 
5. 
"§ 11163. Cost availability 
"As required by the rules of the Board governing discovery 
in Board proceedings, rail carriers shall make relevant cost data 
available to shippers. States, ports, communities, and other 
interested parties that are a party to a Board proceeding in which 
such data are required. 
'*§ 11164. Accounting and cost reporting 
"To obtain expense and revenue information for regulatory 
purposes, the Board may promulgate reasonable rules for rail car-
riers providing transportation subject to the jurisdiction of the 
Board under this part, prescribing expense and revenue accounting 
and reporting requirements consistent with generally accepted 
accounting principles uniformly applied to such carriers. Such 
requirements shall be cost effective and compatible with and not 
duplicative of the managerial and responsibility accounting require-
ments of those carriers. 
"CHAPTER 113—FRANCE 
"SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY INTERESTS 
"Sec. 
"11301. Equipment trusts: recordation; evidence of indebtedness. 
"SUBCHAPTER II—COMBINATIONS 
" 11321. Scope of authority. 
"11322. Limitation on pooling and division of transportation or earnings. 
"11323. Consolidation, merger, and acquisition of control. 
"11324. Consolidation, merger, and acquisition of control: conditions of approval. 
"11325. Consolidation, merger, and acquisition of control: procedure. 
"11326. Employee protective arrangements in transactions involving rail carriers. 
"11327. Supplemental orders. 
"11328. Restrictions on officers and directors. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 837 
"SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY 
INTERESTS 
*
*
§ 11301. Equipment trusts: recordation; evidence of indebt-
edness 
"(a) A mortgage (other than a mortgage under chapter 313 
of title 46), lease, equipment trust agreement, conditional sales 
agreement, or other instrument evidencing the mortgage, lease, 
conditional sale, or bailment of or security interest in vessels, rail-
road cars, locomotives, or other rolling stock, or accessories used 
on such railroad cars, locomotives, or other rolling stock (including 
superstructures and racks), intended for a use related to interstate 
commerce shall be filed with the Board in order to perfect the 
security interest that is the subject of such instrument. An assign-
ment of a right or interest under one of those instruments and 
an amendment to that instrument or assignment including a 
release, discharge, or satisfaction of any part of it shall also be 
filed with the Board. The instrument, assignment, or amendment 
must be in writing, executed by the parties to it, and acknowledged 
or verified under Board regulations. When filed under this section, 
that document is notice to, and enforceable against, all persons. 
A document filed under this section does not have to be filed, 
deposited, registered, or recorded under another law of the United 
States, a State (or its political subdivisions), or territory or posses-
sion of the United States, related to filing, deposit, registration, 
or recordation of those documents. This section does not change 
chapter 313 of title 46. 
"(b) The Board shall maintain a system for recording each 
document filed under subsection (a) of this section and mark each 
of them with a consecutive number and the date and hour of 
their recordation. The Board shall maintain and keep open for Public 
public inspection an index of documents filed under that subsection, information. 
That index shall include the name and address of the principal 
debtors, trustees, guarantors, and other parties to those documents 
and may include other facts that will assist in determining the 
rights of the parties to those transactions. 
"(c) The Board may to the greatest extent practicable perform 
its functions under this section through contracts with private 
sector entities. 
"(d) A mortgage, lease, equipment trust agreement, conditional 
sales agreement, or other instrument evidencing the mortgage, 
lease, conditional sale, or bailment of or security interest in vessels, 
railroad cars, locomotives, or other rolling stock, or accessories 
used on such railroad cars, locomotives, or other rolling stock 
(including superstructures and racks), or any assignment thereof, 
which— 
"(1) is duly constituted under the laws of a country other 
than the United States; and 
"(2) relates to property that bears the reporting marks 
and identification numbers of any person domiciled in or cor-
poration organized under the laws of such country, 
shall be recognized with the same effect as having been filed under 
this section. 
"(e) Interests with respect to which documents are filed or 
recognized under this section are deemed perfected in all jurisdic-
tions, and shall be governed by applicable State or foreign law 
in all matters not specifically governed by this section. 
109 STAT. 838 
PUBLIC LAW 104-88—DEC. 29, 1995 
Public 
"(jf) The Board shall collect, maintain, and keep open for public 
information. 
inspection a railway equipment register consistent with the manner 
and format maintained by the Interstate Commerce Commission 
as of the effective date of the ICC Termination Act of 1995. 
"SUBCHAPTER II—COMBINATIONS 
"§ 11321. Scope of authority 
"(a) The authority of the Board under this subchapter is exclu-
sive. A rail carrier or corporation participating in or resulting 
from a transaction approved by or exempted by the Board under 
this subchapter may carry out the transaction, own and operate 
property, and exercise control or franchises acquired through the 
transaction without the approval of a State authority. A rail carrier, 
corporation, or person participating in that approved or exempted 
transaction is exempt from the antitrust laws and from all other 
law, including State and municipal law, as necessary to let that 
rail carrier, corporation, or person carry out the transaction, hold, 
maintain, and operate property, and exercise control or franchises 
acquired through the transaction. However, if a purchase and sale, 
a lease, or a corporate consolidation or merger is involved in the 
transaction, the carrier or corporation may carry out the transaction 
only with the assent of a majority, or the number required under 
applicable State law, of the votes of the holders of the capital 
stock of that corporation entitled to vote. The vote must occur 
at a regular meeting, or special meeting called for that purpose, 
of those stockholders and the notice of the meeting must indicate 
its purpose. 
"(b) A power granted under this subchapter to a carrier or 
corporation is in addition to and changes its powers under its 
corporate charter and under State law. Action under this subchapter 
does not establish or provide for establishing a corporation under 
the laws of the United States. 
^§ 11322. Limitation on pooling and division of transpor-
tation or earnings 
"(a) A rail carrier providing transportation subject to the juris-
diction of the Board under this part may not agree or combine 
with another of those rail carriers to pool or divide traffic or services 
or any part of their earnings without the approval of the Board 
under this section or section 11123 of this title. The Board may 
approve and authorize the agreement or combination if the rail 
carriers involved assent to the pooling or division and the Board 
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. 
"(b) The Board may impose conditions governing the pooling 
or division and may approve and authorize payment of a reasonable 
consideration between the rail carriers. 
"(c) The Board may begin a proceeding under this section 
on its own initiative or on application. 
*
*
§ 11323. Consolidation, merger, and acquisition of control 
"(a) The following transactions involving rail carriers providing 
transportation subject to the jurisdiction of the Board under this 
PUBLIC LAW 104^88—DEC. 29, 1995 
109 STAT. 839 
part may be carried out only with the approval and authorization 
of the Board: 
"(1) Consolidation or merger of the properties or franchises 
of at least 2 rail carriers into one corporation for the ownership, 
management, and operation of the previously separately owned 
properties. 
"(2) A purchase, lease, or contract to operate property of 
another rail carrier by any number of rail carriers. 
"(3) Acquisition of control of a rail carrier by any number 
of rail carriers. 
"(4) Acquisition of control of at least 2 rail carriers by 
a person that is not a rail carrier. 
"(5) Acquisition of control of a rail carrier by a person 
that is not a rail carrier but that controls any number of 
rail carriers. 
"(6) Acquisition by a rail carrier of trackage rights over, 
or joint ownership in or joint use of, a railroad line (and 
terminals incidental to it) owned or operated by another rail 
carrier. 
"(b) A person may carry out a transaction referred to in sub-
section (a) of this section or participate in achieving the control 
or management, including the power to exercise control or manage-
ment, in a common interest of more than one of those rail carriers, 
regardless of how that result is reached, only with the approval 
and authorization of the Board under this subchapter. In addition 
to other transactions, each of the following transactions are consid-
ered achievements of control or management: 
"(1) A transaction by a rail carrier that has the effect 
of putting that rail carrier and person affiliated with it, taken 
together, in control of another rail carrier. 
"(2) A transaction by a person affiliated with a rail carrier 
that has the effect of putting that rail carrier and persons 
giffiliated with it, taken together, in control of another rail 
carrier. 
"(3) A transaction by at least 2 persons acting together 
(one of whom is a rail carrier or is affiliated with a rail carrier) 
that has the effect of putting those persons and rail carriers 
and persons affiliated with any of them, or with any of those 
affiliated rsdl carriers, taken together, in control of another 
rail carrier. 
"(c) A person is affiliated with a rail carrier under this sub-
chapter if, because of the relationship between that person and 
a rail carrier, it is reasonable to believe that the affairs of another 
rail carrier, control of which may be acquired by that person, 
will be managed in the interest of the other rail carrier. 
^§ 11324. Consolidation, merger, and acquisition of control: 
conditions of approval 
"(a) The Board may begin a proceeding to approve and authorize 
a transaction referred to in section 11323 of this title on application 
of the person seeking that authority. When an application is filed Notification, 
with the Board, the Board shall notify the chief executive officer 
of each State in which property of the rail carriers involved in 
the proposed transaction is located and shall notify those rail car-
riers. The Board shall hold a public hearing unless the Board 
determines that a public hearing is not necessary in the public 
interest. 
109 STAT. 840 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(b) In a proceeding under this section which involves the 
merger or control of at least two Class I railroads, as defined 
by the Board, the Board shall consider at least— 
"(1) the effect of the proposed transaction on the adequacy 
of transportation to the public; 
"(2) the effect on the public interest of including, or failing 
to include, other rail carriers in the area involved in the pro-
posed transaction; 
"(3) the total fixed charges that result from the proposed 
transaction; 
"(4) the interest of rail carrier employees affected by the 
proposed transaction; and 
"(5) whether the proposed transaction would have an 
adverse effect on competition among rail carriers in the affiBcted 
region or in the national rail system. 
"(c) The Board shall approve and authorize a transaction under 
this section when it finds the transaction is consistent with the 
public interest. The Board may impose conditions governing the 
transaction, including the divestiture of parallel tracks or requiring 
the granting of trackage rights and access to other facilities. Any 
trackage rights and related conditions imposed to alleviate anti-
competitive effects of the transaction shall provide for operating 
terms and compensation levels to ensure that such effects are 
alleviated. When the transaction contemplates a guaranty or 
assumption of payment of dividends or of fixed charges or will 
result in an increase of total fixed charges, the Board may approve 
and authorize the transaction only if it finds that the guaranty, 
assumption, or increase is consistent with the public interest. The 
Board may require inclusion of other rail carriers located in the 
area involved in the transaction if they apply for inclusion and 
the Board finds their inclusion to be consistent with the public 
interest. 
"(d) In a proceeding under this section which does not involve 
the merger or control of at least two Class I railroads, as defined 
by the Board, the Board shall approve such an application unless 
it finds that— 
"(1) as a result of the transaction, there is likely to be 
substantial lessening of competition, creation of a monopoly, 
or restraint of trade in freight surface transportation in any 
region of the United States; and 
"(2) the anticompetitive effects of the transaction outweigh 
the public interest in meeting significant transportation needs. 
In making such findings, the Board shall, with respect to any 
application that is part of a plan or proposal developed under 
section 333(a)-(d) of this title, accord substantial weight to any 
recommendations of the Attorney General. 
"(e) No transaction described in section 11326(b) may have 
the effect of avoiding a collective bargaining agreement or shifting 
work from a rail carrier with a collective bargaining agreement 
to a rail carrier without a collective bargaining agreement. 
"(f)(1) To the extent provided in this subsection, a proceeding 
under this subchapter relating to a transaction involving at least 
one Class I rail carrier shall not be considered an adjudication 
required by statute to be determined on the record after opportunity 
for an agency hearing, for the purposes of subchapter II of chapter 
5 of title 5, United States Code. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 841 
"(2) Ex parte communications, as defined in section 551(14) 
of title 5, United States Code, shall be permitted in proceedings 
described in paragraph (1) of this subsection, subject to the require-
ments of paragraph (3) of this subsection. 
"(3)(A) Any member or employee of the Board who makes 
or receives a written ex parte communication concerning the merits 
of a proceeding described in paragraph (1) shall promptly place 
the communication in the public docket of the proceeding. 
"(B) Any member or employee of the Board who makes or 
receives an oral ex parte communication concerning the merits 
of a proceeding described in paragraph (1) shall promptly place 
a written summary of the oral communication in the public docket 
of the proceeding. 
"(4) Nothing in this subsection shall be construed to require 
the Board or any of its members or employees to engage in any 
ex parte communication with any person. Nothing in this subsection 
or any other law shall be construed to limit the authority of the 
members or employees of the Board, in their discretion, to note 
in the docket or otherwise publicly the occurrence and substance 
of an ex parte communication. 
*
*
§ 11325. Consolidation, merger, and acquisition of control: 
procedure 
"(a) The Board shall publish notice of the application under Federal Register, 
section 11324 in the Federal Register by the end of the 30th pubUcation. 
day after the application is filed with the Board. However, if the 
application is incomplete, the Board shall reject it by the end 
of that period. The order of rejection is a final action of the Board. 
The published notice shall indicate whether the application 
involves— 
"(1) the merger or control of at least two Class I railroads, 
as defined by the Board, to be decided within the time limits 
specified in subsection (b) of this section; 
"(2) transactions of regional or national transportation 
significance, to be decided within the time limits specified in 
subsection (c) of this section; or 
"(3) any other transaction covered by this section, to be 
decided within the time limits specified in subsection (d) of 
this section. 
"(b) If the application involves the merger or control of two 
or more Class I railroads, as defined by the Board, the following 
conditions apply: 
"(1) Written comments about an application may be filed 
with the Board witliin 45 days after notice of the application 
is published under subsection (a) of this section. Copies of 
such comments shall be served on the Attorney General and 
the Secretary of Transportation, who may decide to intervene 
as a party to the proceeding. That decision must be made 
by the 15th day after the date of receipt of the written com-
ments, and if the decision is to intervene, preliminary comments 
about the application must be sent to the Board by the end 
of the 15th day after the date of receipt of the written 
comments. 
"(2) The Board shall require that applications inconsistent 
with an application, notice of which was published under sub-
section (a) of this section, and applications for inclusion in 
109 STAT. 842 
PUBLIC LAW 104-88—DEC. 29, 1995 
the transaction, be filed with it by the 90th day after publication 
of notice under that subsection. 
"(3) The Board must conclude evidentiary proceedings by 
the end of 1 year after the date of publication of notice under 
subsection (a) of this section. The Board must issue a final 
decision by the 90th day after the date on which it concludes 
the evidentiary proceedings. 
"(c) If the application involves a transaction other than the 
merger or control of at least two Class I railroads, as defined 
by the Board, which the Board has determined to be of regional 
or national transportation significance, the following conditions 
apply: 
"(1) Written comments about an application, including com-
ments of the Attorney General and the Secretary of Transpor-
tation, may be filed with the Board within 30 days after notice 
of the application is published under subsection (a) of this 
section. 
"(2) The Board shall require that applications inconsistent 
with an application, notice of which was published under sub-
section (a) of this section, and applications for inclusion in 
the transaction, be filed with it by the 60th day after publication 
of notice under that subsection. 
"(3) The Board must conclude any evidentiary proceedings 
by the 180th day after the date of publication of notice under 
subsection (a) of this section. The Board must issue a final 
decision by the 90th day after the date on which it concludes 
the evidentiary proceedings. 
"(d) For all applications under this section other than those 
specified in subsections (b) and (c) of this section, the following 
conditions apply: 
"(1) Written comments about an application, including com-
ments of the Attorney General and the Secretary of Transpor-
tation, may be filed with the Board within 30 days after notice 
of the application is published under subsection (a) of this 
section. 
"(2) The Board must conclude any evidentiary proceedings 
by the 105th day after the date of publication of notice under 
subsection (a) of this section. The Board must issue a final 
decision by the 45th day after the date on which it concludes 
the evidentiary proceedings. 
''§ 11326. Employee protective arrangements in transactions 
involving rail carriers 
"(a) Except as otherwise provided in this section, when approval 
is sought for a transaction under sections 11324 and 11325 of 
this title, the Board shall require the rail carrier to provide a 
fair arrangement at least as protective of the interests of employees 
who are affected by the transaction as the terms imposed under 
section 5(2)(f) of the Interstate Commerce Act before February 
5, 1976, and the terms established under section 24706(c) of this 
title. Notwithstanding this part, the arrangement may be made 
by the rail carrier and the authorized representative of its employ-
ees. The arrangement and the order approving the transaction 
must require that the employees of the affected rail carrier will 
not be in a worse position related to their employment as a result 
of the transaction during the 4 years following the effective date 
of the final action of the Board (or if an employee was employed 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 843 
for a lesser period of time by the rail carrier before the action 
became effective, for that lesser period). 
"(b) When approval is sought under sections 11324 and 11325 Severance pay. 
for a transaction involving one Class II and one or more Class 
III rail carriers, there shall be an arrangement as required under 
subsection (a) of this section, except that such arrangement shall 
be limited to one year of severance pay, which shall not exceed 
the amount of earnings from the railroad employment of that 
employee during the 12-month period immediately preceding the 
date on which the application for approval of such transaction 
is filed with the Board. The amount of such severance pay shall 
be reduced by the amount of earnings from railroad emplojnnent 
of that employee with the acquiring carrier during the 12-month 
period immediately following the effective date of the transaction. 
The parties may agree to terms other than as provided in this 
subsection. 
"(c) When approval is sought under sections 11324 and 11325 
for a transaction involving only Class III rail carriers, this section 
shall not apply. 
''§ 11327. Supplemental orders 
"When cause exists, the Board may make appropriate orders 
supplemental to an order made in a proceeding under sections 
11322 through 11326 of tliis title. 
^§ 11328. Restrictions on officers and directors 
"(a) A person may hold the position of officer or director of 
more than one rail carrier only when authorized by the Board. 
The Board may authorize a person to hold the position of officer 
or director of more than one of those carriers when public or 
private interests will not be adversely affected. 
"(b) This section shall not apply to an individual holding the 
position of officer or director only of Class III rail carriers. 
"CHAPTER 1I5~FEDERAL-STATE RELATIONS 
"Sec. 
"11501. Tax discrimination against rail transportation property. 
"11502. Withholding State and local income tax by rail carriers. 
"§11501. Tax discrimination 
against rail 
transportation 
property 
"(a) In this section— 
"(1) the term 'assessment' means valuation for a property 
tax levied by a taxing district; 
"(2) the term 'assessment jurisdiction' means a geographical 
area in a State used in determining the assessed value of 
property for ad valorem taxation; 
"(3) the term 'rail transportation property* means property, 
as defined by the Board, owned or used by a rail carrier 
providing transportation subject to the jurisdiction of the Board 
under this part; and 
"(4) the term 'commercial and industrial property 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. 
109 STAT. 844 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(b) 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) Assess rail transportation property at a value that 
has a higher ratio to the true market value of the rail transpor-
tation property than the ratio that the assessed value of other 
commercial and industrial property in the same assessment 
jurisdiction has to the true market value of the other commer-
cial and industrial property. 
"(2) Levy or collect a tax on an assessment that may 
not be made under paragraph (1) of this subsection. 
"(3) Levy or collect an ad valorem property tax on rail 
transportation property at a tax rate that exceeds the tax 
rate applicable to commercial and industrial property in the 
same assessment jurisdiction. 
"(4) Impose another tax that discriminates against a rail 
carrier providing transportation subject to the jurisdiction of 
the Board under this part. 
"(c) Notwithstanding section 1341 of title 28 and without regard 
to the amount in controversy or citizenship of the parties, a district 
court of the United States has jurisdiction, concurrent with other 
jurisdiction of courts of the United States and the States, to prevent 
a violation of subsection (b) of this section. Relief may be granted 
under this subsection only if the ratio of assessed value to true 
market value of rail transportation property exceeds by at least 
5 percent the ratio of assessed value to true market value of 
other commercial and industrial property in the same assessment 
jurisdiction. The burden of proof in determining assessed value 
and true market value is governed by State law. If the ratio of 
the assessed value of other commercial and industrial property 
in the assessment jurisdiction to the true market value of all 
other commercial and industrial property cannot be determined 
to the satisfaction of the district court through the random-sampling 
method known as a sales assessment ratio study (to be carried 
out under statistical principles applicable to such a study), the 
court shall find, as a violation of this section— 
"(1) an assessment of the rail transportation property at 
a value that has a higher ratio to the true market value 
of the rail transportation property than the assessed value 
of all other property subject to a property tax levy in the 
assessment jurisdiction has to the true market value of all 
other commercial and industrial property; and 
"(2) the collection of an ad valorem property tax on the 
rail transportation property at a tax rate that exceeds the 
tax ratio rate applicable to taxable property in the taxing 
district. 
'*§ 11502. Withholding State and local income tax by rail 
carriers 
"(a) No part of the compensation paid by a rail carrier providing 
transportation subject to the jurisdiction of the Board under this 
part to an employee who performs regularly assigned duties as 
such an employee on a railroad in more than one State shall 
be subject to the income tax laws of any State or subdivision 
of that State, other than the State or subdivision thereof of the 
employee's residence. 
,|pJfifc*-' 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 845 
"(b) A rail carrier withholding pay from an employee under Reports, 
subsection (a) of this section shall file income tax information 
returns and other reports only with the State and subdivision 
of residence of the employee. 
"CHAPTER 117—ENFORCEMENT: INVESTIGATIONS, 
RIGHTS, AND REMEDIES 
"Sec. 
"11701. General authority. 
"11702. Enforcement by the Board. 
"11703. Enforcement by the Attorney General. 
"11704. Rights and remedies of persons injured by rail carriers. 
"11705. Limitation on actions by and against rail carriers. 
"11706. Liability of rail carriers; under receipts and bills of lading. 
"11707. Liability when propert}'^ is delivered in violation of routing instructions. 
"§ 11701. General authority 
"(a) Except as otherwise provided in this part, the Board may 
begin an investigation under this part only on complaint. If the 
Board finds that a rail carrier is violating this part, the Board 
shall take appropriate action to compel compliance with this part. 
"(b) A person, including a governmental authority, may file 
with the Board a complaint about a violation of this part by a 
rail carrier providing transportation or service subject to the juris-
diction of the Board under this part. The complaint must state 
the facts that are the subject of the violation. The Board may 
dismiss a complaint it determines does not state reasonable grounds 
for investigation and action. However, the Board may not dismiss 
a complaint made against a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part because 
of the absence of direct damage to the complainant. 
"(c) A formal investigative proceeding begun by the Board under 
subsection (a) of this section is dismissed automatically unless 
it is concluded by the Board with administrative finality by the 
end of the third year after the date on which it was begun. 
"§ 11702. Enforcement by the Board 
"The Board may bring a civil action— 
"(1) to enjoin a rail carrier from violating sections 10901 
through 10906 of this title, or a regulation prescribed or order 
or certificate issued under any of those sections; 
"(2) to enforce subchapter II of chapter 113 of this title 
and to compel compliance with an order of the Board under 
that subchapter; and 
"(3) to enforce an order of the Board, except a civil action 
to enforce an order for the pajmnent of money, when it is 
violated by a rail carrier providing transportation subject to 
the jurisdiction of the Board under this part. 
"§ 11703. Enforcement by the Attorney General 
"(a) The Attorney General may, and on request of the Board 
shall, bring court proceedings to enforce this part, or a regulation 
or order of the Board or certificate issued under this part, and 
to prosecute a person violating this part or a regulation or order 
of the Board or certificate issued under this part. 
"(b) The United States Government may bring a civil action 
on behalf of a person to compel a rail carrier providing transpor-
tation subject to the jurisdiction of the Board under this part 
109 STAT. 846 
PUBLIC LAW 104-88—DEC. 29, 1995 
to provide that transportation to that person in compliance with 
this part at the same rate charged, or on conditions as favorable 
as those given by the rail carrier, for like traffic under similar 
conditions to another person. 
*
*
§ 11704. Rights and remedies of persons iivjured by rail 
carriers 
"(a) A person injured because a rail carrier providing transpor-
tation or service subject to the jurisdiction of the Board under 
this part does not obey an order of the Board, except an order 
for the payment of money, may bring a civil action in a United 
States District Court to enforce that order under this subsection. 
"(b) A rail carrier providing transportation subject to the juris-
diction of the Board under this part is liable for damages sustained 
by a person as a result of an act or omission of that carrier 
in violation of this part. A rail carrier providing transportation 
subject to the jurisdiction of the Board under this part is liable 
to a person for amounts charged that exceed the applicable rate 
for the transportation. 
"(c)(1) A person may file a complaint with the Board under 
section 11701(b) of this title or bring a civil action under subsection 
(b) of this section to enforce liability against a rail carrier providing 
transportation subject to the jurisdiction of the Board under this 
part. 
"(2) When the Board makes an award under subsection (b) 
of this section, the Board shall order the rail carrier to pay the 
amount awarded by a specific date. The Board may order a rail 
carrier providing transportation subject to the jurisdiction of the 
Board under this part to pay damages only when the proceeding 
is on complaint. The person for whose benefit an order of the 
Board requiring the payment of money is made may bring a civil 
action to enforce that order under this paragraph if the rail carrier 
does not pay the amount awarded by the date payment was ordered 
to be made. 
"(d)(1) When a person begins a civil action under subsection 
(b) of this section to enforce an order of the Board requiring the 
payment of damages by a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part, the text 
of the order of the Board must be included in the complaint. 
In addition to the district courts of the United States, a State 
court of general jurisdiction having jurisdiction of the parties has 
jurisdiction to enforce an order under this paragraph. The findings 
and order of the Board are competent evidence of the facts stated 
in them. Trial in a civil action brought in a district court of the 
United States under this paragraph is in the judicial district— 
"(A) in which the plaintiff resides; 
"(B) in which the principal operating office of the rail 
carrier is located; or 
"(C) through which the railroad line of that carrier runs. 
In a civil action under this paragraph, the plaintiff is liable for 
only those costs that accrue on an appeal taken by the plaintiff. 
"(2) All parties in whose favor the award was made may be 
joined as plaintiffs in a civil action brought in a district court 
of the United States under this subsection and all the rail carriers 
that are parties to the order awarding damages may be joined 
as defendants. Trial in the action is in the judicial district in 
which any one of the plaintiffs could bring the action against 
PUBLIC LAW 104r-88—DEC. 29, 1995 
109 STAT. 847 
any one of the defendants. Process may be served on a defendant 
at its principal operating office when that defendant is not in 
the district in which the action is brought. A judgment ordering 
recovery may be made in favor of any of those plaintiffs against 
the defendant found to be liable to that plaintiff. 
) 
"(3) The district court shall award a reasonable attorney's fee Courts, 
as a part of the damages for which a rail carrier is found liable 
under this subsection. The district court shall tax and collect that 
fee as a part of the costs of the action. 
*
*
§ 11705. Limitation on actions by and against rail carriers 
"(a) A rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part must begin a 
civil action to recover charges for transportation or service provided 
by the carrier within 3 years after the claim accrues. 
"(b) A person must begin a civil action to recover overcharges 
under section 11704(b) of this title within 3 years after the claim 
accrues, whether or not a complaint is filed under section 
11704(c)(1). 
"(c) A person must file a complaint with the Board to recover 
damages under section 11704(b) of this title within 2 years after 
the claim accrues. 
"(d) The limitation period under subsection (b) of this section 
is extended for 6 months from the time written notice is given 
to the claimant by the rail carrier of disallowance of any part 
of the claim specified in the notice if a written claim is given 
to the rail carrier within that limitation period. The limitation 
periods under subsections (b) and (c) of this section are extended 
for 90 days from the time the rail carrier begins a civil action 
under subsection (a) of this section to recover charges related to 
the same transportation or service, or collects (without beginning 
a civil action under that subsection) the charge for that transpor-
tation or service if that action is begun or collection is made within 
the appropriate period. 
"(e) A person must begin a civil action to enforce an order 
of the Board against a rail carrier for the payment of money 
within one year after the date the order required the money to 
be paid. 
"(f) This section applies to transportation for the United States 
Grovemment. The time limitations under this section are extended, 
as related to transportation for or on behalf of the United States 
Grovernment, for 3 years from the date of— 
"(1) payment of the rate for the transportation or service 
involved; 
"(2) subsequent refund for overpayment of that rate; or 
"(3) deduction made under section 3726 of title 31, which-
ever is later. 
"(g) A claim related to a shipment of property accrues under 
this section on delivery or tender of delivery by the rail carrier. 
*
*
§ 11706. Liability of rail carriers under receipts and bills 
of lading 
"(a) A rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part shall issue a receipt 
or bill of lading for property it receives for transportation under 
this part. That rail cai'rier and any other carrier that delivers 
the property and is providing transportation or service subject 
109 STAT. 848 
PUBLIC LAW 104-88—DEC. 29, 1995 
to the jurisdiction of the Board under this part are hable to the 
person entitled to recover under the receipt or bill of lading. The 
liability imposed under this subsection is for the actual loss or 
injury to the property caused by— 
"(1) the receiving rail carrier; 
"(2) the delivering rail carrier; or 
"(3) another rail carrier over whose line or route the prop-
erty 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 through bill of lading. 
Failure to issue a receipt or bill of lading does not affect the 
liability of a rail carrier. A delivering rail carrier is deemed to 
be the rail carrier performing the line-haul transportation nearest 
the destination but does not include a rail carrier providing only 
a switching service at the destination. 
"(b) The rail carrier issuing the receipt or bill of lading under 
subsection (a) of this section or delivering the property for which 
the receipt or bill of lading was issued is entitled to recover from 
the rail carrier over whose line or route the loss or injury occurred 
the amount required to be paid to the owners of the property, 
as evidenced by a receipt, judgment, or transcript, and the amount 
of its expenses reasonably incurred in defending a civil action 
brought by that person. 
"(c)(1) A rail carrier may not limit or be exempt from liability 
imposed under subsection (a) of this section except as provided 
in this subsection. A limitation of liability or of the amount of 
recovery or representation or agreement in a receipt, bill of lading, 
contract, or rule in violation of this section is void. 
"(2) A rail carrier of passengers may limit its liability under 
its passenger rate for loss or injury of baggage carried on trains 
carrying passengers. 
"(3) A rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part may establish 
rates for transportation of property under which— 
"(A) the liability of the rail carrier for such property is 
limited to a value established by written declaration of the 
shipper or by a written agreement between the shipper and 
the carrier; or 
"(B) specified amounts are deducted, pursuant to a written 
agreement between the shipper and the carrier, from any claim 
against the carrier with respect to the transportation of such 
property. 
"(d)(1) A civil action under this section may be brought in 
a district court of the United States or in a State court. 
"(2)(A) A civil action under this section may only be brought— 
"(i) against the originating rail carrier, in the judicial dis-
trict in which the point of origin is located; 
"(ii) against the delivering rail carrier, in the judicial dis-
trict in which the principal place of business of the person 
bringing the action is located if the delivering carrier operates 
a railroad or a route through such judicial district, or in the 
judicial district in which the point of destination is located; 
and 
"(iii) against the carrier alleged to have caused the loss 
or damage, in the judicial district in which such loss or damage 
is alleged to have occurred. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 849 
"(B) In this section, 'judicial district' means (i) in the case 
of a United States district court, a judicial district of the United 
States, and (ii) in the case of a State court, the applicable geographic 
area over which such court exercises jurisdiction. 
"(e) A rail carrier may not provide by rule, contract, or other-
wise, a period of less than 9 months for filing a claim against 
it under this section and a period of less than 2 years for bringing 
a civil action against it under this section. The period for bringing 
a civil action is computed from the date the carrier gives a person 
written notice that the carrier has disallowed any part of the 
claim specified in the notice. For the purposes of this subsection— 
"(1) an offer of compromise shall not constitute a disallow-
ance of any part of the claim unless the carrier, in writing, 
informs the claimant that such part of the claim is disallowed 
and provides reasons for such disallowance; and 
"(2) communications received from a carrier's insurer shall 
not constitute a disallowance of any part of the claim unless 
the insurer, in writing, informs the claimant that such part 
of the claim is disallowed, provides reasons for such disallow-
ance, and informs the claimant that the insurer is acting on 
behalf of the carrier. 
§"11707. Liability when property is delivered in violation 
of routing instructions 
"(a)(1) When a rail carrier providing transportation subject 
to the jurisdiction of the Board under this part diverts or delivers 
property to another rail carrier in violation of routing instructions 
in the bill of lading, both of those rail carriers are jointly and 
severally liable to the rail carrier that was deprived of its right 
to participate in hauling that property for the total amount of 
the rate it would have received if it participated in hauling the 
property. 
"(2) A rail carrier is not liable under paragraph (1) of this 
subsection when it diverts or delivers property in compliance with 
an order or regulation of the Board. 
"(3) A rail carrier to whom property is transported is not 
liable under this subsection if it shows that it had no notice of 
the routing instructions before transporting the property. The bur-
den of proving lack of notice is on that rail carrier. 
"(b) The court shall award a reasonable attorney's fee to the Courts, 
plaintiff in a judgment against the defendant rail carrier under 
subsection (a) of this section. The court shall tax and collect that 
fee as a part of the costs of the action. 
"CHAPTER 11»-CIVIL AND CRIMINAL PENALTIES 
"Sec. 
"11901. General civil penalties. 
"11902. Interference with railroad car supply. 
"11903. Record keeping and reporting violations. 
"11904. Unlawful disclosure of information. 
"11905. Disobedience to subpoenas. 
"11906. General criminal penalty when specific penalty not provided. 
/ 
"11907. Punishment of corporation for violations committed by certain individuals. 
"11908. Relation to other Federal criminal penalties. 
"§ 11901. General civil penalties 
"(a) Except as otherwise provided in this section, a rail carrier 
providing transportation subject to the jurisdiction of the Board 
99-194 O - 95 - 28 : QL 3 Part 1 
109 STAT. 850 
PUBLIC LAW 104-88—DEC. 29, 1995 
under this part, an officer or agent of that rail carrier, or a receiver, 
trustee, lessee, or agent of one of them, knowingly violating this 
part or an order of the Board under this part is liable to the 
United States Grovemment for a civil penalty of not more than 
$5,000 for each violation. Liability under this subsection is incurred 
for each distinct violation. A separate violation occurs for each 
day the violation continues. 
"(b) A rail carrier providing transportation subject to the juris-
diction of the Board under this part, or a receiver or trustee of 
that rail carrier, violating a regulation or order of the Board under 
section 11124(a)(2) or (b) of this title is liable to the United States 
Government for a civil penalty of $500 for each violation and 
for $25 for each day the violation continues. 
"(c) A person knowingly authorizing, consenting to, or permit-
ting a violation of sections 10901 through 10906 of this title or 
of a requirement or a regulation under any of those sections, is 
liable to the United States Government for a civil penalty of not 
more than $5,000. 
"(d) A rail carrier, receiver, or operating trustee violating an 
order or direction of the Board under section 11123 or 11124(a)(1) 
of this title is liable to the United States Government for a civil 
penalty of at least $100 but not more than $500 for each violation 
and for $50 for each day the violation continues. 
Records. 
"(e)(1) A person required under subchapter III of chapter 111 
of this title to make, prepare, preserve, or submit to the Board 
a record concerning transportation subject to the jurisdiction of 
the Board under this part that does not make, prepare, preserve, 
or submit that record as required under that subchapter, is liable 
to the United States (government for a civil penalty of $500 for 
each violation. 
"(2) A rail carrier providing transportation subject to the juris-
diction of the Board under this part, and a lessor, receiver, or 
trustee of that rail carrier, violating section 11144(b)(1) of this 
title, is liable to the United States Government for a civil penalty 
of $100 for each violation. 
"(3) A rail carrier providing transportation subject to the juris-
diction of the Board under this part, a lessor, receiver, or trustee 
of that rail carrier, a person furnishing cars, and an officer, agent, 
or employee of one of them, required to make a report to the 
Board or answer a question that does not make the report or 
does not specifically, completely, and truthfully answer the question, 
is liable to the United States Government for a civil penalty of 
$100 for each violation. 
"(4) A separate violation occurs for each day a violation under 
this subsection continues. 
"(f) Trial in a civil action under subsections (a) through (e) 
of this section is in the judicial district in which the rail carrier 
has its principal operating office or in a district through which 
the railroad of the rail carrier runs, 
*
*
§ 11902. Interference with railroad car supply 
"(a) A person that offers or gives anything of value to another 
person acting for or employed by a rail carrier providing transpor-
tation subject to the jurisdiction of the Board under this part 
intending to influence an action of that other person related to 
supply, distribution, or movement of cars, vehicles, or vessels used 
in the transportation of property, or because of the action of that 
. - ••f*i:^i&i> -
PUBLIC I^\W 104^88—DEC. 29, 1995 
109 STAT. 851 
other person, shall be fined not more than $1,000, imprisoned 
for not more than 2 years, or both. 
"(b) A person acting for or employed by a rail carrier providing 
transportation subject to the jurisdiction of the Board under this 
part that solicits, accepts, or receives anything of value— 
"(1) intending to be influenced by it in an action of that 
person related to supply, distribution, or movement of cars, 
vehicles, or vessels used in the transportation of property; 
or 
"(2) because of the action of that person, 
shall be fined not more than $1,000, imprisoned for not more 
than 2 years, or both. 
"§ 11903. Record keeping and reporting violations 
"A person required to make a report to the Board, or make, 
prepare, or preserve a record, under subchapter III of chapter 
111 of this title about transportation subject to the jurisdiction 
of the Board under this part that knowingly and willfully— 
"(1) makes a false entry in the report or record; 
"(2) destroys, mutilates, changes, or by another means fal-
sifies the record; 
"(3) does not enter business related facts and transactions 
in the record; 
"(4) makes, prepares, or preserves the record in violation 
of a regulation or order of the Board; or 
"(5) files a false report or record with the Board, 
shall be fined not more than $5,000, imprisoned for not more 
than 2 years, or both. 
"§ 11904. Unlawful disclosure of information 
"(a)A— 
"(1) rail carrier providing transportation subject to the 
jurisdiction of the Board under this part, or an officer, agent, 
or employee of that rail carrier, or another person authorized 
to receive information from that rail carrier, that knowingly 
discloses to another person, except the shipper or consignee; 
or 
"(2) a person who solicits or knowingly receives, 
information described in subsection (b) without the consent of the 
shipper or consignee shall be fined not more than $1,000. 
"(b) The information referred to in subsection (a) is information 
about the nature, kind, quantity, destination, consignee, or routing 
of property tendered or delivered to that rail carrier for transpor-
tation provided under this part, or information about the contents 
of a contract authorized under section 10709 of this title, that 
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. 
"(c) This part does not prevent a rail carrier providing transpor-
tation subject to the jurisdiction of the Board under this part 
from giving information— 
"(1) in response to legal process issued under authority 
of a court of the United States or a State; 
"(2) to an officer, employee, or agent of the United States 
Government, a State, or a territory or possession of the United 
States; or 
109 STAT. 852 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(3) to another rail carrier or its agent to adjust mutual 
traffic accounts in the ordinary course of business. 
"(d) An employee of the Board delegated to make an inspection 
or examination under section 11144 of this title who knowingly 
discloses information acquired during that inspection or examina-
tion, except as directed by the Board, a court, or a judge of that 
court, shall be fined not more than $500, imprisoned for not more 
than 6 months, or both. 
"(e) A person that knowingly discloses confidential data made 
available to such person under section 11163 of this title by a 
rail carrier providing transportation subject to the jurisdiction of 
the Board under this part shall be fined not more than $50,000. 
^
^
§ 11905. Disobedience to subpoenas 
"A person not obeying a subpoena or requirement of the Board 
to appear and testify or produce records shall be fined at least 
$100 but not more than $5,000, imprisoned for not more than 
one year, or both. 
*
*
§ 11906. General criminal penalty when specific penalty not 
provided 
"When another criminal penalty is not provided under this 
chapter, a rail carrier providing transportation subject to the juris-
diction of the Board under this part, and when that rail carrier 
is a corporation, a director or officer of the corporation, or a receiver, 
trustee, lessee, or person acting for or employed by the corporation 
that, alone or with another person, willfully violates this part 
or an order prescribed under this part, shall be fined not more 
than $5,000. The person may be imprisoned for not more than 
2 years in addition to being fined under this section. A separate 
violation occurs each day a violation of this title continues. 
''§ 11907. Punishment of corporation for violations commit-
ted by certain individuals 
"An act or omission that would be a violation of this part 
if committed by a director, officer, receiver, trustee, lessee, agent, 
or employee of a rail carrier providing transportation or service 
subject to the jurisdiction of the Board under this part that is 
a corporation is also a violation of this part by that corporation. 
The penalties of this chapter apply to that violation. When acting 
in the scope of their employment, the actions and omissions of 
individuals acting for or employed by that rail carrier are considered 
to be the actions and omissions of that rail carrier as well as 
that individual. 
*
*
§ 11908. Relation to other Federal criminal penalties 
"Notwithstanding section 3571 of title 18, United States Code, 
the criminal penalties provided for in this chapter are the exclusive 
criminal penalties for violations of this part.". 
(b) CONFORMING AMENDMENT.—^The item relating to subtitle 
IV in the table of subtitles of title 49, United States Code, is 
amended by striking "Commerce" and inserting in lieu thereof 
"Transportation". 
SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT FOR-
WARDER PROVISIONS. 
Subtitle IV of title 49, United States Code, is further amended 
by adding at the end the following: 
I ^ p t i ' * * * ' ' " ' ^ ' 
PUBLIC LAW 104^-88—DEC. 29, 1995 
109 STAT. 853 
"PART B—MOTOR CAR,RIERS, WATER CARRIERS, BROKERS, 
AND FREIGHT FORWARDERS 
"CHAPTER 131—GENERAL PROVISIONS 
"Sec. 
"13101. Transportation policy. 
"13102. Definitions. 
"13103. Remedies as cumulative. 
"§ 13101. Transportation policy 
"(a) IN GENERAL.—^To ensure the development, coordination, 
and preservation of a transportation system that meets the 
transportation needs of the United States, including the United 
States Postal Service and national defense, it is the policy of the 
United States Government to oversee the modes of transportation 
and— 
"(l)inoverseeing those modes— 
"(A) to recognize and preserve the inherent advantage 
of each mode of transportation; 
"(B) to promote safe, adequate, economical, and effi-
cient transportation; 
"(C) to encourage sound economic conditions 
in 
transportation, including sound economic conditions among 
carriers; 
"(D) to encourage the establishment and maintenance 
of reasonable rates for transportation, without unreason-
able discrimination or unfair or destructive competitive 
practices; 
"(E) to cooperate with each State and the officials 
of each State on transportation matters; and 
"(F) to encourage fair wages and working conditions 
in the transportation industry; 
"(2) in overseeing transportation by motor carrier, to pro-
mote competitive and efficient transportation services in order 
to— 
"(A) encourage fair competition, and reasonable rates 
for transportation by motor carriers of property; 
"(B) promote efficiency in the motor carrier transpor-
tation system and to require fair and expeditious decisions 
when required; 
"(C) meet the needs of shippers, receivers, passengers, 
and consumers; 
"(D) allow a variety of quality and price options to 
meet changing market demands and the diverse require-
ments of the shipping and traveling public; 
"(E) allow the most productive use of equipment and 
energy resources; 
"(F) enable efficient and well-managed carriers to earn 
adequate profits, attract capital, and maintain fair wages 
and working conditions; 
"(G) provide and maintain service to small communities 
and small shippers and intrastate bus services; 
"(H) provide and maintain commuter bus operations; 
"(I) improve and maintain a sound, safe, and competi-
tive privately owned motor carrier system; 
"(J) promote greater participation by minorities in the 
motor carrier system; 
109 STAT. 854 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(K) promote intermodal transportation; 
"(3) in overseeing transportation by motor carrier of pas-
sengers— 
"(A) to cooperate with the States on transportation 
matters for the purpose of encouraging the States to exer-
cise intrastate regulatory jurisdiction in accordance with 
the objectives of this part; 
"(B) to provide Federal procedures which ensure that 
intrastate regulation is exercised in accordance with this 
part; and 
"(C) to ensure that Federal reform initiatives enacted 
by section 31138 and the Bus Regulatory Reform Act of 
1982 are not nullified by State regulatory actions; and 
"(4) in overseeing transportation by water carrier, to 
encourage and promote service and price competition in the 
noncontiguous domestic trade. 
"(b) ADMINISTRATION TO CARRY OUT POLICY.—^This part shall 
be administered and enforced to carry out the policy of this section 
and to promote the public interest. 
''§ 13102. Definitions 
"In this part, the following definitions shall apply: 
"(1) BOARD.—^The term 'Board' means the Surface Transpor-
tation Board. 
"(2) BROKER.—^The term 'broker' means a person, other 
than a motor carrier or an employee or agent of a motor 
carrier, that as a principal or agent sells, offers for sale, nego-
tiates for, or holds itself out by solicitation, advertisement, 
or otherwise as selling, providing, or arranging for, transpor-
tation by motor carrier for compensation. 
"(3) CARRIER.—^The term 'carrier' means a motor carrier, 
a water carrier, and a freight forwarder. 
"(4) CONTRACT CARRIAGE.—^The term 'contract carriage' 
means— 
"(A) for transportation provided before the effective 
date of this section, service provided pursuant to a permit 
issued under section 10923, as in effect on the day before 
the effective date of this section; and 
"(B) for transportation provided on or after such date, 
service provided under an agreement entered into under 
section 14101(b). 
"(5) CONTROL.—^The term 'control', when referring to a rela-
tionship between persons, includes actual control, legal control, 
and the power to exercise control, through or by— 
"(A) common directors, officers, stockholders, a voting 
trust, or a holding or investment company, or 
"(B) any other means. 
"(6) FOREIGN MOTOR CARRIER.—^The term 'foreign motor 
carrier* means a person (including a motor carrier of property 
but excluding a motor private carrier)— 
"(A)(i) that is domiciled in a contiguous foreign country; 
or 
"(ii) that is owned or controlled by persons of a contig-
uous foreign country; and 
"(B) in the case of a person that is not a motor carrier 
of property, that provides interstate transportation of prop-
erty by motor vehicle under an agreement or contract 
'-.*r»i^-" 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 855 
entered into with a motor carrier of property (other than 
a motor private carrier or a motor carrier of property 
described in subparagraph (A)). 
"(7) FOREIGN MOTOR PRIVATE CARRIER.—The term 'foreign 
motor private carrier' means a person (including a motor private 
carrier but excluding a motor carrier of property)— 
"(A)(i) that is domiciled in a contiguous foreign country; 
or 
"(ii) that is owned or controlled by persons of a contig-
uous foreign country; and 
"(B) in the case of a person that is not a motor private 
carrier, that provides interstate transportation of property 
by motor vehicle under an agreement or contract entered 
into with a person (other than a motor carrier of property 
or a motor private carrier described in subparagraph (A)). 
"(8) FREIGHT FORWARDER.—^The term 'freight forwarder' 
means a person holding itself out to the general public (other 
than as a pipeline, rail, motor, or water carrier) to provide 
transportation of property for compensation and in the ordinary 
course of its business— 
"(A) assembles and consolidates, or provides for assem-
bling and consolidating, shipments and performs or pro-
vides for break-bulk and distribution operations of the ship-
ments; 
"(B) assumes responsibility for the transportation from 
the place of receipt to the place of destination; and 
"(C) uses for any part of the transportation a carrier 
subject to jurisdiction under this subtitle. 
The term does not include a person using transportation of 
an air carrier subject to part A of subtitle VII. 
"(9) HIGHWAY.—^The term 'highway^ means a road, highway, 
street, and way in a State. 
"(10) HOUSEHOLD GOODS.—^The term 'household goods', as 
used in connection with transportation, means personal effects 
and property used or to be used in a dwelling, when a part 
of the equipment or supply of such dwelling, and similar prop-
erty if the transportation of such effects or property is— 
"(A) arranged and paid for by the householder, includ-
ing transportation of property from a factory or store when 
the property is purchased by the householder with intent 
to use in his or her dwelling, or 
"(B) arranged and paid for by another party. 
"(11) HOUSEHOLD GOODS FREIGHT FORWARDER.—The term 
'household goods freight forwarder' means a freight forwarder 
of one or more of the following items: household goods, unaccom-
panied baggage, or used automobiles. 
"(12) MOTOR CARRIER.—^The term 'motor carrier' means 
a person providing motor vehicle transportation for compensa-
tion. 
"(13) MOTOR PRIVATE CARRIER.—^The term 'motor private 
carrier' means a person, other than a motor carrier, transport-
ing property by motor vehicle when— 
"(A) the transportation is as provided in section 13501 
of this title; 
"(B) the person is the owner, lessee, or bailee of the 
property being transported; and 
109 STAT. 856 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(C) the property is being transported for sale, lease, 
rent, or bailment or to further a commercial enterprise. 
"(14) MOTOR VEHICLE.—^The term 'motor vehicle' means 
a vehicle, machine, tractor, trailer, or semitrailer propelled 
or drawn by mechanical power and used on a highway in 
transportation, or a combination determined by the Secretary, 
but does not include a vehicle, locomotive, or car operated 
only on a rail, or a trolley bus operated by electric power 
from a fixed overhead wire, and providing local passenger 
transportation similar to street-railway service. 
"(15) NONCONTIGUOUS DOMESTIC TRADE.—The term 'non-
contiguous domestic trade' means transportation subject to 
jurisdiction under chapter 135 involving traffic originating in 
or destined to Alaska, Hawaii, or a territory or possession 
of the United States. 
"(16) PERSON.—^The term 'person', in addition to its mean-
ing under section 1 of title 1, includes a trustee, receiver, 
assignee, or personal representative of a person. 
"(17) SECRETARY.—^The term 'Secretary* means the Sec-
retary of Transportation. 
"(18) STATE.—The term 'State' means the 50 States of 
the United States and the District of Columbia. 
"(19) 
TRANSPORTATION.—^The 
term 
'transportation' 
includes— 
"(A) a motor vehicle, vessel, warehouse, wharf, pier, 
dock, yard, property, facility, instrumentality, or equipment 
of any kind related to the movement of passengers or 
property, or both, regardless of ownership or an agreement 
concerning use; and 
"(B) services related to that movement, including 
arranging for, receipt, delivery, elevation, transfer in 
transit, refrigeration, icing, ventilation, storage, handling, 
packing, unpacking, and interchange of passengers and 
property. 
"(20) UNITED STATES.—^The term 'United States' means the 
States of the United States and the District of Columbia. 
"(21) VESSEL.—^The term 'vessel' means a watercraft or 
other artificial contrivance that is used, is capable of being 
used, or is intended to be used, as a means of transportation 
by water. 
"(22) WATER CARRIER.—^The term 'water carrier' means a 
person providing water transportation for compensation. 
*
*
§ 13103. Remedies as cumulative 
"Except as otherwise provided in this part, the remedies pro-
vided under this part are in addition to remedies existing under 
another law or common law. 
"CHAPTER 133—ADMINISTRATIVE PROVISIONS 
"Sec. 
"13301. Powers. 
"13302. Intervention. 
"13303. Service of notice in proceedings. 
"13304. Service of process in court proceedings. 
"§ 13301. Powers 
"(a) 
GENERAL POWERS OF SECRETARY.—Except as otherwise 
specified, the Secretary shall carry out this part. Enumeration 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 857 
of a power of the Secretary in this part does not exclude another 
power the Secretary may have in carrying out this part. The Sec-
retary may prescribe regulations in carrying out this part. 
"(b) OBTAINING INFORMATION.—^The Secretary may obtain from 
carriers providing, and brokers for, transportation and service sub-
ject to this part, and from persons controlling, controlled by, or 
under common control with those carriers or brokers to the extent 
that the business of that person is related to the management 
of the business of that carrier or broker, information the Secretary 
decides is necessary to carry out this part. 
"(c) SUBPOENA POWER.— 
"(1) BY SECRETARY.—^The Secretary may subpoena wit-
nesses and records related to a proceeding under this part 
from any place in the United States, to the designated place 
of the proceeding. If a witness disobeys a subpoena, the Sec-
retary, or a party to a proceeding under this part, may petition 
a court of the United States to enforce that subpoena. 
"(2) ENFORCEMENT.—^The district courts of the United States 
have jurisdiction to enforce a 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 subpoena 
as a contempt of court. 
"(d) TESTIMONY OF WITNESSES.— 
"(1) PROCEDURE FOR TAKING TESTIMONY.—In a proceeding 
under this part, the Secretary may take the testimony of a 
witness by deposition and may order the witness to produce 
records. A party to a proceeding pending under this part may 
take the testimony of a witness by deposition and may require 
the witness to produce records at any time after a proceeding 
is at issue on petition and answer. 
"(2) SUBPOENA.—If a witness fails to be deposed or to 
produce records under paragraph (1) of this subsection, the 
Secretary may subpoena the witness to take a deposition, 
produce the records, or both. 
"(3) DEPOSITIONS.—^A deposition may be taken before a 
judge of a court of the United States, a United States magistrate 
judge, a clerk of a district court, or a chancellor, justice, or 
judge of a supreme or superior court, mayor or chief magistrate 
of a city, judge of a county court, or court of common pleas 
of any State, or a notary public who is not counsel or attorney 
of a party or interested in the proceeding. 
"(4) NOTICE OF DEPOSITION.—Before taking a deposition, 
reasonable notice must be given in 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) TRANSCRIPT.—^The testimony of a person deposed under 
this subsection shall be taken under oath. The person taking 
the deposition shall prepare, or cause to be prepared, a tran-
script of the testimony taken. The transcript shall be subscribed 
by the deponent. 
"(6) FOREIGN COUNTRY.—The testimony of a witness who 
is in a foreign country may be taken by deposition before 
an officer or person designated by the Secretary or agreed 
on by the parties by written stipulation filed with the Secretary. 
A deposition shall be filed with the Secretary promptly. 
109 STAT. 858 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(e) WITNESS FEES.—Each witness summoned before the Sec-
retary or whose deposition is taken under this section and the 
individual taking the deposition are entitled to the same fees and 
mileage paid for those services in the courts of the United States. 
"(f) POWERS OF BOARD.—For those provisions of this part that 
are specified to be carried out by the Board, the Board shall have 
the same powers as the Secretary has under this section. 
"§ 13302. Intervention 
"Under regulations of the Secretary, reasonable notice of, and 
an opportunity to intervene and participate in, a proceeding under 
this part related to transportation subject to jurisdiction under 
subchapter I of chapter 135 shall be given to interested persons. 
^
*
§ 13303. Service of notice in proceedings 
"(a) AGENTS FOR SERVICE OF PROCESS.^A carrier, a broker, 
or a freight forwarder providing transportation or service subject 
to jurisdiction under chapter 135 shall designate, in writing, an 
agent by name and post office address on whom service of notices 
in a proceeding before, and of actions of, the Secretary may be 
made. 
"(b) FILING WITH STATE.—^A motor carrier providing transpor-
tation under this part shall also file the designation with the 
appropriate authority of each State in which it operates. The des-
ignation may be changed at any time in the same manner as 
originally made. 
"(c) NOTICE.—^A notice to a motor carrier, freight forwarder, 
or broker shall be served personally or by mail on the motor 
carrier, freight forwarder, or broker or on its designated agent. 
Service by mail on the designated agent shall be made at the 
address filed for the agent. When notice is given by mail, the 
date of mailing is considered to be the time when the notice is 
served. If a motor carrier, freight forwarder, or broker does not 
have a designated agent, service may be made by posting a copy 
of the notice at the headquarters of the Department of Transpor-
tation. 
'*§ 13304. Service of process in court proceedings 
"(a) DESIGNATION OF AGENT.—^A motor carrier or broker provid-
ing transportation subject to jurisdiction under chapter 135, includ-
ing a motor carrier or broker operating within the United States 
while providing transportation between places in a foreign country 
or between a place in one foreign country and a place in another 
foreign country, shall designate an agent in each State in which 
it operates by name and post office address on whom process 
issued by a court with subject matter jurisdiction may be served 
in an action brought against that carrier or broker. The designation 
shall be in writing and filed with the Department of Transportation 
and each State in which the carrier operates may require that 
an additional designation be filed with it. If a designation under 
this subsection is not made, service may be made on any agent 
of the carrier or broker within that State. 
"(b) CHANGE.—^A designation under this section may be changed 
at any time in the same manner as originally made. 
'
^
1
^
^
'
. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 859 
"CHAPTER 135-.JURISDICTION 
"SUBCHAPTER I—MOTOR CARRIER TRANSPORTATION 
"Sec. 
"13501. General jurisdiction. 
"13502. Exempt transportation between Alaska and other States. 
"13503. Exempt motor vehicle transportation in terminal areas. 
"13504. Exempt motor carrier transportation entirely in one State. 
"13505. Transportation furthering a primary business. 
"13506. Miscellaneous motor carrier transportation exemptions. 
"13507. Mixed loads of regulattjd and unregulated property. 
"13508. Limited authority over cooperative associations. 
"SUBCHAPTER II—WATER CARRIER TRANSPORTATION 
" 13521. General jurisdiction. 
"SUBCHAPTER III—FREIGHT FORWARDER SERVICE 
" 13531. General jurisdiction. 
"SUBCHAPTER IV—AUTHORITY TO EXEMPT 
"13541. Authority to exempt transportation or services. 
"SUBCHAPTER I—MOTOR CARRIER TRANSPORTATION 
*'§ 13501. General jurisdiction 
'The Secretary and the Board have jurisdiction, as specified 
in this part, over transportation by motor carrier and the procure-
ment of that transportation, to the extent that passengers, property, 
or both, are trsmsported by motor carrier— 
"(1) between a place in— 
"(A) a State and a place in another State; 
"(B) a State and another place in the same State 
through another State; 
"(C) the United States and a place in a territory or 
possession of the United States to the extent the transpor-
tation is in the United States; 
"(D) the United States and another place in the United 
States through a foreign country to the extent the transpor-
tation is in the United States; or 
"(E) the United States and a place in a foreign country 
to the extent the transportation is in the United States; 
and 
"(2) in a reservation under the exclusive jurisdiction of 
the United States or on a public highway. 
'*§ 13502. Exempt transportation between Alaska and other 
States 
"To the extent that transportation by a motor carrier between 
a place in Alaska and a place in another State under section 
13501 is provided in a foreign country— 
"(1) neither the Secretary nor the Board has jurisdiction 
to impose a requirement over conduct of the motor carrier 
in the foreign country conflicting with a requirement of that 
country; but 
"(2) the motor carrier, as a condition of providing transpor-
tation in the United States, shall comply, with respect to all 
transportation provided between Alaska £md the other State, 
with the requirements of this part related to rates and practices 
applicable to the transportation. 
109 STAT. 860 
PUBLIC LAW 104-88—DEC. 29, 1995 
''§ 13503. Exempt motor vehicle transportation in terminal 
areas 
"(a) TRANSPORTATION BY CARRIERS.— 
"(1) IN GENERAL.—^Neither the Secretary nor the Board 
has jurisdiction under this subchapter over transportation by 
motor vehicle provided in a terminal area when the transpor-
tation— 
"(A) is a transfer, collection, or delivery; 
"(B) is provided by— 
"(i) a rail carrier subject to jurisdiction under chap-
ter 105; 
"(ii) a water carrier subject to jurisdiction under 
subchapter II of this chapter; or 
"(iii) a freight forwarder subject to jurisdiction 
under subchapter III of this chapter; and 
"(C) is incidental to transportation or service provided 
by the carrier or freight forwarder that is subject to jurisdic-
tion under chapter 105 of this title or under subchapter 
II or III of this chapter. 
"(2) APPLICABILITY OF OTHER PROVISIONS.—^Transportation 
exempt from jurisdiction under paragraph (1) of this subsection 
is subject to jurisdiction under chapter 105 when provided 
by such a rail carrier, under subchapter II of this chapter 
when provided by such a water carrier, and under subchapter 
III of this chapter when provided by such a freight forwarder. 
"(b) TRANSPORTATION BY AGENT.— 
"(1) IN GENERAL.—Except to the extent provided by para-
graph (2) of this subsection, neither the Secretary nor the 
Board has jurisdiction under this subchapter over transpor-
tation by motor vehicle provided in a terminal area when 
the transportation— 
"(A) is a transfer, collection, or delivery; and 
"(B) is provided by a person as an agent or under 
other arrangement for— 
"(i) a rail carrier subject to jurisdiction under chap-
ter 105 of this title; 
"(ii) a motor carrier subject to jurisdiction under 
this subchapter; 
"(iii) a water carrier subject to jurisdiction under 
subchapter II of this chapter; or 
"(iv) a freight forwarder subject to jurisdiction 
under subchapter III of this chapter. 
"(2) 
TREATMENT 
OF TRANSPORTATION 
BY PRINCIPAL.— 
Transportation exempt from jurisdiction under paragraph (1) 
of this subsection is considered transportation provided by the 
carrier or service provided by the freight forwarder for whom 
the transportation was provided and is subject to jurisdiction 
under chapter 105 of this title when provided for such a rail 
carrier, under this subchapter when provided for such a motor 
carrier, under subchapter II of this chapter when provided 
for such a water carrier, and under subchapter III of this 
chapter when provided for such a freight forwarder. 
*
*
§ 13504. Exempt motor carrier transportation entirely in 
one State 
"Neither the Secretary nor the Board has jurisdiction under 
this subchapter over transportation, except transportation of house-
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 861 
hold goods, by a motor carrier operating solely within the State 
of Hawaii. The State of Hawaii may regulate transportation exempt 
from jurisdiction under this section and, to the extent provided 
by a motor carrier operating solely within the State of Hawaii, 
transportation exempt under section 13503 of this title. 
"§ 13505. Transportation furthering a primary business 
"(a) IN GENERAL.—Neither the Secretary nor the Board has 
jurisdiction under this part over the transportation of property 
by motor vehicle when— 
"(1) the property is transported by a person engaged in 
a business other than transportation; and 
"(2) the transportation is within the scope of, and furthers 
a primary business (other than transportation) of the person. 
"(b) CORPORATE FAMILIES.— 
"(1) IN GENERAL.—^Neither the Secretary nor the Board 
has jurisdiction under this part over transportation of property 
by motor vehicle for compensation provided by a person who 
is a member of a corporate family for other members of such 
corporate family. 
"(2) DEFINITION.—In this section, 'corporate family means 
a group of corporations consisting of a parent corporation and 
all subsidiaries in which the parent corporation owns directly 
or indirectly a 100 percent interest. 
*'§ 13506. Miscellaneous motor carrier transportation exemp-
tions 
"(a) IN GENERAL.—^Neither the Secretary nor the Board has 
jurisdiction under this part over— 
"(1) a motor vehicle transporting only school children and 
teachers to or from school; 
"(2) a motor vehicle providing taxicab service and having 
a capacity of not more than 6 passengers and not operated 
on a regular route or between specified places; 
"(3) a motor vehicle owned or operated by or for a hotel 
and only transporting hotel patrons between the hotel and 
the local station of a carrier; 
"(4) a motor vehicle controlled and operated by a farmer 
and transporting— 
"(A) the farmer's agricultural or horticultural commod-
ities and products; or 
"(B) supplies to the farm of the farmer; 
"(5) a motor vehicle controlled and operated by a coopera-
tive association (as defined by section 15(a) of the Agricultural 
Marketing Act (12 U.S.C. 1141j(a)) or by a federation of coopera-
tive associations if the federation has no greater power or 
purposes than a cooperative association, except that if the 
cooperative association or federation provides transportation 
for compensation between a place in a State and a place in 
another State, or between a place in a State and another 
place in the same State through another State— 
"(A) for a nonmember that is not a farmer, cooperative 
association, federation, or the United States Government, 
the transportation (except for transportation otherwise 
exempt under this subchapter)— 
"(i) shall be limited to transportation incidental 
to the primary transportation operation of the coopera-
109 STAT. 862 
PUBLIC LAW 104-88—DEC. 29, 1995 
tive association or federation and necessary for its 
effective performance; and 
"(ii) may not exceed in each fiscal year 25 percent 
of the total transportation of the cooperative associa-
tion or federation between those places, measured by 
tonnage; and 
"(B) the transportation for all nonmembers may not 
exceed in each fiscal year, measured by tonnage, the total 
transportation between those places for the cooperative 
association or federation and its members during that fiscal 
year; 
"(6) transportation by motor vehicle of— 
"(A) ordinary livestock; 
"(B) agricultural or horticultural commodities (other 
than manufactured products thereof); 
"(C) commodities listed as exempt in the Commodity 
List incorporated in ruling numbered 107, March 19, 1958, 
Bureau of Motor Carriers, Interstate Commerce Commis-
sion, other than frozen fruits, frozen berries, frozen vegeta-
bles, cocoa beans, coffee beans, tea, bananas, or hemp, 
or wool imported from a foreign country, wool tops and 
noils, or wool waste (carded, spun, woven, or knitted); 
"(D) cooked or uncooked fish, whether breaded or not, 
or frozen or fresh shellfish, or byproducts thereof not 
intended for human consumption, other than fish or shell-
fish that have been treated for preserving, such as canned, 
smoked, pickled, spiced, corned, or kippered products; and 
"(E) livestock and poultry feed and agricultural seeds 
and plants, if such products (excluding products otherwise 
exempt under this paragraph) are transported to a site 
of agricultural production or to a business enterprise 
engaged in the sale to agricultural producers of goods used 
in agricultural production; 
"(7) a motor vehicle used only to distribute newspapers; 
"(8)(A) transportation of passengers by motor vehicle 
incidental to transportation by aircraft; 
"(B) transportation of property (including baggage) by 
motor vehicle as part of a continuous movement which, prior 
or subsequent to such part of the continuous movement, has 
been or will be transported by an air carrier or (to the extent 
so agreed by the United States and approved by the Secretary) 
by a foreign air carrier; or 
"(C) transportation of property by motor vehicle in lieu 
of transportation by aircraft because of adverse weather condi-
tions or mechanical failure of the aircraft or other causes due 
to circumstances beyond the control of the carrier or shipper; 
"(9) the operation of a motor vehicle in a national park 
or national monument; 
"(10) a motor vehicle carrying not more than 15 individuals 
in a single, daily roundtrip to commute to and from work; 
"(11) transportation of used pallets and used empty ship-
ping containers (including intermodal cargo containers), and 
other used shipping devices (other than containers or devices 
used in the transportation of motor vehicles or parts of motor 
vehicles); 
"(12) transportation of natural, crushed, vesicular rock to 
be used for decorative purposes; 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 863 
"(13) transportation of wood chips; 
"(14) brokers for motor carriers of passengers, except as 
provided in section 13904(d); or 
"(15) transportation of broken, crushed, or powdered glass. 
"(b) EXEMPT UNLESS OTHERWISE NECESSARY.—Except to 
the 
extent the Secretary or Board, as appHcable, finds it necessary 
to exercise jurisdiction to carry out the transportation poUcy of 
section 13101, neither the Secretary nor the Board has jurisdiction 
under this part over— 
"(1) transportation provided entirely in a municipality, in 
contiguous municipalities, or in a zone that is adjacent to, 
and commercially a part of, the municipality or municipalities, 
except— 
"(A) when the transportation is under common control, 
management, or arrangement for a continuous carriage 
or shipment to or from a place outside the municipality, 
municipalities, or zone; or 
"(B) that in transporting passengers over a route 
between a place in a State and a place in another State, 
or between a place in a State and another place in the 
same State through another State, the transportation is 
exempt from jurisdiction under this part only if the motor 
carrier operating the motor vehicle also is lawfully provid-
ing intrastate transportation of passengers over the entire 
route under the laws of each State through which the 
route runs; 
"(2) transportation by motor vehicle provided casually, occa-
sionally, or reciprocally but not as a regular occupation or 
business, except when a broker or other person sells or offers 
for sale passenger transportation provided by a person author-
ized to transport passengers by motor vehicle under an applica-
tion pending, or registration issued, under this part; or 
"(3) the emergency towing of an accidentally wrecked or 
disabled motor vehicle. 
*
*
§ 13507. Mixed loads of regulated and unregulated property 
"A motor carrier of property providing transportation exempt 
from jurisdiction under paragraph (6), (8), (11), (12), or (13) of 
section 13506(a) may transport property under such paragraph 
in the same vehicle and at the same time as property which the 
carrier is authorized to transport under a registration issued under 
section 13902(a). Such transportation shall not affect the unregu-
lated status of such exempt property or the regulated status of 
the property which the carrier is authorized to transport under 
such registration. 
*
*
§ 13508. Limited authority over cooperative associations 
"(a) IN GENERAL.—^Notwithstanding section 13506(a)(5), any Records, 
cooperative association (as defined by section 15(a) of the Agricul-
tural Marketing Act (12 U.S.C. 1141j(a))) or a federation of coopera-
tive associations shall prepare and maintain such records relating 
to transportation provided by such association or federation, in 
such form as the Secretary or the Board may require by regulation 
to carry out the provisions of such section 13506(a)(5). The Secretary 
or the Board, or an employee designated by the Secretary or the 
Board, may on demand and display of proper credentials— 
109 STAT. 864 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(1) inspect and examine the lands, buildings, and equip-
ment of such association or federation; and 
"(2) inspect and copy any record of such association or 
federation. 
"(b) REPORTS.—^Notwithstanding section 13506(a)(5), the Sec-
retary or the Board may require a cooperative association or federa-
tion of cooperative associations described in subsection (a) of this 
section to file reports with the Secretary or the Board containing 
answers to questions about transportation provided by such associa-
tion or federation. 
"(c) ENFORCEMENT.—^The Secretary or the Board may bring 
a civil action to enforce subsections (a) and (b) of this section 
or a regulation or order of the Secretary or the Board issued 
under this section, when violated by a cooperative association or 
federation of cooperative associations described in subsection (a). 
"(d) REPORTING PENALTIES.— 
"(1) IN GENERAL.—^A person required to make a report 
to the Secretary or the Board, answer a question, or maintain 
a record under this section, or an officer, agent, or employee 
of that person, that— 
"(A) does not make the report; 
"(B) does not specifically, completely, and truthfully 
answer the question; or 
"(C) does not maintain the record in the form and 
manner prescribed under this section; 
is liable to the United States for a civil penalty of not more 
than $500 for each violation and for not more than $250 for 
each additional day the violation continues. 
"(2) VENUE.—^Trial in a civil action under paragraph (1) 
shall be in the judicial district in which— 
"(A) the cooperative association or federation of 
cooperative associations has its principal office; 
"(B) the violation occurred; or 
"(C) the offender is found. 
Process in the action may be served in the judicial district 
of which the offender is an inhabitant or in which the offender 
may be found. 
"(e) EVASION PENALTIES.—^A person, or an officer, employee, 
or agent of that person, that by any means knowingly and willfully 
tries to evade compliance with the provisions of this section shall 
be fined at least $200 but not more than $500 for the first violation 
and at least $250 but not more than $2,000 for a subsequent 
violation. 
"(f) RECORDKEEPING PENALTIES.—^A person required to make 
a report, answer a question, or maintain a record under this section, 
or an officer, agent, or employee of that person, that— 
"(1) willfully does not make that report; 
"(2) willfully does not specifically, completely, and truth-
fully answer that question in 30 days from the date that the 
question is required to be answered; 
"(3) willfully does not maintain that record in the form 
and manner prescribed; 
"(4) knowingly and willfully falsifies, destroys, mutilates, 
or changes that report or record; 
"(5) knowingly and willfully files a false report or record 
under this section; 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 865 
"(6) knowingly and willfully makes a false or incomplete 
entry in that record about a business-related fact or transaction; 
or 
"(7) knowingly and willfully maintains a record in violation 
of a regulation or order issued under this section; 
shall be fined not more than $5,000. 
"SUBCHAPTER II—WATER CARRIER TRANSPORTATION 
'*§ 13521. General jurisdiction 
"(a) GENERAL RULES.—The Secretary and the Board have juris-
diction over transportation insofar as water carriers are concerned— 
"(1) by water carrier between a place in a State and a 
place in another State, even if part of the transportation is 
outside the United States; 
"(2) by water carrier and motor carrier from a place in 
a State to a place in another State; except that if part of 
the transportation is outside the United States, the Secretary 
only has jurisdiction over that part of the transportation pro-
vided— 
"(A) by motor carrier that is in the United States; 
and 
"(B) by water carrier that is from a place in the United 
States to another place in the United States; and 
"(3) by water carrier or by water carrier and motor carrier 
between a place in the United States and a place outside 
the United States, to the extent that— 
"(A) when the transportation is by motor carrier, the 
transportation is provided in the United States; 
"(B) when the transportation is by water carrier to 
a place outside the United States, the transportation is 
provided by water carrier from a place in the United States 
to another place in the United States before transshipment 
from a place in the United States to a place outside the 
United States; and 
"(C) when the transportation is by water carrier from 
a place outside the United States, the transportation is 
provided by water carrier from a place in the United States 
to another place in the United States after transshipment 
to a place in the United States from a place outside the 
United States. 
"(b) DEFINITIONS.—In this section, the terms 'State' and 'United 
States' include the territories and possessions of the United States. 
"SUBCHAPTER III—FREIGHT FORWARDER SERVICE 
"§ 13531. General jurisdiction 
"(a) IN GENERAL.—^^Phe Secretary and the Board have jurisdic-
tion, as specified in this part, over service that a freight forwarder 
undertakes to provide, or is authorized or required under this 
part to provide, to the extent transportation is provided in the 
United States and is between— 
"(1) a place in a State and a place in another State, even 
if part of the transportation is outside the United States; 
"(2) a place in a State and another place in the same 
State through a place outside the State; or 
109 STAT. 866 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(3) a place in the United States and a place outside the 
United States. 
"(b) EXEMPTION OF CERTAIN AIR CARRIER SERVICE.—^Neither 
the Secretary nor the Board has jurisdiction under subsection (a) 
of this section over service undertaken by a freight forwarder using 
transportation of an air carrier subject to part A of subtitle VII 
of this title. 
"SUBCHAPTER IV—AUTHORITY TO EXEMPT 
*
*
§ 13541. Authority to exempt transportation or services 
"(a) IN GENERAL.—In any matter subject to jurisdiction under 
this part, the Secretary or the Board, as applicable, shall exempt 
a person, class of persons, or a transaction or service from the 
application, in whole or in part, of a provision of this part, or 
use this exemption authority to modify the application of a provision 
of this part as it applies to such person, class, transaction, or 
service, when the Secretary or Board finds that the application 
of that provision— 
"(1) is not necessary to carry out the transportation policy 
of section 13101; 
"(2) is not needed to protect shippers from the abuse of 
market power or that the transaction or service is of limited 
scope; and 
"(3) is in the public interest. 
"(b) INITIATION OF PROCEEDING.—^The Secretary or Board, as 
applicable, may, where appropriate, begin a proceeding under this 
section on the Secretar^s or Board's own initiative or on application 
by an interested party. 
"(c) PERIOD OF EXEMPTION.—^The Secretary or Board, as 
applicable, may specify the period of time during which an exemp-
tion granted under this section is effective. 
"(d) REVOCATION.—^The Secretary or Board, as applicable, may 
revoke an exemption, to the extent specified, on finding that applica-
tion of a provision of this part to the person, class, or transportation 
is necessary to carry out the transportation policy of section 13101. 
"(e) LIMITATIONS.— 
"(1) IN GENERAL.—^The exemption authority under this sec-
tion may not be used to relieve a person from the application 
of, and compliance with, any law, rule, regulation, standard, 
or order pertaining to cargo loss and damage, insurance, safety 
fitness, or activities approved under section 13703 or 14302 
or not terminated under section 13907(d)(2). 
"(2) 
WATER 
CARRiERS.^The Secretary or Board, as 
applicable, may not exempt a water carrier from the application 
of, or compliance with, section 13701 or 13702 for transportation 
in the non-contiguous domestic trade. 
"(f) CONTINUATION OF CERTAIN EXISTING EXEMPTIONS FOR 
WATER CARRIERS.—^The Secretary or Board, as applicable, shall 
not regulate or exercise jurisdiction under this part over the 
transportation by water carrier in the non-contiguous domestic 
trade of any cargo or type of cargo or service which was not 
subject to regulation by, or under the jurisdiction of, either the 
Federal Maritime Commission or Interstate Commerce Commission 
under Federal law in effect on November 1, 1995. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 867 
"CHAPTER 137—RATES AND THROUGH 
ROUTES 
"Sec. 
"13701. Requirements for reasonable rates, classifications, through routes, rules, 
and practices for cer1:ain transportation. 
"13702. Tariff requirement for certain transportation. 
"13703. Certain collective activities; exemption from antitrust laws. 
"13704. Household goods rates—estimates; guarantees of service. 
"13705. Requirements for through routes among motor carriers of passengers. 
"13706. Liability for pa3Tnent of rates. 
"13707. Payment of rates. 
"13708. Billing and collecting practices. 
"13709. Procediu-es for resolving claims involving unfiled, negotiated transportation 
rates. 
"13710. Additional billing and collecting practices. 
"13711. Alternative procedure for resolving undercharge disputes. 
"13712. Government traffic. 
"13713. Food and grocery transportation. 
"% 13701. Requirements for reasonable rates, classifications, 
through routes, rules, and practices for certain 
transportation 
"(a) REASONABLENESS.— 
"(1) 
CERTAIN HOUSEHOLD GOODS TRANSPORTATION; JOINT 
RATES INVOLVING WATER TRANSPORTATION.—^A rate, classifica-
tion, rule, or practice related to transportation or service pro-
vided by a carrier subject to jurisdiction under chapter 135 
for transportation or service involving— 
"(A) a movement of household goods, 
"(B) a rate for a movement by or with a water carrier 
in noncontiguous domestic trade, or 
"(C) rates, rules, and classifications made collectively 
by motor carriers under agreements approved pursuant 
to section 13703, 
must be reasonable. 
"(2) THROUGH ROUTES AND DIVISIONS OF JOINT RATES.— 
Through routes and divisions of joint rates for such transpor-
tation or service must be reasonable. 
"(b) PRESCRIPTION BY BOARD FOR VIOLATIONS.—^When the Board 
finds it necessary to stop or prevent a violation of subsection (a), 
the Board shall prescribe the rate, classification, rule, practice, 
through route, or division of joint rates to be applied for such 
transportation or service. 
"(c) FILING OF COMPLAINT.^A complaint that a rate, classifica-
tion, rule, or practice in noncontiguous domestic trade violates 
subsection (a) may be filed with the Board. 
"(d) ZONE OF REASONABLENESS.— 
"(1) IN GENERAL.—For purposes of this section, a rate or 
division of a motor carrier for service in noncontiguous domestic 
trade or water carrier for port-to-port service in that trade 
is reasonable if the aggregate of increases and decreases in 
any such rate or division is not more than 7.5 percent above, 
or more than 10 percent below, the rate or division in effect 
1 year before the effective date of the proposed rate or division. 
"(2) ADJUSTMENTS TO THE ZONE.—^The percentage specified 
in paragraph (1) shall be increased or decreased, as the case 
may be, by the percentage change in the Producers Price Index, 
as published by the Department of Labor, that has occurred 
during the most recent 1-year period before the date the rate 
or division in question first took effect. 
109 STAT. 868 
PUBLIC LAW 104-88—DEC. 29, 1995 
Publication. 
Regulations. 
"(3) DETERMINATIONS AFTER COMPLAINT.—The Board shall 
determine whether any rate or division of a carrier or service 
in noncontiguous domestic trade which is not within the range 
described in paragraph (1) is reasonable if a complaint is filed 
under subsection (c) or section 13702(b)(6). 
"(4) REPARATIONS.—Upon a finding of violation of sub-
section (a), the Board shall award reparations to the complain-
ing shipper or shippers in an amount equal to all sums assessed 
and collected that exceed the determined reasonable rate, divi-
sion, rate structure, or tariff. Upon complaint from any govern-
mental agency or authority and upon a finding or violation 
of subsection (a), the Board shall make such orders as are 
just and shall require the carrier to return, to the extent 
practicable, to shippers all amounts plus interest, which the 
Board finds to have been assessed and collected in violation 
of subsection (a). 
*
*
§ 13702. Tariff requirement for certain transportation 
"(a) IN GENERAL.—Except when providing transportation for 
charitable purposes without charge, a carrier subject to jurisdiction 
under chapter 135 may provide transportation or service that is— 
"(1) in noncontiguous domestic trade, except with regard 
to bulk cargo, forest products, recycled metal scrap, waste 
paper, and paper waste; or 
"(2) for movement of household goods; 
only if the rate for such transportation or service is contained 
in a tariff that is in effect under this section. The carrier may 
not charge or receive a different compensation for the transportation 
or service than the rate specified in the tariff, whether by returning 
a part of that rate to a person, giving a person a privilege, allowing 
the use of a facility that affects the value of that transportation 
or service, or another device. A rate contained in a tariff shall 
be stated in money of the United States. 
"(b) 
TARIFF REQUIREMENTS FOR NONCONTIGUOUS DOMESTIC 
TRADE.— 
"(1) FILING.—^A carrier providing transportation or service 
described in subsection (a)(1) shall publish and file with the 
Board tariffs containing the rates established for such transpor-
tation or service. The carriers shall keep such tariffs available 
for public inspection. The Board shall prescribe the form and 
manner of publishing, filing, and keeping tar-
iffs available for public inspection under this subsection. 
"(2) CONTENTS.—The Board may prescribe any specific 
information and charges to be identified in a tariff, but at 
a minimum tariffs must identify plainly— 
"(A) the carriers that are parties to it; 
"(B) the places between which property will be trans-
ported; 
"(C) terminal charges if a carrier provides transpor-
tation or service subject to jurisdiction under subchapter 
III of chapter 135; 
"(D) privileges given and facilities allowed; and 
"(E) any rules that change, affect, or determine any 
part of the published rate. 
"(3) INLAND DIVISIONS.—^A carrier providing transportation 
or service described in subsection (a)(1) under a joint rate 
for a through movement shall not be required to state sepa-
PUBLIC L.\W 104-88—DEC. 29, 1995 
109 STAT. 869 
rately or otherwise reveal in tariff filings the inland divisions 
of that through rate. 
"(4) TIME-VOLUME RATES.—Rates in tariffs filed under this 
subsection may vary with the volume of cargo offered over 
a specified period of time. 
"(5) CHANGES.—The Board may permit carriers to change 
rates, classifications, rules, and practices without filing com-
plete tariffs under this subsection that cover matter that is 
not being changed when the Board finds that action to be 
consistent with the public interest. Those carriers may either— 
"(A) publish new tariffs that incorporate changes, or 
"(B) plainly indicate the proposed changes in the tariffs 
then in effect and make the tariffs as changed available 
for public inspection. 
"(6) COMPLAINTS.—^A complaint that a rate or related rule 
or practice maintained in a tariff under this subsection violates 
section 13701(a) may be submitted to the Board for resolution. 
"(c) TARIFF REQUIREMENTS FOR HOUSEHOLD GOODS CARRIERS.— 
"(1) IN GENERAL.—^A carrier providing 
transportation 
described in subsection (a)(2) shall maintain rates and related 
rules and practices in a published tariff. The tariff must be 
available for inspection by the Board and be made available 
for inspection by shippers upon reasonable request. 
"(2) NOTICE OF AVAILABILITY.—^A carrier that maintains 
a tariff under this subsection may not enforce the provisions 
of the tariff unless the carrier has given notice that the tariff 
is available for inspection in its bill of lading or by other 
actual notice to individuals whose shipments are subject to 
the tariff. 
"(3) REQUIREMENTS.—^A carrier that maintains a tariff 
under this subsection is bound by the tariff except as otherwise 
provided in this part. A tariff that does not comply with this 
subsection may not be enforced against any individual shipper. 
"(4) INCORPORATION BY REFERENCE.—^A carrier may incor-
porate by reference the rates, terms, and other conditions of 
a tariff in agreements covering the transportation of household 
goods. 
"(5) COMPLAINTS.—^A complaint that a rate or related rule 
or practice maintained in a tariff under this subsection violates 
section 13701(a) may be submitted to the Board for resolution. 
"(d) INVALIDATION.—^The Board may invalidate a tariff prepared 
by a carrier or carriers under this section if that tariff violates 
this section or a regulation of the Board carrying out this section. 
"§ 13703. Certain collective activities; exemption from anti-
trust laws 
"(a) AGREEMENTS.— 
"(1) AUTHORITY TO ENTER.—^A motor carrier providing 
transportation or service subject to jurisdiction under chapter 
135 may enter into an agreement with one or more such carriers 
to establish— 
"(A) through routes and joint rates; 
"(B) rates for the transportation of household goods; 
"(C) classifications; 
"(D) mileage guides; 
"(E) rules; 
"(F) divisions; 
109 STAT. 870 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(G) rate adjustments of general application based on 
industry average carrier costs (so long as there is no discus-
sion of individual markets or particular single-line rates); 
or 
"(H) procedures for joint consideration, initiation, or 
establishment of matters described in subparagraphs (A) 
through (G). 
"(2) 
SUBMISSION OF AGREEMENT TO BOARD; APPROVAL.— 
An agreement entered into under subsection (a) may be submit-
ted by any carrier or carriers that are parties to such agreement 
to the Board for approval and may be approved by the Board 
only if it finds that such agreement is in the public interest. 
"(3) CONDITIONS.—^The Board may require compliance with 
reasonable conditions consistent with this part to assure that 
the agreement furthers the transportation policy set forth in 
section 13101. 
"(4) 
INDEPENDENTLY ESTABLISHED RATES.—Any carrier 
which is a party to an agreement under paragraph (1) is not, 
and may not be, precluded from independently establishing 
its own rates, classification, and mileages or from adopting 
and using a noncoUectively made classification or mileage guide. 
"(5) INVESTIGATIONS.— 
"(A) REASONABLENESS.—^The Board may suspend and 
investigate the reasonableness of any rate, rule, classifica-
tion, or rate adjustment of general application made pursu-
ant to an agreement under this section. 
"(B) ACTIONS NOT IN THE PUBLIC INTEREST.—^The Board 
may investigate any action taken pursuant to an agreement 
approved under this section. If the Board finds that the 
action is not in the public interest, the Board may take 
such measures as may be necessary to protect the public 
interest with regard to the action, including issuing an 
order directing the parties to cease and desist or modify 
the action. 
"(6) EFFECT OF APPROVAL.—If the Board approves the 
agreement or renews approval of the agreement, it may be 
made and carried out under its terms and under the conditions 
required by the Board, and the antitrust laws, as defined in 
the first section of the Clayton Act (15 U.S.C. 12), do not 
apply to parties and other persons with respect to making 
or carrying out the agreement. 
"(b) RECORDS.—^The Board may require an organization estab-
lished or continued under an agreement approved under this section 
to maintain records and submit reports. The Board, or its delegate, 
may inspect a record maintained under this section, or monitor 
any organization's compliance with this section. 
"(c) REVIEW.—^The Board may review an agreement approved 
under this section, on its own initiative or on request, and shall 
change the conditions of approval or terminate it when necessary 
to protect the public interest. Action of the Board under this 
section— 
"(1) approving an agreement, 
"(2) denying, ending, or changing approval, 
"(3) prescribing the conditions on which approval is 
granted, or 
"(4) changing those conditions, 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 871 
has effect only as related to application of the antitrust laws referred 
to in subsection (a). 
"(d) EXPIRATION OF APPROVALS; RENEWALS.—Subject to sub-
section (c), approval of an agreement under subsection (a) shall 
expire 3 years after the date of approval unless renewed under 
this subsection. The approval may be renewed upon request of 
the parties to the agreement if such parties resubmit the agreement 
to the Board, the agreement is unchanged, and the Board approves 
such renewal. The Board shall approve the renewal unless it finds 
that the renewal is not in the public interest. Parties to the agree-
ment may continue to undertake activities pursuant to the pre-
viously approved agreement while the renewal request is pending. 
"(e) 
EXISTING 
AGREEMENTS.—^Agreements approved 
under 
former section 10706(b) and in effect on the day before the effective 
date of this section shall be treated for purposes of this section 
as approved by the Board under this section beginning on such 
effective date. 
"(f) LIMITATIONS ON STATUTORY CONSTRUCTION.— 
"(1) UNDERCHARGE CLAIMS.—Nothing in this section shall 
serve as a basis for any undercharge claim. 
"(2) OBLIGATION OF SHIPPER.—Nothing in this title, the 
ICC Termination Act of 1995, or any amendments or repeals 
made by such Act shall be construed as creating any obligation 
for a shipper based solely on a classification that was on file 
with the Interstate Commerce Commission or elsewhere on 
the day before the effective date of this section. 
"(g) INDUSTRY STANDARD GUIDES.— 
"(1) IN GENERAL.— 
"(A) PUBLIC AVAILABILITY.—^Routes, rates, classifica- PubUcation. 
tions, mileage guides, and rules established under agree-
ments approved under this section shall be published and 
made available for public inspection upon request. 
"(B) PARTICIPATION OF CARRIERS.— 
"(i) IN GENERAL.—^A motor carrier of property 
whose routes, rates, classifications, mileage guides, 
rules, or packaging are determined or governed by 
publications established under agreements approved 
under this section must participate in the determining 
or governing publication for such provisions to apply. 
"(ii) POWER OF ATTORNEY.—^The motor carrier of 
property shall issue a power of attorney to the publish-
ing agent and, upon its acceptance, the agent shall 
issue a written certification to the motor carrier affirm-
ing its participation in the governing publication, and 
the certification shall be made available for public 
inspection. 
"(2) MILEAGE LIMITATION.—^No carrier subject to jurisdiction 
under subchapter I or III of chapter 135 may enforce collection 
of its mileage rates unless such carrier— 
"(A) is a participant in a publication of mileages formu-
lated under an agreement approved under this section; 
or 
"(B) uses a publication of mileage (other than a publica-
tion described in subparagraph (A)) that can be examined 
by any interested person upon reasonable request. 
"(h) SINGLE LINE RATE DEFINED.—In this section, the term 
'single line rate' means a rate, charge, or allowance proposed by 
109 STAT. 872 
PUBLIC LAW 104-88—DEC. 29, 1995 
a single motor carrier that is applicable only over its line and 
for which the transportation can be provided by that carrier. 
^§ 13704. Household goods rates—estimates; guarantees of 
service 
"(a) IN GENERAL.— 
"(1) AUTHORITY.—Subject to the provisions of paragraph 
(2) of this subsection, a motor carrier providing transportation 
of household goods subject to jurisdiction under subchapter 
I of chapter 135 may establish a rate for the transportation 
of household goods which is based on the carrier's written, 
binding estimate of charges for providing such transportation. 
"(2) NONPREFERENTIAL; NONPREDATORY.—^Any rate estab-
lished under this subsection must be available on a nonpref-
erential basis to shippers and must not result in charges to 
shippers which are predatory. 
"(b) RATES FOR GUARANTEED SERVICE.— 
"(1) AUTHORITY.—Subject to the provisions of paragraph 
(2) of this subsection, a motor carrier providing transportation 
of household goods subject to jurisdiction under subchapter 
I of chapter 135 may establish rates for the transportation 
of household goods which guarantee that the carrier will pick 
up and deliver such household goods at the times specified 
in the contract for such services and provide a penalty or 
per diem pa)nTient in the event the carrier fails to pick up 
or deliver such household goods at the specified time. The 
charges, if any, for such guarantee and penalty provision may 
vary to reflect one or more options available to meet a particular 
shipper's needs. 
"(2) AUTHORITY OF SECRETARY TO REQUIRE NONGUARANTEED 
SERVICE RATES.—Before a carrier may establish a rate for any 
service under paragraph (1) of this subsection, the Secretary 
may require such carrier to have in effect and keep in effect, 
during any period such rate is in effect under paragraph (1), 
a rate for such service which does not guarantee the pick 
up and delivery of household goods at the times specified in 
the contract for such services and which does not provide a 
penalty or per diem pa3mnent in the event the carrier fails 
to pick up or deliver household goods at the specified time. 
*
*
§ 13705. Requirements for through routes amiong motor car-
riers of passengers 
"(a) 
ESTABLISHMENT; 
REASONABLENESS.—^A motor 
carrier 
providing transportation of passengers subject to jurisdiction under 
subchapter I of chapter 135 shall establish through routes with 
other carriers of the same type and shall establish individual and 
joint rates applicable to them. Such through route must be 
reasonable. 
"(b) PRESCRIBED BY BOARD.—^When the Board finds it necessary 
to enforce the requirements of this section, the Board may prescribe 
through routes and the conditions under which those routes must 
be operated for motor carriers providing transportation of pas-
sengers subject to jurisdiction under subchapter I of chapter 135. 
"§ 13706. Liability for payment of rates 
"(a) LIABILITY OF CONSIGNEE.—^Liability for payment of rates 
for transportation for a shipment of property by a shipper or con-
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 873 
signer to a consignee other than the shipper or consignor, is deter-
mined under this section when the transportation is provided by 
motor carrier under this part. When the shipper or consignor 
instructs the carrier transporting the property to deUver it to a 
consignee that is an agent only, not having beneficial title to the 
property, the consignee is liable for rates billed at the time of 
delivery for which the consignee is otherwise liable, but not for 
additional rates that may be found to be due after delivery if 
the consignee gives written notice to the delivering carrier before 
delivery of the property— 
"(1) of the agency and absence of beneficial title; and 
"(2) of the name and address of the beneficial owner of 
the property if it is reconsigned or diverted to a place other 
than the place specified in the original bill of lading. 
"(b) LIABILITY OF BENEFICIAL OWNER.—^When the consignee 
is liable only for rates billed at the time of delivery under subsection 
(a), the shipper or consignor, or, if the property is reconsigned 
or diverted, the beneficial owner is liable for those additional rates 
regardless of the bill of the lading or contract under which the 
property was transported. The beneficial owner is liable for all 
rates when the property is reconsigned or diverted by an agent 
but is refused or abandoned at its ultimate destination if the agent 
gave the carrier in the reconsignment or diversion order a notice 
of agency and the name and address of the beneficial owner. A 
consignee giving the carrier erroneous information about the iden-
tity of the beneficial owner of the property is liable for the additional 
rates. 
"§ 13707. Payment of rates 
"(a) TRANSFER OF POSSESSION UPON PAYMENT.—^Except as pro-
vided in subsection (b), a carrier providing transportation or service 
subject to jurisdiction under this part shall give up possession 
at the destination of the property transported by it only when 
payment for the transportation or service is made. 
"(b) EXCEPTIONS.— 
"(1) REGULATIONS.—Under regulations of the Secretary 
governing the payment for transportation and service and 
preventing discrimination, those carriers may give up posses-
sion at destination of property transported by them before 
payment for the transportation or service. The regulations of 
the Secretary may provide for weekly or monthly payment 
for transportation provided by motor carriers and for periodic 
payment for transportation provided by water carriers. 
"(2) EXTENSIONS OF CREDIT TO GOVERNMENTAL ENTITIES.— 
Such a carrier (including a motor carrier being used by a 
household goods freight forwarder) may extend credit for 
transporting properly for the United States Government, a 
State, a territory or possession of the United States, or a 
political subdivision of any of them. 
*
*
§ 13708. Billing and collecting practices 
"(a) DISCLOSURE.—^A motor carrier subject to jurisdiction under 
subchapter I of chapter 135 shall disclose, when a document is 
presented or electronically transmitted for payment to the person 
responsible directly to the motor carrier for payment or agent 
of such responsible person, the actual rates, charges, or allowances 
for any transportation service and shall also disclose, at such time. 
109 STAT. 874 
PUBLIC LAW 104-88—DEC. 29, 1995 
whether and to whom any allowance or reduction in charges is 
made. 
"(b) FALSE OR MISLEADING INFORMATION.—^No person may cause 
a motor carrier to present false or misleading information on a 
document about the actual rate, charge, or allowance to any party 
to the transaction. 
"(c) ALLOWANCES FOR SERVICES.—When the actual rate, charge, 
or allowance is dependent upon the performance of a service by 
a party to the transportation arrangement, such as tendering a 
volume of freight over a stated period of time, the motor carrier 
shall indicate in any document presented for payment to the person 
responsible directly to the motor carrier that a reduction, allowance, 
or other adjustment may apply. 
"§ 13709. Procedures for resolving claims involving unfiled, 
negotiated transportation rates 
"(a) TRANSPORTATION PROVIDED AT RATES OTHER THAN LEGAL 
TARIFF RATES.— 
"(1) IN GENERAL.—^When a claim is made by a motor carrier 
of property (other than a household goods carrier) providing 
transportation subject to jurisdiction under subchapter II of 
chapter 105 (as in effect on the day before the effective date 
of this section) or subchapter I of chapter 135, by a freight 
forwarder (other than a household goods freight forwarder), 
or by a party representing such a carrier or freight forwarder 
regarding the collection of rates or charges for such transpor-
tation in addition to those originally billed and collected by 
the carrier or freight forwarder for such transportation, the 
person against whom the claim is made may elect to satisfy 
the claim under the provisions of subsection (b), (c), or (d), 
upon showing that— 
"(A) the carrier or freight forwarder is no longer 
transporting property or is transporting property for the 
purpose of avoiding the application of this section; and 
"(B) with respect to the claim— 
"(i) the person was offered a transportation rate 
by the carrier or freight forwarder other than that 
legally on file at the time with the Board or with 
the Interstate Commerce Commission, as required, for 
the transportation service; 
"(ii) the person tendered freight to the carrier or 
freight forwarder in reasonable reliance upon the 
offered transportation rate; 
"(iii) the carrier or freight forwarder did not prop-
erly or timely file with the Board or with the Interstate 
Commerce Commission, as required, a tariff providing 
for such transportation rate or failed to enter into 
an agreement for contract carriage; 
"(iv) such transportation rate was billed and col-
lected by the carrier or freight forwarder; and 
"(v) the carrier or freight forwarder demands addi-
tional payment of a higher rate filed in a tariff. 
Courts. 
"(2) FORUM.—If there is a dispute as to the showing under 
paragraph (1)(A), such dispute shall be resolved by the court 
in which the claim is brought. If there is a dispute as to 
the showing under paragraph (1)(B), such dispute shall be 
resolved by the Board. Pending the resolution of any such 
PUBLIC LAW 104.-88—DEC. 29, 1995 
109 STAT. 875 
dispute, the person shall not have to pay any additional com-
pensation to the carrier or freight forwarder. 
"(3) EFFECT OF SATISFACTION OF CLAIMS.—Satisfaction of 
the claim under subsection (b), (c), or (d) shall be binding 
on the parties, and the parties shall not be subject to chapter 
119 of this title, as such chapter was in effect on the day 
before the effective date of this section, or chapter 149. 
"(b) CLAIMS INVOLVING SHIPMENTS WEIGHING 10,000 POUNDS 
OR LESS.—^A person from whom the additional legally applicable 
and effective tariff rate or charges are sought may elect to satisfy 
the claim if the shipments each weighed 10,000 pounds or less, 
by payment of 20 percent of the difference between the carrier's 
applicable and effective tariff rate and the rate originally billed 
and paid. In the event that a dispute arises as to the rate that 
was legally applicable to the shipment, such dispute shall be 
resolved by the Board. 
"(c) 
CLAIMS INVOLVING SHIPMENTS WEIGHING MORE 
THAN 
10,000 POUNDS.—^A person from whom the additional legally 
applicable and effective tariff rate or charges are sought may elect 
to satisfy the claim if the shipments each weighed more than 
10,000 pounds, by payment of 15 percent of the difference between 
the carrier's applicable and effective tariff rate and the rate origi-
nally billed and paid. In the event that a dispute arises as to 
the rate that was legally applicable to the shipment, such dispute 
shall be resolved by the Board. 
"(d) 
CLAIMS INVOLVING PUBLIC WAREHOUSEMEN.—^Notwith-
standing subsections (b) and (c), a person from whom the additional 
legally applicable and effective tariff rate or charges are sought 
may elect to satisfy the claim by pa3mient of 5 percent of the 
difference between the carrier's applicable and effective tariff rate 
and the rate originally billed and paid if such person is a public 
warehouseman. In the event that a dispute arises as to the rate 
that was legally applicable to the shipment, such dispute shall 
be resolved by the Board. 
"(e) EFFECTS OF ELECTION.—^When a person from whom addi-
tional legally applicable freight rates or charges are sought does 
not elect to use the provisions of subsection (b), (c) or (d), the 
person may pursue all rights and remedies existing under this 
part or, for transportation provided before the effective date of 
this section, all rights and remedies that existed under this title 
on the day before such effective date. 
"(f) STAY OF ADDITIONAL COMPENSATION.—When a person pro-
ceeds under this section to challenge the reasonableness of the 
legally applicable freight rate or charges being claimed by a carrier 
or freight forwarder in addition to those already billed and collected, 
the person shall not have to pay any additional compensation 
to the carrier or freight forwarder until the Board has made a 
determination as to the reasonableness of the challenged rate as 
applied to the freight of the person against whom the claim is 
made. 
"(g) NOTIFICATION OF ELECTION.— 
"(1) GENERAL RULE.—^A person must notify the carrier or 
freight forwarder as to its election to proceed under subsection 
(b), (c), or (d). Except as provided in paragraphs (2), (3), and 
(4), such election may be made at any time. 
"(2) DEMANDS FOR PAYMENT INITIALLY MADE AFTER DECEM-
BER 3, 1993.—If the carrier or freight forwarder or party rep-
109 STAT. 876 
PUBLIC LAW 104-88—DEC. 29, 1995 
resenting such carrier or freight forwarder initially demands 
the payment of additional freight charges after December 3, 
1993, and notifies the person from whom additional freight 
charges are sought of the provisions of subsections (a) through 
(f) at the time of the making of such initial demand, the 
election must be made not later than the later of— 
"(A) the 60th day following the filing of an answer 
to a suit for the collection of such additional legally 
applicable freight rate or charges, or 
"(B) March 5, 1994. 
"(3) PENDING SUITS FOR COLLECTION MADE BEFORE DECEM-
BER 4, 1993.—If the carrier or freight forwarder or party rep-
resenting such carrier or freight forwarder has filed, before 
December 4, 1993, a suit for the collection of additional freight 
charges and notifies the person from whom additional freight 
charges are sought of the provisions of subsections (a) through 
(f), the election must be made not later than the 90th day 
following the date on which such notification is received. 
"(4) DEMANDS FOR PAYMENT MADE BEFORE DECEMBER 4, 
1993.—If the carrier or freight forwarder or party representing 
such carrier or freight forwarder has demanded the payment 
of additional freight charges, and has not filed a suit for the 
collection of such additional freight charges, before December 
4, 1993, and notifies the person from whom additional freight 
charges are sought of the provisions of subsections (a) through 
(f), the election must be made not later than the later of— 
"(A) the 60th day following the filing of an answer 
to a suit for the collection of such additional legally 
applicable freight rate or charges, or 
"(B) March 5, 1994. 
"(h) 
CLAIMS INVOLVING SMALL-BUSINESS CONCERNS, CHARI-
TABLE ORGANIZATIONS, AND RECYCLABLE MATERIALS.— 
"(1) IN GENERAL.—^Notwithstanding subsections (b), (c), and 
(d), a person from whom the additional legally applicable and 
effective tarifi" rate or charges are sought shall not be liable 
for the difference between the carrier's applicable and effective 
tariff^ rate and the rate originally billed and paid— 
"(A) if such person qualifies as a small-business concern 
under the Small Business Act (15 U.S.C. 631 et seq.), 
"(B) if such person is an organization which is described 
in section 501(c)(3) of the Internal Revenue Code of 1986 
and exempt from tax under section 501(a) of such Code, 
or 
"(C) if the cargo involved in the claim is recyclable 
materials. 
"(2) RECYCLABLE MATERIALS DEFINED.—In this subsection, 
the term 'recyclable materials' means waste products for 
recycling or reuse in the furtherance of recognized pollution 
control programs. 
*
*
§ 13710. Additional billing and collecting practices 
"(a) MISCELLANEOUS PROVISIONS.— 
"(1) INFORMATION RELATING TO BASIS OF RATE.—-A motor 
carrier of property (other than a motor carrier providing 
transportation in noncontiguous domestic trade) shall provide 
to the shipper, on request of the shipper, a written or electronic 
copy of the rate, classification, rules, and practices, upon which 
PUBLIC LAW 104-88—DEC. 29, 1995 
^ 109 STAT. 877 
any rate applicable to its shipment or agreed to between the 
shipper and carrier is based. 
"(2) REASONABLENESS OF RATES; COLLECTING ADDITIONAL 
CHARGES.—^When the applicability or reasonableness of the 
rates and related provisions billed by a motor carrier is chal-
lenged by the person paying the freight charges, the Board 
shall determine whether such rates and provisions are reason-
able under section 13701 or applicable based on the record 
before it. 
"(3) BILLING DISPUTES.— 
"(A) INITIATED BY MOTOR CARRIERS.—In those cases 
where a motor carrier (other than a motor carrier providing 
transportation of household goods or in noncontiguous 
domestic trade) seeks to collect charges in addition to those 
billed and collected which are contested by the payor, the 
carrier may request that the Board determine whether 
any additional charges over those billed and collected must 
be paid. A carrier must issue any bill for charges in addition 
to those originally billed within 180 days of the receipt 
of the original bill in order to have the right to collect 
such charges. 
"(B) INITIATED BY SHIPPERS.—If a shipper seeks to con-
test the charges originally billed or additional charges sub-
sequently billed, the shipper may request that the Board 
determine whether the charges billed must be paid. A 
shipper must contest the original bill or subsequent bill 
within 180 days of receipt of the bill in order to have 
the right to contest such charges. 
"(4) VOIDING OF CERTAIN TARIFFS.—Any tariff on file with 
the Interstate Commerce Commission on August 26, 1994, and 
not required to be filed after that date is null and void beginning 
on that date. Any tariff on file with the Interstate Commerce 
Commission on the effective date of this section and not 
required to be filed after that date is null and void beginning 
on that date. 
"(b) RESOLUTION OF DISPUTES OVER STATUS OF COMMON CAR-
RIER OR CONTRACT CARRIER.—If a motor carrier (other than a 
motor carrier providing transportation of household goods) that 
was subject to jurisdiction under subchapter II of chapter 105, 
as in effect on the day before the effective date of this section, 
and that had authority to provide transportation as both a motor 
common carrier and a motor contract carrier and a dispute arises 
as to whether certain transportation that was provided prior to 
the effective date of this section was provided in its common carrier 
or contract carrier capacity and the parties are not able to resolve 
the dispute consensually, the Board shall resolve the dispute. 
"§ 13711. Alternative procedure for resolving undercharge 
disputes 
"(a) GENERAL RULE.—It shall be an unreasonable practice for 
a motor carrier of property (other than a household goods carrier) 
providing transportation subject to jurisdiction under subchapter 
I of chapter 135 or, before the effective date of this section, to 
have provided transportation that was subject to jurisdiction under 
subchapter II of chapter 105, as in effect on the day before the 
effective date of this section, a freight forwarder (other than a 
household goods freight forwarder), or a party representing such 
109 STAT. 878 
PUBLIC LAW 104-88—DEC. 29, 1995 
a carrier or freight forwarder to attempt to charge or to charge 
for a transportation service the difference between (1) the appHcable 
rate that was lawfully in effect pursuant to a tariff that was 
filed in accordance with this chapter or, with respect to transpor-
tation provided before the effective date of this section, in accord-
ance with chapter 107, as in effect on the date the transportation 
was provided, by the carrier or freight forwarder applicable to 
such transportation service, and (2) the negotiated rate for such 
transportation service if the carrier or freight forwarder is no longer 
transporting property between places described in section 13501(1) 
or is transporting property between places described in section 
13501(1) for the purpose of avoiding application of this section. 
"(b) JURISDICTION OF BOARD.— 
"(1) DETERMINATION.—The Board shall have jurisdiction 
to make a determination of whether or not attempting to charge 
or the charging of a rate by a motor carrier or freight forwarder 
or party representing a motor carrier or freight forwarder is 
an unreasonable practice under subsection (a). If the Board 
determines that attempting to charge or the charging of the 
rate is an unreasonable practice under subsection (a), the car-
rier, freight forwarder, or party may not collect the difference 
described in subsection (a) between the applicable rate and 
the negotiated rate for the transportation service. 
"(2) FACTORS TO CONSIDER.—In making a determination 
under paragraph (1), the Board shall consider— 
"(A) whether the person was offered a transportation 
rate by the carrier or freight forwarder or party other 
than that legally on file with the Interstate Commerce 
Commission or the Board, as required, at the time of the 
movement for the transportation service; 
"(B) whether the person tendered freight to the carrier 
or freight forwarder in reasonable reliance upon the offered 
transportation rate; 
"(C) whether the carrier or freight forwarder did not 
properly or timely file with the Interstate Commerce 
Commission or the Board, as required, a tariff providing 
for such transportation rate or failed to enter into an 
agreement for contract carriage; 
"(D) whether the transportation rate was billed and 
collected by the carrier or freight forwarder; and 
"(E) whether the carrier or freight forwarder or party 
demands additional payment of a higher rate filed in a 
tariff. 
"(c) STAY OF ADDITIONAL COMPENSATION.—^When a person pro-
ceeds under this section to challenge the reasonableness of the 
practice of a motor carrier, freight forwarder, or party described 
in subsection (a) to attempt to charge or to charge the difference 
described in subsection (a) between the applicable rate and the 
negotiated rate for the transportation service in addition to those 
charges already billed and collected for the transportation service, 
the person shall not have to pay any additional compensation 
to the carrier, freight forwarder, or party until the Board has 
made a determination as to the reasonableness of the practice 
as applied to the freight of the person against whom the claim 
is made. 
"(d) TREATMENT.—Subsection (a) is an exception to the require-
ments of section 13702 and, for transportation provided before 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 879 
the effective date of this section, to the requirements of sections 
10761(a) and 10762, as in effect on the day before such effective 
date, as such sections relate to a filed tariff rate and other general 
tariff requirements. 
"(e) NONAPPLICABILITY OF NEGOTIATED RATE DISPUTE RESOLU-
TION PROCEDURE.—If a person elects to seek enforcement of sub-
section (a) with respect to a rate for a transportation or service, 
section 13709 shall not apply to such rate. 
"(f) DEFINITIONS.—In this section, the term "negotiated rate" 
means a rate, charge, classification, or rule agreed upon by a 
motor carrier or freight forwarder and a shipper through negotia-
tions pursuant to which no tariff was lawfully and timely filed 
and for which there is written evidence of such agreement. 
"(g) APPLICABILITY TO PENDING CASES.—^This section shall apply 
to all cases and proceedings pending on the effective date of this 
section. 
"§ 13712. Government traffic 
"A carrier providing transportation or service for the United 
States Government may transport property or individuals for the 
United States Government without charge or at a rate reduced 
from the applicable commercial rate. Section 3709 of the Revised 
Statutes (41 U.S.C. 5) does not apply when transportation for 
the United States Government can be obtained from a carrier 
lawfully operating in the area where the transportation would be 
provided. 
*
*
§ 13713. Food and grocery transportation 
"(a) CERTAIN 
COMPENSATION PROHIBITED.—^Notwithstanding 
any other provision of law, it shall not be unlawful for a seller 
of food and grocery products using a uniform zone delivered pricing 
system to compensate a customer who picks up purchased food 
and grocery products at the shipping point of the seller if such 
compensation is available to all customers of the seller on a non-
discriminatory basis and does not exceed the actual cost to the 
seller of delivery to such customer. 
"(b) SENSE OF CONGRESS.—It is the sense of the Congress 
that any savings accruing to a customer by reason of compensation 
permitted by subsection (a) of this section should be passed on 
to the ultimate consumer. 
"CHAPTER 139—REGISTRATION 
"Sec. 
"13901. Requirement for registration. 
"13902. Registration of motor carriers. 
"13903. Registration of freight forwarders. 
"13904. Registration of brokers. 
"13905. Effective periods of registration. 
"13906. Security of motor earners, brokers, and freight forwarders. 
"13907. Household goods agents. 
"13908. Registration and other reforms. 
'*§ 13901. Requirement for registration 
"A person may provide transportation or service subject to 
jurisdiction under subchapter I or III of chapter 135 or be a broker 
for transportation subject to jurisdiction under subchapter I of 
that chapter, only if the person is registered under this chapter 
to provide the transportation or service. 
109 STAT. 880 
PUBLIC LAW 104-88—DEC. 29, 1995 
''§ 13902. Registration of motor carriers 
"(a) MOTOR CARRIER GENERALLY.— 
"(1) IN GENERAL.—Except as provided in this section, the 
Secretary shall register a person to provide transportation sub-
ject to jurisdiction under subchapter I of chapter 135 of this 
title as a motor carrier if the Secretary finds that the person 
is willing and able to comply with— 
"(A) this part and the applicable regulations of the 
Secretary and the Board; 
"(B) any safety regulations imposed by the Secretary 
and the safety fitness requirements established by the Sec-
retary under section 31144; and 
"(C) the minimum financial responsibility requirements 
established by the Secretary pursuant to sections 13906 
and 31138. 
"(2) CONSIDERATION OF EVIDENCE; FINDINGS.—^The Sec-
retary shall consider and, to the extent applicable, make find-
ings on, any evidence demonstrating that the registrant is 
unable to comply with the requirements of subparagraph (A), 
(B), or (C) of paragraph (1). 
"(3) WITHHOLDING.—If the Secretary determines that any 
registrant under this section does not meet the requirements 
of paragraph (1), the Secretary shall withhold registration. 
"(4) LIMITATION ON COMPLAINTS.—^The Secretary may hear 
a complaint from any person concerning a registration under 
this subsection only on the ground that the registrant fails 
or will fail to comply with this part, the applicable regulations 
of the Secretary and the Board, the safety regulations of the 
Secretary, or the safety fitness or minimum financial respon-
sibility requirements of paragraph (1) of this subsection. 
"(b) MOTOR CARRIERS OF PASSENGERS.— 
"(1) 
REGISTRATION OF PRIVATE RECIPIENTS OF GOVERN-
MENTAL ASSISTANCE.—The Secretary shall register under sub-
section (a)(1) a private recipient of governmental assistance 
to provide special or charter transportation subject to jurisdic-
tion under subchapter I of chapter 135 as a motor carrier 
of passengers if the Secretary finds that the recipient meets 
the requirements of subsection (a)(1), unless the Secretary finds, 
on the basis of evidence presented by any person objecting 
to the registration, that the transportation to be provided pursu-
ant to the registration is not in the public interest. 
"(2) 
REGISTRATION OF PUBLIC RECIPIENTS OF GOVERN-
MENTAL ASSISTANCE.— 
"(A) CHARTER TRANSPORTATION.—^The Secretary shall 
register under subsection (a)(1) a public recipient of govern-
mental assistance to provide special or charter transpor-
tation subject to jurisdiction under subchapter I of chapter 
135 as a motor carrier of passengers if the Secretary finds 
that— 
"(i) the recipient meets the requirements of sub-
section (a)(1); and 
"(ii)(I) no motor carrier of passengers (other than 
a motor carrier of passengers which is a public recipi-
ent of governmental assistance) is providing, or is will-
ing to provide, the transportation; or 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 881 
"(11) the transportation is to be provided entirely 
in the area in which the public recipient provides regu-
larly scheduled mass transportation services. 
"(B) REGULAR-ROUTE TRANSPORTATION.—The Secretary 
shall register under subsection (a)(1) a public recipient 
of governmental 
assistance to provide 
regular-route 
transportation subject to jurisdiction under subchapter I 
of chapter 135 as a motor carrier of passengers if the 
Secretary finds that the recipient meets the requirements 
of subsection (a)(1), unless the Secretary finds, on the basis 
of evidence presented by any person objecting to the reg-
istration, that the transportation to be provided pursuant 
to the registration is not in the public interest. 
"(C) TREATMENT OF CERTAIN PUBLIC RECIPIENTS.—^Any 
public recipient of governmental assistance which is provid-
ing or seeking to provide transportation of passengers sub-
ject to jurisdiction under subchapter I of chapter 135 shall, 
for purposes of this part, be treated as a person which 
is providing or seeking to provide transportation of pas-
sengers subject to such jurisdiction. 
"(3) INTRASTATE TRANSPORTATION BY INTERSTATE CAR-
RIERS.—^A motor carrier of passengers that is registered by 
the Secretary under subsection (a) is authorized to provide 
regular-route transportation entirely in one State as a motor 
carrier of passengers if such intrastate transportation is to 
be provided on a route over which the carrier provides interstate 
transportation of passengers. 
"(4) PREEMPTION OF STATE REGULATION REGARDING CERTAIN 
SERVICE.—^No State or political subdivision thereof and no inter-
state agency or other political agency of 2 or more States 
shall enact or enforce any law, rule, regulation, standard or 
other provision having the force and effect of law relating 
to the provision of pickup and delivery of express packages, 
newspapers, or mail in a commercial zone if the shipment 
has had or will have a prior or subsequent movement by bus 
in intrastate commerce and, if a city within the commercial 
zone, is served by a motor carrier of passengers providing 
regular-route transportation of passengers subject to jurisdic-
tion under subchapter I of chapter 135. 
"(5) JURISDICTION OVER CERTAIN INTRASTATE TRANSPOR-
TATION.—Subject to section 14501(a), any intrastate transpor-
tation authorized by this subsection shall be treated as 
transportation subject to jurisdiction under subchapter I of 
chapter 135 until such time as the carrier takes such action 
as is necessary to establish under the laws of such State rates, 
rules, and practices applicable to such transportation, but in 
no case later than the 30th day following the date on which 
the motor carrier of passengers first begins providing transpor-
tation entirely in one State under this paragraph. 
"(6) SPECIAL OPERATIONS.—This subsection shall not apply 
to any regular-route transportation of passengers provided 
entirely in one State which is in the nature of a special 
operation. 
"(7) SUSPENSION OR REVOCATION.—Intrastate transpor-
tation authorized under this subsection may be suspended or 
revoked by the Secretary under section 13905 of this title 
at any time. 
- 29 : QL 3 Part 1 
109 STAT. 882 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(8) DEFINITIONS.—In this subsection, the following defini-
tions apply: 
"(A) 
PUBLIC RECIPIENT OF GOVERNMENTAL ASSIST-
ANCE.—^The term 'public recipient of governmental assist-
ance' means— 
"(i) any State, 
"(ii) any municipality or other political subdivision 
of a State, 
"(iii) any public agency or instrumentality of one 
or more States and municipalities and political subdivi-
sions of a State, 
"(iv) any Indian tribe, 
"(v) any corporation, board, or other person owned 
or controlled by any entity described in clause (i), (ii), 
(iii), or (iv), and 
which before, on, or after the effective date of this sub-
section received governmental assistance for the purchase 
or operation of any bus. 
"(B) PRIVATE RECIPIENT OF GOVERNMENT ASSISTANCE.— 
The term 'private recipient of government assistance' 
means any person (other than a person described in sub-
paragraph (A)) who before, on, or after the effective date 
of this paragraph received governmental financial assist-
ance in the form of a subsidy for the purchase, lease, 
or operation of any bus. 
"(c) 
RESTRICTIONS ON MOTOR CARRIERS DOMICILED IN OR 
OWNED OR CONTROLLED BY NATIONALS OF A CONTIGUOUS FOREIGN 
COUNTRY.— 
"(1) 
PREVENTION OF DISCRIMINATORY PRACTICES.—^If 
the 
President, or the delegate thereof, determines that an act, 
policy, or practice of a foreign country contiguous to the United 
States, or any political subdivision or any instrumentality of 
any such country is unreasonable or discriminatory and burdens 
or restricts United States transportation companies providing, 
or seeking to provide, motor carrier transportation to, from, 
or within such foreign country, the President or such delegate 
may— 
"(A) seek elimination of such practices through con-
sultations; or 
"(B) notwithstanding any other provision of law, sus-
pend, modify, amend, condition, or restrict operations, 
including geographical restriction of operations, in the 
United States by motor carriers of property or passengers 
domiciled in such foreign country or owned or controlled 
by persons of such foreign country. 
"(2) EQUALIZATION OF TREATMENT.—Any action taken under 
paragraph (1)(A) to eliminate an act, policy, or practice shall 
be so devised so as to equal to the extent possible the burdens 
or restrictions imposed by such foreign country on United States 
transportation companies. 
"(3) REMOVAL OR MODIFICATION.—The President, or the 
delegate thereof, may remove or modify in whole or in part 
any action taken under paragraph (1)(A) if the President or 
such delegate determines that such removal or modification 
is consistent with the obligations of the United States under 
a trade agreement or with United States transportation policy. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 883 
"(4) PROTECTION OF EXISTING OPERATIONS.—Unless and 
until the President, or the delegate thereof, makes a determina-
tion under paragraph (1) or (3), nothing in this subsection 
shall affect— 
"(A) operations of motor carriers of property or pas-
sengers domiciled in any contiguous foreign country or 
owned or controlled by persons of any contiguous foreign 
f 
country permitted in the commercial zones along the United 
States-Mexico border as such zones were defined on the 
day before the effective date of this section; or 
"(B) any existing restrictions on operations of motor 
carriers of property or passengers domiciled in any contig-
uous foreign country or owned or controlled by persons 
of any contiguous foreign country or any modifications 
thereof pursuant to section 6 of the Bus Regulatory Reform 
Act of 1982. 
"(5) PUBLICATION; COMMENT.—Unless the President, or the Federal Register, 
delegate thereof, determines that expeditious action is required, publication, 
the President shall publish in the Federal Register any deter-
mination under paragraph (1) or (3), together with a description 
of the facts on which such a determination is based and any 
proposed action to be taken pursuant to paragraph (1)(B) or 
(3), and provide an opportunity for public comment. 
"(6) DELEGATION TO SECRETARY.—^The President may dele-
gate any or all authority under this subsection to the Secretary, 
who shall consult with other agencies as appropriate. In accord-
ance with the directions of the President, the Secretary may 
issue regulations to enforce this subsection. 
"(7) CIVIL ACTIONS.—Either the Secretary or the Attorney 
General may bring a civil action in an appropriate district 
court of the United States to enforce this subsection or a 
regulation prescribed or order issued under this subsection. 
The court may award appropriate relief, including injunctive 
relief. 
"(8) LIMITATION ON STATUTORY CONSTRUCTION.—^This sub-
section shall not be construed as affecting the requirement 
for all foreign motor carriers and foreign motor private carriers 
operating in the United States to comply with all applicable 
laws and regulations pertaining to fitness, safety of operations, 
financial responsibility, and taxes imposed by section 4481 of 
the Internal Revenue Code of 1986. 
"(d) TRANSITION RULE.— 
"(1) IN GENERAL.—Pending the implementation of the rule-
making required by section 13908, the Secretary may register 
a person under this section— 
"(A) as a motor common carrier if such person would 
have been issued a certificate to provide transportation 
as a motor common carrier under this subtitle on the 
day before the effective date of this section; and 
"(B) as a motor contract carrier if such person would 
have been issued a permit to provide transportation as 
a motor contract carrier under this subtitle on such day. 
"(2) DEFINITIONS.—In this subsection, the terms 'motor 
common carrier' and 'motor contract carrier* have the meaning 
such terms had under section 10102 as such section was in 
effect on the day before the effective date of this section. 
109 STAT. 884 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(e) MOTOR CARRIER DEFINED.—^In this section and sections 
13905 and 13906, the term 'motor carrier* includes foreign motor 
private carriers. 
"§ 13903. Registration of freight forwarders 
"(a) IN GENERAL.—^The Secretary shall register a person to 
provide service subject to jurisdiction under subchapter III of chap-
ter 135 as a freight forwarder if the Secretary finds that the 
person is fit, willing, and able to provide the service and to comply 
with this part and applicable regulations of the Secretary and 
the Board. 
"(b) REGISTRATION AS CARRIER REQUIRED.—^The freight for-
warder may provide transportation as the carrier itself only if 
the freight forwarder also has registered to provide transportation 
as a carrier under this chapter. 
*'§ 13904. Registration of brokers 
"(a) IN GENERAL.—^The Secretary shall register, subject to sec-
tion 13906(b), a person to be a broker for transportation of property 
subject to jurisdiction under subchapter I of chapter 135, if the 
Secretary finds that the person is fit, willing, and able to be a 
broker for transportation and to comply with this part and 
applicable regulations of the Secretary. 
"(b) REGISTRATION AS CARRIER REQUIRED.— 
"(1) IN GENERAL,—^The broker may provide the transpor-
tation itself only if the broker also has been registered to 
provide the transportation as a motor carrier under this 
chapter. 
"(2) LIMITATION.—^This subsection does not apply to a motor 
carrier registered under this chapter or to an employee or 
agent of the motor carrier to the extent the transportation 
is to be provided entirely by the motor carrier, with other 
registered motor carriers, or with rail or water carriers. 
"(c) REGULATIONS TO PROTECT SHIPPERS.—Regulations of the 
Secretary applicable to brokers registered under this section shall 
provide for the protection of shippers by motor vehicle. 
"(d) BOND AND INSURANCE.—^The Secretary may impose on bro-
kers for motor carriers of passengers such requirements for bonds 
or insurance or both as the Secretary determines are needed to 
protect passengers and carriers dealing with such brokers. 
"§ 13905. Effective periods of registration 
"(a) PERSON HOLDING ICC AuTHORiTY.^Any person having 
authority to provide transportation or service as a motor carrier, 
freight forwarder, or broker under this title, as in effect on the 
day before the effective date of this section, shall be deemed, for 
purposes of this part, to be registered to provide such transportation 
or service under this part. 
"(b) IN GENERAL.—Except as otherwise provided in this part, 
each registration issued under section 13902, 13903, or 13904 shall 
be effective from the date specified by the Secretary and shall 
remain in effect for such period as the Secretary determines appro-
priate by regulation. 
"(c) 
SUSPENSION, 
AMENDMENTS, 
AND 
REVOCATIONS.—On 
application of the registrant, the Secretary may amend or revoke 
a registration. On complaint or on the Secretary's own initiative 
and after notice and an opportunity for a proceeding, the Secretary 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 885 
may suspend, amend, or revoke any part of the registration of 
a motor carrier, broker, or freight forwarder for willful failure 
to comply with this part;, an applicable regulation or order of the 
Secretary or of the Board, or a condition of its registration. 
"(d) PROCEDURE.—Except on application of the registrant, the 
Secretary may revoke a registration of a motor carrier, freight 
forwarder, or broker, only after— 
"(1) the Secretary has issued an order to the registrant 
i 
under section 14701 requiring compliance with this part, a 
; 
regulation of the Secretary, or a condition of the registration; 
and 
"(2) the registrant willfully does not comply with the order 
for a period of 30 days. 
"(e) EXPEDITED PROCEDURE.— 
"(1) PROTECTION OF SAFETY.—^Without regard to subchapter 
II of chapter 5 of title 5, the Secretary may suspend the registra-
tion of a motor carrier, a freight forwarder, or a broker for 
failure to comply with safety requirements of the Secretary 
or the safety fitness requirements pursuant to section 13904(c), 
13906, or 31144, of this title, or an order or regulation of 
the Secretary prescribed under those sections. 
"(2) IMMINENT HV^ARD TO PUBLIC HEALTH.—^Without regard 
to subchapter II of chapter 5 of title 5, the Secretary may 
suspend a registration of a motor carrier of passengers if the 
Secretary finds that such carrier has been conducting unsafe 
operations which are an imminent hazard to public health 
or property. 
"(3) NOTICE; PERIOD OF SUSPENSION.—^The Secretary may 
suspend under this subsection the registration only after giving 
notice of the suspension to the registrant. The suspension 
remains in effect until the registrant complies with those 
applicable sections or, in the case of a suspension under para-
graph (2), until the Secretary revokes such suspension. 
"§13906. Security of motor carriers, brokers, and freight for-
warders 
"(a) MOTOR CARRIER REQUIREMENTS.— 
"(1) LIABILITY INSURANCE REQUIREMENT.—^The Secretary 
may register a motor carrier under section 13902 only if the 
registrant files with the Secretary a bond, insurance policy, 
or other type of security approved by the Secretary, in an 
amount not less than such amount as the Secretary prescribes 
pursuant to, or as is required by, sections 31138 and 31139, 
and the laws of the State or States in which the registrant 
is operating, to the extent applicable. The security must be 
sufficient to pay, not more than the amount of the security, 
for each final judgment against the registrant for bodily injury 
to, or death of, an individual resulting from the negligent 
operation, maintenance, or use of motor vehicles, or for loss 
or damage to property (except property referred to in paragraph 
(3) of this subsection), or both. A registration remains in effect 
only as long as the registrant continues to satisfy the security 
requirements of this paragraph. 
"(2) AGENCY REQUIREMENT.—^A motor carrier shall comply 
with the requirements of sections 13303 and 13304. To protect 
the public, the Secretary may require any such motor carrier 
to file the type of security that a motor carrier is required 
109 STAT. 886 
PUBLIC LAW 104^88—DEC. 29, 1995 
to file under paragraph (1) of this subsection. This paragraph 
only applies to a foreign motor private carrier and foreign 
motor carrier operating in the United States to the extent 
that such carrier is providing transportation between places 
in a foreign country or between a place in one foreign country 
and a place in another foreign country. 
"(3) TRANSPORTATION INSURANCE.—^The Secretary 
may 
require a registered motor carrier to file with the Secretary 
a t3T)e of security sufficient to pay a shipper or consignee 
for damage to property of the shipper or consignee placed 
in the possession of the motor carrier as the result of transpor-
tation provided under this part. A carrier required by law 
to pay a shipper or consignee for loss, damage, or default 
for which a connecting motor carrier is responsible is sub-
rogated, to the extent of the amount paid, to the rights of 
: 
the shipper or consignee under any such security. 
"(b) BROKER REQUIREMENTS.—The Secretary may register a 
person as a broker under section 13904 only if the person files 
with the Secretary a bond, insurance policy, or other type of security 
approved by the Secretary to ensure that the transportation for 
which a broker arranges is provided. The registration remains 
in effect only as long as the broker continues to satisfy the security 
requirements of this subsection. 
"(c) FREIGHT FORWARDER REQUIREMENTS.— 
"(1) LIABILITY INSURANCE.—^The Secretary may register a 
person as a freight forwarder under section 13903 of this title 
only if the person files with the Secretary a bond, insurance 
policy, or other type of security approved by the Secretary. 
The security must be sufficient to pay, not more than the 
amount of the security, for each final judgment against the 
fi*eight forwarder for bodily injury to, or death of, an individual, 
or loss of, or damage to, property (other than property referred 
to in paragraph (2) of this subsection), resulting from the neg-
ligent operation, maintenance, or use of motor vehicles 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 forwarder's registra-
tion remains in effect only as long as the freight forwarder 
continues to satisfy the security requirements of this subsection. 
"(d) TYPE OF INSURANCE.—The Secretary may determine 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 governing the standards for approval as a self-insurer. 
Motor carriers which have been granted authority to self-insure 
as of the effective date of this section shall retain that authority 
unless, for good cause shown and after notice and an opportunity 
for a hearing, the Secretary finds that the authority must be re-
voked. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 887 
"(e) NOTICE OF CANCELLATION OF INSURANCE.—The Secretary Regulations, 
shall issue regulations requiring the submission to the Secretary 
of notices of insurance cancellation 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 cancellation. 
"(f) FORM OF ENDORSEMENT.^The Secretary shall also prescribe 
the appropriate form of endorsement to be appended to policies 
of insurance and surety bonds which will subject the insurance 
policy or surety bond to the full security limits of the coverage 
required under this section. 
''§ 13907. Household goods agents 
"(a) CARRIERS RESPONSIBLE FOR AGENTS.—Each motor carrier 
providing transportation of household goods shall be responsible 
for all acts or omissions of any of its agents which relate to the 
performance of household goods transportation services (including 
accessorial or terminal services) and which are within the actual 
or apparent authority of the agent from the carrier or which are 
ratified by the carrier. 
"(b) STANDARD FOR SELECTING AGENTS.—^Each motor carrier 
providing transportation of household goods shall use due diligence 
and reasonable care in selecting and maintaining agents who are 
sufficiently knowledgeable, 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.— 
s 
"(1) COMPLAINT.—^Whenever the Secretary has reason to 
believe from a complaint or investigation that an agent provid-
ing household goods transportation services (including accesso-
rial and terminal services) under the authority of a motor 
carrier providing transportation of household goods has violated 
section 14901(e) or 14912 or is consistently not fit, willing, 
and able to provide adequate household goods transportation 
services (including accessorial and terminal services), the Sec-
retary may issue to such agent a complaint stating the charges 
and containing notice of the time £md place of a hearing which 
shall be held no later than 60 days after service of the complaint 
to such agent. 
"(2) RIGHT TO DEFEND.—The agent shall have the right 
to appear at such hearing and rebut the charges contained 
in the complaint. 
"(3) ORDER.—If the agent does not appear at the hearing 
or if the Secretary finds that the agent has violated section 
14901(e) or 14912 or is consistently 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 requirement 
that the agent be fit, willing, and able. Thereafter, the Secretary 
may issue an order to limit, condition, or prohibit such agent 
from any involvement in the transportation or provision of 
services incidental to the transportation of household goods 
if, after notice and an opportunity for a hearing, the Secretary 
finds that such agent, within a reasonable time after the date 
of issuance of a compliance order under this section, but in 
109 STAT. 888 
PUBLIC LAW 104^88—DEC. 29, 1995 
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 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 paragraph (3) of this 
subsection should be rescinded. 
"(5) COURT REVIEW.—^Any agent adversely affected 
or 
aggrieved by an order of the Secretary issued under this sub-
section may seek relief in the appropriate 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 defined in the 
first section of the Clayton Act (15 U.S.C. 12), do not apply 
to discussions or agreements between a motor carrier providing 
transportation of household goods and its agents (whether or 
not an agent is also a carrier) related solely to— 
"(A) rates for the transportation of household goods 
under the authority of the principal carrier; 
"(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 providing transpor-
tation of household goods by an agent or membership on 
the board of directors of any such motor carrier by an 
agent. 
"(2) BOARD REVIEW.—^The Board, upon its own initiative 
or request, shall review any activities undertaken under para-
graph (1) and shall modify or terminate the activity if necessary 
to protect the public interest. 
"(e) DEFINITIONS.—In this section, the following definitions 
apply: 
"(1) HOUSEHOLD GOODS.—^The term 'household goods' has, 
the meaning such term had under section 10102(11) of this, 
title, as in effect on the day before the effective date of this: 
section. 
"(2) TRANSPORTATION.—^The term 'transportation' means 
transportation that would be subject to the jurisdiction of the 
Interstate Commerce Commission under subchapter II of chap-
ter 105 of this title, as in effect on the day before such effective 
date, if such subchapter were still in effect. 
"§ 13908. Registration and other reforms 
"(a) REGULATIONS REPLACING CERTAIN PROGRAMS.^The Sec-
retary, in cooperation with the States, and after notice and oppor-
tunity for public comment, shall issue regulations to replace the 
current Department of Transportation identification number sys-
tem, the single State registration system under section 14504, the 
registration system contained in this chapter, and the financial 
responsibility information system under section 13906 with a single, 
on-line, Federal system. The new system shall serve as a clearing-
PUBLIC L.\W 104-88—DEC. 29, 1995 
109 STAT. 889 
house and depository of information on and identification of all 
foreign and domestic motor carriers, brokers, and freight for-
warders, and others required to register with the Department as 
well as information on safety fitness and compliance with required 
levels of financial responsibility. In issuing the regulations, the 
Secretary shall consider whether or not to integrate the require-
ments of section 13304 into the new system and may integrate 
such requirements into the new system. 
"(b) FACTORS TO BE CONSIDERED.—In conducting the rule-
making under subsection (a), the Secretary shall, at a minimum, 
consider the following factors: 
"(1) Funding for State enforcement of motor carrier safety 
regulations. 
"(2) Whether the existing single State registration system 
is duplicative and burdensome. 
"(3) The justification and need for collecting the statutory 
fee for such system under section 14504(c)(2)(B)(iv). 
"(4) The public safety. 
"(5) The efficient delivery of transportation services. 
"(6) How, and under what conditions, to extend the registra-
tion system to motor private carriers and to carriers exempt 
under sections 13502, 13503, and 13506. 
"(c) FEE SYSTEM.—^I'he Secretary may establish, under section 
9701 of title 31, a fee system for registration and filing evidence 
of financial responsibility under the new system under subsection 
(a). Fees collected under the fee system shall cover the costs of 
operating and upgrading the registration system, including all 
personnel costs associated with the system. Fees collected under 
this subsection may be credited to the Department of Transportation 
appropriations account for purposes for which such fees are col-
lected, and shall be available for expenditure until expended. 
"(d) STATE REGISTRI^TION PROGRAMS.—If the Secretary deter-
mines that no State should require insurance filings or collect 
fees for such filings (including filings and fees authorized under 
section 14504), the Secretary may prevent any State or political 
subdivision thereof, or any political authority of 2 or more States, 
from imposing any insurance filing requirements or fees that are 
for the same purposes as filings or fees the Secretary requires 
under the new system under subsection (a). The Secretary may 
not take any action pursuant to this subsection unless— 
"(1) fees that will be collected by the Secretary under 
subsection (c) and distributed in each fiscal year to the States 
will provide each State with at least as much revenue as 
that State received in fiscal year 1995 under section 11506, 
as in effect on the day before the effective date of this section; 
and 
"(2) all States will receive from the distribution of such 
fees a minimum apportionment. 
"(e) DEADLINE FOR CONCLUSION; MODIFICATIONS.—^Not later 
than 24 months after the effective date of this section, the 
Secretary— 
"(1) shall conclude the rulemaking under this section; 
"(2) may implement such changes under this section as 
the Secretary considers appropriate and in the public interest; 
and 
"(3) shall transmit to Congress a report on any findings Reports, 
of the rulemaking and the changes being implemented under 
109 STAT. 890 
PUBLIC LAW 104r-88—DEC. 29, 1995 
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. 
"SUBCHAPTER I—GENERAL REQUIREMENTS 
"§ 14101. Providing transportation and service 
"(a) ON REASONABLE REQUEST.—^A carrier providing transpor-
tation or service subject to jurisdiction under chapter 135 shall 
provide the transportation or service on reasonable request. In 
addition, a motor carrier shall provide safe and adequate service, 
equipment, and facilities. 
"(b) CONTRACTS W I T H SHIPPERS.— 
"(1) IN GENERAL.—^A carrier providing transportation or 
service subject to jurisdiction under chapter 135 may enter 
into a contract with a shipper, other than for the movement 
of household goods described in section 13102(10)(A), to provide 
specified services under specified rates and conditions. If the 
shipper and carrier, in writing, expressly waive any or 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 the waived rights and remedies 
and may not be subsequently challenged on the ground that 
it violates the waived rights and remedies. The parties may 
not waive the provisions governing registration, insurance, or 
safety fitness. 
"(2) REMEDY FOR BREACH OF CONTRACT.—^The exclusive 
remedy for any alleged breach of a contract entered into under 
this subsection shall be an action in an appropriate State 
court or United States district court, unless the parties other-
wise agree. 
'*§ 14102. Leased motor vehicles 
"(a) GENERAL AUTHORITY OF SECRETARY.—^The Secretary may 
require a motor carrier providing transportation subject to jurisdic-
tion 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 compensation 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 liability and 
cargo insurance on them; and 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 891 
"(4) have control of and be responsible for operating those 
motor vehicles in compliance with requirements prescribed by 
the Secretary on ssifety 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 UNLOADING.—^The Regulations. 
Secretary shall require, by regulation, that any arrangement, 
between a motor carrier of property providing transportation subject 
to jurisdiction under subchapter 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 unload-
ing 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 oper-
ates a motor vehicle transporting property in interstate commerce 
(whether or not such transportation is subject to jurisdiction under 
subchapter 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 compensate the owner or operator 
for all costs associated with securing and compensating the person 
or persons providing such assistance. 
"(b) COERCION PROHIBITED.—It shall be unlawful to coerce or 
attempt to coerce any person providing transportation of property 
by motor vehicle for compensation in interstate commerce (whether 
or not such transportation is subject to jurisdiction under sub-
chapter I of chapter 135) to load or unload any part of such property 
onto or from such vehicle or to employ or pay one or more persons 
to load or unload any part of such property onto or from such 
vehicle; except that this subsection shall not be construed as making 
unlawful any activity which is not unlawful under the National 
Labor Relations Act or the Act of March 23, 1932 (47 Stat. 70; 
29 U.S.C. 101 et seq.), commonly known as the Norris-LaGuardia 
Act. 
^§ 14104. Household goods carrier operations 
"(a) GENERAL REGUIATORY AUTHORITY.— 
"(1) PAPERWORK MINIMIZATION.—The Secretary may issue 
regulations, including regulations protecting individual ship-
pers, in order to cany out this part with respect to the transpor-
tation of household goods by motor carriers subject to jurisdic-
tion under subchapter I of chapter 135. The regulations and 
paperwork required of motor carriers providing transportation 
of household goods shall be minimized to the maximum extent 
feasible consistent with the protection of individual shippers. 
"(2) PERFORMANCE STANDARDS.— 
"(A) IN GENERAL.—^Regulations of the Secretary protect-
ing individual shippers shall include, where appropriate, 
reasonable performance standards for the transportation 
of household goods subject to jurisdiction under subchapter 
I of chapter 135,. 
"(B) FACTORS TO CONSIDER.—In establishing perform-
ance standards under this paragraph, the Secretary shall 
take into account at least the following— 
109 STAT. 892 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(i) the level of performance that can be achieved 
by a well-managed motor carrier transporting house-
hold goods; 
"(ii) the degree of harm to individual shippers 
which could result from a violation of the regulation; 
"(iii) the need to set the level of performance at 
a level sufficient to deter abuses which result in harm 
to consumers and violations of regulations; 
"(iv) service requirements of the carriers; 
"(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 performance at 
a level designed to encourage carriers to offer service 
responsive to shipper needs. 
"(3) LIMITATIONS ON STATUTORY CONSTRUCTION.—^Nothing 
in this section shall be construed to limit the Secretary's author-
ity to require reports from motor carriers providing transpor-
tation of household goods or to require such carriers to provide 
specified information to consumers concerning their past 
performance. 
"(b) ESTIMATES.— 
"(1) 
AUTHORITY TO PROVIDE WITHOUT COMPENSATION.— 
Every motor carrier providing transportation of household goods 
subject to jurisdiction under subchapter I of chapter 135, upon 
request of a prospective shipper, may provide the shipper with 
an estimate of charges for transportation of household goods 
and for the proposed services. The Secretary shall not prohibit 
any such carrier from charging a prospective shipper for provid-
ing a written, binding estimate for the transportation and pro-
posed services. 
"(2) APPLICABILITY OF ANTITRUST LAWS.—Any charge for 
an estimate of charges provided by a motor carrier to a shipper 
for transportation of household goods subject to jurisdiction 
under subchapter I of chapter 135 shall be subject to the 
antitrust laws, as defined in the first section of the Clayton 
Act(15U.S.C. 12). 
Regulations. 
"(c) FLEXIBILITY IN WEIGHING SHIPMENTS.—The Secretary shall 
issue regulations that provide motor carriers providing transpor-
tation of household goods subject to jurisdiction under subchapter 
I of chapter 135 with the maximum possible flexibility in weighing 
shipments, consistent 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 oppor-
tunity 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 'carrier' and 'broker' 
include a receiver or trustee of a carrier and broker, 
respectively. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 893 
"(2) 
ASSOCIATION.—^The term 
'association' 
means an 
organization maintained by or in the interest of a group of 
carriers or brokers providing transportation or service subject 
to jurisdiction under chapter 135 that performs a service, or 
engages in activities, related to transportation under this part. 
"§ 14122. Records: form; inspection; preservation 
"(a) FORM OF RECORDS.—^The Secretary or the Board, as 
appUcable, may prescribe the form of records required to be pre-
pared or compiled under this subchapter by carriers and brokers, 
including records related to movement of traffic and receipts and 
expenditures of money. 
"(b) RIGHT OF INSPECTION.—^The Secretary or Board, or an 
employee designated by the Secretary or Board, may on demand 
and display of proper credentials— 
"(1) inspect and examine the lands, buildings, and equip-
ment 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 com-
mon control with a carrier if the Secretary or Board, as 
applicable, considers inspection relevant to that person's 
relation to, or transaction with, that carrier. 
"(c) PERIOD FOR PRESERVATION OF RECORDS.—^The Secretary 
or Board, as applicable, may prescribe the time period during which 
operating, accounting, and financial records must be preserved by 
carriers and brokers. 
"§ 14123. Financial reporting 
"(a) REPORTS.— 
"(1) ANNUAL REPORTS.—^The Secretary shall require Class 
I and Class II motor carriers to file with the Secretary annual 
financial and safety reports, the form and substance of which 
shall be prescribed by the Secretary; except that, at a minimum, 
such reports shall include balance sheets and income state-
ments. 
"(2) OTHER REPORTS.—^The Secretary may require motor 
carriers, freight forwarders, brokers, lessors, and associations, 
or classes of them as the Secretary may prescribe, to file quar-
terly, periodic, or special reports with the Secretary and to 
respond to surveys concerning their operations. 
"(b) MATTERS TO BE COVERED.—In determining the matters 
to be covered by any reports to be filed under subsection (a), 
the Secretary shall consider— 
"(1) safety needs; 
"(2) the need to preserve confidential business information 
and trade secrets and prevent competitive harm; 
"(3) private sector, academic, and public use of information 
in the reports; and 
"(4) the public interest. 
"(c) EXEMPTIONS.— 
"(1) FROM FILING.—^The Secretary may exempt upon good 
cause shown any party from the financial reporting require-
ments of subsection (a). Any request for such exemption must 
demonstrate, at a minimum, that an exemption is required 
to avoid competitive harm and preserve confidential business 
information that is not otherwise publicly available. 
99-194 O-95-30:QL3Partl 
109 STAT. 894 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(2) FROM PUBLIC RELEASE.— 
"(A) IN GENERAL.—^The Secretary shall allow, upon 
request, a filer of a report under subsection (a) that is 
not a publicly held corporation or that is not subject to 
financial 
reporting requirements of the Securities and 
Exchange Commission, an exemption from the public 
release of such report. 
"(B) PROCEDURE.—^After a request under subparagraph 
(A) and notice and opportunity for comment but no event 
later than 90 days after the date of such request, the 
Secretary shall approve such request if the Secretary finds 
that the exemption requested is necessary to avoid competi-
tive harm and to avoid the disclosure of information that 
qualifies as a trade secret or privileged or confidential 
information under section 552(b)(4) of title 5. 
"(C) USE OF DATA FOR INTERNAL DOT PURPOSES.—If 
an exemption is granted under this paragraph, nothing 
shall prevent the Secretary from using data from reports 
filed under this subsection for internal purposes of the 
Department of Transportation or including such data in 
aggregate industry statistics released for publication if such 
inclusion would not render the filer's data readily identifi-
able. 
"(D) PENDING REQUESTS.—^The Secretary shall not 
release publicly the report of a carrier making a request 
under subparagraph (A) while such request is pending. 
"(3) PERIOD OF EXEMPTIONS.—Exemptions granted under 
this subsection shall be for 3-year periods. 
"(d) STREAMLINING AND SIMPLIFICATION.—^The Secretary shall 
streamline and simplify, to the maximum extent practicable, any 
reporting requirements the Secretary imposes under this section. 
" C H A P T E R 1 4 3 — F I N A N C E 
"Sec. 
"14301. Security interests in certain motor vehicles. 
"14302. Pooling and division of transportation or earnings. 
"14303. Consolidation, merger, and acquisition of control of motor carriers of pas-
sengers. 
"§ 14301. Security interests in certain motor vehicles 
"(a) DEFINITIONS.—In this section, the following definitions 
apply: 
"(1) MOTOR VEHICLE.—^The term 'motor vehicle' 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 credi-
tor 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 appoint-
ment of the receiver. 
"(3) 
SECURITY INTEREST.—^The term 'security interest' 
means an interest (including an interest established by a condi-
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 895 
tional sales contract, mortgage, equipment trust, or other lien 
or title retention contract, 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 certificate 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 creditors 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 interest 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 permits indication, 
on a certificate or title, of a security interest in the motor 
vehicle if the security interest 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 permits 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 sub-
section, if the security interest 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 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 Board under this section. 
"(b) STANDARDS FOR APPROVAL.—^The Board may approve and 
authorize an agreement or combination between or among motor 
carriers of passengers, or between a motor carrier of passengers 
and a rail carrier of passengers if the carriers involved assent 
to the pooling or division and the Board 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 property may 
apply to the Board 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 
combination with the Board not less than 50 days before its 
effective date. 
109 STAT. 896 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(2) 
DETERMINATION OF IMPORTANCE AND RESTRAINT ON 
COMPETITION.—^Prior to the effective date of the agreement 
or combination, the Board shall determine whether the agree-
ment or combination is of major transportation importance 
and whether there is substantial likelihood that the agreement 
or combination will unduly restrain competition. If the Board 
determines that neither of these 2 factors exists, it shall, prior 
to such effective date and without a hearing, approve and 
authorize the agreement or combination, under such rules and 
regulations as the Board may issue, and for such consideration 
between such carriers and upon such terms and conditions 
as shall be found by the Board to be just and reasonable. 
"(3) HEARING.—If the Board determines either that the 
agreement or combination is of major transportation importance 
or that there is substantial likelihood that the agreement or 
combination will unduly restrain competition, the Board shall 
hold a hearing concerning whether the agreement or combina-
tion 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 Board sliall indicate to what extent 
it finds that the agreement or combination will be in the 
interest of better service to the public or of economy in operation 
and will not unduly restrain competition and if assented to 
by all the carriers involved, shall to that extent, approve and 
authorize the agreement or combination, under such rules and 
regulations as the Board may issue, and for such consideration 
between such carriers and upon such terms and conditions 
as shall be found by the Board to be just and reasonable. 
"(4) 
SPECIAL RULES FOR HOUSEHOLD GOODS CARRIERS.— 
In the case of an application for Board approval of an agreement 
or combination between a motor carrier providing transpor-
tation of household goods and its agents to pool or divide 
traffic or services or any part of their earnings, such agreement 
or combination shall be presumed to be in the interest 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 agree-
ments and combinations between motor carriers providing 
transportation of household goods to pool or divide traffic or 
service of any part of their earnings approved by the Interstate 
Commerce Commission before the effective date of this section. 
"(5) STREAMLINING AND SIMPLIFYING.—^The Board shall 
streamline, simplify, and expedite, to the maximum extent 
practicable, the process (including any paperwork) for submis-
sion and approval of applications under this section for agree-
ments and combinations between motor carriers providing 
transportation of household goods and their agents. 
"(d) CONDITIONS.—^The Board may impose conditions governing 
the pooling or division and may approve and authorize payment 
of a reasonable consideration between the carriers. 
"(e) INITIATION OF PROCEEDING.—^The Board may begin a 
proceeding under this section on its own initiative or on application, 
"(f) EFFECT OF APPROVAL.—^A carrier may participate in an 
arrangement approved by or exempted by the Board under this 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 897 
section without the approval of any other Federal, State, or munici-
pal 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. 
"(g) CONTINUATION OF EXISTING AGREEMENTS.—Any agree-
ments in operation under the provisions of this title on the effective 
date of this section that are succeeded by this section shall remain 
in effect until further order of the Board. 
"(h) DEFINITIONS.—In this section, the following definitions 
apply: 
"(1) HOUSEHOLD GOODS.—^The term 'household goods' has 
the meaning such term had under section 10102(11) of this 
title, as in effect on the day before the effective date of this 
section. 
"(2) TRANSPORTATION.—^The term 'transportation' means 
transportation that would be subject to the jurisdiction of the 
Interstate Commerce Commission under subchapter II of chap-
ter 105 of this title, as in effect on the day before such effective 
date, if such subchapter were still in effect. 
"§ 14303. Consolidation, merger, and acquisition of control 
of motor carriers of passengers 
"(a) APPROVAL REQUIRED.—^The following transactions involving 
motor carriers of passengers subject to jurisdiction under subchapter 
I of chapter 135 may be carried out only with the approval of 
the Board: 
"(1) Consolidation or merger of the properties or franchises 
of at least 2 carriers into one operation for the ownership, 
management, and operation of the previously separately owned 
properties. 
"(2) A purchase, lease, or contract to operate property of 
another carrier by any number of carriers. 
"(3) Acquisition of control of a carrier by any number of 
carriers. 
"(4) Acquisition of control of at least 2 carriers by a person 
that is not a carrier. 
"(5) Acquisition of control of a carrier by a person that 
is not a carrier but that controls any number of carriers. 
"(b) STANDARD FOR APPROVAL.—^The Board shall approve and 
authorize a transaction under this section when it finds the trans-
action is consistent with the public interest. The Board shall con-
sider at least the following: 
"(1) The effect of the proposed transaction on the adequacy 
of transportation to the public. 
"(2) The total fixed charges that result from the proposed 
transaction. 
"(3) The interest of carrier employees affected by the pro-
posed transaction. 
The Board may impose conditions governing the transaction. 
"(c) DETERMINATION OF COMPLETENESS OF APPLICATION.— Federal Register, 
Within 30 days after the date on which an appUcation is filed publication, 
under this section, the Board shall either publish a notice of the 
application in the Federal Register or reject the application if it 
is incomplete. 
109 STAT. 898 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(d) COMMENTS.—^Written comments about an application may 
be filed with the Board within 45 days afl:er the date on which 
notice of the application is published under subsection (c). 
"(e) DEADLI^fES.—The Board shall conclude evidentiary proceed-
ings by the 240th day after the date on which notice of the applica-
tion is published under subsection (c). The Board shall issue a 
final decision by the 180th day after the conclusion of the evi-
dentiary proceedings. The Board may extend a time period under 
this subsection; except that the total of all such extensions with 
respect to any application shall not exceed 90 days. 
"(f) EFFECT OF APPROVAL.—^A carrier or corporation participat-
ing in or resulting from a transaction approved by the Board under 
this section, or exempted by the Board from the application of 
this section pursuant to section 13541, may carry out the trans-
action, own and operate property, and exercise control or franchises 
acquired through the transaction without the approval of a State 
authority. A carrier, corporation, or person participating in the 
approved or exempted transaction is exempt from the antitrust 
laws and from all other law, including State and municipal law, 
as necessary to let that person carry out the transaction, hold, 
maintain, and operate property, and exercise control or franchises 
acquired through the transaction. 
"(g) LIMITATION ON APPLICABILITY.—^This section shall not apply 
to transactions involving carriers whose aggregate gross operating 
revenues were not more than $2,000,000 during a period of 12 
consecutive months ending not more than 6 months before the 
date of the agreement of the parties. 
"(h) APPLICABILITY OF CERTAIN PROVISIONS.—When the Board 
approves and authorizes a transaction under this section in which 
a person not a carrier providing transportation subject to jurisdic-
tion under subchapter I of chapter 135 acquires control of at least 
1 carrier subject to such jurisdiction, the person is subject, as 
a carrier, to the following provisions of this title that apply to 
the carrier being acquired by that person, to the extent specified 
by the Board: sections 504(f), 14121-14123, 14901(a), and 14907. 
"(i) INTERIM APPROVAL.—Pending determination of an applica-
tion filed under this section, the Board may approve, for a period 
of not more than 180 days, the operation of the properties sought 
to be acquired by the person proposing in the application to acquire 
those properties, when it appears that failure to do so may result 
in destruction of or injury to those properties or substantially inter-
fere with their future usefulness in providing adequate and continu-
ous service to the public. Transportation provided by a motor carrier 
under a grant of approval under this subsection is subject to this 
part. 
"(j) SUPPLEMENTAL ORDERS.—^When cause exists, the Board 
may issue appropriate orders supplemental to an order made in 
a proceeding under this section. 
"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. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 899 
'*§ 14501. Federal authority over intrastate transportation 
"(a) MOTOR CARRIERS OF PASSENGERS.—^No State or political 
subdivision thereof and no interstate agency or other political 
agency of 2 or more States shall enact or enforce any law, rule, 
regulation, standard, or other provision having the force and effect 
of law relating to scheduling of interstate or intrastate transpor-
tation (including discontinuance or reduction in the level of service) 
provided by motor carrier of passengers subject to jurisdiction 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 required. This subsection shall not apply to intra-
state commuter bus operations. 
"(b) FREIGHT FORWARDERS AND BROKERS.— 
"(1) GENERAL RULE.—Subject to paragraph (2) of this sub-
section, no State or political subdivision thereof and no intra-
state agency or other political agency of 2 or more States 
shall enact or enforce any law, rule, regulation, standard, or 
other provision having the force and effect of law relating 
to intrastate rates, intrastate routes, or intrastate services of 
any freight forwarder or broker. 
"(2) CONTINUATION OF HAWAII'S AUTHORITY.—^Nothing in 
this subsection and the amendments made by the Surface 
Freight Forwarder Deregulation 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 carrier covered 
by section 41713(b)(4)) or any motor private carrier, broker, 
or freight forwarder with respect to the transportation of prop-
erty. 
"(2) MATTERS NOT COVERED.—Paragraph (1)— 
"(A) shall not restrict the safety regulatory authority 
of a State with respect to motor vehicles, 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 minimum 
amounts of financial responsibility relating to insurance 
requirements and self-insurance 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 provision relating to the price 
of for-hire motor vehicle transportation by a tow truck, 
if such transportation is performed without the prior con-
sent or authorization of the owner or operator of the motor 
vehicle. 
"(3) STATE STANDARD TRANSPORTATION PRACTICES.— 
109 STAT. 900 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(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, regulation, or other provision, with respect to the 
intrastate transportation of property by motor carriers, 
related to— 
"(i) uniform cargo liability rules, 
"(ii) uniform bills of lading or receipts for property 
being transported, 
"(iii) uniform cargo credit rules, 
"(iv) antitrust immunity for joint line rates or 
routes, classifications, mileage guides, and pooling, or 
"(v) antitrust immunity for agent-van line oper-
ations (as set forth in section 13907), 
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 Board 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 ownership may elect to be subject to 
a law, regulation, or provision of a State, political subdivi-
sion, or political authority under this paragraph. 
"(4) NONAPPLICABILITY TO HAWAII.—^This subsection shall 
not apply with respect to the State of Hawaii. 
*'§ 14502. Tax discrimination against motor carrier transpor-
tation 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 PROPERTY.—^The term 
'motor carrier transportation property' means property, as 
defined by the Secretary, owned or used by a motor carrier 
providing transportation in interstate commerce whether or 
not such transportation is subject to jurisdiction under sub-
chapter I of chapter 135. 
"(4) COMMERCIAL AND INDUSTRIAL PROPERTY.—^The term 
'commercial and industrial property' means property, other than 
transportation property and land used primarily for agricultural 
purposes or timber growing, devoted to a commercial or indus-
trial use, and subject to a property tax levy. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 901 
"(b) ACTS BURDENING INTERSTATE COMMERCE.—^The following 
acts unreasonably burden and discriminate against interstate com-
merce 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 V.,\LUATION OF PROPERTY.—^Assess motor car-
rier 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 commer-
cial and industrial property in the same assessment 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 prop-
erty tax on motor carrier transportation property at a tax 
rate that exceeds the tax rate applicable 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 citizen-
ship of the parties, a district court of the United States has 
jurisdiction, concurrent with other jurisdiction of courts of the 
United States and the States, to prevent a violation of sub-
section (b) of this section. 
"(2) LIMITATION IN RELIEF.—Relief may be granted under 
this subsection only if the ratio of assessed value to true market 
value of motor carrier transportation property exceeds, by at 
least 5 percent, the ratio of assessed value to true market 
value of other commercial and industrial property in the same 
assessment jurisdiction. 
"(3) BURDEN OF PROOF.—^The burden of proof in determin-
ing 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 jurisdic-
tion to the true market value of all other commercial and 
industrial property cannot be determined to the satisfaction 
of the district court through the random-sampling method 
known as a sales assessment ratio study (to be carried out 
under statistical principles applicable to such a study), the 
court shall find, as a violation of this section— 
"(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 jurisdiction 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 property at a tax rate that 
exceeds the tax ratio rate applicable to taxable property 
in the taxing district. 
"§ 14503. Withholding State and local income tax by certain 
carriers 
"(a) SINGLE STATE TAX WITHHOLDING.— 
"(1) IN GENERAL.—No part of the compensation paid by 
a motor carrier providing transportation subject to jurisdiction 
109 STAT. 902 
PUBLIC LAW 104-88—DEC. 29, 1995 
under subchapter I of chapter 135 or by a motor private carrier 
to an employee 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 residence. 
"(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 subsection, 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 employed during the calendar year. 
"(2) WATER CARRIERS.—A water carrier providing transpor-
tation 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 
"(B) the State and subdivision in which the employee 
earned more than 50 percent of the pay received by the 
employee from the carrier during the preceding calendar 
year. 
"(3) APPLICABILITY TO SAILORS.—^This subsection 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. 
Reports. 
"(c) FILING OF INFORMATION.—^A motor and motor private car-
rier withholding pay from an employee under subsection (a) of 
this section shall file income tax information returns and other 
reports only with the State and subdivision of residence of the 
employee. 
''§ 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 regulations of the Secretary to prove the 
/ 
lawfulness of transportation 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 sub-
chapter I of chapter 135 and providing transportation in that State, 
must register with the State is not an unreasonable burden on 
transportation referred to in section 13501 when the State registra-
tion is completed under standards of the Secretary under subsection 
(c). When a State registration requirement imposes obligations in 
excess of the standards of the Secretary, the part in excess is 
an unreasonable burden. 
"(c) SINGLE STATE REGISTRATION SYSTEM.— 
"(1) IN GENERAL.—^The Secretary shall maintain standards 
for implementing a system under which— 
"(A) a motor carrier is required to register annually 
with only one State by providing evidence of its Federal 
registration under chapter 139; 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 903 
"(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 REGISTRATION; PROOF OF 
INSURANCE; PAYMENT OF FEES.—Under the standards of 
the Secretary implementing the single State registration 
system described in paragraph (1) of this subsection, only 
a State acting in its capacity as registration State under 
such single State system may require a motor carrier reg-
istered by the Secretary under this part— 
"(i) to file and maintain evidence of such Federal 
registration; 
"(ii) to file satisfactory proof of required 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 standards of the Sec-
retary— 
"(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 provided under subparagraph (A)(ii) of this para-
graph and has paid fee amounts in accordance 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 subparagraph be kept in each 
of the carrier's commercial motor vehicles; 
"(iii) shall not require decals, stamps, cab cards, 
or any other means of registering 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 paragraph that— 
"(I) is based on the number of commercial 
motor veliicles the carrier operates in a State and 
on the number of States in which the carrier oper-
ates; 
"(II) minimizes the costs of complying with 
the registration system; and 
"(III) results in a fee for each participating 
State that is equal to 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 maintaining evidence of Fed-
eral registration under subparagraph (A)(i) of this 
paragraph. 
109 STAT. 904 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(C) PROHIBITED FEES.—The charging or collection of 
any fee under this section that is not in accordance with 
the fee system established under subparagraph (B)(iv) of 
this paragraph shall be deemed to be a burden on interstate 
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 revenue under this 
subsection. 
"§ 14505. State tax 
"A State or political subdivision thereof may not collect or 
levy a tax, fee, head charge, or other charge on— 
"(1) a passenger traveling in interstate commerce by motor 
carrier; 
"(2) the transportation of a passenger traveling in interstate 
commerce by motor carrier; 
"(3) the sale of passenger transportation in interstate com-
merce by motor carrier; or 
"(4) the gross receipts derived from such transportation. 
"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 receipits 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 
Board, 
as 
applicable, may begin an investigation under this part on the Sec-
retary's or the Board's own initiative or on complaint. If the Sec-
retary or Board, as applicable, finds that a carrier or broker is 
violating this part, the Secretary or Board, 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 carrier is violating chapter 139, the Secretary shall take 
appropriate action to compel compliance with that chapter. The 
Secretary or Board, as applicable, may take action under this sub-
section only after giving the carrier or broker notice of the investiga-
tion and an opportunity for a proceeding. 
"(b) COMPLAINTS.—^A person, including a governmental author-
ity, may file with the Secretary or Board, 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 Board, as applicable, may dismiss a complaint 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 905 
that it determines does not state reasonable grounds for investiga-
tion and action, 
"(c) DEADLINE.—^A formal investigative proceeding begun by 
the Secretary or Board under subsection (a) of this section is dis-
missed automatically unless it is concluded 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 Board, as applicable, 
may bring a civil action— 
"(1) to enforce section 14103 of this title; or 
"(2) to enforce this part, or a regulation or order of the 
Secretary or Board, as applicable, when violated by a carrier 
or broker providing transportation or service subject to jurisdic-
tion under subchapter I or III of chapter 135 of this title 
or by a foreign motor carrier or foreign motor private carrier 
providing transportation registered under section 13902 of this 
title. 
"(b) VENUE.—In a civil action under subsection (a)(2) of this 
section— 
"(1) trial is in the judicial district in which the carrier, 
foreign motor carrier, foreign motor private carrier, or broker 
operates; 
"(2) process may be served without regard to the territorial 
limits of the district or of the State in which the action is 
instituted; and 
"(3) a person participating with a carrier or broker in 
a violation may be joined in the civil action without regard 
to the residence of the person. 
"(c) STANDING.—^The Board, through its own attorneys, may 
bring or participate in any civil action involving motor carrier 
undercharges. 
"§ 14703. Enforcement by the Attorney General 
"The Attorney General may, and on request of either the Sec-
retary or the Board shall, bring court proceedings— 
"(1) to enforce this part or a regulation or order of the 
Secretary or Board or terms of registration under this part; 
and 
"(2) to prosecute a person violating this part or a regulation 
or order of the Secretary or Board or term of registration 
under this part. 
*
*
§ 14704. Rights and remedies of persons injured by carriers 
or brokers 
"(a) IN GENERAL.— 
"(1) 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 Board, 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. A person 
may bring a civil action for injunctive relief for violations of 
sections 14102 and 14103. 
"(2) DAMAGES FOR VIOLATIONS.—^A carrier or broker provid-
ing transportation or service subject to jurisdiction under chap-
109 STAT. 906 
PUBLIC LAW 104-88—DEC. 29, 1995 
ter 135 is liable for damages sustained by a person as a result 
of an act or omission of that carrier or broker in violation 
of this part. 
"(b) LIABILITY AND DAMAGES 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 applicable rate for transportation or service contained 
in a tariff in effect under section 13702. 
"(c) ELECTION.— 
"(1) COMPLAINT TO DOT OR BOARD; CIVIL ACTION.—^A person 
may file a complaint with the Board or the Secretary, as 
applicable, under section 14701(b) or bring a civil action under 
subsection (b) to enforce liability against a carrier or broker 
providing transportation or service subject to jurisdiction under 
chapter 135. 
"(2) ORDER OF DOT OR BOARD.— 
"(A) IN GENERAL.—When the Board or Secretary, as 
applicable, makes an award under subsection (b) of this 
section, the Board or Secretary, as applicable, shall order 
the carrier to pay the amount awarded by a specific date. 
The Board or Secretary, as applicable, may order a carrier 
or broker providing transportation or 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 Board or Secretary requiring 
the payment of money is made may bring a civil action 
to enforce 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 Board or Secretary requiring the payment of damages by 
a carrier or broker providing transportation or service subject 
to jurisdiction under chapter 135 of this title, the text of the 
order of the Board or Secretary must be included in the com-
plaint. In addition to the district courts of the United States, 
a State court of general jurisdiction having jurisdiction of the 
parties has jurisdiction to enforce an order under this para-
graph. The findings and order of the Board or Secretary are 
competent evidence of the facts stated in them. Trial in a 
civil action brought in a district court of the United States 
under this paragraph is in the judicial district 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 judicial district in which any one of the plaintiffs could, 
bring the action against any one of the defendants. Process, 
may be served on a defendant at its principal operating office 
when that defendant is not in the district in which the action 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 907 
is brought. A judgment ordering recovery may be made in 
favor of any of those plaintiffs against the defendant found 
to be liable to that plaintiff. 
"(e) ATTORNEY'S FEES.—The district court shall award a reason-
able attorney's fee under this section. The district court shall tax 
and collect that fee as part of the costs of the action. 
"§ 14705. Limitation on actions by and against carriers 
"(a) IN GENERAL.—^A carrier providing transportation or service 
subject to jurisdiction under chapter 135 must begin a civil action 
to recover charges for transportation or service provided by the 
carrier within 18 months after the claim accrues. 
"(b) OVERCHARGES.—A person must begin a civil action 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 Board or Secretary, 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 complaini with the Board 
or Secretary, as applicable, to recover damages under section 
14704(b) 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 specified in the notice if a written claim 
is given to the carrier within those limitation periods. The limitation 
periods under subsections (b) and (c) of this section are extended 
for 90 days from the time the carrier begins a civil action under 
subsection (a) 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 Board or Secretary against a carrier within 1 
year after the date of the order. 
"(f) GOVERNMENT TRANSPORTATION.—^This section applies to 
transportation for the United States Government. The time limita-
tions under this section are extended, 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 
"(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 tender of delivery by 
the carrier. 
''§ 14706. Liability of carriers under receipts and bills of 
lading 
. 
"(a) GENERAL LIABILITY.— 
"(1) MOTOR CARRIERS AND FREIGHT FORWARDERS.—A carrier 
providing transportation or service subject to jurisdiction under 
subchapter I or III of chapter 135 shall issue a receipt or 
bill of lading for property it receives for transportation under 
this part. That carrier and any other carrier that delivers 
Courts. 
Claims. 
109 STAT. 908 
PUBLIC LAW 104-88—DEC. 29, 1995 
the property and is providing transportation or service subject 
to jurisdiction under subchapter I or III of chapter 135 or 
chapter 105 are Hable 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 carrier, or (C) 
another carrier over whose line or route the property is trans-
ported in the United States or from a place in the United 
States to a place in an adjacent foreign country when trans-
ported under a through bill of lading and, except in the case 
of a freight forwarder, applies to property reconsigned or 
diverted under a tariff under section 13702. 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 perform-
ing 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 forwarder is both the 
receiving and delivering carrier. When a freight forwarder pro-
vides service and uses a motor carrier providing transportation 
subject to jurisdiction under subchapter I of chapter 135 to 
receive property from a consignor, the motor carrier may exe-
cute the bill of lading or shipping receipt for the freight for-
warder with its consent. With the consent 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 shipping receipt to the consignee named in it, and receipt 
for the property may be made on the freight forwarder's delivery 
receipt. 
"(b) APPORTIONMENT.—^The carrier issuing the receipt or bill 
of lading under subsection (a) of this section or delivering the 
property for which the receipt or bill of lading was issued is entitled 
to recover from the 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) MOTOR CARRIERS.— 
"(A) SHIPPER WAIVER.—Subject to the provisions of 
subparagraph (B), a carrier providing transportation or 
service subject to jurisdiction under subchapter I or III 
of chapter 135 may, subject to the provisions of this chapter 
(including with respect to a motor carrier, the requirements 
of section 13710(a)), establish rates for the transportation 
of property (other than household goods described in section 
13102(10)(A)) under which the liability of the carrier for 
such property is limited to a value established by written 
or electronic declaration of the shipper or by written agree-
ment between the carrier and shipper if that value would 
be reasonable under the circumstances surrounding the 
transportation. 
"(B) CARRIER NOTIFICATION.—If the motor carrier is 
not required to file its tariff with the Board, it shall provide 
under section 13710(a)(1) to the shipper, on request of 
the shipper, a written or electronic copy of the rate, classi-
fication, rules, and practices upon which any rate applicable 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 909 
to a shipment, or agreed to between the shipper and the 
carrier, is based. The copy provided by the carrier shall 
clearly state the dates of applicability of the rate, classifica-
tion, rules, or practices. 
"(C) 
PROHIBITION AGAINST 
COLLECTIVE ESTABLISH-
MENT.—No discussion, consideration, or approval as to 
rules to limit liability under this subsection may be under-
taken by carriers acting under an agreement approved 
pursuant to section 13703. 
"(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 delivering 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 delivering carrier in 
a district 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 defendant 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 applicable 
geographic area over which such court exercises jurisdic-
tion. 
"(e) MINIMUM PERIOD FOR FILING CLAIMS.— 
"(1) IN GENERAL.—A carrier may not provide by rule, con-
tract, or otherwise, a period of less than 9 months for filing 
a claim against it under this section and a period of less 
than 2 years for bringing a civil action against it under this 
section. The period for bringing a civil action is 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 constitute a dis-
allowance of any part of the claim unless the carrier, in 
writing, informs the claimant that such part of the claim 
is disallowed and provides reasons for such disallowance; 
and 
"(B) communications received from a carrier'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 
109 STAT. 910 
PUBLIC LAW 104-88—DEC. 29, 1995 
such disallowance, and informs the claimant that the 
insurer is acting on behalf of the carrier. 
"(f) LIMITING LIABILITY OF HOUSEHOLD GtooDS CARRIERS TO 
DECLARED VALUE.—^A carrier or group of carriers subject to jurisdic-
tion under subchapter I or III of chapter 135 may petition the 
Board to modify, eliminate, or establish rates for the transportation 
of household goods under which the liability of the carrier for 
that property 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 deter-
mine whether any modifications or reforms should be made 
to the loss and damage provisions of this section, including 
those related to limitation of liability by carriers. 
"(2) FACTORS TO CONSIDER.—In conducting the study, the 
Secretary, at a minimum, shall consider— 
"(A) the efficient delivery of transportation services; 
"(B) international and intermodal harmony; 
"(C) the public interest; and 
"(D) the interest of carriers and shippers. 
"(3) REPORT.—^Not later than 12 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 rec-
ommendations of the Secretary (including legislative rec-
ommendations) for implementing modifications or reforms 
identified by the Secretary as being appropriate. 
*
*
§ 14707. Private enforcement of registration requirement 
"(a) IN GENERAL.—If a person provides transportation by motor 
vehicle or service in clear violation of section 13901-13904 or 13906, 
a person injured by the transportation or service may bring a 
civil action to enforce any such section. In a civil action under 
this subsection, 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 Secretary and a certifi-
cate of service must appear in the complaint 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 Secretary. 
When that notice is filed, the court shall stay further action pending 
disposition of the proceeding before the Secretary. 
"(c) ATTORNEY'S FEES.—In a civil action under subsection (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 Federal Rules of Civil Procedure. 
'*§ 14708. Dispute settlement program for household goods 
carriers 
"(a) OFFERING SHIPPERS ARBITRATION.—^As a condition of reg-
istration under section 13902 or 13903, a carrier providing transpor-
tation of household goods subject to jurisdiction under subchapter 
I or III of chapter 135 must agree to offer in accordance with 
this section to shippers of household goods arbitration as a means 
of settling disputes between such carriers and shippers of household 
goods concerning damage or loss to the household goods transported. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 911 
"(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 
principal 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, including a concise easy-to-read, accurate 
summary of the arbitration procedure, any applicable costs, 
and disclosure of the legal effects of election to utilize arbitra-
tion. Such notice must be given to persons for whom household 
goods are to be transported by the 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 arbitration. 
"(4) INDEPENDENCE OF ARBITRATOR.—Each person author-
ized to arbitrate or otherwise settle disputes must be independ-
ent of the parties to the dispute and must be capable, as 
determined under such regulations as the Secretary may issue, 
to resolve such disputes fairly and expeditiously. The carrier 
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 information to the extent necessary 
to carry out a fair and expeditious decisionmaking process. 
"(5) 
APPORTIONMENT OF COSTS.—NO shipper may be 
charged more than half of the cost for instituting an arbitration 
proceeding that is brought under this section. In the decision, 
the arbitrator may determine which party shall pay the cost 
or a portion of the cost of the arbitration proceeding, including 
the cost of instituting the proceeding. 
"(6) REQUESTS.—^The carrier must not require the shipper 
to agree to utilize arbitration prior to the time that a dispute 
arises. If the dispute involves a claim for $1,000 or less and 
the shipper requests arbitration, such arbitration shall be bind-
ing on the parties. If the dispute involves a claim for more 
than $1,000 and the shipper requests arbitration, such arbitra-
tion shall be binding on the parties only if the carrier agrees 
to arbitration. 
"(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 representative), 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 dispute, 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 set-
tling the dispute may reasonably require to resolve the dispute, 
the arbitrator may extend such 60-day period for a reasonable 
period of time. A decision resolving a dispute may include 
109 STAT. 912 
PUBLIC LAW 104-88—DEC. 29, 1995 
any remedies appropriate under the circumstances, including 
repair, replacement, refund, reimbursement for expenses, and 
compensation for damages. 
"(c) LIMITATION ON USE OF MATERIALS.—^Materials and informa-
tion obtained in the course of a decision making 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 
carrier providing transportation or service subject to jurisdiction 
under subchapter I or III of chapter 135 concerning the transpor-
tation of household goods by such carrier, the shipper shall be 
awarded reasonable attorneys fees if— 
"(1) the shipper submits a claim to the carrier within 
120 days after the date the shipment is delivered 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 within the period pro-
vided 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 decision 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 transpor-
tation of household goods by such carrier, such carrier may be 
awarded reasonable attorney'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 proceeding 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 
"(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 household goods. 
"(g) REVIEW BY SECRETARY.—^Not later than 18 months after 
the effective date of this section, the Secretary shall complete a 
review of the dispute settlement program established under this 
Reports. 
section. If, after notice and opportunity for comment, the Secretary 
determines that changes are necessary to such program to ensure 
the fair and equitable resolution of disputes under this section, 
the Secretary shall implement such changes and transmit a report 
to Congress on such changes. 
"§ 14709. Tariff reconciliation rules for motor carriers of 
property 
"Subject to review and approval by the Board, motor carriers 
subject to jurisdiction under subchapter I of chapter 135 (other 
than motor carriers providing transportation of household goods) 
and shippers may resolve, by mutual consent, overcharge and 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 913 
under-charge claims resulting from incorrect tariff provisions or 
billing errors arising from the inadvertent failure to properly and 
timely file and maintain agreed upon rates, rules, or classifications 
in compliance with section 13702 or, with respect to transportation 
provided before the effective date of this section, sections 10761 
and 10762, 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 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 ve-
hicles. 
"14906. Evasion of regulation of carriers and brokers. 
"14907. Recordkeeping and reporting violations. 
"14908. Unlawful disclosure of information. 
"14909. Disobedience to subpoenas. 
"14910. General civil penalty when specific penalty not provided. 
"14911. Punishment of corporation for violations committed by certain individuals. 
"14912. Weight-bumping in household goods transportation. 
"14913. Conclusiveness of rates in certain prosecutions. 
"14914. Civil penalty procedures. 
*
*
§ 14901. General civil penalties 
"(a) REPORTING AND RECORDKEEPING.—^A person required to 
make a report to the Secretary or the Board, answer a question, 
or make, prepare, or preserve a record under this part concerning 
transportation subject to jurisdiction under subchapter I or III 
of chapter 135 or transportation by a foreign carrier registered 
under section 13902, or an officer, agent, or employee of that person 
t h a t -
'll) 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 for a civil penalty 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, or employee of such person, that does not comply 
with section 13901 with respect to providing transportation of pas-
sengers, 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 sub-
ject to jurisdiction under subchapter I of chapter 135, or an officer, 
agent, or employee of that person, 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 Environ-
mental Protection Agency pursuant to section 3001 of the Solid 
Waste Disposal Act (but not including any waste the regulation 
109 STAT. 914 
PUBLIC LAW 104-88—DEC. 29, 1995 
of which under the SoUd Waste Disposal 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 deter-
mining and negotiating the amount of a civil penalty under sub-
section (a) or (d) concerning transportation of household goods, 
the degree of culpability, 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 other 
matters as fairness may require shall be taken into account. 
"(d) PROTECTION OF HOUSEHOLD GOODS SHIPPERS.—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 Secretary or the Board 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 engages in or knowingly 
authorizes an agent or other person— 
"(1) to falsify documents used in the transportation of 
household goods subject to jurisdiction under subchapter I or 
III of chapter 135 which evidence the weight of a shipment; 
or 
"(2) to charge for accessorial services which are not per-
formed 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 adequate movement of the shipment; 
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 subsection. 
"(f) VENUE.—^Trial in a civil action under subsections (a) 
through (e) of this section is in the judicial district in which— 
"(1) the carrier or broker has its principal office; 
"(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 offender may 
be found. 
"(g) BUSINESS ENTERTAINMENT EXPENSES.— 
"(1) IN GENERAL.—^Any business entertainment expense 
incurred by a water carrier providing transportation subject 
to this part shall not constitute a violation of this part if 
that expense would not be unlawful if incurred by a person 
not subject to this part. 
"(2) 
COST 
OF SERVICE.—^Any business 
entertainment 
expense subject to paragraph (1) that is paid or incurred by 
a water carrier providing transportation subject to this part 
shall not be taken into account in determining the cost of 
service or the rate base for purposes of section 13702. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 915 
"§ 14902. Civil penalty for accepting rebates from carrier 
"A person— 
"(1) delivering property to a carrier providing transpor-
tation or service subject to jurisdiction under chapter 135 for 
transportation under this part 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 foreign country; 
and 
"(2) knowingly accepting or receiving by any means a rebate 
or offset against the rate for transportation for, or service 
of, that property contained in a tariff required under section 
13702; 
is liable to the United States for a civil penalty 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 received 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) CIVIL PENALTY FOR UNDERCHARGING AND OVERCHARGING.— 
A person that offers, grants, gives, solicits, accepts, or receives 
by any means transportation or service provided for property by 
a carrier subject to jurisdiction under chapter 135 at a rate different 
than the rate in effect under section 13702 is liable to the United 
States for civil penalty of not more than $100,000 for each violation. 
"(b) 
GENERAL 
CRIMINAL 
PENALTY.—^A 
carrier 
providing 
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 under title 18 or imprisoned 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 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 commit-
ted 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— 
"(1) offers, grants, gives, solicits, accepts, or receives a 
rebate for concession, in violation of a provision of this part 
related to motor carrier transportation subject to jurisdiction 
under subchapter I of chapter 135; or 
"(2) by any means assists 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, 
109 STAT. 916 
PUBLIC LAW 104-88—DEC. 29, 1995 
is liable to the United States for a civil penalty of $200 for the 
first violation and $250 for a subsequent violation. 
"(b) UNDERCHARGING.— 
"(1) FREIGHT FORWARDER.—^A freight forwarder providing 
service subject to jurisdiction under subchapter III of chapter 
135, or an officer, agent, or employee of that freight forwarder, 
that 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, is liable 
to the United States for a civil penalty of not more than 
$500 for the first violation and not more than $2,000 for a 
subsequent violation. 
"(2) OTHERS.—^A person that by any means gets, or 
attempts to get, service provided under subchapter III of chap-
ter 135 at less than the rate in effect for that service under 
section 13702, is liable to the United States for a civil penalty 
of 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.—Whoever knowingly authorizes, consents 
to, or permits a violation of subsection (a) or (b) of section 14103 
or who knowingly violates subsection (a) of such section is liable 
to the United States for a civil penalty of not more than $10,000 
for each violation. 
"(b) CRIMINAL PENALTIES.—Whoever knowingly violates section 
14103(b) of this title shall be fined under title 18 or imprisoned 
not more than 2 years, or both. 
"§ 14906. Evasion of regulation of carriers and brokers 
"A person, or an officer, employee, or agent of that person, 
that by any means tries to evade regulation provided under this 
part for carriers or brokers is liable to the United States for a 
civil penalty of $200 for the first violation and at least $250 for 
a subsequent violation. 
"§ 14907. Recordkeeping and reporting violations 
"A person required to make a report to the Secretary or the 
Board, as applicable, answer a question, or make, prepare, or pre-
serve a record under this part about transportation subject to 
jurisdiction under subchapter I or III of chapter 135, or an officer, 
agent, or employee of that person, that— 
"(1) does not make that report; 
"(2) does not specifically, completely, and truthfully answer 
that question in 30 days from the date the Secretary or Board, 
as applicable, requires the question to be answered; 
"(3) does not make, prepare, or preserve that record in 
the form and manner prescribed; 
"(4) falsifies, destroys, mutilates, or changes that report 
or record; 
"(5) files a false report or record; 
"(6) makes a false or incomplete entry in that record about 
a business related fact or transaction; or 
"(7) makes, prepares, or preserves a record in violation 
of an applicable regulation or order of the Secretary or Board; 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 917 
is liable to the United States for a civil penalty of not more than 
$5,000. 
*
*
§ 14908. Unlawful disclosure of information 
"(a) DISCLOSURE OF SHIPMENT AND ROUTING INFORMATION.— 
"(1) VIOLATIONS.—^A carrier or broker providing transpor-
tation subject to jurisdiction under subchapter I, II, or III 
of chapter 135 or an officer, receiver, 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 disclose to another person, except 
the shipper or consignee, and a person may not solicit, or 
receive, information about the nature, kind, quantity, destina-
tion, consignee, or routing of property tendered or delivered 
to that carrier or broker for transportation provided 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) PENALTY.—^A person violating paragraph (1) of this 
subsection is liable to the United States for a civil penalty 
of not more than $2,000. 
"(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 
"Whoever does not obey a subpoena or requirement of the 
Secretary or the Board to appear and testify or produce records 
shall be fined under title 18 or imprisoned not more than 1 year, 
or both. 
"§ 14910. General civil penalty when specific penalty not pro-
vided 
"When another civil penalty is not provided under this chapter, 
a person that 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 jurisdic-
tion under subchapter I or III of chapter 135 or a condition of 
a registration of a foreign motor carrier or foreign motor private 
carrier under section 13902, is liable to the United States for 
a civil penalty of $500 for each violation. A separate violation 
occurs 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 transportation or service subject 
to jurisdiction under chapter 135 that is a corporation is also 
99-194 O - 95 - 31: QL 3 Part 1 
109 STAT. 918 
PUBLIC LAW 104-88—DEC. 29, 1995 
a violation of this part by that corporation. The penalties of this 
chapter apply to that violation. When acting in the scope of their 
employment, the actions and omissions of individuals acting for 
or employed by that carrier are considered to be the actions and 
omissions of that carrier as well as that individual. 
"§ 14912. Weight-bumping in household goods transportation 
"(a) WEIGHT-BUMPING DEFINED.—For the purposes of this sec-
tion, 'weight-bumping' means the knowing and willful making or 
securing of a fraudulent weight on a shipment of household goods 
which is subject to jurisdiction under subchapter I or III of chapter 
135. 
"(b) PENALTY.—^Whoever has been found to have committed 
weight-bumping shall be fined under title 18 or imprisoned not 
more than 2 years, or both. 
"§ 14913. Conclusiveness of rates in certain prosecutions 
"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 carrier, 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. 
"§ 14914. Civil penalty procedures 
"(a) IN GENERAL.—^Affcer notice and an opportunity for a hear-
ing, a person found by the Surface Transportation Board to have 
violated a provision of law that the Board carries out or a regulation 
prescribed under that law by the Board that is related to transpor-
tation which occurs under subchapter II of chapter 135 for which 
a civil penalty is provided, is liable to the United States for the 
civil penalty provided. The amount of the civil penalty shall be 
assessed by the Board by written notice. In determining the amount 
of the penalty, the Board shall consider the nature, circumstances, 
extent, and gravity of the prohibited acts committed and, with 
respect to the violator, the degree of culpability, any history of 
prior offenses, ability to pay, and other matters that justice requires. 
"(b) COMPROMISE.—^The Board may compromise, modify, or 
remit, with or without consideration, a civil penalty until the assess-
ment is referred to the Attorney General. 
"(c) COLLECTION.—If a person fails to pay an assessment of 
a civil penalty after it has become final, the Board may refer 
the matter to the Attorney General for collection in an appropriate 
district court of the United States. 
"(d) REFUNDS.—^The Board may refund or remit a civil penalty 
collected under this section if— 
"(1) application has been made for refund or remission 
of the penalty within 1 year from the date of payment; and 
"(2) the Board finds that the penalty was unlawfully, 
improperly, or excessively imposed.". 
SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS. 
(a) GRANTS TO STATES.—Section 31102(b)(1) of title 49, United 
States Code, is amended— 
(1) by striking "and" at the end of subparagraph (O); 
(2) by striking the period at the end of subparagraph (P) 
and inserting in lieu thereof "; and"; and 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 919 
(3) by adding at the end the following: 
"(Q) ensures that the State will cooperate in the enforce-
ment of registration and financial responsibility requirements 
under sections 31140 and 31146, or regulations issued there-
under." 
(b) 
TRANSPORT 
VEHICLES 
FOR OFF-ROAD, 
COMPETITION 
VEHICLES.—Section 31111(b)(1) of such title is amended— 
(1) by striking "or" at the end of subparagraph (C); 
(2) by striking the period at the end of subparagraph (D) 
and inserting in lieu thereof a semicolon and "or"; and 
(3) by adding at the end thereof the following: 
"(E) imposes a limitation of less than 46 feet on the distance 
from the Idngpin to the center of the rear axle on trailers 
used exclusively or primarily in connection with motorsports 
competition events.". 
(c) MULTIPLE INSURERS.—Section 31138(c) of such title is 
amended by adding at the end 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.". 
(d) MINIMUM FINANCIAL RESPONSIBILITY REQUIREMENTS WITH 
RESPECT TO CERTAIN TRANSPORTATION SERVICE.—Section 31138(e) 
is amended— 
(1) by striking "or" at the end of paragraph (2); 
(2) by striking the period at the end of paragraph (3) 
and inserting in lieu thereof "; or"; and 
(3) by adding at the end the following: 
"(4) providing transportation service within a transit serv-
ice area under an agreement with a Federal, State, or local 
government funded, in whole or in part, with a grant under 
section 5307, 5310, or 5311, including transportation designed 
and carried out to meet the special needs of elderly individuals 
and individuals with disabilities; except that, in any case in 
which the transit service area is located in more than 1 State, 
the minimum level of financial responsibility for such motor 
vehicle will be at least the highest level required for any of 
such States.". 
(e) TRANSPORTERS OF PROPERTY.—Section 31139(e) of such title 
is amended by adding at the end 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.". 
(f) COMMERCIAL MOTOR VEHICLE DEFINED.—Section 31132(1) 
of such title is amended— 
(1) by redesignating subparagraph (C) as subparagraph 
(D); and 
(2) by striking subparagraph (B) and inserting in lieu 
thereof the following: 
"(B) is designed or used to transport passengers 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; 
"(C) is designed or used to transport more than 15 
passengers, including the driver, and is not used to trans-
port passengers for compensation; or". 
109 STAT. 920 
PUBLIC LAW 104-88—DEC. 29, 1995 
(g) SAFETY FITNESS OF OWNERS AND OPERATORS.—Section 
31144 of such title is amended— 
(1) in the first sentence of subsection (a) by striking "In 
cooperation with the Interstate Commerce Commission, the" 
and inserting in heu thereof "The"; 
(2) in such sentence by striking "sections 10922 and 10923" 
and inserting in Heu thereof "section 13902"; 
(3) in subsection (a)(1)(C) by striking "and the Commission"; 
and 
(4) by striking subsection (b) and inserting in lieu thereof 
the following: 
"(b) FINDINGS AND ACTION ON REGISTRATIONS.—The Secretary 
shall find that a person seeking to register as a motor carrier 
is unfit if such person does not meet the safety fitness requirements 
established under subsection (a) and shall not register such person.". 
49 use 13906 
(h) SELF-INSURANCE RULES.—^The Secretary of Transportation 
not^ 
shall continue to enforce the rules and regulations of the Interstate 
Commerce Commission, as in effect on July 1, 1995, governing 
the qualifications for approval 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 quali-
fied under the terms and conditions set by the Interstate Com-
merce Commission or Secretary at the time of qualification. 
5 u s e 8332 note. 
SEC. 105. CREDITABILITY OF ANNUAL LEAVE FOR PURPOSES OF 
MEETING MINIMUM ELIGIBILITY REQUIREMENTS FOR AN 
IMMEDIATE ANNUITY. 
(a) IN GENERAL.—^An employee of the Interstate Commerce 
Commission who is separated from Government service pursuant 
to the abolition of that agency under section 101 shall, upon appro-
priate written application, be given credit, for purposes of determin-
ing eligibility for and computing the amount of any annuity under 
subchapter III of chapter 83 or chapter 84 of title 5, United States 
Code, for accrued annual leave standing to such employee's credit 
at the time of separation. 
Regulations. 
(b) LIMITATION AND OTHER CONDITIONS.—^Any regulations nec-
essary to carry out this section shall be prescribed by the Office 
of Personnel Management. Such regulations shall include provi-
sions— 
(1) defining the types of leave for which credit may be 
given under this section (such definition to be similar to the 
corresponding provisions of the regulations under section 
351.608(c)(2) of title 5 of the Code of Federal Regulations, 
as in effect on the date of the enactment of this Act); 
(2) limiting the amount of accrued annual leave which 
may be used for the purposes specified in subsection (a) to 
the minimum period of time necessary in order to permit such 
employee to attain first eligibility for an immediate annuity 
under section 8336, 8412, or 8414 of title 5, United States 
Code (in a manner similar to the corresponding provisions 
of the regulations referred to in paragraph (1)); 
(3) under which contributions (or arrangements for the 
making of contributions) shall be made so that— 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 921 
(A) employee contributions for any period of leave for 
which retirement credit may be obtained under this section 
shall be made by the employee; and 
(B) Government contributions with respect to such 
period shall similarly be made by the Interstate Commerce 
Commission or other appropriate officer or entity (out of 
appropriations otherwise available for such contributions); 
and 
(4) under which subsection (a) shall not apply with respect 
to an employee who declines a reasonable offer of employment 
in another position in the Department of Transportation made 
under this Act or any amendment made by this Act. 
(c) EXTINGUISHMENT OF ELIGIBILITY FOR LUMP-SUM PAYMENT.— 
A lump-sum payment under section 5551 of title 5, United States 
Code, shall not be payable with respect to any leave for which 
retirement credit is obtained under this section. 
SEC. 106. PIPELINE CARRIER PROVISIONS. 
(a) AMENDMENT TO TITLE 49.—Subtitle IV of title 49, United 
States Code, is further amended by adding at the end the following: 
"PART C—PIPELINE CARRIERS 
"CHAPTER 151—GENERAL PROVISIONS 
"CHAPTER 151—GENERAL PROVISIONS 
"Sec. 
"15101. Transportation policy. 
"15102. Definitions. 
"15103. Remedies as cumulative. 
"§ 15101. Transportation policy 
"(a) IN GENERAL.—^To ensure the development, coordination, 
and preservation of a transportation system that meets the 
transportation needs of the United States, including the national 
defense, it is the policy of the United States Government to oversee 
of the modes of transportation and in overseeing those modes— 
"(1) to recognize and preserve the inherent advantage of 
each mode of transportation; 
"(2) to promote safe, adequate, economical, and efficient 
transportation; 
"(3) to encourage sound economic conditions in transpor-
tation, including sound economic conditions among carriers; 
"(4) to encourage the establishment and maintenance of 
reasonable rates for transportation without 
unreasonable 
discrimination or unfair or destructive competitive practices; 
"(5) to cooperate with each State and the officials of each 
State on transportation matters; and 
"(6) to encourage fair wages and working conditions in 
the transportation industry. 
"(b) ADMINISTRATION TO CARRY OUT POLICY.—^This part shall 
be administered and enforced to carry out the policy of this section. 
"§ 15102. Definitions 
"In this part— 
"(1) BOARD.—^The term 'Board' means the Surface Transpor-
tation Board. 
"(2) PIPELINE CARRIER.—^The term 'pipeline carrier' means 
a person providing pipeline transportation for compensation. 
109 STAT. 922 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(3) RATE.—^The term 'rate' means a rate or charge for 
transportation. 
"(4) STATE.—The term 'State' means a State of the United 
States and the District of Columbia. 
"(5) 
TRANSPORTATION.—^The 
term 
'transportation' 
includes— 
"(A) property, facilities, instrumentalities, or equip-
ment of any kind related to the movement of property, 
regardless of ownership or an agreement concerning use; 
and 
"(B) services related to that movement, including 
receipt, delivery, transfer in transit, storage, handling, and 
interchange of property. 
"(6) UNITED STATES.—^The term 'United States' means the 
States of the United States and the District of Columbia. 
"§ 15103. Remedies as cumulative 
"Except as otherwise provided in this part, the remedies pro-
vided under this part are in addition to remedies existing under 
another law or common law. 
"CHAPTER 153-.JURISDICTION 
"CHAPTER 1 5 3 ^ I U R I S D I C T I 0 N 
"Sec. 
"15301. General pipeline jurisdiction. 
"15302. Authority to exempt pipeline carrier transportation. 
"§ 15301. General pipeline jurisdiction 
"(a) IN GENERAL.—^The Board has jurisdiction over transpor-
tation by pipeline, or by pipeline and railroad or water, when 
transporting a commodity other than water, gas, or oil. Jurisdiction 
under this subsection applies only to transportation in the United 
States between a place in— 
"(1) a State and a place in another State; 
"(2) the District of Columbia and another place in the 
District of Columbia; 
"(3) a State and a place in a territory or possession of 
the United States; 
"(4) a territory or possession of the United States and 
a place in another such territory or possession; 
"(5) a territory or possession of the United States and 
another place in the same territory or possession; 
"(6) the United States and another place in the United 
States through a foreign country; or 
"(7) the United States and a place in a foreign country. 
"(b) No JURISDICTION OVER INTRASTATE TRANSPORTATION.— 
The Board does not have jurisdiction under subsection (a) over 
. the transportation of property, or the receipt, delivery, storage, 
or handling of property, entirely in a State (other than the District 
of Columbia) and not transported between a place in the United 
States and a place in a foreign country except as otherwise provided 
in this part. 
"(c) PROTECTION OF STATES POWERS.—^This part does not affect 
the power of a State, in exercising its police power, to require 
reasonable intrastate transportation by carriers providing transpor-
tation subject to the jurisdiction of the Board under this chapter 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 923 
unless the State requirement is inconsistent with an order of the 
Board issued under this part or is prohibited under this part. 
"§ 15302. Authority to exempt pipeline carrier transportation 
"(a) IN GENERAL—In a matter related to a pipeline carrier 
providing transportation subject to jurisdiction under this chapter, 
the Board shall exempt a person, class of persons, or a transaction 
or service when the Board finds that the application, in whole 
or in part, of a provision of this part— 
"(1) is not necessary to carry out the transportation policy 
of section 15101; and 
"(2) either (A) the transaction or service is of limited scope, 
or (B) the application, in whole or in part, of the provision 
is not needed to protect shippers from the abuse of market 
power. 
"(b) INITIATION OF PROCEEDING.—^The Board may, where appro-
priate, begin a proceeding under this section on its own initiative 
or an interested party. 
"(c) PERIOD OF EXEMPTION.—^The Board may specify the period 
of time during which an exemption granted under this section 
is effective. 
"(d) REVOCATION.—^The Board may revoke an exemption, to 
the extent it specifies, when it finds that application, in whole 
or in part, of a provision of this part to the person, class, or 
transportation is necessary to carry out the transportation policy 
of section 15101. 
"CHAPTER 155~RATES 
"Sec. 
"15501. Standards for pipeline rates, classifications, through routes, rules, and prac-
tices. 
"15502. Authority for pipeline carriers to establish rates, classifications, rules, and 
practices. 
"15503. Authority and criteria: rates, classifications, rules, and practices prescribed 
by Board. 
"15504. Government traffic. 
"15505. Prohibition against discrimination by pipeline carriers. 
"15506. Facilities for interchange of traffic. 
"§ 15501. Standards 
for 
pipeline 
rates, 
classiHcations, 
through routes, rules, and practices 
"(a) REASONABLENESS.—^A rate, classification, rule, or practice 
related to transportation or service provided by a pipeline carrier 
subject to this part must be reasonable. A through route established 
by such a carrier must be reasonable. 
"(b) 
NONDISCRIMINATION.—^A 
pipeline 
carrier 
providing 
transportation subject to this part may not discriminate in its 
rates against a connecting line of any other pipeline, rail, or water 
carrier providing transportation subject to this subtitle or unreason-
ably discriminate against that line in the distribution of traffic 
that is not routed specifically by the shipper. 
"§ 15502. Authority for pipeline carriers to establish rates, 
classiHcations, rules, and practices 
"A pipeline carrier providing transportation or service subject 
to this part shall establish— 
"(1) rates and classifications for transportation and service 
it may provide under this part; and 
109 STAT. 924 
PUBLIC LAW 104-88—DEC. 29, 1995 
"(2) rules and practices on matters related to that transpor-
tation or service. 
"§ 15503. Authority and criteria: rates, classifications, rules, 
and practices prescribed by Board 
"(a) IN GENERAL.—^When the Board, after a full hearing, decides 
that a rate charged or collected by a pipeline carrier for transpor-
tation subject to this part, or that a classification, rule, or practice 
of that carrier, does or will violate this part, the Board may pre-
scribe the rate, classification, rule, or practice to be followed. In 
prescribing the rate, classification, rule, or practice, the Board may 
utilize rate reasonableness procedures that provide an effective 
simulation of a market-based price for a stand alone pipeline. 
The Board may order the carrier to stop the violation. When a 
rate, classification, rule, or practice is prescribed under this sub-
section, the affected carrier may not publish, charge, or collect 
a different rate and shall adopt the classification and observe the 
rule or practice prescribed by the Board. 
"(b) FACTORS TO CONSIDER.—When prescribing a rate, classi-
fication, rule, or practice for transportation or service by a pipeline 
carrier, the Board shall consider, among other factors— 
"(1) the effect of the prescribed rate, classification, rule, 
or practice on the movement of traffic by that carrier; 
"(2) the need for revenues that are sufficient, under honest, 
economical, and efficient management, to let the carrier provide 
that transportation or service; and 
"(3) the availability of other economic transportation alter-
natives. 
"(c) PROCEEDING.—^The Board may begin a proceeding under 
this section on complaint. A complaint under this section must 
contain a full statement of the facts and the reasons for the com-
plaint and must be made under oath. 
"§ 15504. Government traffic 
"A pipeline carrier providing transportation or service for the 
United States Government may transport property for the United 
States Government without charge or at a rate reduced from the 
applicable commercial rate. Section 3709 of the Revised Statutes 
(41 U.S.C. 5) does not apply when transportation for the United 
States Government can be obtained from a carrier lawfully operat-
ing in the area where the transportation would be provided. 
"§ 15505. Prohibition against discrimination by pipeline car-
riers 
A pipeline carrier providing transportation or service subject 
to this part may not subject a person, place, port, or type of 
traffic to unreasonable discrimination. 
"§ 15506. Facilities for interchange of traffic 
"A pipeline carrier providing transportation subject to this part 
shall provide reasonable, proper, and equal facilities that are within 
its power to provide for the interchange of traffic between, and 
for the receiving, forwarding, and delivering of property to and 
from, its respective line and a connecting line of a pipeline, rail, 
or water carrier under this subtitle. 
PUBLIC I^.W 104-88—DEC. 29, 1995 
109 STAT. 925 
"CHAPTER 157—OPERATIONS OF CARRIERS 
"CHAPTER 157—OPERATIONS OF CARRIERS 
"SUBCHAPTER A—GENERAL REQUIREMENTS 
"Sec. 
' 
"15701. Providing transportation and service. 
"SUBCHAPTER B—OPERATIONS OF CARRIERS 
"15721. Definitions. 
"15722. Records: form; inspection; preservation. 
"15723. Reports by carriers, lessors, and associations. 
"SUBCHAPTER A—GENERAL REQUIREMENTS 
"§ 15701. Providing transportation and service 
"(a) SERVICE ON REASONABLE REQUEST.—^A pipeline carrier 
providing transportation or service under this part shall provide 
the transportation or service on reasonable request. 
"(b) RATES AND OTHER TERMS.—^A pipeline carrier shall also 
provide to any person, on request, the carrier's rates and other 
service terms. The response by a pipeline carrier to a request 
for the carrier's rates and other service terms shall be— 
"(1) in writing and forwarded to the requesting person 
promptly after receipt of the request; or 
"(2) promptly made available in electronic form. 
"(c) LIMITATION ON RATE INCREASES AND CHANGES TO SERVICE 
TERMS.—^A pipeline carrier may not increase any common carrier 
rates or change any common carrier service terms unless 20 days 
have expired after written or electronic notice is provided to any 
person who, within the previous 12 months— 
"(1) has requested such rates or terms under subsection 
(b); or 
"(2) has made arrangements with the carrier for a shipment 
that would be subject to such increased rates or changed terms. 
"(d) PROVISION OF SERVICE.—^A pipeline carrier shall provide 
transportation or service in accordance with the rates and service 
terms, and any changes thereto, as published or otherwise made 
available under subsection (b) or (c). 
"(e) REGULATIONS.—The Board shall, by regulation, establish 
rules to implement this section. The regulations shall provide for 
immediate disclosure and dissemination of rates and service terms, 
including classifications, rules, and practices, and their effective 
dates. The regulations may modify the 20-day period specified in 
subsection (c). Final regulations shall be adopted by the Board 
not later than 180 days after the effective date of this section. 
"SUBCHAPTER B—OPERATIONS OF CARRIERS 
"§ 15721. Definitions 
"In this subchapter, the following definitions apply: 
"(1) CARRIER, LESSOR.—The terms 'carrier' and 'lessor* 
include a receiver or trustee of a pipeline carrier and lessor, 
respectively. 
"(2) LESSOR.—^The term 'lessor' means a person owning 
a pipeline that is leased to and operated by a carrier providing 
transportation under this part. 
"(3) 
ASSOCIATION.—^The term 
'association' 
means an 
organization maintained by or in the interest of a group of 
109 STAT. 926 
PUBLIC LAW 104-88—DEC. 29, 1995 
pipeline carriers that performs a service, or engages in activi-
ties, related to transportation under this part. 
"§ 15722. Records: form; inspection; preservation 
"(a) FORM OF RECORDS.—^The Board may prescribe the form 
of records required to be prepared or compiled under this subchapter 
by pipeline carriers and lessors, including records related to move-
ment of traffic and receipts and expenditures of money. 
"(b) INSPECTION.—^The Board, or an employee designated by 
the Board, may on demand and display of proper credentials— 
"(1) inspect and examine the lands, buildings, and equip-
ment of a pipeline carrier or lessor; and 
"(2) inspect and copy any record of— 
"(A) a pipeline carrier, lessor, or association; and 
"(B) a person controlling, controlled by, or under com-
mon control with a pipeline carrier if the Board considers 
inspection relevant to that person's relation to, or trans-
action with, that carrier. 
"(c) PRESERVATION PERIOD.—^The Board may prescribe the time 
period during which operating, accounting, and financial records 
must be preserved by pipeline carriers and lessors. 
''§ 15723. Reports by carriers, lessors, and associations 
"(a) FILING OF REPORTS.—^The Board may require pipeline car-
riers, lessors, and associations, or classes of them as the Board 
may prescribe, to file annual, periodic, and special reports with 
the Board containing answers to questions asked by it. 
"(b) UNDER OATH.—^Any report under this section shall be made 
under oath. 
"CHAPTER 159—ENFORCEMENT: INVESTIGATIONS, 
RIGHTS, AND REMEDIES 
"CHAPTER 159—ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND 
REMEDIES 
"Sec. 
"15901. General authority. 
"15902. Enforcement by the Board. 
"15903. Enforcement by the Attorney General. 
"15904. Rights and remedies of persons injured by certain carriers. 
"15905. Limitation on actions by and against pipeline carriers. 
"15906. Liability of pipeline carriers under receipts and bills of lading. 
"15907. Liability when property is delivered in violation of routing instructions. 
"§ 15901. General authority 
"(a) INVESTIGATION; COMPLIANCE ORDER.—Except as otherwise 
provided in this part, the Board may begin an investigation under 
this part only on complaint. If the Board finds that a pipeline 
carrier is violating this part, the Board shall take appropriate 
action to compel compliance with this part. The Board shall provide 
the carrier notice of the investigation and an opportunity for a 
proceeding. 
"(b) COMPLAINT.—^A person, including a governmental author-
ity, may file with the Board a complaint about a violation of this 
part by a pipeline carrier providing transportation or service subject 
to this part. The complaint must state the facts that are the 
subject of the violation. The Board may dismiss a complaint it 
determines does not state reasonable grounds for investigation and 
action. However, the Board may not dismiss a complaint made 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 927 
against a pipeline carrier providing transportation subject to this 
part because of the absence of direct damage to the complainant. 
"(c) AUTOMATIC DISMISSAL.—^A formal investigative proceeding 
begun by the Board under subsection (a) is dismissed automatically 
unless it is concluded by the Board with administrative finality 
by the end of the 3d year after the date on which it was begun. 
"§ 15902. Enforcement by the Board 
"The Board may bring a civil action to enforce an order of 
the Board, except a civil action to enforce an order for the payment 
of money, when it is violated by a pipeline carrier providing 
transportation subject to this part. 
"§ 15903. Enforcement by the Attorney General 
"(a) O N BEHALF OF BOARD.—^The Attorney General may, and 
on request of the Board shall, bring court proceedings to enforce 
this part or a regulation or order of the Board and to prosecute 
a person violating this part or a regulation or order of the Board 
issued under this part. 
"(b) O N BEHALF OF OTHERS.—The United States Government 
may bring a civil action on behalf of a person to compel a pipeline 
carrier providing transportation or service subject to this part to 
provide that transportation or service lo that person in compliance 
with this part at the same rate charged, or on conditions as favor-
able as those given by the carrier, for like traffic under similar 
conditions to another person. 
"§ 15904. Rights and remedies of persons injured by pipeline 
carriers 
"(a) ENFORCEMENT OF ORDERS.—^A person injured because a 
pipeline carrier providing transportation or service subject to this 
part does not obey an order of the Board, except an order for 
the payment of money, may bring a civil action to enforce that 
order under this subsection. 
"(b) LIABILITY OF CARRIER.— 
"(1) EXCESSIVE CHARGES.—A pipeline carrier providing 
transportation subject to this part is liable to a person for 
amounts charged that exceed the applicable rate for the 
transportation. 
"(2) DAMAGES.—^A pipeline carrier providing transportation 
subject to this part is liable for damages sustained by a person 
as a result of an act or omission of that carrier in violation 
of this part. 
"(c) COMPLAINTS.— 
"(1) FILING.—^A person may file a complaint with the Board 
under section 11501(b) or bring a civil action under subsection 
(b) to enforce liability against a pipeline carrier providing 
transportation subject to this part. 
"(2) PAYMENT DEi-dJLiNE.—^When the Board makes an award 
under subsection (b), the Board shall order the carrier to pay 
the amount awarded by a specific date. The Board may order 
a carrier providing transportation subject to this part to pay 
damages only when the proceeding is on complaint. The person 
for whose benefit an order of the Board requiring the payment 
of money is made may bring a civil action to enforce that 
order under this paragraph if the carrier does not pay the 
amount awarded by the date payment was ordered to be made. 
109 STAT. 928 
PUBLIC LAW 104-88—DEC. 29, 1995 
Courts. 
Claims. 
"(d) CIVIL ACTIONS.— 
"(1) COMPLAINT.—^When a person begins a civil action under 
subsection (b) to enforce an order of the Board requiring the 
payment of damages by a pipeline carrier providing transpor-
tation subject to this part, the text of the order of the Board 
must be included in the complaint. In addition to the district 
courts of the United States, a State court of general jurisdiction 
having jurisdiction of the parties has jurisdiction to enforce 
an order under this paragraph. The findings and order of the 
Board are competent evidence of the facts stated in them. 
Trial in a civil action brought in a district court of the United 
States under this paragraph is in the judicial district in which 
the plaintiff resides or in which the principal operating office 
of the carrier 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) ATTORNEY'S FEES.—^The district court shall award a 
reasonable attorney's fee as a part of the damages for which 
a carrier is found liable under this subsection. The district 
court shall tax and collect that fee as a part of the costs 
of the action. 
'*§ 15905. Limitation on actions by and against pipeline car-
riers 
"(a) IN GENERAL.—^A pipeline carrier providing transportation 
or service subject to this part must begin a civil action to recover 
charges for transportation or service provided by the carrier within 
3 years after the claim accrues. 
"(b) OVERCHARGES.—^A person must begin a civil action to 
recover overcharges under section 15904(b)(1) within 3 years after 
the claim accrues. If an election to file a complaint with the Board 
is made under section 15904(c)(1), the complaint must be filed 
within 3 years after the claim accrues. 
"(c) DAMAGES.—^A person must file a complaint with the Board 
to recover damages under section 15904(b)(2) within 2 years after 
the claim accrues. 
"(d) EXTENSIONS.—The limitation periods under subsection (b) 
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 specified in the notice if a written claim is given to the 
carrier within those limitation periods. The limitation periods under 
subsection (b) and the 2-year period under subsection (c) are 
extended for 90 days from the time the carrier begins a civil 
action under subsection (a) 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 Board against a carrier for the payment of money 
within one year after the date the order required the money to 
be paid. 
"(f) GOVERNMENT TRANSPORTATION.—^This section applies to 
transportation for the United States Government. The time limita-
tions under this section are extended, as related to transportation 
for or on behalf of the United States Government, for 3 years 
from the date of— 
PUBLIC Li\W 104-88—DEC. 29, 1995 
109 STAT. 929 
"(1) payment of the rate for the transportation or service 
involved, 
"(2) subsequent refund for overpayment of that rate, or 
"(3) deduction made under section 3726 of title 31, 
whichever is later. 
"(g) ACCRUAL DATE.—^A claim related to a shipment of property 
accrues under this section on delivery or tender of delivery by 
the carrier. 
"§ 15906. Liability of pipeline carriers under receipts and 
bills of lading 
"(a) GENERAL LIABILITY.—^A pipeline carrier providing transpor-
tation or service subject to this part shall issue a receipt or bill 
of lading for property it receives for transportation under this 
part. That carrier and any other carrier that delivers the property 
and is providing transportation or service subject to jurisdiction 
under this part are liable to the person entitled to recover under 
the receipt or bill of lading. The liability imposed under this sub-
section is for the actual loss or injury to the property caused 
by the 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 through bill of lading. Failure to issue a receipt or bill of lading 
does not affect the liability of a carrier. 
"(b) APPORTIONMENT.—^The carrier issuing the receipt or bill 
of lading under subsection (a) 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) CIVIL ACTIONS.—^A civil action under this section may be 
brought against a delivering carrier in a district 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 defendant 
carrier operates a line or route. 
"(d) MINIMUM PERIOD FOR FILING CLAIMS.—A pipeline carrier 
may not provide by rule, contract, or otherwise, a period of less 
than 9 months for filing a claim against it under this section 
and a period of less than 2 years for bringing a civil action against 
it under this section. The period for bringing a civil action is 
computed from the date the carrier gives a person written notice 
that the carrier has disallowed any part of the claim specified 
in the notice. For the purposes of this subsection— 
"(1) an offer of compromise shall not constitute a disallow-
ance of any part of the claim unless the carrier, in writing, 
informs the claimant that such part of the claim is disallowed 
and provides reasons for such disallowance; and 
"(2) communications received from a carrier's insurer shall 
not constitute a disallowance of any part of the claim unless 
the insurer, in writing, informs the claimant that such part 
of the claim is disallowed, provides reasons for such disallow-
ance, and informs the claimant that the insurer is acting on 
behalf of the carrier. 
109 STAT. 930 
PUBLIC LAW 104-88—DEC. 29, 1995 
"CHAPTER 161—CIVIL AND CRIMINAL PENALTIES 
"CHAPTER 161—CIVIL AND CRIMINAL PENALTIES 
"Sec. 
"16101. General civil penalties. 
"16102. Recordkeeping and reporting violations. 
"16103. Unlawful disclosure of information. 
"16104. Disobedience to subpenas. 
"16105. General criminal penalty when specific penalty not provided. 
"16106. Punishment of corporation for violations committed by certain individuals. 
"§ 16101. General civil penalties 
"(a) GENERAL.—Except as otherwise provided in this section, 
a pipehne carrier providing transportation subject to this part, 
an officer or agent of that carrier, or a receiver, trustee, lessee, 
or agent of one of them, knowingly violating this part or an order 
of the Board under this part is liable to the United States for 
a civil penalty of not more than $5,000 for each violation. Liability 
under this subsection is incurred for each distinct violation. A 
separate violation occurs for each day the violation continues. 
"(b) RECORDKEEPING AND REPORTING.— 
"(1) RECORDS.—^A person required under chapter 157 to 
make, prepare, preserve, or submit to the Board a record 
concerning transportation subject to this part that does not 
make, prepare, preserve, or submit that record as required 
under that chapter, is liable to the United States for a civil 
penalty of $500 for each violation. 
"(2) INSPECTION.—^A carrier providing transportation sub-
ject to this part, and a lessor, receiver, or trustee of that 
carrier, violating section 15722, is liable to the United States 
for a civil penalty of $100 for each violation. 
"(3) REPORTS.—^A carrier providing transportation subject 
to the jurisdiction of the Board under this part, a lessor, 
receiver, or trustee of that carrier, and an officer, agent, or 
employee of one of them, required to make a report to the 
Board or answer a question that does not make the report 
or does not specifically, completely, and truthfully answer the 
question, is liable to the United States for a civil penalty 
of $100 for each violation. 
"(4) CONTINUED VIOLATION.—^A separate violation occurs 
for each day violation under this subsection continues. 
"(d) VENUE.—^Trial in a civil action under this section is in 
the judicial district in which the carrier has its principal operating 
office. 
"§ 16102. Recordkeeping and reporting violations 
"A person required to make a report to the Board, or make, 
prepare, or preserve a record, under chapter 157 about transpor-
tation subject to this part that knowingly and willfully— 
"(1) makes a false entry in the report or record, 
"(2) destroys, mutilates, changes, or by another means fal-
sifies the record, 
"(3) does not enter business related facts and transactions 
in the record, 
"(4) makes, prepares, or preserves the record in violation 
of a regulation or order of the Board, or 
"(5) files a false report or record with the Board, 
shall be fined under title 18 or imprisoned not more than 2 years, 
or both. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 931 
^
*
§ 16103. Unlawful disclosure of information 
"(a) GENERAL PROHIBITION.—^A pipeline carrier 
providing 
transportation subject to this part, or an officer, agent, or employee 
of that carrier, or another person authorized to receive information 
from that carrier, that knowingly discloses to another person, except 
the shipper or consignee, or a person who solicits or knowingly 
receives information about the nature, kind, quantity, destination, 
consignee, or routing of property tendered or delivered to that 
carrier for transportation provided 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, is liable to the United States for a civil penalty 
of not more than $1,000. 
"(b) LIMITATION ON STATUTORY CONSTRUCTION.—^This part does 
not prevent a pipeline carrier providing transportation under this 
part from giving information— 
"(1) in response to legal process issued under authority 
of a court of the United States or a State; 
"(2) to an officer, employee, or agent of the United States 
CJovernment, 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. 
"(c) BOARD EMPLOYEE.—^An employee of the Board delegated 
to make an inspection or examination under section 15722 who 
knowingly discloses information acquired during that inspection 
or examination, except as directed by the Board, a court, or a 
judge of that court, shall be fined under title 18 or imprisoned 
for not more than 6 months, or both. 
"§ 16104. Disobedience to subpenas 
"Whoever does not obey a subpena or requirement of the Board 
to appear and testify or produce records shall be fined under title 
18 or imprisoned not more than 1 year, or both. 
"§ 16105. General criminal penalty when specific penalty not 
provided 
"When another criminal penalty is not provided under this 
chapter, a pipeline carrier providing transportation subject to this 
part, and when that carrier is a corporation, a director or officer 
of the corporation, or a receiver, trustee, lessee, or person acting 
for or employed by the corporation that, alone or with another 
person, willfully violates this part or an order prescribed under 
this part, shall be fined under title 18 or imprisoned not more 
than 2 years, or both. A separate violation occurs each day a 
violation of this part continues. 
"§ 16106. Punishment of corporation for violations committed 
by certain individuals 
"An act or omission that would be a violation of this subtitle 
if committed by a director, officer, receiver, trustee, lessee, agent, 
or employee of a pipeline carrier providing transportation or service 
subject to this part that is a corporation is also a violation of 
this part by that corporation. The penalties of this chapter apply 
to that violation. When acting in the scope of their employment, 
the actions and omissions of individuals acting for or employed 
109 STAT. 932 
PUBLIC LAW 104-88—DEC. 29, 1995 
49 u s e 15101 
note. 
by that carrier are considered to be the actions and omissions 
of that carrier as well as that individual.". 
(b) GAO REPORT.—^Within 3 years after the effective date of 
this Act, the Comptroller General shall transmit to the Committee 
on Commerce, Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report regarding the impact of regulations under 
part C of title 49, United States Code, on the competitiveness 
of pipelines and recommend whether to continue, revise, or sunset 
such regulations. Congress shall take into account the findings 
of this report when considering the Board's reauthorization. 
TITLE II—SURFACE TRANSPORTATION 
BOARD 
SEC. 201. TITLE 49 AMENDMENT. 
(a) AMENDMENT.—Subtitle I of title 49, United States 
is amended by adding at the end the following new chapter: 
Code, 
"CHAPTER 
7—SURFACE 
TRANSPORTATION BOARD 
"SUBCHAPTER I—ESTABLISHMENT 
"Sec. 
"701. Establishment of Board. 
"702. Functions. 
"703. Administrative provisions. 
"704. Annual report. 
"705. Authorization of appropriations. 
"706. Reporting official action. 
"SUBCHAPTER II—ADMINISTRATIVE 
"721. Powers. 
"722. Board action. 
"723. Service of notice in Board proceedings. 
"724. Service of process in court proceedings. 
"725. Administrative support. 
"726. Railroad-Shipper Transportation Advisory Council. 
"727. Definitions. 
President. 
"SUBCHAPTER I—ESTABLISHMENT 
"§ 701. Establishment of Board 
"(a) ESTABLISHMENT.—^There is hereby established within the 
Department of Transportation the Surface Transportation Board. 
"(b) MEMBERSHIP.—(1) The Board 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 Board shall 
be individuals with professional standing and demonstrated knowl-
edge in the fields of transportation or transportation regulation, 
and at least one member shall be an individual with professional 
or business experience (including agriculture) in the private sector. 
"(3) The term of each member of the Board shall be 5 years 
and shall begin when the term of the predecessor of that member 
ends. An individual appointed to fill a vacancy occurring before 
the expiration of the term for which the predecessor of that individ-
ual was appointed, shall be appointed for the remainder of that 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 933 
term. When the term of office of a member ends, the member 
may continue to serve until a successor is appointed and quahfied, 
but for a period not to exceed one year. The President may remove 
a member for inefficiency, neglect of duty, or malfeasance in office. 
"(4) On the effective date of this section, the members of the 
Interstate Commerce Commission serving unexpired terms on the 
date of the enactment of the ICC Termination Act of 1995 shall 
become members of the Board, to serve for a period of time equal 
to the remainder of the term for which they were originally 
appointed to the Interstate Commerce Commission. Any member 
of the Interstate Commerce Commission whose term expires on 
December 31, 1995, shall become a member of the Board, subject 
to paragraph (3). 
"(5) No individual may serve as a member of the Board for 
more than 2 terms. In the case of an individual who becomes 
a member of the Board pursuant to paragraph (4), or an individual 
appointed to fill a vacancy occurring before 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. 
"(6) A member of the Board may not have a pecuniary 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 Board does not impair 
the right of the remaining members to exercise all of the powers 
of the Board. The Board may designate a member to act as Chair-
man during any period in which there is no Chairman designated 
by the President. 
"(c) CHAIRMAN.—(1) There shall be at the head of the Board President. 
a Chairman, who shall be designated by the President from among 
the members of the Board. The Chairman shall receive compensa-
tion at the rate prescribed for level III of the Executive Schedule 
under section 5314 of title 5. 
"(2) Subject to the general policies, decisions, findings, and 
determinations of the Board, the Chairman shall be responsible 
for administering the Board. The Chairman may delegate the pow-
ers granted under this paragraph to an officer, employee, or office 
of the Board. The Chairman shall— 
"(A) appoint and supervise, other than regular and full-
time employees in the immediate offices of another member, 
the officers and employees of the Board, including attorneys 
to provide legal aid and service to the Board and its members, 
and to represent the Board in any case in court; 
"(B) appoint the heads of offices with the approval of the 
Board; 
"(C) distribute Board business among officers and employ-
ees and offices of the Board; 
"(D) prepare requests for appropriations for the Board and 
submit those requests to the President and Congress with 
the prior approval of the Board; and 
"(E) supervise the expenditure of funds allocated by the 
Board for major programs and purposes. 
"§ 702. Functions 
"Except as otherwise provided in the ICC Termination Act 
of 1995, or the amendments made thereby, the Board shall perform 
109 STAT. 934 
PUBLIC LAW 104-88—DEC. 29, 1995 
all functions that, immediately before the effective date of such 
Act, were functions of the Interstate Commerce Commission or 
were performed by any officer or employee of the Interstate Com-
merce Commission in the capacity as such officer or employee. 
"§ 703. Administrative provisions 
"(a) EXECUTIVE REORGANIZATION.—Chapter 9 of title 5, United 
States Code, shall apply to the Board in the same manner as 
it does to an independent regulatory agency, and the Board shall 
be an establishment of the United States Government. 
"(b) OPEN MEETINGS.—For purposes of section 552b of title 
5, United States Code, the Board shall be deemed to be an agency. 
"(c) INDEPENDENCE.—In the performance of their functions, the 
members, employees, and other personnel of the Board 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 Chairman of the Board may appear for, and represent the 
Board in, any civil action brought in connection with any function 
carried out by the Board pursuant to this chapter or subtitle IV 
or as otherwise authorized by law. 
"(e) ADMISSION TO PRACTICE.—Subject to section 500 of title 
5, the Board may regulate the admission of individuals to practice 
before it and may impose a reasonable admission fee. 
"(f) BUDGET REQUESTS.—In each annual request for appropria-
tions by the President, the Secretary of Transportation shall identify 
the portion thereof intended for the support of the Board and 
include a statement by the Board— 
"(1) showing the amount requested by the Board in its 
budgetary presentation to the Secretary and the Office of 
Management and Budget; and 
"(2) an assessment of the budgetary needs of the Board. 
"(g) DIRECT TRANSMITTAL TO CONGRESS.—^The Board shall 
transmit to Congress copies of budget estimates, requests, and 
information (including personnel needs), legislative recommenda-
tions, prepared testimony for congressional hearings, and comments 
on legislation at the same time they are sent to the Secretary 
of Transportation. An officer of an agency may not impose conditions 
on or impair communications by the Board with Congress, or a 
committee or Member of Congress, about the information. 
"§ 704. Annual report 
"The Board shall annually transmit to the Congress a report 
on its activities. 
'*§ 705. Authorization of appropriations 
"There are authorized to be appropriated for the activities 
of the Board— 
"(1) $8,421,000 for fiscal year 1996; 
"(2) $12,000,000 for fiscal year 1997; and 
"(3) $12,000,000 for fiscal year 1998. 
"§ 706. Reporting official action 
"(a) REPORTS ON PROCEEDINGS.—^The Board shall make a writ-
ten report of each proceeding conducted on complaint or on its 
own initiative and furnish a copy to each party to that proceeding. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 935 
The report shall include the findings, conclusions, and the order 
of the Board and, if damages are awarded, the findings of fact 
supporting the award. The Board may have its reports published 
for public use. A published report of the Board is competent evidence 
of its contents. 
"(b) SPECIAL RULES FOR MATTERS RELATED TO RAIL CARRIERS.— 
(1) When action of the Board in a matter related to a rail carrier 
is taken by the Board, an individual member of the Board, or 
another individual or group of individuals designated to take official 
action for the Board, the written statement of that action (including 
a report, order, decision and order, vote, notice, letter, policy state-
ment, or regulation) shall indicate— 
"(A) the official designation of the individual or group tak-
ing 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) does not participate in it, the 
written statement of the action shall indicate that the member 
did not participate. 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. 
"SUBCHAr»TER II—ADMINISTRATIVE 
"§721. Powers 
"(a) IN GENERAL.—^The Board shall carry out this chapter and 
subtitle IV. Enumeration of a power of the Board in this chapter 
or subtitle IV does not exclude another power the Board may 
have in carrying out this chapter or subtitle IV. The Board may 
prescribe regulations in carrying out this chapter and subtitle IV. 
"(b) INQUIRIES, REPORTS, AND ORDERS.—The Board may— 
"(1) inquire into and report on the management of the 
business of carriers providing transportation and services sub-
ject to subtitle rV; 
"(2) inquire into and report on the management of the 
business of a person controlling, controlled by, or under common 
control with those carriers to the extent that the business 
of that person is related to the management of the business 
of that carrier; 
"(3) obtain from those carriers and persons information 
' 
the Board decides is necessary to carry out subtitle IV; and 
"(4) when necessary to prevent irreparable harm, issue 
an appropriate order without regard to subchapter II of chapter 
5 of title 5. 
"(c) SUBPOENA WITNESSES.—(1) The Board may subpoena wit-
nesses and records related to a proceeding of the Board from any 
place in the United States, to the designated place of the proceeding. 
If a witness disobeys a subpoena, the Board, or a party to a 
proceeding before the Board, may petition a court of the United 
States to enforce that subpoena. 
"(2) The district courts of the United States have jurisdiction Courts, 
to enforce a subpoena issued under this section. Trial is in the 
109 STAT. 936 
PUBLIC LAW 104-88—DEC. 29, 1995 
district in which the proceeding is conducted. The court may punish 
a refusal to obey a subpoena as a contempt of court. 
"(d) DEPOSITIONS.—(1) In a proceeding, the Board may take 
the testimony of a witness by deposition and may order the witness 
to produce records. A party to a proceeding pending before the 
Board may take the testimony of a witness by deposition 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), the Board 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 proceeding. 
"(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 Board or agreed on by the parties by written stipulation 
filed with the Board. A deposition shall be filed with the Board 
promptly. 
"(e) WITNESS FEES.—Each witness summoned before the Board 
or whose deposition is taken under this section and the individual 
taking the deposition are entitled to the same fees and mileage 
paid for those services in the courts of the United States. 
"§ 722. Board action 
"(a) EFFECTIVE DATE OF ACTIONS.—Unless otherwise provided 
in subtitle IV, the Board may determine, within a reasonable time, 
when its actions, other than an action ordering the payment of 
money, take effect. 
"(b) TERMINATING AND CHANGING ACTIONS.—^An action of the 
Board remains in effect under its own terms or until superseded. 
The Board may change, suspend, or set aside any such action 
on notice. Notice may be given in a manner determined by the 
Board. A court of competent jurisdiction may suspend or set aside 
any such action. 
"(c) RECONSIDERING ACTIONS.—^The Board 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 reconsideration of an 
action of the Board; or 
"(3) change an action of the Board. 
An interested party may petition to reopen and reconsider an action 
of the Board under this subsection under regulations of the Board. 
PUBLIC Li\W 104-88—DEC. 29, 1995 
109 STAT. 937 
"(d) FINALITY OF ACTIONS.—Notwithstanding subtitle IV, an 
action of the Board 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 Board proceedings 
"(a) DESIGNATION OF AGENT.—^A carrier providing transpor-
tation subject to the jurisdiction of the Board 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 
Board may be made. 
"(b) FILING 
AND CHANGING 
DESIGNATIONS.—A designation 
under subsection (a) shall be in writing and filed with the Board. 
The designation may be changed at any time in the same manner 
as originally made. 
"(c) SERVICE OF NOTICE.—Except as otherwise provided, notices 
of the Board 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 Board 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 Board. 
"(d) SPECIAL RULE FOR RAIL CARRIERS.—In a proceeding involv-
ing the lawfulness of classifications, rates, or practices of a rail 
carrier that has not designated an agent under this section, service 
of notice of the Board on an attorney in fact for the carrier con-
stitutes service of notice on the carrier. 
"§ 724. Service of process in court proceedings 
"(a) DESIGNATION OF AGENT.—^A carrier providing transpor-
tation subject to the jurisdiction of the Board 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 b}'^ posting the notice in the office of the 
Board. 
"(b) CHANGING DESIGNATION.—^A designation under this section 
may be changed at any time in the same manner as originally 
made. 
"§ 725. Administrative support 
"The Secretary of Transportation shall provide administrative 
support for the Board. 
"§ 726. Railroad-Shipper Transportation Advisory Council 
"(a) ESTABLISHMENT; MEMBERSHIP.—^There is established the 
Railroad-Shipper Transportation Advisory Council (in this section 
referred to as the 'Council') to be composed of 19 members, of 
which 15 members shall be appointed by the Chairman of the 
Board, after recommendation from rail carriers and shippers, within 
60 days after the date of enactment of the ICC Termination Act 
of 1995. The members of the Council shall be appointed as follows: 
"(1) The members of the Council shall be appointed from 
among citizens of the United States who are not regular full-
109 STAT. 938 
PUBLIC LAW 104-88—DEC. 29, 1995 
time employees of the United States and shall be selected 
for appointment so as to provide as nearly as practicable a 
broad representation of the various segments of the railroad 
and rail shipper industries. 
"(2) Nine of the members shall be appointed from senior 
executive officers of organizations engaged in the railroad and 
rail shipping industries, which 9 members shall be the voting 
members of the Council. Council action and Council positions 
shall be determined by a majority vote of the members present. 
A majority of such voting members shall constitute a quorum. 
Of such 9 voting members— 
"(A) at least 4 shall be representative of small shippers 
(as determined by the Chairman); and 
"(B) at least 4 shall be representative of Class II or 
III railroads. 
"(3) The remaining 6 members of the Council shall serve 
in a nonvoting advisory capacity only, but shall be entitled 
to participate in Council deliberations. Of the remaining mem-
bers— 
"(A) 3 shall be representative of Class I railroads; 
and 
"(B) 3 shall be representative of large shipper organiza-
tions (as determined by the Chairman). 
"(4) The Secretary of Transportation and the members 
of the Board shall serve as ex officio, nonvoting members of 
the Council. The Council shall not be subject to the Federal 
Advisory Committee Act. A list of the members appointed to 
the Council shall be forwarded to the Chairmen and ranking 
members of the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Representatives. 
"(5) Each ex officio member of the Council may designate 
an alternate, who shall serve as a member of the Council 
whenever the ex officio member is unable to attend a meeting 
of the Council. Any such designated alternate shall be selected 
from individuals who exercise significant 
decision-making 
authority in the Federal agency involved. 
"(b) TERM OF OFFICE.—The members of the Council shall be 
appointed for a term of office of 3 years, except that of the members 
first appointed— 
"(1) 5 members shall be appointed for terms of 1 year; 
and 
"(2) 5 members shall be appointed for terms of 2 years, 
as designated by the Chairman at the time of appointment. Any 
member appointed to fill a vacancy occurring before the expiration 
of the term for which the member's predecessor was appointed 
shall be appointed only for the remainder of such term. A member 
may serve after the expiration of his term until his successor 
has taken office. Vacancies on the Council shall be filled in the 
same manner in which the original appointments were made. No 
member of the Council shall be eligible to serve in excess of two 
consecutive terms. 
"(c) ELECTION AND DUTIES OF OFFICERS.—^The Council Chair-
man and Vice Chairman and other appropriate officers of the Coun-
cil shall be elected by and from the voting members of the Council. 
The Council Chairman shall serve as the Council's executive officer 
and shall direct the administration of the Council, assign officer 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 939 
and committee duties, and shall be responsible for issuing and 
communicating the reports, policy positions and statements of the 
Council, In the event that the Council Chairman is unable to 
serve, the Vice Chairman shall act as Council Chairman. 
"(d) EXPENSES.—(1) The members of the Council shall receive 
no compensation for their services as such, but upon request by 
the Council Chairman, based on a showing of significant economic 
burden, the Secretary of Transportation or the Chairman of the 
Board, to the extent provided in advance in appropriation Acts, 
may provide reasonable and necessary travel expenses for such 
individual Council members from Department or Board funding 
sources in order to foster balanced representation on the Council. 
"(2) Upon request by the Council Chairman, the Secretary 
or Chairman of the Board, to the extent provided in advance in 
appropriations Acts, may pay the reasonable and 
necessary 
expenses incurred by the Council in connection with the coordina-
tion of Council activities, announcement and reporting of meetings, 
and preparation of such Council documents as are required or 
permitted by this section. 
"(3) The Council may solicit and use private funding for its 
activities, subject to this subsection. 
"(4) Prior to making any Federal funding requests, the Council 
Chairman shall undertake best efforts to fund such activities pri-
vately unless the Council Chairman determines that such private 
funding would create a conflict of interest, or the appearance 
thereof, or is otherwise impractical. The Council Chairman shall 
not request funding from any Federal agency without providing 
written justification as to why private funding would create any 
such conflict or appearance, or is otherwise impractical. 
"(5) To enable the Council to carry out its functions— 
"(A) the Council Chairman may request directly from any 
Federal agency such personnel, information, services, or facili-
ties, on a compensated or uncompensated basis, as the Council 
Chairman determines necessary to carry out the functions of 
the Council; 
"(B) each Federal agency may, in its discretion, furnish 
the Council with such information, services, and facilities as 
the Council Chairman may request to the extent permitted 
by law and within the limits of available funds; and 
"(C) each Federal agency may, in its discretion, detail to 
temporary duty with the Council, such personnel as the Council 
Chairman may request for carrying out the functions of the 
Council, each such detail to be without loss of seniority, pay, 
or other employee status. 
"(e) MEETINGS.—^The Council shall meet at least semi-annually 
and shall hold other meetings at the call of the Council Chairman. 
Appropriate Federal facilities, where available, may be used for 
such meetings. Whenever the Council, or a committee of the Council, 
considers matters that aflfect the jurisdictional interests of Federal 
agencies that are not represented on the Council, the Council Chair-
man may invite the heads of such agencies, or their designees, 
to participate in the deliberations of the Council. 
"(f) FUNCTIONS AND DUTIES; ANNUAL REPORT.—(1) The Council 
shall advise the Secretary, the Chairman, the Committee on Com-
merce, Science, and Transportation of the Senate, and the Com-
mittee on Transportation and Infrastructure of the House of 
Representatives with respect to rail transportation policy issues 
109 STAT. 940 
PUBLIC LAW 104-88—DEC. 29, 1995 
it considers significant, with particular attention to issues of impor-
tance to small shippers and small railroads, including car supply, 
rates, competition, and effective procedures for addressing legiti-
mate shipper and other claims. 
"(2) To the extent the Council addresses specific grain car 
issues, it shall coordinate such activities with the National Grain 
Car Council. The Secretary and Chairman shall cooperate with 
the Council to provide research, technical and other reasonable 
support in developing any reports and policy statements required 
or authorized by this subsection. 
"(3) The Council shall endeavor to develop within the private 
sector mechanisms to prevent, or identify and effectively address, 
obstacles to the most effective and efficient transportation system 
practicable. 
"(4) The Council shall prepare an annual report concerning 
its activities and the results of Council efforts to resolve industry 
issues, and propose whatever regulatory or legislative relief it 
considers appropriate. The Council shall include in the annual 
report such recommendations as it considers appropriate with 
respect to the performance of the Secretary and Chairman under 
this chapter, and with respect to the operation and effectiveness 
of meetings and industry developments relating to the Council's 
efforts, and such other information as it considers appropriate. 
Such annual reports shall be reviewed by the Secretary and Chair-
man, and shall include the Secretar^s and Chairman's views or 
comments relating to— 
"(A) the accuracy of information therein; 
"(B) Council efforts and reasonableness of Council positions 
and actions; and 
"(C) any other aspects of the Council's work as they may 
consider appropriate. 
The Council may prepare other reports or develop policy statements 
as the Council considers appropriate. An annual report shall be 
submitted for each fiscal year and shall be submitted to the Sec-
retary and Chairman within 90 days after the end of the fiscal 
year. Other such reports and statements may be submitted as 
the Council considers appropriate. 
"§ 727. Definitions 
"All terms used in this chapter that are defined in subtitle 
IV shall have the meaning given those terms in that subtitle.". 
(b) TABLE OF CHAPTERS AMENDMENT.—^The table of chapters 
of subtitle I of title 49, United States Code, is amended by adding 
at the end the following new item: 
"7. SURFACE TRANSPORTATION BOARD 
701". 
49 u s e 701 note. 
SEC. 202. REORGANIZATION. 
The Chairman of the Surface Transportation Board (in this 
Act referred to as the "Board") may allocate or reallocate any 
function of the Board, consistent with this title and subchapter 
I of chapter 7, as amended by section 201 of this title, among 
the members or employees of the Board, and may establish, consoli-
date, alter, or discontinue in the Board any organizational entities 
that were entities of the Interstate Commerce Commission, as the 
Chairman considers necessary or appropriate. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 941 
SEC. 203. TRANSFER OF ASSETS AND PERSONNEL. 
49 USC 701 note. 
(a) To BOARD.—^Except as otherwise provided in this Act and 
the amendments made by this Act, those personnel, property, and 
records employed, used, held, available, or to be made available 
in connection with a function transferred to the Board by this 
Act shall be transferred to the Board for use in connection with 
the functions transferred, and unexpended balances of appropria-
tions, allocations, and other funds of the Interstate Commerce 
Commission shall also be transferred to the Board. Such unex-
pended balances, allocations, and other funds, together with any 
unobligated balances from user fees collected by the Commission 
during fiscal year 1996, may be used to pay for the closedown 
of the Commission and severance costs for Commission personnel, 
regardless of whether those costs are incurred at the Commission 
or at the Board. 
(b) To SECRETARY.—^Except as otherwise provided in this Act 
and the amendments made by this Act, those personnel, property, 
and records employed, used, held, available, or to be made available 
in connection with a function transferred to the Secretary by this 
Act shall be transferred to the Secretary for use in connection 
with the functions transferred. 
(c) SEPARATED EMPLOYEES.—^Notwithstanding all other laws 
and regulations, the Department of Transportation shall place all 
Interstate Commerce Commission employees separated from the 
Commission as a result of this Act on the DOT reemployment 
priority list (competitive service) or the priority employment list 
(excepted service). 
SEC. 204. SAVING PROVISIONS. 
49 USC 701 note. 
(a) LEGAL DOCUMENTS.—^All orders, determinations, rules, regu-
lations, permits, grants, loans, contracts, agreements, certificates, 
licenses, and privileges— 
(1) that have been issued, made, granted, or allowed to 
become effective by the Interstate Commerce Commission, any 
officer or employee of the Interstate Commerce Commission, 
or any other Government official, or by a court of competent 
jurisdiction, in the performance of any function that is trans-
ferred by this Act or the amendments made by this Act; and 
(2) that are in effect on the effective date of such transfer 
(or become effective after such date pursuant to their terms 
as in effect on such effective date), 
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with 
law by the Board, any other authorized official, a court of competent 
jurisdiction, or operation of law. The Board shall promptly rescind 
all regulations established by the Interstate Commerce Commission 
that are based on provisions of law repealed and not substantively 
reenacted by this Act. 
(b) PROCEEDINGS.—(1) The provisions of this Act shall not affect 
any proceedings or any application for any license pending before 
the Interstate Commerce Commission at the time this Act takes 
effect, insofar as those functions are retained and transferred by 
this Act; but such proceedings and applications, to the extent that 
they relate to functions so transferred, shall be continued. Orders 
shall be issued in such proceedings, appeals shall be taken there-
from, and pa3anents shall be made pursuant to such orders, as 
if this Act had not been enacted; and orders issued in any such 
99-194 0-95-32:QL3Partl 
109 STAT. 942 
PUBLIC LAW 104-88—DEC. 29, 1995 
proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court 
of competent jurisdiction, or by operation of law. Nothing in this 
subsection shall be deemed to prohibit the discontinuance or modi-
fication of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been 
discontinued or modified if this Act had not been enacted. 
(2) The Board and the Secretary are authorized to provide 
for the orderly transfer of pending proceedings from the Interstate 
Commerce Commission. 
(3)(A) Except as provided in subparagraphs (B) and (C), in 
the case of a proceeding under a provision of law repeal, and 
not reenacted, by this Act such proceeding shall be terminated. 
(B) Any proceeding involving a pipeline carrier under subtitle 
IV of title 49, United States Code, shall be continued to be heard 
by the Board under such subtitle, as in effect on the day before 
the effective date of this section, until completion of such proceeding. 
(C) Any proceeding involving the merger of a motor carrier 
property under subtitle IV of title 49, United States Code, shall 
continue to be heard by the Board under such subtitle, as in 
effect on the day before the effective date of this section, until 
completion of such proceeding. 
(4) Any proceeding with respect to any tariff, rate charge, 
classification, rule, regulation, or service that was pending under 
the Intercoastal Shipping Act, 1933 or the Shipping Act, 1916 
before the Federal Maritime Commission on November 1, 1995, 
shall continue to be heard until completion or issuance of a final 
order thereon under all applicable laws in effect as of November 
1, 1995. 
(c) SUITS.—(1) This Act shall not affect suits commenced before 
the date of the enactment of this Act, except as provided in para-
graphs (2) and (3). In all such suits, proceeding shall be had, 
appeals taken, and judgments rendered in the same manner and 
with the same effect as if this Act had not been enacted. 
(2) Any suit by or against the Interstate Commerce Commission 
begun before the effective date of this Act shall be continued, 
insofar as it involves a function retained and transferred under 
this Act, with the Board (to the extent the suit involves functions 
transferred to the Board under this Act) or the Secretary (to the 
extent the suit involves functions transferred to the Secretary under 
this Act) substituted for the Commission. 
(3) If the court in a suit described in paragraph (1) remands 
a case to the Board or the Secretary, subsequent proceedings related 
to such case shall proceed in accordance with applicable law and 
regulations as in effect at the time of such subsequent proceedings. 
(d) CONTINUANCE OF ACTIONS AGAINST OFFICERS.—^No suit, 
action, or other proceeding commenced by or against any officer 
in his official capacity as an officer of the Interstate Commerce 
Commission shall abate by reason of the enactment of this Act. 
No cause of action by or against the Interstate Commerce Commis-
sion, or by or against any officer thereof in his official capacity, 
shall abate by reason of enactment of this Act. 
(e) EXERCISE OF AUTHORITIES.—Except as otherwise provided 
by law, an officer or employee of the Board may, for purposes 
of performing a function transferred by this Act or the amendments 
made by this Act, exercise all authorities under any other provision 
of law that were available with respect to the performance of 
f-'r^^X^tt 
PUBLIC L^W 104-88—DEC. 29, 1995 
109 STAT. 943 
that function to the official responsible for the performance of 
the function immediately before the effective date of the transfer 
of the function under this Act or the amendments made by this 
Act. 
SEC. 205. REFERENCES. 
49 USC 701 note. 
Any reference to the Interstate Commerce Commission in any 
other Federal law, Executive order, rule, regulation, or delegation 
of authority, or any document of or pertaining to the Interstate 
Commerce Commission or an officer or employee of the Interstate 
Commerce Commission, is deemed to refer to the Board, a member 
or employee of the Board, or the Secretary, as appropriate. 
TITLE III—CONFORMING AMENDMENTS 
Subtitle A—^Amendments to United States 
Code 
SEC. 301. TITLE 5 AMENDMENTS. 
(a) COMPENSATION FOR POSITIONS AT LEVEL III.—Section 5314 
of title 5, United States Code, is amended by striking "Chairman, 
Interstate Commerce Commission." and inserting in lieu thereof 
"Chairman, Surface Transportation Board.". 
(b) COMPENSATION FOR POSITIONS AT LEVEL IV.—Section 5315 
of title 5, United States Code, is amended by striking "Members, 
Interstate Commerce Commission." and inserting in lieu thereof 
"Members, Surface Transportation Board.". 
SEC. 302. TITLE 11 AMENDMENTS. 
Subchapter IV of chapter 11 of title 11, United States Code, 
is amended— 
(1) by striking section 1162 and inserting in lieu thereof 
the following: 
''§ 1162. Definition 
"In this subchapter, 'Board' means the 'Surface Transportation 
Board'."; and 
(2) by striking "Commission" each place it appears and 11 USC 1164, 
inserting in lieu thereof "Board". 
1170,1172. 
SEC. 303. TITLE 18 AMENDMENTS. 
Title 18, United States Code, is amended— 
(1) in section 921(a)(27) by striking "10102" and inserting 
in lieu thereof "13102"; and 
(2) in section 6001(1) by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board". 
SEC. 304. INTERNAL REVENUE CODE OF 1986 AMENDMENTS. 
(a) SECTION 168.—Section 168(g)(4)(B)(i) of the Internal Reve-
nue Code of 1986 is amended by striking "domestic railroad corpora- 26 USC 168. 
tion providing transportation subject to subchapter I of chapter 
105" and inserting in lieu thereof "rail carrier subject to part 
A of subtitle IV". 
(b) SECTION 281.—Subparagraphs (A) and (B) of section 
281(dXl) of such Code are each amended by striking "domestic 26 use 281. 
109 STAT. 944 
PUBLIC LAW 104-88—DEC. 29, 1995 
railroad corporations providing transportation subject to subchapter 
I of chapter 105'* and inserting in lieu thereof "rail carriers subject 
to part A of subtitle IV". 
26 use 354. 
(c) SECTION 354.—Section 354(c) of such Code is amended by 
striking "or approved by the Interstate Commerce Commission 
under subchapter IV of chapter 113 of title 49,". 
26 use 3231. 
(d) SECTION 3231.—Section 3231 of such Code is amended— 
(1) in subsection (a) by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board"; and 
(2) in subsection (g) by striking "an express carrier, sleeping 
car carrier, or rail carrier providing transportation subject to 
subchapter I of chapter 105" and inserting in lieu thereof "a 
rail carrier subject to part A of subtitle IV". 
26 use 7701. 
(e) SECTION 7701.—Section 7701(a) of such Code is amended— 
(1) in paragraph (33)(B) by striking "Federal Power 
Commission" and inserting in lieu thereof "Federal Energy 
Regulatory Commission"; 
(2) in paragraph (33)(C)(i) by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board"; 
(3) in paragraph (33)(C)(ii) by striking "Interstate Com-
merce Commission" and inserting in lieu thereof "Federal 
Energy Regulatory Commission"; 
(4) in paragraph (33)(F) by striking "common carrier" and 
all that follows through "1933" and inserting in lieu thereof 
"a water carrier subject to jurisdiction under subchapter II 
of chapter 135 of title 49"; 
(5) in paragraph (33)(G) by striking "railroad corporation 
subject to subchapter I of chapter 105" and inserting in lieu 
thereof "rail carrier subject to part A of subtitle IV"; and 
(6) in paragraph (33)(H) by striking "subchapter I of chap-
ter 105" and inserting in lieu thereof "part A of subtitle IV'. 
SEC. 305. TITLE 28 AMENDMENTS. 
(a) CHAPTER 85.—Chapter 85 of title 28, United States Code, 
is amended— 
(1) in the section heading to section 1336 by striking "Inter-
state Commerce Commission's" and inserting in lieu thereof 
"Surface Transportation Board's"; 
(2) in section 1336 by striking "Interstate Commerce 
Commission" each place it appears and inserting in lieu thereof 
"Surface Transportation Board"; 
(3) in section 1337 by striking "11707" each place it appears 
and inserting in lieu thereof "11706 or 14706"; and 
(4) in the item relating to section 1336 of the table of 
sections by striking "Interstate Commerce Commission's" and 
inserting in lieu thereof "Surface Transportation Board's". 
(b) SECTION 1445.—Section 1445(b) of such title is amended— 
(1) by striking "common"; and 
(2) by striking "11707" and inserting in lieu thereof "11706 
or 14706". 
(c) CHAPTER 157 AMENDMENTS.— 
(1) IN GENERAL.—Chapter 157 of such title is amended— 
(A) 
by 
striking 
"INTERSTATE 
COMMERCE 
COMMISSION" in the chapter heading and inserting in 
lieu thereof "SURFACE TRANSPORTATION BOARD"; 
: <*W,'-?P» 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 945 
(B) by striking "Commission's" in the section heading 
to section 2321 and inserting in Heu thereof "Board's"; 
(C) by striking "Interstate Commerce Commission" 28USC2321, 
each place it appears and inserting in lieu thereof "Surface 2323. 
Transportation Board"; 
* 
(D) in section 2323 by striking "Commission" the sec-
ond and third places it appears and inserting in lieu thereof 
"Board"; and 
• ri 
(E) in the item relating to section 2321 of the table 
of sections by striking "Commission's" and inserting in 
lieu thereof "Board's". 
(2) TABLE OF CHAPTERS.—The item relating to chapter 157 
in the table of chapters of such title is amended by striking 
"Interstate Commerce Commission" and inserting in lieu 
thereof "Surface Transportation Board". 
(d) CHAPTER 158 AMENDMENTS.—Chapter 158 of such title is 
amended— 
(1) in section 2341(3)(A) by striking "the Interstate Com-
merce Commission,"; 
(2) by striking "and" at the end of section 2341(3)(C); 
(3) by striking the period at the end of section 2341(3)(D) 
. and inserting in lieu thereof "; and"; 
(4) by inserting at the end of section 2341(3) the following 
new subparagraph: 
"(E) the Board, when the order was entered by the 
Surface Transportation Board."; 
(5) in section 2342(3)(A) by striking "41, or 43" and insert-
ing in lieu thereof "or 41"; 
(6) by inserting "or pursuant to part B or (C) of subtitle 
IV of title 49" before the semicolon at the end of section 
2342(3)(A); 
(7) in section 2342(3)(B)— 
(A) by striking clauses (i) and (iii); and 
(B) by redesignating clauses (ii), (iv), and (v) as clauses 
(i), (ii), and (iii), respectively; and 
(8) by striking paragraph (5) of section 2342 and inserting 
in lieu thereof the following: 
"(5) all rules, regulations, or final orders of the Surface 
Transportation Board made reviewable by section 2321 of this 
title;". 
SEC. 306. TITLE 31 AMENDMENTS, 
Section 3726(b) of title 31, United States Code, is amended— 
(1) in paragraph (1) by striking "on file with the Interstate 
Commerce Commission," and inserting in lieu thereof "under 
title 49 or on file with"; 
(2) in paragraph (1) by striking "or" at the end; 
(3) by redesignating paragraph (2) as paragraph (3); 
(4) by inserting after paragraph (1) the following new para-
graph: 
"(2) a lawfully quoted rate subject to the jurisdiction of 
the Surface Transportation Board; or"; and 
(5) in paragraph (3), as redesignated by paragraph (4) 
of this section, by striking "sections 10721-10724" and inserting 
in lieu thereof "sections 10721, 13712, and 15504". 
SEC. 307. TITLE 39 AMENDMENTS. 
Title 39, United States Code, is amended— 
109 STAT. 946 
PUBLIC LAW 104-88—DEC. 29, 1995 
(1) in section 5005(a)(4) by striking "5201(7)" and inserting 
in lieu thereof "5201(6)"; 
(2) in section 5005(b)(3) by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board"; and 
(3) by striking paragraph (1) of section 5201 and inserting 
in lieu thereof the following: 
"(1) 'Board' means the Surface Transportation Board;"; 
(4) in section 5201(2) by striking "a motor common carrier, 
or express carrier" and inserting in lieu thereof "or a motor 
carrier"; 
(5) in section 5201(4)— 
(A) by striking "common"; and 
(B) by striking "permit" and inserting in lieu thereof 
"registration"; 
(6) in section 5201(5)— 
(A) by striking "common" each place it appears; 
(B) by striking "10102(14)" and inserting in lieu thereof 
"13102(12)"; and 
(C) by striking "certificate of public convenience and 
necessity" and inserting in lieu thereof "registration"; 
(7) by striking paragraph (6) of section 5201; 
(8) in section 5201 by redesignating paragraphs (7) and 
(8) as paragraphs (6) and (7), respectively; 
(9) in section 5201(6), as so redesignated, by striking "cer-
tificate of public convenience and necessity" and inserting in 
lieu thereof "certificate or registration"; 
(10) in section 5203(f) by striking "motor common carrier" 
each place it appears and inserting in lieu thereof "motor 
carrier"; 
(11) in the section heading to section 5207 by striking 
"Interstate Commerce Commission" and inserting in lieu 
thereof "Surface Transportation Board"; 
(12) in sections 5208(a) and 5215(a) by striking "Commis-
sion's" and inserting in lieu thereof "Board's"; 
(13) in section 5215(a) by striking "motor common carrier" 
and inserting in lieu thereof "motor carrier"; 
39 use 5201, 
(14) in chapter 52 by striking "Commission" each place 
5203,5207-5209, 
it appears and inserting in lieu thereof "Board"; and 
^212,5215. 
(15) ijj ^j^g i^gjj^ relating to section 5207 of the table of 
sections of chapter 52, by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board". 
SEC. 308. TITLE 49 AMENDMENTS. 
(a) SECTION 302.—Section 302(a) of title 49, United States 
Code, is amended by striking "10101a" and inserting in lieu thereof 
"13101". 
(b) SECTION 333.—Section 333 of such title is amended— 
(1) in subsection (c)(2) by striking "11910(a)(1)" and insert-
ing in lieu thereof "11904"; and 
(2) in subsection (e)— 
(A) by striking "11343(a)" and inserting in lieu thereof 
"11323(a)"; and 
(B) by striking "11344(b)" and inserting in lieu thereof 
"11324(b)". 
PUBLIC lAW 104-88—DEC. 29, 1995 
109 STAT. 947 
(c) CHAPTER 5.—Subchapter I of chapter 5 of such title is 
amended— 
(1) by striking "DUTIES" the first place it appears in 
the subchapter heading; and 
(2) in section 501(a)(1) by striking "section 10102" and 
inserting in lieu thereof "sections 10102 and 13102". 
(d) SECTION 5102.—Section 5102(7) of such title is amended— 
(1) by striking "common"; 
(2) by striking "motor contract carrier,"; and 
(3) by striking "10102" and inserting in lieu thereof "13102". 
(e) SECTION 5333.—Section 5333(b)(3) of such title is amended 
by striking "11347" and inserting in lieu thereof "11326". 
(f) CHAPTER 221.—Chapter 221 of such title is amended— 
(1) in section 22101(a) by striking "subchapter I of chapter 
105" and inserting in lieu thereof "part A of subtitle IV"; 
(2) in section 22101(a)(1) by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board"; 
(3) in section 22103(b)(1) by striking "Interstate Commerce 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board"; 
(4) in section 22107(c)— 
(A) by striking "Interstate Commerce Commission" and 
inserting in lieu thereof "Surface Transportation Board"; 
and 
(B) by striking "Commission" the second place it 
appears and inserting in lieu thereof "Board"; and 
(5) in section 22107(d) by striking "subchapter I of chapter 
105" and inserting in lieu thereof "part A of subtitle IV". 
(g) SECTION 24301.—Section 24301 of such title is amended— 
(1) in subsection (c)— 
(A) by striking "Subtitle IV" in paragraph (1) and 
inserting in lieu thereof "Part A of subtitle IV"; 
(B) by striking "sections 10721-10724 of this title 
apply" in paragraph (2)(A) and inserting in lieu thereof 
"section 10721 of this title applies"; and 
(C) by striking "Interstate Commerce Commission 
under any provision of subtitle IV of this title applicable 
to a carrier subject to subchapter I of chapter 105" in 
paragraph (2)(B) and inserting in lieu thereof "Surface 
Transportation Board under part A of subtitle IV"; and 
(2) in subsection (d) by striking "common carrier subject 
to subchapter I of chapter 105" and inserting in lieu thereof 
"rail carrier subject to part A of subtitle IV". 
(h) SECTION 24501.—Section 24501(b) of such title is amended 
by striking "subchapter I of chapter 105" and inserting in lieu 
thereof "part A of subtitle IV". 
(i) SECTION 24705.—Section 24705 of such title is amended 
by striking subsection (d). 
0') SECTIONS 30103 /IND 30166.—Sections 30103(a) and 30106(d) 
of such title are each amended by striking "subchapter II of chapter 49 USC 30166. 
105" each place it appears and inserting in lieu thereof "subchapter 
I of chapter 135". 
(k) CHAPTER 315.—Chapter 315 of such title is amended— 
(1) in section 31501(2) by striking "10102" and inserting 
in lieu thereof "13102"; 
109 STAT. 948 
PUBLIC LAW 104-88—DEC. 29, 1995 
(2) in section 31501(3)(A) by striking "1052 Ka)" and insert-
ing in lieu thereof "13501"; 
(3) in section 31502(a)(1) by striking "10521 and 10522" 
by inserting in lieu thereof "13501 and 13502"; and 
(4) in section 31503(a) by striking "subchapter II of chapter 
105" and inserting in lieu thereof "subchapter I of chapter 
135". 
(1) SECTIONS 41309 AND 41502.—Sections 41309(b)(2)(A) and 
41502 of such title are each amended by striking "common" each 
place it appears. 
(m) SECTION 60115.—Section 60115(b)(4)(A) of such title is 
amended by striking "(referred to in section 10344(f) of this title)". 
Subtitle B—Other Amendments 
SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938 AMENDMENTS. 
Section 201 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1291) is amended— 
(1) by striking "Interstate Commerce Commission" each 
place it appears and inserting in lieu thereof "Surface Transpor-
tation Board"; 
(2) by striking "Commission" each place it appears (other 
than a place to which paragraph (1) applies) and inserting 
in lieu thereof "Board"; and 
(3) by striking "Commission's" in subsection (b) and insert-
ing in lieu thereof "Board's". 
SEC. 312. ANIMAL WELFARE ACT AMENDMENT. 
Section 15(a) of the Animal Welfare Act (7 U.S.C. 2145(a)) 
is amended by striking "Interstate Commerce Commission" and 
inserting in lieu thereof "Surface Transportation Board". 
SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AMENDMENTS. 
2 use 451. 
Section 401 of the Federal Election Campaign Act of 1971 
is amended— 
(1) by striking "Interstate Commerce Commission shall 
each promulgate, within ninety days after the date of enactment 
of this Act" and inserting in lieu thereof "Surface Transpor-
tation Board shall each maintain"; and 
(2) by inserting "or Board" after "or such Commission". 
SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT. 
Section 621(b)(4) of the Fair Credit Reporting Act (15 U.S.C. 
1681s(b)(4)) is amended by striking "Interstate Commerce Commis-
sion with respect to any common carrier subject to those Acts" 
and inserting in lieu thereof "Secretary of Transportation, with 
respect to all carriers subject to the jurisdiction of the Surface 
Transportation Board". 
SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT. 
Section 704(a)(4) of the Equal Credit Opportunity Act (15 U.S.C. 
1691c(a)(4)) is amended by striking "Interstate Commerce Commis-
sion with respect to any common carrier subject to those Acts" 
and inserting in lieu thereof "Secretary of Transportation, with 
respect to all carriers subject to the jurisdiction of the Surface 
Transportation Board". 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 949 
SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMENDMENT. 
Section 814(b)(4) of the Fair Debt Collection Practices Act (15 
U.S.C. 16921(b)(4)) is araended by striking "Interstate Commerce 
Commission with respect to any common carrier subject to those 
Acts" and inserting in lieu thereof "Secretary of Transportation, 
with respect to all carriers subject to the jurisdiction of the Surface 
Transportation Board". 
SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS. 
The National Trails System Act is amended— 
(1) in section 8(d)— 
16 USC1247. 
(A) by striking "Chairman of the Interstate Commerce 
Commission" and inserting in lieu thereof "Chairman of 
the Surface Transportation Board"; and 
(B) by striking "Commission" the second place it 
appears and inserting in lieu thereof "Board"; and 
(2) in section 9(b) by striking "Interstate Commerce 
16 USC 1248. 
Commission" and inserting in lieu thereof "Surface Transpor-
tation Board". 
SEC. 318. CLAYTON ACT AMENDMENTS. 
The Clayton Act is amended— 
(1) in section 7 (15 U.S.C. 18)— 
(A) by striking "Interstate Commerce Commission" and 
inserting in lieu thereof "Surface Transportation Board"; 
and 
(B) by inserting ", Board," after "vesting such power 
in such Commission"; 
(2) in section 11(a) (15 U.S.C. 21(a)) by striking "Interstate 
Commerce Commission where applicable to common carriers 
subject to the Interstate Commerce Act, as amended" and 
inserting in lieu thereof "Surface Transportation Board where 
applicable to common carriers subject to jurisdiction under 
subtitle IV of title 49, United States Code"; and 
(3) in section 16 (15 U.S.C. 22) by striking "in equity 
15 USC 26. 
for injunctive relief and all that follows through "Interstate 
Commerce Commission" and inserting in lieu thereof "for 
injunctive relief against any common carrier subject to the 
jurisdiction of the Surface Transportation Board under subtitle 
IV of title 49, United States Code". 
SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT. 
Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended by striking "the Interstate Commerce Commis-
sion,". 
SEC. 320. ENERGY POUCY ACT OF 1992 AMENDMENTS. 
Subsections (a) and (d) of section 1340 of the Energy Policy 
Act of 1992 (42 U.S.C. 13369 (a) and (d)) are each amended by 
striking "Interstate Commerce Commission" and inserting in lieu 
thereof "Surface Transportation Board". 
SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS. 
The Merchant Marine Act, 1920, is amended— 
(1) in section 8 (46 U.S.C. App. 867)— 
(A) by striking "Interstate Commerce Commission" 
both places it appears and inserting in lieu thereof "Surface 
Transportation Board"; and 
109 STAT. 950 
PUBLIC LAW 104-88—DEC. 29, 1995 
(B) by striking "commission" and inserting in lieu 
thereof "Board"; 
(2) in section 27A (46 U.S.C. App. 883-1) by striking "com-
mon or contract" and all that follows through ", which other-
wise" and inserting in lieu thereof "carrier subject to jurisdiction 
under subchapter II of chapter 135 of title 49, United States 
Code, which otherwise"; and 
(3) in section 28 (46 U.S.C. App. 884)— 
(A) by striking "common"; 
(B) by striking "Interstate Commerce Commission" and 
inserting in lieu thereof "Surface Transportation Board"; 
and 
(C) by striking "commission" each place it appears 
and inserting in lieu thereof "Board". 
SEC. 322. RAILWAY LABOR ACT AMENDMENTS. 
Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended— 
(1) in the first paragraph by striking "express company, 
sleeping-car company, carrier by railroad, subject to the Inter-
state Commerce Act" and inserting in lieu thereof "railroad 
subject to the jurisdiction of the Surface Transportation Board"; 
(2) in the first and fifth paragraphs by striking "Interstate 
Commerce Commission" each place it appears and inserting 
in lieu thereof "Surface Transportation Board"; and 
(3) in the fifth paragraph by striking "Commission" the 
second and fourth places it appears and inserting in lieu thereof 
"Board". 
SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMENDMENTS. 
Section 1 of the Railroad Retirement Act of 1974 (45 U.S.C. 
231) is amended— 
(1) by striking subsection (a)(l)(i) and inserting in lieu 
thereof the following: 
"(i) any carrier by railroad subject to the jurisdiction of 
the Surface Transportation Board under part A of subtitle 
IV of title 49, United States Code;"; 
(2) in subsection (a)(2)(ii) by striking "Interstate Commerce 
Commission is hereby authorized and directed upon request 
of the Board" and inserting in lieu thereof "Surface Transpor-
tation Board is hereby authorized and directed upon request 
of the Railroad Retirement Board"; and 
(3) in subsection (o) by inserting "the Surface Transpor-
tation Board," after "the Interstate Commerce Commission,". 
SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT AMENDMENTS. 
The Railroad Unemplo3ntnent Insurance Act is amended— 
(1) in section 1(a) (45 U.S.C. 351(a)) by striking "Interstate 
Commerce Commission is hereby authorized and directed upon 
request of the Board" and inserting in lieu thereof "Surface 
Transportation Board is hereby authorized and directed upon 
request of the Railroad Retirement Board"; 
(2) by striking paragraph (b) of such section 1 and inserting 
in lieu thereof the following: 
"(b) The term 'carrier' means a railroad subject to the jurisdic-
tion of the Surface Transportation Board under part A of subtitle 
IV of title 49, United States Code."; and 
(3) by striking "Interstate Commerce Commission, adjusted, 
as determined by the Board" in section 2(h)(3) (45 U.S.C. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 951 
352(h)(3)) and inserting in lieu thereof "Surface Transportation 
Board, adjusted, as determined by the Railroad Retirement 
Board". 
SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMENDMENTS. 
The Emergency Rail Services Act of 1970 is amended— 
(1) in section 2 (45 U.S.C. 661>— 
(A) by striking paragraph (2) and inserting in lieu 
thereof the following: 
"(2) 'Board' means the Surface Transportation Board."; and 
(B) in paragraph (3) by striking "common carrier by 
railroad subject to part I of the Interstate Commerce Act 
(49 U.S.C. 1-27)" and inserting in lieu thereof "rail carrier 
subject to part A of subtitle IV of title 49, United States 
Code"; 
(2) in section 3— 
(A) by striking "the provisions of section 5 of the Inter-
state Commerce Act" in subsection (b)(4) and inserting 
in lieu thereof "subchapter II of chapter 113 of title 49, 
United States Code"; and 
(B) by striking "Commission" each place it appears 
and inserting in lieu thereof "Board"; and 
(3) in section 6(a) (45 U.S.C. 665(a)) by striking "Interstate 
Commerce Commission" and inserting in lieu thereof "Board". 
SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982 AMENDMENTS. 
Section 608 of the Alaska Railroad Transfer Act of 1982 (45 
U.S.C. 1207) is amended--
(1) by striking "the jurisdiction of the Interstate Commerce 
Commission under chapter 105" in subsection (a)(1) and insert-
ing in lieu thereof "part A"; and 
(2) by striking "the jurisdiction of the Interstate Commerce 
Commission under chapter 105" in subsection (c) and inserting 
in lieu thereof "part A". 
SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973 AMEND-
MENTS. 
The Regional Rail Reorganization Act of 1973 is amended— 
(1) in section 102(15) (45 U.S.C. 702(15)) by striking "com-
mon carrier by railroad as defined in section 1(3) of part I 
of the Interstate Commerce Act (49 U.S.C. 1(3))" and inserting 
in lieu thereof "rail carrier subject to part A of subtitle IV 
of title 49, United States Code"; 
(2) in section 301(b) (45 U.S.C. 741(b)) by striking "common 
carrier by railroad under section 1(3) of the Interstate Com-
merce Act (49 U.S.C. 1(3))" and inserting in lieu thereof "rail 
carrier subject to part A of subtitle IV of title 49, United 
States Code"; 
(3) in section 304 (45 U.S.C. 744)— 
(A) by striking "205(d)(6) of this Act" in subsection 
(a)(2)(B) and inserting in lieu thereof "10362(b)(6) of title 
49, United States Code"; 
(B) by striking "Interstate Commerce Act" and insert-
ing in lieu thereof "part A of subtitle IV of title 49, United 
States Code"; 
(C) in subsection (d)(3)— 
109 STAT. 952 
PUBLIC LAW 104-88—DEC. 29, 1995 
(i) by striking "this title," and all that follows 
through "(A) shall take" and inserting in lieu thereof 
"this title, the Commission shall take"; and 
(ii) by striking "this subsection; and" and all that 
follows through "205(d)(6) of this Act" and inserting 
in lieu thereof "this subsection"; 
(D) in subsection (e)(4)— 
(i) by striking "and under regulations issued by 
the Office pursuant to section 205(d)(5) of this Act" 
in subparagraph (A); and 
(ii) by striking "and regulations issued by the 
Office pursuant to section 205(d)(5) of this Act" in 
subparagraph (C); 
(E) in subsection (e)(5)— 
(i) by striking "and under regulations issued by 
the Office pursuant to section 205(d)(5) of this Act" 
in subparagraph (A); and 
(ii) by striking "and under regulations issued by 
the Office pursuant to section 205(d)(5) of this Act" 
in subparagraph (B); 
(F) in subsection (e)(7)(A) by striking "and under regu-
lations issued by the Office pursuant to section 205(d)(5) 
of this Act"; and 
(G) in subsection (g) by striking "the Interstate Com-
merce Act" and inserting in lieu thereof "part A of subtitle 
IV of title 49, United States Code"; 
(4) in section 308 (45 U.S.C. 748)— 
(A) by striking "10905(d)-(f)" in subsection (d)(1) and 
inserting in lieu thereof "10904"; and 
(B) by striking "10903(b)(2)" in subsection (f) and 
inserting in lieu thereof "10903(b)(3)"; and 
(5) by inserting after section 712 the following new section: 
" C L A S S II RAILROADS RECEIVING FEDERAL ASSISTANCE 
49 use 797/. 
"SEC. 713. The Surface Transportation Board shall impose no 
labor protection conditions in approving an application under section 
10902 of title 49, United States Code, when the application involves 
a Class II rail carrier which— 
"(1) is headquartered in a State, and operates in at least 
one State, with a population of less than 1,000,000 persons, 
as determined by the 1990 census; and 
"(2) has, as of January 1, 1996, been a recipient of repayable 
Federal Railroad Administration 
assistance in excess of 
$5,000,000.". 
SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT AMENDMENT. 
Section 18 of the Milwaukee Railroad Restructuring Act (45 
U.S.C. 916) is repealed. 
SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EMPLOYEE 
ASSISTANCE ACT AMENDMENTS. 
The Rock Island Railroad Transition and Employee Assistance 
Act is amended— 
(1) in section 104(a) (45 U.S.C. 1003(a)) by striking "section 
11125 of title 49, United States Code, or"; and 
(2) by striking section 120 (45 U.S.C. 1015). 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 953 
SEC. 330. RAILROAD REVITALIZATION AND REGULATORY REFORM 
ACT OF 1976 AMENDMENTS. 
The Railroad Revitalization and Regulatory Reform Act of 1976 
is amended— 
(1) in section 102(7) (45 U.S.C. 802(7)) by striking "common 
carrier by railroad or express, as defined in section 1(3) of 
the Interstate Commerce Act (49 U.S.C. 1(3))" and inserting 
in lieu thereof "rail carrier subject to part A of subtitle IV 
of title 49, United States Code"; 
(2) in section 505(a)(3) (45 U.S.C. 825(a)(3))— 
(A) by striking "A financially responsible person (as 
defined in section 10910(a)(1) of title 49, United States 
Code)" and inserting in lieu thereof "(A) A financially 
responsible person"; and 
(B) by inserting at the end the following new subpara-
graph: 
"(B) For purposes of this paragraph, the term 'financially 
responsible person' means a person who (i) is capable of paying 
the constitutional minimum value of the railroad line proposed 
to be acquired, and (ii) is able to assure that adequate transpor-
tation will be provided over such line for a period of not less 
than 3 years. Such term includes a governmental authority but 
does not include a class I or class II rail carrier."; 
(3) in section 509(b) (45 U.S.C. 829(b)) by striking para-
graph (2); and 
(4) in section 510 (45 U.S.C. 830) by striking "the provisions 
of section 20a of the Interstate Commerce Act (49 U.S.C. 20a), 
nor". 
SEC. 331. NORTHEAST RAIL SERVICE ACT OF 1981 AMENDMENTS. 
The Northeast Rail Service Act of 1981 is amended in section 
1164 (45 U.S.C. 1112) by striking "11344 or 11345" each place 
it appears and inserting in lieu thereof "11324 or 11325". 
SEC. 332. CONRAIL PRIVATIZATION ACT AMENDMENT. 
Section 4036 of the Conrail Privatization Act (45 U.S.C. 1344) 
is amended by striking "(19)". 
SEC. 333. MIGRANT 
AND 
SEASONAL 
AGRICULTURAL 
WOMCER 
PROTECTION ACT AMENDMENTS. 
Section 401(b)(2)(C) of the Migrant and Seasonal Agricultural 
Worker Protection Act (29 U.S.C. 1841(b)(2)(C)) is amended by 
striking "part II of the Interstate Commerce Act (49 U.S.C. 301 
et seq.), or any successor provision of and inserting in lieu thereof 
"part B of. 
SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHORIZATION ACT 
OF 1994. 
Section 
601(d) 
of 
the 
Federal 
Aviation 
Administration 
Authorization Act of 1994 (Public Law 103-305) is repealed. 
49 USC 10521 
SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHORITY. 
°°*® 
(a) REPEAL OF INTERCOASTAL SHIPPING ACT, 1933.—The Inter-
coastal Shipping Act, 1933 (46 U.S.C. App. 843 et seq.) is repealed 
effective September 30, 1996. 
(b) REPEAL OF PROVISIONS OF SHIPPING ACT, 1916.—^The follow-
ing provisions of the Shipping Act, 1916 are repealed effective 
September 30, 1996: 
Effective date. 
Effective date. 
109 STAT. 954 
PUBLIC LAW 104-88—DEC. 29, 1995 
(1) Section 3 (46 U.S.C. App. 804). 
(2) Section 14 (46 U.S.C. App. 812). 
(3) Section 15 (46 U.S.C. App. 814). 
(4) Section 16 (46 U.S.C. App. 815). 
(5) Section 17 (46 U.S.C. App. 816). 
(6) Section 18 (46 U.S.C. App. 817). 
(7) Section 19 (46 U.S.C. App. 818). 
(8) Section 20 (46 U.S.C. App. 819). 
(9) Section 21 (46 U.S.C. App. 820). 
(10) Section 22 (46 U.S.C. App. 821). 
(11) Section 23 (46 U.S.C. App. 822). 
(12) Section 24 (46 U.S.C. App. 823). 
(13) Section 25 (46 U.S.C. App. 824). 
(14) Section 27 (46 U.S.C. App. 826). 
(15) Section 29 (46 U.S.C. App. 828). 
(16) Section 30 (46 U.S.C. App. 829). 
(17) Section 31 (46 U.S.C. App. 830). 
(18) Section 32 (46 U.S.C. App. 831). 
(19) Section 33 (46 U.S.C. App. 832). 
(20) Section 35 (46 U.S.C. App. 833a). 
(21) Section 43 (46 U.S.C. App. 841a). 
(22) Section 45 (46 U.S.C. App. 841c). 
(c) CONFORMING AMENDMENTS.— 
(1) MERCHANT MARINE ACT, I936.—Section 204(a) of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1114(a)) is amended 
by striking "the Intercoastal Shipping Act, 1933,". 
(2) SHIPPING ACT OF 1984.—Section 5(e) of the Shipping 
Act of 1984 (46 U.S.C. App. 1704(e)) is amended— 
(A) by striking "This Act, the Shipping Act, 1916, and 
the Intercoastal Shipping Act, 1933," and inserting "This 
Act and the Shipping Act, 1916"; and 
(B) by striking "this Act, the Shipping Act, 1916, or 
the Intercoastal Shipping Act, 1933," and inserting "this 
Act or the Shipping Act, 1916". 
SEC. 336. ARMORED CAR INDUSTRY RECIPROCITY ACT OF 1993 
AMENDMENTS. 
Section 5(2) of the Armored Car Industry Reciprocity Act of 
1993 (15 U.S.C. 5904) is amended— 
(1) by striking "subchapter II of chapter 105" and inserting 
in lieu thereof "subchapter I of chapter 135"; and 
(2) by striking "holding the appropriate certificate, permit, 
or license issued under subchapter II of chapter 109" and 
inserting in lieu thereof "is registered under chapter 139". 
SEC. 337. LABOR MANAGEMENT RELATIONS ACT, 1947 AMENDMENT. 
Section 302(b)(2) of the Labor Management Relations Act, 1947 
(29 U.S.C. 186(b)(2)) is amended by striking the parenthetical 
phrase and inserting in lieu thereof "(as defined in section 13102 
of title 49, United States Code)". 
SEC. 
338. INLANDS 
WATERWAY 
REVENUE 
ACT 
OF 
1
9
7
8 
AMENDMENT. 
Section 205(f)(1) of the Inlands Waterway Revenue Act of 1978 
(33 U.S.C. 1803(f)(1)) is amended by striking "as set forth" and 
all that follows through the period at the end and inserting in 
lieu thereof "as set forth in sections 10101 and 13101 of title 
49, United States Code.". 
PUBLIC lAW 104-88—DEC. 29, 1995 
109 STAT. 955 
SEC. 339. NOISE CONTROL ACT OF 1972 AMENDMENT. 
Section 18(d) of the Noise Control Act of 1972 (42 U.S.C. 
4917(d)) is amended to read as follows: 
"(d) For purposes of this section, the term 'motor carrier* 
includes a motor carrier and motor private carrier as those terms 
are defined in section 13102 of title 49, United States Code.". 
SEC. 340. FAIR LABOR STANDARDS ACT OF 1938 AMENDMENT. 
Section 13(b)(2) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 213(b)(2)) is amended by striking "common carrier by rail 
and subject to the provisions of part I of the Interstate Commerce 
Act" and inserting in lieu thereof "rail carrier subject to part A 
of subtitle IV of title 49, United States Code". 
TITLE IV—MISCELLANEOUS 
PROVISIONS 
SEC. 401. CERTAIN COMMERCIAL SPACE LAUNCH ACTIVITIES. 
42 USC 4332 
The licensing of a launch vehicle or launch site operator (includ-
ing any amendment, extension, or renewal of the license) under 
chapter 701 of title 49, United States Code, shall not be considered 
a major Federal action for purposes of section 102(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(C)) if— 
(1) the Department of the Army has issued a permit for 
the activity; and 
(2) the Army Corps of Engineers has found that the activity 
has no significant impact. 
SEC. 402. DESTRUCTION OF MOTOR VEHICLES OR MOTOR VEHICLE 
FACILITIES; WRECKING TRAINS. 
(a) 
DESTRUCTION OF MOTOR VEHICLES OR MOTOR VEHICLE 
FACILITIES.—Section 33 of title 
18, United States Code, is 
amended— 
(1) by inserting "(a)" before "Whoever" the first place it 
appears; and 
(2) by adding at the end the following: 
"(b) Whoever is convicted of a violation of subsection (a) involv-
ing a motor vehicle that, at the time the violation occurred, carried 
high-level radioactive waste (as that term is defined in section 
2(12) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(12))) 
or spent nuclear fuel (as that term is defined in section 2(23) 
of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(23))), 
shall be fined under this title and imprisoned for any term of 
years not less than 30, or for life.". 
(b) WRECKING TRAINS.—Section 1992 of such title is amended— 
(1) by inserting "(a)" before "Whoever" the first place it 
appears; 
(2) by inserting "(b)" before "Whoever is convicted"; 
(3) striking "an}'^ such crime, which" and inserting "a viola-
tion of subsection (a) that"; 
(4) by inserting after the paragraph beginning "Whoever 
is convicted" the following: 
"Whoever is convicted of any such violation involving a train 
that, at the time the violation occurred, carried high-level radio-
active waste (as that term is defined in section 2(12) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10101(12))) or spent nuclear 
109 STAT. 956 
PUBLIC LAW 104-88—DEC. 29, 1995 
49 use 31310 
note. 
Effective date. 
23 use 127. 
23 use 149. 
fuel (as that term is defined in section 2(23) of the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10101(23))), shall be fined under 
this title and imprisoned for any term or years not less than 
30, or for life."; and 
(5) by inserting "(c)" before "A judgment". 
SEC. 403. VIOLATION OF GRADE-CROSSING LAWS AND REGULATIONS. 
(a) FEDERAL REGULATIONS.—Section 31310 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"(h) GRADE-CROSSING VIOLATIONS.— 
"(1) SANCTIONS.—^The Secretary shall issue regulations 
establishing sanctions and penalties relating to violations, by 
persons operating commercial motor vehicles, of laws and regu-
lations pertaining to railroad-highway grade crossings. 
"(2) 
MINIMUM 
REQUIREMENTS.—^The regulations issued 
under paragraph (1) shall, at a minimum, require that— 
"(A) the penalty for a single violation is not less than 
a 60-day disqualification of the driver's commercial driver's 
license; and 
"(B) any employer that knowingly allows, permits, 
authorizes, or requires an employee to operate a commercial 
motor vehicle in violation of such a law or regulation shall 
be subject to a civil penalty of not more than $10,000.". 
(b) DEADLINE.—^The initial regulations required under section 
31310(h) of title 49, United States Code, shall be issued not later 
than 1 year after the date of the enactment of this Act. 
(c) STATE REGULATIONS.—Section 31311(a) of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"(18) The State shall adopt and enforce regulations pre-
scribed by the Secretary under section 31310(h) of this title.". 
SEC. 404. MISCELLANEOUS TITLE 23 AMENDMENTS. 
Section 127 of title 23, United States Code, is amended by 
adding at the end the following: 
"(g) OPERATION OF CERTAIN SPECIALIZED HAULING VEHICLES 
ON CERTAIN PENNSYLVANIA HIGHWAYS.—If the segment of United 
States Route 220 between Bedford and Bald Eagle, Pennsylvania, 
is designated as part of the Interstate System, the single axle 
weight, tandem axle weight, gross vehicle weight, and bridge for-
mula limits set forth in subsection (a) shall not apply to that 
segment with respect to the operation of any vehicle which could 
have legally operated on that segment before the date of the enact-
ment of this subsection.". 
SEC. 405. TECHNICAL AMENDMENTS. 
(a) NHS DESIGNATION ACT.—Effective November 28, 1995, the 
National Highway System Designation Act of 1995 (Public Law 
104-59) is amended— 
(1) in section 312(b) (109 Stat. 584) by striking "of such 
title" and inserting in lieu thereof "of title 23, United States 
Code"; 
(2) in section 319(b)(3) (109 Stat. 589) by striking "at the 
end" and inserting in lieu thereof "after paragraph (3)"; 
(3) in section 332(a)(l)(C)(iii) (109 Stat. 596) by inserting 
closing quotation marks after "Mexico"; 
(4) in section 336(1) (109 Stat. 602)— 
(A) by striking "for" each place it appears; and 
PUBLIC L^VW 104-88—DEC. 29, 1995 
109 STAT. 957 
(B) by inserting "for" after "million" each place it 
appears; and 
(5) by inserting closing quotation marks and a period after 
the period at the end of section 337(c)(1)(B) (109 Stat. 603). 
(b) TITLE 23.—Section 149(b) of title 23, United States Code, 
is amended— 
(1) by inserting "or" after the semicolon at the end of 
paragraph (3); and 
(2) by striking 
inserting a period. 
(c) ISTEA.—Section 1069(v) of the International 
Surface 
Transportation Efficiency Act of 1991 (105 Stat. 2010) is amended 
by striking the period at the end of the first sentence. 
16 use 1261. 
or" at the end of paragraph (4) and 
49 use 5103 
note. 
Rules. 
SEC. 406. FIBER DRUM PACKAGING. 
(a) IN GENERAL.—In the administration of chapter 51 of title 
49, United States Code, the Secretary of Transportation shall issue 
a final rule within 60 days after the date of the enactment of 
this Act authorizing the continued use of fiber drum packaging 
with a removable head for the transportation of liquid hazardous 
materials with respect to those liquid hazardous materials trans-
ported by such drums pursuant to regulations in effect on Septem-
ber 30, 1991, if— 
(1) the packaging is in compliance with regulations of the 
Secretary under the Hazardous Materials Transportation Act 
as in effect on September 30, 1991; and 
(2) the packaging will not be used for the transportation 
of hazardous materials that include materials which are poison-
ous by inhalation or materials in Packing Groups I and II. 
(b) EXPIRATION.—^The regulation referred to in subsection (a) 
shall expire on the later of September 30, 1997, or the date on 
which funds are authorized to be appropriated to carry out chapter 
51 of title 49, United States Code (relating to transportation of 
hazardous materials), for fiscal years beginning after September 
30, 1997. 
(c) STUDY.— 
(1) IN GENERAL..—^Within 90 days after the date of the Contracts, 
enactment of this Act, the Secretary shall contract with the 
National Academy of Sciences to conduct a study— 
(A) to determine whether the requirements of section 
5103(b) of title 49, United States Code (relating to regula-
tions for safe transportation), as they pertain to fiber drum 
packaging with a removable head can be met for the 
transportation of liquid hazardous materials (with respect 
to those liquid hazardous materials transported by such 
drums pursuant to regulations in effect on September 30, 
1991) with standards (including fiber drum industry stand-
ards set forth in a June 8, 1992, exemption application 
submitted to the Department of Transportation), other than 
the performance-oriented 
packaging standards adopted 
under docket number HM-181 contained in part 178 of 
title 49, Code of Federal Regulations; and 
(B) to determine whether a packaging standard (includ-
ing such fiber drum industry standards), other than such 
performance-oriented packaging standards, will provide an 
equal or greater level of safety for the transportation of 
109 STAT. 958 
PUBLIC LAW 104-88—DEC. 29, 1995 
Regulations. 
49 use 31136 
note. 
liquid hazardous materials than would be provided if such 
performance-oriented packaging standards were in effect. 
(2) COMPLETION.—^The study shall be completed before 
March 1, 1997 and shall be transmitted to the Committee 
on Commerce, Science, and Transportation of the Senate and 
the Transportation and Infrastructure Committee of the House 
of Representatives. 
(d) SECRETARIAL ACTION.—By September 30, 1997, the Sec-
retary shall issue final regulations to determine what standards 
should apply to fiber drum packaging with a removable head for 
transportation of liquid hazardous materials (with respect to those 
liquid hazardous materials transported by such drums pursuant 
to regulations in effect on September 30, 1991) after September 
30, 1997. In issuing such regulations, the Secretary shall give 
full and substantial consideration to the results of the study con-
ducted in subsection (c). 
SEC, 407. NONCONTIGUOUS DOMESTIC TRADE STUDY. 
Within 6 months after the effective date of this Act, the Sec-
retary of Transportation shall transmit to the Committee on Com-
merce, Science, and Transportation of the Senate and the Commit-
tee on Transportation and Infrastructure of the House of Represent-
atives a study that analyzes each of the noncontiguous domestic 
trades, including analyzing— 
(1) carrier competition in both regulated and unregulated 
portions of those trades; 
(2) rate structures in those trades; 
(3) the impact of tariff filing on carrier pricing; 
(4) the problems of parallel pricing and its impact on com-
petition in the domestic trades; 
(5) the impact on domestic cargo pricing of foreign cargo 
services; 
(6) whether additional protections are needed to protect 
shippers from the abuse of market power; and 
(7) the extent to which statutory or regulatory changes 
should be made to further the transportation policy of section 
13101 of title 49, United States Code. 
SEC. 408. FEDERAL HIGHWAY ADMINISTRATION RULEMAKING. 
(a) ADVANCE NOTICE.—^The Federal Highway Administration 
shall issue an advance notice of proposed rulemaking dealing with 
a variety of fatigue-related issues pertaining to commercial motor 
vehicle motor vehicle safety (including 8 hours of continuous sleep 
after 10 hours of driving, loading and unloading operations, auto-
mated and tamper-proof recording devices, rest and recovery cycles, 
fatigue and stress in longer combination vehicles, fitness for duty, 
and other appropriate regulatory and enforcement countermeasures 
for reducing fatigue-related incidents and increasing driver alert-
ness) not later than March 1, 1996. 
PUBLIC LAW 104-88—DEC. 29, 1995 
109 STAT. 959 
(b) RULEMAKING.—The Federal Highway Administration shall 
issue a notice of proposed rulemaking dealing with such issues 
within 1 year after issuance of the advance notice under subsection 
(a) is published and shall issue a final rule dealing with those 
issues within 2 years after the last day of such 1-year period. 
Approved December 29, 1995. 
LEGISLATIVE HISTORY—H.R. 2539 (S. 1396): 
HOUSE REPORTS: Nos. 104-311 (Comm. on Transportation and Infrastructure) 
and 104—422 (Comm. of Conference). 
SENATE REPORTS: No. 104-176 accompanying S. 1396 (Comm. on Commerce, 
Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 141 (1995): 
Nov. 14, considered and passed House. 
Nov. 28, considered and passed Senate, amended, in lieu of S. 1396. 
Dec. 21, Senate agreed to conference report. 
Dec. 22, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTL\L DOCUMENTS, Vol. 31 (1995): 
Dec. 29, Presidential statement.