An act to amend subtitle IV of title 49, United States Code, to provide for more effective regulation of motor carriers of property, and for other purposes.
PL 96-296 (S.2245), enacted 07/01/1980

PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 793 
Public Law 96-296 
96th Congress 
An Act 
To amend subtitle IV of title 49, United States Code, to provide for more effective 
regulation of motor carriers of property, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That this Act may be 
cited as the "Motor Carrier Act of 1980". 
PURPOSE OF THE ACT 
SEC. 2. This Act is part of the continuing effort by Congress to 
reduce unnecessary regulation by the Federal Government. 
July 1, 1980 
[S. 2245] 
Motor Carrier 
Act of 1980. 
49 use 10101 
note. 
49 use 10101 
note. 
CONGRESSIONAL FINDINGS 
SEC. 3. (a) The Congress hereby finds that a safe, sound, competi-
tive, and fuel efficient motor carrier system is vital to the mainte-
nance of a strong national economy and a strong national defense; 
that the statutes governing Federal relation of the motor carrier 
industry are outdated and must be revised to reflect the transporta-
tion needs and realities of the 1980's; that historically the existing 
regulatory structure has tended in certain circumstances to inhibit 
market entry, carrier growth, maximum utilization of 
equipment and 
energy resources, and opportunities for minorities and others to enter 
the trucking industry; that protective r^ulation has resulted in some 
operating inefficiencies and some anticompetitive pricing; that in 
order to reduce the uncertainty felt by the Nation's transportation 
industry, the Interstate Commerce Commission should be given 
explicit direction for r^ulation of the motor carrier industry and 
well-defined parameters within which it may act pursuant to congres-
sional policy; that the Interstate Commerce Commission should not 
attempt to go beyond the powers vested in it by the Interstate 
Commerce Act and other legislation enacted by Congress; and that 
legislative and resulting changes should be implemented with the 
least amount of disruption to the transportation system consistent 
with the scope of 
the reforms enacted. 
(b) The appropriate authorizing committees of Congress shall 
conduct periodic oversight hearings on the effects of this legislation, 
no less than annually for the first 5 years following the date of 
enactment of this Act, to ensure that tms Act is being implemented 
according to congressional intent and purpose. 
NATIONAL TRANSPORTATION POLICY 
SEC. 4. Section 10101(a) of title 49, United States Code, is 
amended— 
(1) by striking out "and" at the end of 
paragraph (5); 
(2) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof "; and"; and 
49 use 10101 
note. 
49 use prec. 1 
note. 
Periodic 
oversight 
hearings. 
94 STAT. 794 
PUBLIC LAW 96-296—JULY 1, 1980 
(3) by adding at the end thereof the following new paragraph: 
"(7) with respect to transportation of property by motor 
carrier, to promote competitive and efficient transportation 
services in order to (A) meet the needs of shippers, receivers, and 
consumers; (B) allow a variety of quedity and price options to 
meet changing market demands £ind the diverse requirements of 
the shipping public; (C) allow the most productive use of equip-
ment and energy resources; (D) enable efficient and well-man-
aged carriers to earn adequate profits, attract capital, and 
maintain fair wages and working conditions; (E) provide and 
maiintain service to small communities and small shippers; (F) 
improve and maintain a sound, safe, and competitive privately-
owned motor carrier system; (G) promote greater participation 
by minorities in the motor carrier system; and (H) promote 
intermodal transportation." 
Certificate 
issuance. 
49 u s e 10521. 
Ante, p. 793. 
Commission 
finding, 
limitation. 
MOTOR CARRIER ENTRY POLICY 
SEC. 5. (a) Section 10922 of title 49, United States Code, is 
amended— 
(1) in subsection (a) by inserting "of passengers" after "motor 
common carrier"; 
(2) by redesignating subsections (b), (c), (d), (e), and (f), and all 
references thereto, as subsections (c), (d), (e), (f), and (g), respec-
tively; and 
(3) by inserting after subsection (a) the following new subsec-
tion: 
"OaXD Except as provided in this section, the Interstate Commerce 
Commission shall issue a certificate to a person authorizing that 
person to provide transportation subject to the jurisdiction of the 
Commission under subchapter II of chapter 105 of this title as a motor 
common carrier of 
property if the Commission finds— 
"(A) that the person is fit, willing, and able to provide the 
transportation to be authorized by the certificate and to comply 
with this subtitle and regulations of the Commission; and 
"(B) on the basis of evidence presented by persons supporting 
the issuance of the certificate, that the service proposed will 
serve a useful public purpose, responsive to a public demand or 
need; 
unless the Commission finds, on the basis of evidence presented by 
persons objecting to the issuance of a certificate, that the transporta-
tion to be authorized by the certificate is inconsistent with the public 
convenience and necessity. 
"(2) In making a finding under paragraph (1) of this subsection, the 
Commission shall consider and, to the extent applicable, make 
findings on at least the following: 
"(A) the transportation policy of section 10101(a) of this title; 
and 
"(B) the effect of issuance of the certificate on existing carriers, 
except that the Commission shall not find diversion of 
revenue or 
traffic from an existing carrier to be in and of itself inconsistent 
with the public convenience and necessity. 
"(3) The Commission may not make a finding relating to public 
convenience and necessity under paragraph (1) of this subsection 
which is based upon general findings developed in rulemeiking 
proceedings. 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 795 
Transportation 
authority 
applications. 
"(4) The provisions of paragraph (1) of this subsection (other than 
subparagraph (A)) shall not apply to applications under this subsec-
tion for authority to provide— 
"(A) transportation to any community not regularly served by 
a motor common carrier of property certificated under this 
section; 
"(B) transportation services which will be a direct substitute 
for abandoned rail service to a community if such abandonment 
results in such community not having any rail service and if such 
application is Hied within 120 days after such abandonment has 
been approved by the C!ommission; 
"(C) transportation for the United States Government of prop-
erty other than used household goods, hazardous or secret 
materials, and sensitive weapons and munitions; 
"(D) transportation of 
shipments weighing 100 pounds or less if 
transported in a motor vehicle in which no one package exceeds 
100 pounds; and 
"(E) transportation by motor vehicle of food and other edible 
products (including edible byproducts but excluding alcoholic 
beverages and drugs) intended for human consumption, agricul-
tural limestone and other soil conditioners, and agricultural 
fertilizers if— 
"(i) such transportation is provided with the owner of the 
motor vehicle in such vehicle, except in emergency situa-
tions; and 
"(ii) after issuance of the certificate, such transportation 
(measured by tonnage) does not exceed, on an annual basis, 
the transportation provided by the motor vehicle (measured 
by tonnage) which is exempt from the jurisdiction of the 
Commission under section 10526(aX6) of this title and the Post, p. 797 
owner of the motor vehicle certifies to the O)mmission 
annually that he is complying with the provisions of this 
clause and provides to the Commission such information and 
records as the Commission may require. 
"(5) Notwithstanding any other provision of law, any carrier 
holding authority under paragraph (4XD) of this subsection operating 
one or more commercial motor vehicles with a gross vehicle weight 
rating of 10,000 pounds or more shall be subject to commercial motor 
vehicle safety regulations promulgated by the Secretary of Transpor-
tation pursuant to this title with respect to its entire operations, 
including the operations of commercial motor vehicles with gross 
vehicle weight ratings less than 10,000 pounds. 
"(6) The Commission shall streamline and simplify, to the maxi-
mum extent practicable, the process for issuance of certificates to 
which the provisions of paragraph (4XE) of this subsection apply. 
"(7) No motor common carrier of property may protest an applica-
tion to provide transportation filed under this subsection unless— 
"(AXi) it possesses authority to handle, in whole or in part, the 
traffic for which authority is appUed; 
"(ii) it is willing and able to provide service that meets the 
reasonable needs of 
the shippers involved; and 
"(iii) it has performed service within the scope of the applica-
tion during the previous 12-month period or has, actively in good 
faith, solicited service within the scope of the application during 
such period; 
Application 
protest by 
carrier. 
94 STAT. 796 
PUBLIC LAW 96-296—JULY 1, 1980 
Ante, p. 793. 
Reporting 
requirements, 
simplification. 
Ante, p. 794. 
Post, p. 799. 
Filing 
requirements, 
simplification. 
"(B) it has pending before the Commission an application filed 
prior in time to the application being considered for substantially 
the same traffic; or 
"(C) the Commission grants leave to intervene upon a showing 
of other interests that are not contrary to the transportation 
policy set forth in section 10101(a) of 
this title. 
"(8) No motor contract carrier of property may protest an applica-
tion to provide transportation filed under tins suDsection.". 
(b) Section 11145 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(c) The Commission shall streamline and simplify, to the maxi-
mum extent practicable, the reporting requirements applicable 
under this subchapter to motor common carriers of property with 
respect to transportation provided under certificates to which the 
provisions of section 10922(bX4XE) of this title apply and to motor 
contract carriers of property with respect to transportation provided 
under permits to which the provisions of section 10923(bX5) of this 
title apply.". 
(cXD Section 10762(aXl) of title 49, United States Code, is amended 
by striking out the last sentence and inserting in lieu thereof the 
following: A motor contract carrier that serves only one shipper and 
has provided continuous transportation to that shipper for at least 
one year or a motor carrier of property providing transportation 
under a certificate to which the provisions of section 10922(bX4XE) of 
this title apply or under a permit to which the provisions of section 
10923(bX5) of this title apply may file only its mmimum rates unless 
the Commission finds that filing of actual rates is required in the 
public interest.". 
(2) Section 10762 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(g) The Commission shall streamline and simplify, to the maxi-
mum extent practicable, the filing requirements applicable under 
this section to motor common carriers of property with resi)ect to 
transportation provided under certificates to which the provisions of 
section 10922(bX4)(E) of 
this title apply and to motor contract carriers 
of property with respect to transportation provided under permits to 
wmch the provisions of section 10923(bX5) of this title apply.". 
REMOVAL OF CERTAIN RESTRICTIONS ON MOTOR CARRIER OPERATION 
SEC. 6. Section 10922 of title 49, United States Code, is further 
amended by adding at the end thereof the following new subsections: 
"(hXD Not later than 180 days after the date of enactment of this 
subsection, the Commission shall— 
"(A) eliminate gateway restrictions and circuitous route limi-
tations imposed upon motor common carriers of property; and 
"(B) implement, by regulation, procedures to process expedi-
tiously appUcations of individual motor carriers of property 
seeking removal of 
operating restrictions in order to— 
"(i) reasonably broaden the categories of property authoiv 
ized by the carrier's certificate or permit; 
"(ii) authorize transportation or service to intermediate 
points on the carrier's routes; 
"(iii) provide round-trip authority where only one-way 
authority exists; 
"(iv) eliminate unreasonable or excessively narrow territo-
rial limitations; or 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 797 
"(v) eliminate any other unreasonable restriction that the 
Commission deems to be wasteful of fuel, inefficient, or 
contrary to the public interest. 
"(2) The regulations promulgated by the Commission pursuant to Regulations. 
paragraph (IXB) of this subsection shall provide for final Commission 
action upon an application not later than 120 days after the date the 
application is filed with the Commission, except that in extraordi-
nary circumstances, the Commission may extend such deadline for a 
period of not to exceed 90 additional days. Such regulations shall also Notice and 
provide for notice and the opportunity for interested parties to comment period. 
comment, but need not provide for oral evidentiary hearings. In 
granting or denying applications under paragraph (IXB) of this 
subsection, the Commission shall (A) consider, among other things, 
the impact of the proposed restriction removal upon the consumption 
of energy resources, potential cost savings and improved efficiency, 
and the transportation policy set forth in section 10101(a) of this title. Ante, p. 793. 
and (B) give special consideration to providing and maintaining 
service to small and rural communities and small shippers. 
"(i) A person holding (1) a certificate issued under subsection Q)) of 
this section to provide transportation £is a motor common carrier of 
property, and (2) a permit issued under section 10923 of this sub-
chapter to provide transportation as a motor contract carrier of Post, p. 799. 
property, may transport property under the certificate in the same 
motor vehicle and at the same time as property under the permit.". 
EXEMPTIONS 
SEC. 7. (a) Section 10526(aX6) of title 49, United States Code, is 
amended— 
(1) by inserting "or by-products thereof not intended for human 
consumption," after "fresh shellfish," in subparagraph (D); 
(2) by striking out "and" at the end of subparagraph (C); 
(3) by inserting "and" after the semicolon at the end of 
subparagraph (D); and 
(4) by adding at the end of such section the following new 
subparagraph: 
"(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 agricul-
tural production;", 
(b) Section 10526(aX8) of title 49, United States Code, is amended to 
read as follows: 
"(8)(A) transportation of passengers by motor vehicle inciden-
tal 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 Civil Aeronautics Board 
or its successor agency) by a foreign air carrier; or 
"(C) transportation of property by motor vehicle in lieu of 
transportation by aircraft because of adverse weather conditions 
or mechanical failure of the aircraft or other causes due to 
circumstances beyond the control of the carrier or shipper;". 
Agricultural 
products. 
Aircraft 
passengers and 
transportation. 
94 STAT. 798 
PUBLIC LAW 96-296—JULY 1, 1980 
(c) Section 10526(a) of title 49, United States Code, is further 
amended by (1) striking the period at the end thereof and substituting 
a semicolon, and (2) adding at the end thereof the following new 
paragraphs: 
"(10) transportation of used pallets and used empty shipping 
containers (including intermodal cargo containers), and other 
used shipping devices (other than containers or devices used in 
the transportation of motor vehicles or parts of motor vehicles); 
"(11) transportation of natural, crushed, vesicular rock to be 
used for decorative purposes; or 
"(12) transportation of 
wood chips.". 
FOOD TRANSPORTATION 
SEC. 8. (a) Subchapter II of chapter 107 of title 49, United States 
Code, is amended by adding at the end thereof the following new 
section: 
49 use 10732. 
«§ 10732. Food and grocery transportation 
"(a) Notwithst£mding 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 nondiscriminatory basis and does not exceed the actual cost to 
the seller of 
delivery to such customer. 
"(b) 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. The 
Interstate Commerce Commission shall monitor the extent to which 
such savings are being passed on and shall report its findings to the 
Congress not later than one year after the date of enactment of the 
Motor Carrier Act of 1980 and not less often than once a year 
thereafter. For purposes of this subsection, the Interstate Commerce 
Commission may exercise its powers to obtain relevant papers, books, 
documents, and other materials.". 
(b) The index for subchapter II of chapter 107 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"10732. Food and grocery transportation.". 
Customer 
compensation. 
Consumer 
savings. 
Report to 
Congress. 
Ante, p. 793. 
Transportation 
of property, 
jurisdiction. 
Publication in 
Federal 
Register. 
PRIVATE CARRIAGE 
SEC. 9. Section 10524 of title 49, United States Code, is amended by 
inserting "(a)" before "The" and by adding at the end of such section 
the following new subsections: 
"(b) The Commission does not have jurisdiction under this sub-
chapter over transportation of property by motor vehicle for compen-
sation provided by a person who is a member of a corporate family for 
other members of 
such corporate family i
f
— 
"(1) the parent corporation notifies the Commission of its 
intent or one of its subsidiaries' intent to provide the transporta-
tion; 
"(2) the notice contains a list of participating subsidiaries and 
an affidavit that the parent corporation owns directly or 
indirectly a 100 percent interest in each of the subsidiaries; 
"(3) the Commission publishes the notice in the Federal Regis-
ter within 30 days of 
receipt; and 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 799 
"Motor contract 
carrier." 
"(4) a copy of the notice is carried in the cab of all vehicles 
conducting the transportation. 
"(c) In this section, 'corporate family* means a group of corpora- "Corporate 
tions consisting of a parent corporation and all subsidiaries in which family." 
the parent corporation owns directly or indirectly a 100 percent 
interest.". 
MOTOR CONTRACT CARRIERS 
SEC. 10. (a)(1) Section 10102(12) of title 49, United States Code, is 
amended to read as follows: 
"(12) 'motor contract carrier' means— 
"(A) a person, other than a motor common carrier, provid-
ing motor vehicle transportation of passengers for compen-
sation under continuing agreements with a person or a 
limited number of 
persons— 
"(i) by assigning motor vehicles for a continuing 
period of time for the exclusive use of each such person; 
or 
"(ii) designed to meet the distinct needs of each such 
person; and 
"(B) a person providing motor vehicle transportation of 
property for compensation under continuing agreements 
with one or more persons— 
"(i) by assigning motor vehicles for a continuing 
period of time for the exclusive use of each such person; 
or 
"(ii) designed to meet the distinct needs of each such 
person.". 
(2) Section 10923(b) of title 49, United States Code, is amended by— 
(A) inserting in paragraph (2) "of passengers" after "motor 
contract carrier"; and 
(B) redesignating paragraph (3) (and any references thereto) as 
paragraph (7) and inserting after paragraph (2) the following new 
paragraphs: 
"(3) In deciding whether to approve the application of 
a person for a Permits, 
permit as a motor contract carrier of property, the Commission shall application 
consider— 
approval. 
"(A) the nature of the transportation proposed to be provided; 
"(B) the effect that granting the permit would have on the 
protesting carriers if such grant would endanger or impair their 
operations to an extent contrary to the public interest; 
"(C) the effect that denying the permit would have on the 
person applying for the permit, its shippers, or both; and 
"(D) the changing character of the requirements of those 
shippers. 
"(4) No motor carrier of property may protest an application to Application 
provide transportation as a motor contract carrier of property filed protest by 
under this section unless— 
earner. 
"(A)(i) it possesses authority to handle, in whole or in part, the 
traffic for which authority is applied; 
"(ii) it is willing and able to provide service that meets the 
reasonable needs of 
the shippers involved; and 
"(iii) it has performed service within the scope of the applica-
tion during the previous 12-month period or has, actively in good 
faith, solicited service within the scope of the application during 
such period; 
79-194 
O—81—pt. 1 
54 : QL3 
94 STAT. 800 
PUBLIC LAW 96-296—JULY 1, 1980 
Ante, p. 793. 
Ante, p. 797. 
Permit issuance 
process, 
simplification. 
Commission 
finding, 
limitation. 
Certificates and 
permits, 
limitations. 
"(B) it has pending before the Commission an application filed 
prior in time to the application being considered for substantially 
the same traffic; or 
"(C) the Commission grants leave to intervene upon a showing 
of other interests that are not contrary to the transportation 
policy set forth in section 10101(a) of 
this title. 
"(5XA) The provisions of paragraph (2) of subsection (a) of this 
section and paragraph (3) of this subsection shall not apply to 
applications under this section for authority to provide transporta-
tion by motor vehicle of food and other edible products (including 
edible byproducts but excluding alcoholic beverages and drugs) in-
tended for human consumption, agricultural limestone and other soil 
conditioners, and agricultural fertilizers i
f
— 
"(i) such transportation is provided with the owner of the 
motor vehicle in such vehicle, except in emergency situations; 
and 
"(ii) after issuance of the permit, such transportation (meas^ 
ured by tonnage) does not exceed, on an annual basis, the 
transportation provided by the motor vehicle (measured by 
tonnage) which is exempt from the jurisdiction of the Commis-
sion under section 10526(aX6) of this title and the owner of the 
motor vehicle certifies to the Commission annually that he is 
complying with the provisions of 
this subparagraph and provides 
to the (]!ommission such information and records as the Commis-
sion may require. 
"(B) The Commission shall streamline and simplify, to the maxi-
mum extent practicable, the process for issuance of permits to which 
the provisions of 
subparagraph (A) of 
this paragraph apply. 
"(6) With respect to applications of persons for permits as motor 
contract carriers of property, the Commission may not make a 
finding relating to the public interest under subsection (aX2) of this 
section which is based upon general findings developed in rulemak-
ing proceedings.". 
(3) Section 10923(d) of title 49, United States Code, is amended— 
(A) in the first sentence of paragraph (1) by inserting the 
following immediately before the period at the end thereof: ", 
except that in the case of a motor contract carrier of property, 
the Commission may not require such carrier to limit its oper-
ations to carriage for a particular industry or within a particular 
geographic area"; and 
(B) in paragraph (2) by striking "including each person or 
number or class of persons" and substituting "including each 
person or class of persons (and, in the case of a motor contract 
carrier of passengers, the number of 
persons)". 
flt)) Section 10930(a) of title 49, United States Code, is amended— 
(1) in paragraph (1) by striking "both a certificate of a motor 
common carrier and a permit of a motor contract carrier issued 
under this subchapter, or"; and 
(2) bv striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) if a person controls, is controlled by, or is under common 
control with, another person, one of them may not hold a 
certificate of a water common carrier, while the other holds a 
permit of 
a water contract carrier, to transport property over the 
same route or in the same area.", 
(c) Section 10749 of title 49» United States Code, is amended— 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 801 
(1) in subsection (a) by inserting ", or a motor contract carrier 
of 
property," after "carrier"; and 
(2) in subsection O
b
X
D by inserting ", or motor contract carrier 
of 
property," after "water common carrier". 
(d) Section 10766(b) of title 49, United States Code, is amended— 
(1) by inserting ", and motor contract carriers of property," 
after "carriers" in the first sentence; 
(2) by inserting "or the motor contract carrier of property" 
after "carrier" in the third sentence; and 
(3) by striking the fifth sentence. 
(e) Section 10925 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(eXl) On application of a motor contract carrier of property who 
holds a permit issued under section 10923 of this title, or on complaint 
of a competing motor common carrier of property who holds a 
certificate under section 10922(b) of this title, or on its own initiative, 
if the Commission, after notice and an opportunity for a proceeding, 
determines that the operations under the permit or any part 
thereof— 
"(A) do not conform with the operations of a motor contract 
carrier of property; and 
"(B) are those of a motor common carrier of property; 
the Commission may amend or revoke such permit or part thereof to 
conform the operations under such permit or part thereof to the 
operations of a motor contract carrier of property. 
"(2) The Commission may issue in place of any permit or part Certificate. 
thereof revoked under this subsection a certificate under section 
10922(b) of this title which authorizes the holder of such certificate to 
provide transportation as a motor common carrier of property of the 
same property between the same points or within the same territory 
as authorized in the permit or part thereof.". 
Permit 
revocation, 
conditions. 
Ante, p. 799. 
Ante, p. 794. 
ZONE OF RATE FREEDOM FOR MOTOR CARRIERS OF PROPERTY AND 
FREIGHT FORWARDERS 
SEC. 11. Section 10708 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(d)(1) Notwithstanding any other provision of this title, the Com-
mission may not investigate, suspend, revise, or revoke any rate 
proposed by a motor common carrier of property or freight forwarder 
on the grounds that such rate is unreasonable on the basis that it is 
too high or too low i
f
— 
"(A) the carrier notifies the Commission that it wishes to have 
the rate considered pursuant to this subsection; and 
"(B) the aggregate of increases and decreases in any such rate 
is not more than 10 percent above the rate in effect one year prior 
to the effective date of the proposed rate, nor more than 10 
percent below the lesser of the rate in effect on July 1,1980 (or, in 
the case of any rate which a carrier first establishes after July 1, 
1980, for a service not provided by such carrier on such date, such 
rate on the date such rate first becomes effective), or the rate in 
effect one year prior to the effective date of the proposed rate. 
"(2) The Commission, by rule, may incresise the percentages speci-
fied in paragraph (1)(B) of this subsection for any group of motor 
common carriers of property or freight forwarders if it finds that— 
"(A) there is sufficient actual and potential competition to 
regulate rates; and 
Rate changes, 
conditions. 
Increase of 
percentages, 
conditions. 
94 STAT. 802 
PUBLIC LAW 96-296—JULY 1, 1980 
Rate change 
according to 
Producers Price 
Index. 
Antitrust laws. 
Post, p. 803. 
49 u s e 10741. 
Ante, p. 793. 
"(B) there are benefits to (i) carriers or freight forwarders, (ii) 
shippers, and (iii) the public from further rate flexibility; 
except that the Commission may not increase such percentages by 
more than 5 percentage points during any one-year period. 
"(3XA) In determining, pursuant to paragraph (1)(B) of this subsec-
tion, whether the aggregate of increases and decreases in a proposed 
rate that is to take effect on or before the 730th day following the date 
of enactment of this paragraph is more than 10 percent (or such other 
percentage as the Commission may establish under paragraph (2) of 
this subsection) above the rate in effect one year prior to the effective 
date of the proposed rate, general rate increases obtained in the one-
year period prior to the effective date of the proposed rate shall not be 
included in such aggregate, except to the extent that such general 
rate increases exceed 5 percent of the rate in effect one year prior to 
the effective date of the proposed rate. 
"(B) In the case of a proposed rate that is to take effect after the 
730th day following the date of enactment of this paragraph, the 
percentage which first appears in paragraph (1)(B) of this subsection 
(relating to the upper limit of the zone of ratemaking freedom), or 
such other percentage £is the Commission may establish under 
paragraph (2) of this subsection in lieu of such percentage, 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 one-year period prior to the 
effective date of the proposed rate. 
"(4) Any rate implemented by a carrier pursuant to this subsection 
shall be subject to the antitrust laws, as defined in the first section of 
the Clayton Act (15 U.S.C. 12), except that the docketing and 
publication of such rate by the carrier under section 10706(b) of this 
title shall not be construed as a violation of the antitrust laws. 
Nothing in this subsection shall limit the Commission's authority to 
suspend and investigate proposed rates on the basis that such rates 
may violate the provisions of section 10741 of this title or constitute 
predatory practices in contravention of the transportation policy set 
forth in section 10101(a) of this title.". 
49 u s e 10521. 
Ante, p. 796. 
RATES AND LIABILITY BASED ON VALUE 
SEC. 12. Section 10730 of title 49, United States Code, is amended by 
inserting "(a)" before "The Interstate Commerce Commission", by 
inserting "(including a motor common carrier of household goods but 
excluding any other motor common carrier of property)" after "au-
thorize a carrier", and by adding at the end thereof the following new 
subsection: 
"(b)(1) Subject to the provisions of 
paragraph (2) of 
this subsection, a 
motor common carrier providing transportation or service subject to 
the jurisdiction of the Commission under subchapter II of chapter 105 
of this title may, subject to the provisions of this chapter (including 
the general tariff requirements of section 10762 of this title), establish 
rates for the transportation of property (other than household goods) 
under which the liability of the carrier for such property is limited to 
a value established by written declaration of the shipper or by 
written agreement between the carrier and shipper if that value 
would be reasonable under the circumstances surrounding the trans-
portation. 
"(2) Before a carrier may establish a rate for any service under 
paragraph (1) of this subsection, the Commission may require such 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 803 
carrier to have in effect and keep in effect, during any period such 
rate is in effect under such para^aph, a rate for such service which 
does not limit the liability of the carrier.". 
RULE OF RATEMAKING 
SEC. 13. (a) Section 10701 of title 49, United States Code, is amended 
by adding at the end thereof the following new subsection: 
"(e) In proceedings to determine the reasonableness of rate levels 
for a motor carrier of property or group of motor carriers of property, 
or in proceedings to determine the reasonableness of a territorial rate 
structure where rates are proposed through agreements authorized 
by section 1070603) of this title, the Commission shall authorize 
revenue levels that are adequate under honest, economical, and 
efficient management to cover total operating expenses, including 
the operation of leased equipment and depreciation, plus a reason-
able profit. The standards and procedures adopted by the Commission 
under this subsection shall allow the carriers to achieve revenue 
levels that will provide a flow of net income, plus depreciation, 
adequate to support prudent capital outlays, assure the repayment of 
a reasonable level of debt, permit the raising of needed equity capital, 
attract and retain capital in amounts adequate to provide a sound 
motor carrier transportation system in the United States, and take 
into account reasonable estimated or foreseeable future costs.". 
0)) Section 10704(bX2) of title 49, United States Code, is amended to 
read as follows: 
"(2XA) When prescribing a rate, classification, rule, or practice for 
transportation or service by common carriers other than by rail 
carrier, the Commission shall consider, among other factors, the 
effect of the prescribed rate, classification, rule, or practice on the 
movement of 
traffic by that carrier. 
"(B) When prescribing a rate, classification, rule, or practice for 
transportation or service by common carriers other than by rail 
carrier or motor carrier of property, the Commission shall consider, 
among other factors, the need for revenues that are sufficient, under 
honest, economical, and efficient management, to let the carrier 
provide that transportation or service.". 
Infra. 
RATE BUREAUS 
SEC. 14. (a) Section 10706 of title 49, United States Code, is amended 
by redesignating subsections (b), (c), (d), (e), (f), (g), and (h) (and any 
references thereto) as subsections (c), (d), (e), (f), (g), (h), and (i), 
respectively, and by inserting the following new subsection after 
subsection (a): 
"(bXD In this subsection, 'single-line rate' refers to a rate, charge, "Single-line 
or aillowance proposed by a single motor common carrier of property '"»<«.' 
that is applicable only over its line and for which the transportation 
can be provided by that carrier. 
"(2) As provided by this subsection, a motor common carrier of 
property providing transportation or service subject to the jurisdic-
tion of the Commission under subchapter II of chapter 105 of this title 49 use I052i. 
may enter into an agreement with one or more such carriers 
concerning rates (including charges between carriers and compensa-
tion paid or received for the use of facilities and equipment), 
allowances, classifications, divisions, or rules related to them, or 
procedures for joint consideration, initiation, or establishment of 
94 STAT. 804 
PUBLIC LAW 96-296—JULY 1, 1980 
Ante, p. 793. 
Agreements, 
approval 
conditions. 
"Affiliate." 
"Ownership." 
Compliance 
requirements. 
them. Such agreement may be submitted to the Commission for 
approval by &ny carrier or carriers which are parties to such 
agreement and shall be approved by the Commission upon a finding 
that the agreement fulfills each requirement of this subsection, 
unless the Commission finds that such agreement is inconsistent with 
the transportation policy set forth in section 10101(a) of this title. The 
Commission may require compliemce with reeisonable conditions 
consistent with this subtitle to assure that the agreement furthers 
such transportation policy. If the Commission approves the agree-
ment, it may be made and carried out under its terms and under the 
conditions required by the Commission, 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 carrjdng 
out the agreement. 
"(3) Agreements submitted to the Commission under this subsec-
tion may be approved by the Commission only if each of the following 
conditions are met: 
"(A) Each carrier which is a party to an agreement must file 
with the Commission a verified statement that specifies its name, 
medling address, and telephone number of its main office; the 
names of each of its affiliates; the names, addresses, and affili-
ates of each of its officers and directors; the names, addresses, 
and affiliates of each person, together with an affiliate, owning or 
controlling any debt, equity, or security interest in it having a 
value of at least $1,000,000. In this subparagraph, 'affiliate' 
means a person controlling, controlled by, or under common 
control or ownership with another person and 'ownership' means 
equity holdings in a business entity of at least 5 percent. 
"(B) Any organization established or continued under an 
agreement approved under this subsection must comply with the 
following requirements: 
"(i) subject to the provisions of subparagraphs (C) and (D) 
of this paragraph, (I) the organization may allow any 
member carrier to discuss any rate proposal docketed, but 
(II) after Januaiy 1,1981, only those carriers with authority 
to participate in the transportation to which the rate 
proposal applies may vote upon such rate proposal; 
"(ii) the organization may not interfere with each carrier's 
right of independent action and may not change or cancel 
any rate established by independent action after the date of 
enactment of this subsection, other than a general increase 
or broad rate restructuring, except that changes in such 
rates may be effected, with the consent of the carrier or 
carriers that initiated the independent action, for the pur-
pose of tariff simplification, removal of discrimination, or 
elimination of obsolete items; 
"(iii) the organization may not file a protest or complaint 
with the Commission against any tariff item published by or 
for the account of any motor carrier of property; 
"(iv) the organization may not permit one of its employees 
or any employee committee to docket or act upon any 
proposal effecting a change in any tariff item published by or 
for the account of any of its member carriers; 
"(v) upon request, the organization must divulge to any 
person the name of the proponent of a rule or rate docketed 
with it, must admit any person to any meeting at which rates 
or rules will be discussed or voted upon, and must divulge to 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 805 
Single-line 
rates. 
any person the vote cast by any member carrier on any 
proposal before the organization; 
"(vi) the organization m
a
^
^ not allow a carrier to vote for 
one or more other carriers without specific written authority 
from the carrier being represented; and 
"(vii) the organization shall make a final disposition of a 
rule or rate dfocketed with it by the 120th day after the 
proposal is docketed, except that if unusual circumstances 
require, the organization may extend such period, subject to 
review by the Commission. 
"(C) No agreement approved under this subsection may pro-
vide for discussion of 
or voting on rates to which the provisions of 
section 10708(d) or 10730(b) of this title apply, except that rates Ante, pp. 80i, 
established or filed under section 10730 of this title before the ^02. 
date of enactment of the Motor Carrier Act of 1980 or changes Ante, p. 793. 
with respect to such rates may be discussed or voted on under 
agreements approved under this subsection until Januaiy 1, 
mi. 
"(D) No agreement approved under this subsection may pro-
vide for discussion of or voting upon single-line rates on or after 
January 1,1984, except that such date shall be July 1,1984, if the 
Motor Carrier Ratemaking Study Commission does not submit 
its final report under section 14(bX4) of the Motor Carrier Act of 
1980 on or before January 1, 1983. This subparagraph and Ante, p. 803. 
subparagraph (BXi)(n) of this paragraph shall not apply to the 
following: 
"(i) general rate increases or decreases if the agreement 
gives shippers, under specified procedures, at least 15 days' 
notice of the proposal and an opportunity to present com-
ments on it before a tariff containing the increases or 
decreases is filed with the Commission and if discussion of 
such increases or decreases is limited to industry average 
carrier costs and, after the date of elimination of the anti-
trust immunity by this subparagraph, does not include 
discussion of individual markets or particular single-line 
rates; 
"(ii) changes in commodity classifications; 
"(iii) changes in tariff structures if discussion of such 
changes is limited to industry average carrier costs and, 
after the date of elimination of antitrust immunity by this 
subparagraph, does not include discussion of individual 
markets or particular single-line rates; 
"(iv) publishing of tariffs, filing of independent actions for 
individual members carriers, providing of support services 
for members, and changes in rules or reflations which are 
of at least substantially general application throughout the 
area in which such changes will apply. 
"(E) In any proceeding in which a party to such proceeding 
alleges that a carrier voted, discussed, or agreed on a rate or 
allowance in violation of this subsection, that party has the 
burden of showing that the vote, discussion, or agreement 
occurred. A showing of parallel behavior does not satisfy that 
burden by itself. 
"(F) The Commission shall, by regulation, determine reason-
able quorum standards to be applied for meetings of organiza-
tions established or continued under an agreement approved 
under this subsection. 
Quorum 
standards. 
94 STAT. 806 
PUBLIC LAW 96-296—JULY 1, 1980 
Motor Carrier 
Ratemaking 
Study 
Commission. 
Establishment. 
Membership. 
Report to 
President and 
Congress. 
Termination. 
Records and 
papers. 
Liaison officer, 
appointment. 
"(4) Notwithstanding any other provision of 
this subtitle, before the 
date on which the antitrust immunity is eliminated for discussion of 
or voting on single-line rates by paragraph (3)(D) of this subsection, 
the Commission may not take any action which would, on the basis of 
the t5^e of carrier service involved (including service by carriers 
singly or in combination with other carriers), result in the exclusion 
of one or more motor common carriers of property from discussion or 
voting under agreements authorized by this subsection on matters 
concerning rates, allowances, classifications, or divisions, except that 
before such date, the Commission may issue regulations which take 
effect on or after such date to carry out the provisions of such 
paragraph.". 
G)X1) There is hereby established a Study Commission to be known 
as the Motor Carrier Ratemaking Study Commission, hereinafter in 
this section referred to as the "Study Commission". 
(2) The Study Commission shall make a full and complete investiga-
tion and study of the collective ratemaking process for all rates of 
motor common carriers and upon the need or lack of need for 
continued antitrust immunity therefor. Such study shall estimate the 
impact of the elimination of such immunity upon rate levels and rate 
structures and describe the impact of the elimination of such immu-
nity upon the Interstate Commerce Commission and its staff. The 
study shall give special consideration to the effect of the elimination 
of such immunity upon rural areas and small communities. 
(3) The Study Commission shall be comprised of ten members as 
follows: 
(A) three members appointed by the President of the Senate, 
two from the membership of the Committee On Commerce, 
Science, and Transportation and one from the membership of the 
Committee on the Judiciary; 
(B) three members appointed by the Speaker of the House of 
Representatives, two from the membership of the Committee on 
Public Works and Transportation and one from the membership 
of 
the Committee on the Judiciary; and 
(C) four members of the public appointed by the President, two 
from the membership of national trade associations of shippers, 
one who is a motor common carrier of property from the 
membership of the national trade association of motor carriers, 
and one who is a motor common carrier of property from the 
membership of a major regional motor common carrier rate 
bureau. 
(4) The Study Commission shall, not later than January 1, 1983, 
submit to the President and the Congress its final report including its 
findings and recommendations. The Study Commission shall cease to 
exist 6 months after submission of such report. All records and papers 
of the Study Commission shall thereupon be delivered to the Admin-
istrator of General Services for deposit in the Archives of the United 
States. 
(5) The Chairman of the Study Commission, who shall be elected by 
the Commission from among its members, shall request the head of 
each Federal department or agency which has an interest in or a 
responsibility with respect to motor carrier collective ratemaking to 
appoint, and the head of such department or agency shall appoint, a 
liaison officer who shall work closely with the Study Commission and 
its staff in matters pertaining to this subsection. Such departments 
and agencies shall include, but not be limited to, the Department of 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 807 
Transportation, the Interstate Commerce Commission, the Federal 
Trade Commission, and the Department of Justice. 
(6) In carrying out its duties, the Study Commission shall seek 
the advice of various groups interested in motor carrier collective 
ratemaking including, but not limited to, State and local govern-
ments and public and private organizations working in the field of 
transportation. 
(7)(A) The Study Commission or, on authorization of the Study 
Commission, any committee of two or more members may, for the 
purpose of carrying out the provisions of this subsection, hold such 
hearings and sit and act at such times and places as the Study 
Commission or such authorized committee may deem advisable. 
(B) The Study Commission is authorized to secure from any 
department, agency, or instrumentality of the executive branch of 
the Government any information it deems necessary to carry out its 
functions under this subsection and each department, agency, and 
instrumentality is authorized and directed to furnish such informa-
tion to the Study Commission upon request made by the Chairman. 
(8)(A) Members of Congress who are members of the Study Commis-
sion shall serve without compensation in addition to that received for 
their services as Members of Congress; but they shall be reimbursed 
for travel, per diem in accordance with the Rules of the House of 
Representatives or subsistence, and other necessary expenses in-
curred by them in the performance of the duties vested in the Study 
Commission. 
(B) Members of the Study Commission, except Members of Con-
gress, shall each receive compensation at a rate not in excess of the 
maximum rate of pay for GS-18, as provided in the General Schedule 
under section 5332 of title 5, United States Code, and shall be entitled 
to reimbursement for travel expenses, per diem in accordance with 
the Rules of the House of Representatives or subsistence, and other 
necessary expenses incurred by them in performance of duties while 
serving as a Study Commission member. 
(9)(A) The Study Commission is authorized to appoint and fix the 
compensation of a staff director and such additional personnel as may 
be necessary to enable it to carry out its functions. The Director and 
personnel may be appointed without regard to the provisions of title 
5, United States Code, covering appointments in the competitive 
service, and may be paid without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of such title relating to classifica-
tion and General Schedule pay rates. Any Federal employees subject 
to the civil service laws and regulations who may be employed by the 
Study Commission shall retain civil service status without interrup-
tion or loss of status or privilege. In no event shall an employee other 
than the staff director receive as compensation an amount in excess 
of the maximum rate for GS-18 of the General Schedule under 
section 5332 of title 5, United States Code. In addition, the Commis-
sion is authorized to obtain the services of experts and consultants in 
accordance with section 3109 of title 5, United States Code, but at 
rates not to exceed the maximum rate of pay for grade GS-18, as 
provided in the General Schedule under section 5332 of title 5, United 
States Code. 
(B) The staff director shall be compensated at the rate of pay for a 
position at Level 2 of the Executive Schedule in subchapter II of 
chapter 53 of title 5, United States Code. 
(10) The Study Commission is authorized to enter into contracts or 
agreements for studies and surveys with public and private organiza-
Hearings. 
Information 
from Federal 
agencies. 
Members of 
Congress, travel 
expenses. 
Compensation 
and expenses. 
44 FR 58671. 
Staff director 
and personnel, 
compensation. 
5 u s e 5101 et 
seq., 5331. 
44 FR 58671. 
5 u s e 5313. 
Functions. 
94 STAT. 808 
PUBLIC LAW 96-296—JULY 1, 1980 
Appropriation 
authorization. 
49 u s e 10706 
note. 
Ante, p. 803. 
tions and, if necessary, to transfer funds to Federal agencies from 
sums appropriated pursuant to this subsection to carry out such of its 
duties as the Study Commission determines can best be carried out in 
that manner. 
(11) Any vacancy which may occur on the Study Commission shall 
not effect its powers or functions but shall be filled in the same 
manner in which the original appointment was made. 
(12) There are hereby authorized to be appropriated, for fiscal years 
commencing on or after October 1, 1980, an amount not to exceed 
$3,000,000 to carry out this subsection. Funds appropriated under this 
subsection shall be available to the Study Commission until 
expended, except that any such funds which remain unobligated on 
the date that the Study Commission ceases to exist shall be forwarded 
to the Treasurer of the United States for deposit in the general fund 
of the United States Treasury. 
(c) Section 10706(c) of title 49, United States Code, as redesignated 
by subsection (a) of this section, is amended by striking "(except a rail 
carrier)" and substituting "(except a rail carrier or a motor common 
carrier of property)". 
(d) Section 10706 of title 49, United States Code, is further 
amended— 
(1) in subsections (d), (f), and (g), as redesignated by subsection 
(a) of 
this section, by striking "subsection (a) or Q))" and substitut-
ing "subsection (a), (b), or (c)"; and 
(2) in subsection (f), as redesignated by subsection (a) of this 
section, by inserting "or (c)" immediately before the period at the 
end of the first sentence. 
(e) Any organization established pursuant to an agreement ap-
proved by the Commission prior to the date of enactment of this Act 
under section 107060t)) of title 49, United States Code, may continue to 
function pursuant to such agreement until a new or amended 
agreement is finally disposed of by the Commission under section 
10706 of title 49, United States Code, as amended by this section, so 
long as (1) such new or amended agreement is submitted to the 
Commission for approval within 120 days of such date of enactment, 
and (2) such organization complies with this section (including 
amendments made by this section and regulations issued under such 
amendments) during the period such new or amended agreement is 
being prepared, submitted to, and considered by the Commission. 
LUMPING 
SEC. 15. (a)(1) Subchapter I of chapter 111 of subtitle IV of title 49, 
United States Code, is amended by inserting the following new 
section immediately after section 11108: 
49 use 11109. 
*'§ 11109. Loading and unloading motor vehicles 
"(a) Whenever a shipper or receiver of property requires that any 
person who owns or operates a motor vehicle transporting property in 
interstate commerce (whether or not such transportation is subject to 
the jurisdiction of the Commission under subchapter II of chapter 105 
49 use 10521. 
of this title) 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. 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 809 
"(b) It shall be unlavsrful to coerce or attempt to coerce any person Coercion. 
providing transportation of property by motor vehicle for compensa-
tion in interstate commerce (whether or not such transportation is 
subject to the jurisdiction of the Commission under subchapter II of 
chapter 105 of this title) to load or unload any part of such property 49 use 10521. 
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 Rela-
tions 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.". 
(2) The analysis for subchapter I of chapter 111 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"11109. Loading and unloading motor vehicles.". 
(b)(1) Chapter 119 of title 49, United States Code, is amended by 
inserting the following new section immediately after section 11902: 
"§ 11902a. Penalties for violations of rules relating to loading and 49 U
S
C 11902a. 
unloading motor vehicles 
"(a) Any person who knowingly authorizes, consents to, or permits 
a violation of subsection (a) or (b) of section 11109 of this title or who Ante, p. 808. 
knowingly violates subsection (a) of such section is liable to the 
United States Government for a civil penalty of not more than 
$10,000 for each violation. 
"(b) Any person who knowingly violates section 111090?) of this title 
shall be fined not more than $10,000, imprisoned for not more than 2 
years, or both.". 
(2) The analysis for chapter 119 of title 49, United States Code, is 
amended by inserting the following immediately after item 11902: 
"11902a. Penalties for violations of rules relating to loading and unloading motor 
vehicles.". 
(c) Section 11702(aX2) of title 49, United States Code, is amended by 
inserting "or 11109" after "10930". 
(d) Section 11107 of title 49, United States Code, is amended by 
inserting "(a)" before "Except" and by adding at the end thereof the 
following new subsection: 
"(b) The Commission shall require, by regulation, that any arrange-
ment, between a motor carrier of property providing transportation 
subject to the jurisdiction of the Commission under subchapter II of 
chapter 105 of this title and any other person, under which such other 
person is to provide any portion of such transportation by a motor 
vehicle not owned by the carrier shall specify, in writing, who is 
responsible for loading and unloading the property onto and from the 
motor vehicle.". 
(e) The Interstate Commerce Commission, in consultation with the 
Secretary of Transportation, the Secretary of Labor, the Secretary of 
Agriculture, and representatives of independent owner-operators, 
the motor carrier industry, shippers, receivers, consumers, and other 
interested persons, shall study, and report to the Congress, not later 
than 18 months after the date of enactment of this Act on loading and 
unloading practices in the motor carrier of property industry. Such 
report shall include (1) such recommendations for legislative and 
other changes in such practices as the Commission considers appro-
priate, and (2) any changes in such practices which the Commission is 
making by regulation. 
Responsibility 
for loading 
and unloading. 
Loading and 
unloading 
practices. 
Study, report 
to Congress. 
94 STAT. 810 
PUBLIC LAW 96-296—JULY 1, 1980 
49 u s e 10527. 
Ante, p. 797. 
Violation, 
penalty. 
Minimum 
requirements. 
Ante. p. 809. 
49 u s e 10527 
note. 
Supra. 
WRITTEN CONTRACTS PERTAINING TO CERTAIN INTERSTATE MOVEMENTS 
BY MOTOR CARRIER 
SEC. 16. (a) Subchapter II of chapter 105 of title 49, United States 
Code, is amended by adding at the end thereof the following new 
section: 
''§10527. Written contracts pertaining to certain interstate move-
ments by motor vehicle 
"(a) Notwithstanding the provisions of section 10526(a)(6) of this 
subchapter, the Interstate Commerce Commission, in cooperation 
with the Secretary of Agriculture, shall, where appropriate, require 
by regulation the use of written contracts for the interstate move-
ment by motor vehicle of property described in such section and for 
brokerage services to be provided in connection with the interstate 
movement of 
such property. 
"(b) A written contract between an owner or operator of a motor 
vehicle and a broker, shipper of property, or receiver of property 
which is required to be used by the Commission under this section 
shall specify the arrangements, including compensation, with respect 
to loading and unloading of the property transported under such con-
tract. Whenever the shipper or receiver of the property transported 
under such contract requires that the operator of the vehicle load 
or unload any part of the property onto or from the vehicle contrary 
to any provision of such contract, the shipper or receiver shall 
compensate the owner or operator of the vehicle for all costs eissoci-
ated with loading or unloading that part of the property. Any person 
who knowingly violates the preceding sentence is liable to the United 
States Government for a civil penalty of not more than $10,000 for 
each violation. 
"(c) The Commission shall prescribe, by regulation, the minimum 
requirements and conditions of written contracts required to be used 
under this section.". 
0)) The analysis of subchapter II of chapter 105 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"10527. Written contracts pertaining to certain interstate movements by motor 
vehicle.". 
(c) Section 11702(aX2) of title 49, United States Code, is amended by 
inserting "10527 or" before "10930". 
(d) The Interstate Commerce Commission and the Secretary of 
Agriculture may enter into agreements (including, but not limited to, 
memorandums of understanding) in carrying out the provisions of 
section 10527(a) of title 49, United States Code. 
Licenses. 
49TJSC 10927. 
MOTOR CARRIER BROKERS OF PROPERTY 
SEC. 17. (a) Section 10924 of title 49, United States Code, is 
amended— 
(1) in subsection (a) by inserting "of passengers or household 
goods" after "transportation" the first place such term appears; 
and 
(2) by redesignating subsections (b), (c), and (d) (and any 
references thereto) as subsections (c), (d), and (e), respectively, 
and bjr inserting after subsection (a) the following new 
subsection: 
"(b) The Interstate Commerce Commission shall issue, subject to 
section 10927(b) of this title, a license to a person authorizing the 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 811 
person to be a broker for transportation of property (other than 
household goods) subject to the jurisdiction of the Commission under 
subchapter II of chapter 105 of this title, if the Commission finds that 49 use 10521. 
the person is fit, willing, and able— 
"(1) to be a broker for transportation to be authorized by the 
license; and 
"(2) to comply with this subtitle and regulations of the Com-
mission.", 
(b) Section 10925(d)(1)(A) of title 49, United States Code, is amended 
by striking out "10924(d)" and inserting in lieu thereof "10924(e)". 
FINANCE EXEMPTIONS 
SEC. 18. (a) Section 11302(b) of title 49, United States Code, is 
amended by— 
(1) striking "more than $1,000,000" and substituting "more 
than $5,000,000"; and 
(2) striking "more than $200,000" and substituting "more than 
$1,000,000". 
(b) Section 11343(d)(1) of title 49, United States Code, is amended by 
striking "more than $300,000" and substituting "more than 
$2,000,000". 
UNIFORM STATE REGULATION 
SEC. 19. Congress hereby declares and finds that the individual 
State regulations and requirements imposed upon interstate motor 
carriers regarding licensing, registration, and filings are in many 
instances confusing, lacking in uniformity, unnecessarily duplicative, 
and burdensome and that it is in the national interest to minimize 
the burdens of such regulations while at the same time preserving 
the legitimate interests of the State in such regulation. Therefore, the Recommendations. 
Congress directs the Secretary of Transportation and the Interstate 
Commerce Commission, in consultation with the States and the 
various State agencies which administer such requirements and 
regulations and with the motor carrier industry, including both the 
regulated and unregulated segments, to develop legislative or other 
recommendations to provide a more efficient and equitable system of 
State regulations for interstate motor carriers. Such recommenda- Submittal to 
tions shall be made to the Congress not later than 18 months after the Congress. 
date of enactment of this Act. 
POOUNG ARRANGEMENTS 
SEC. 20. (a) Section 11342(a) of title 49, United States Code, is 
amended by striking out "The Commission may" and inserting in lieu 
thereof "Except as provided in subsection (b) for agreements or 
combinations between or among motor common carriers of property, 
the Commission may". 
(b) Section 11342 of title 49, United States Code, is amended by 
redesignating subsections (b), (c), and (d) (and any references thereto) 
as subsections (c), (d), and (e), respectively, and by inserting after 
subsection (a) the following new subsection: 
"(b) Any motor common carrier of property may apply to the 
Commission for approval of an agreement or combination with 
another motor common carrier of property to pool or divide traffic or 
any services or any part of their earnings by filing such agreement or 
combination with the Commission not less than 50 days before its 
effective date. Prior to the effective date of the agreement or 
94 STAT. 812 
PUBLIC LAW 96-296—JULY 1, 1980 
combination, the Commission shall determine whether the agree-
ment or combination is of major transportation importance and 
whether there is substantial likelihood that the agreement or combi-
nation will unduly restrain competition. If the Commission deter-
mines that neither of these two 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 
Commission may issue, and for such consideration between such 
carriers and upon such terms and conditions as shall be found by the 
Hearing. 
Commission to be just and reasonable. If the Commission determines 
either that the agreement or combination is of major transportation 
importeuice or that there is a substantial likelihood that the agree-
ment or combination will unduly restrain competition, the Commis-
sion shall hold a hearing concerning whether the agreement or 
combination will be in the interest of 
better service to the public or of 
economy in operation and whether it will unduly restrain competi-
tion and shall suspend operation of such agreement or combination 
pending such hearing and final decision thereon. After such hearing, 
the Commission shall indicate to what extent it finds that the 
agreement or combination will be in the interest of better service to 
the public or of 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 Commission may issue, and 
for such consideration between such carriers and upon such terms 
and conditions as shall be found by the Commission to be just and 
reasonable.". 
MIXED LOADS 
Ante, p. 797. 
SEC. 21. (a) Section 10526(a)(6) of title 49, United States Code, is 
amended by striking out "a motor vehicle carrying, for compensation, 
only property and that property consists" and inserting in lieu 
thereof "transportation by motor vehicle". 
OJXD Subchapter II of chapter 105 of title 49, United States Code, is 
amended by adding at the end thereof the following new section: 
49 use 10528. 
"§ 10528. Mixed loads of regulated and unregulated property 
"A motor carrier of 
property providing transportation exempt from 
the jurisdiction of the Commission under paragraph (6), (8), (10), (11), 
or (12) of section 10526(a) of this subchapter may transport property 
under such paragraph in the S£ime vehicle and at the same time as 
property which the carrier is authorized to transport under a certifi-
cate issued under section 10922(b) of this subtitle or under a permit 
issued under section 10923 of this subtitle. Such transportation shall 
not affect the unregulated status of such exempt property or the 
regulated status of the property which the carrier is authorized to 
transport under such certificate or permit.". 
(2) The analysis for subchapter II of chapter 105 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"10528. Mixed loads of regulated and unregulated property.". 
Ante, pp. 797, 
798. 
Ante, p. 794. 
Ante, pp. 799, 
800. 
JOINT RATES AND THROUGH ROUTES 
SEC. 22. (a) Section 10703(b) of title 49, United States Code, is 
amended by inserting ", II (insofar as motor carriers of property are 
concerned)," immediately after "subchapter I". 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 813 
(b) Section 10705 of title 49, United States Ckxie, is amended by 
redesignating subsectibns (b), (c), (d), (e), and (f) (and any references 
thereto) as subsections (c), (d), (e), (f), and (g), respectively, and by 
inserting after subsection (a) the following new subsection: 
"(bXD The Interstate Commerce Commission may, and shall when 
it considers it desirable in the public interest, prescribe through 
routes, joint classifications, joint rates (including maximum or mini-
mum rates or both), the division of joint rates, and the conditions 
under which those routes must be operated, for a motor common 
carrier of property providing transportation subject to the jurisdic-
tion of the Commission under subchapter II of chapter 105 of this title 
with another such carrier or with a water common carrier of 
property. 
"(2) The Commission may not require a motor common carrier of 
property, without its consent, to include in a through route substan-
tially less than the entire length of its route and the route of any 
intermediate carrier which is operated in conjunction and under 
common management or control with such motor common carrier of 
property which lies between the termini of such proposed through 
routes (A) unless inclusion of such routes would make the through 
route unreasonably circuitous as compared with another practicable 
through route which could otherwise be established, or (B) unless the 
Commission finds that the through route proposed to be established is 
needed in order to provide adequate, more efficient, or more economic 
transportation. In prescribing through routes the Commission shall, 
so far as is consistent with the public interest, and subject to the 
preceding sentence, give reasonable preference to the carrier which 
originates the traffic". 
(c) Section 10705(c) of title 49, United States Code, as redesignated 
by subsection (b) of this section, is amended by inserting "or (b)" after 
"subsection (a)" in the first sentence and by striking out "or water 
carrier" in the second sentence and inserting in lieu thereof "carrier, 
water carrier, or motor common carrier of property". 
(d) The first sentence of section 10705(e) of title 49, United States 
Code, as redes^ated by subsection (b) of this section, is amended by 
striking out "a rail or water common carrier tariff" and inserting in 
lieu thereof "a tariff of a rail carrier, water common carrier, or motor 
common carrier of property". 
(e) Subsection (fKD of section 10705 of title 49, United States Code, 
as redesignated by subsection (b) of this section, is amended by 
striking out "subsection (a) or (b)" and inserting in lieu thereof 
"subsection (a), (b), or (c)". 
(f) Section 10705 of title 49, United States Code, is further amended 
by adding at the end thereof the following new subsection: 
"(h) Any motor common carrier of property who is a party to a 
through route and joint rate, whether established by such carrier 
under section 10703 of this title or prescribed by the Commission 
under subsection (b) of this section, shall promptly pay divisions or 
make interline settlements, as the case may be, with other carriers 
which are parties to such through route and joint rate. In the event of 
undue delinquency in the settlement of such divisions or interline 
settlements, such through routes and joint rates may be suspended or 
canceled under rules prescribed by the Commission. . 
(g) Section 10705(g) of title 49, United States Code, as redesignated 
by subsection (b) of this section, is amended by striking out "subsec-
tion (e)" and inserting in lieu thereof "subsection (f)". 
49 use 10521. 
Preference 
to carrier. 
Division pay-
ments or 
interline 
settlements. 
49 use 10703. 
94 STAT. 814 
PUBLIC LAW 96-296—JULY 1, 1980 
Contracts. 
Regulations. 
(h) Section 10703(a)(4) of title 49, United States Code, is amended by 
adding at the end thereof the following new subparagraph: 
"(E) A freight forwarder may enter into contracts with a rail 
carrier or with a water common carrier providing transportation 
subject to the Shipping Act, 1916 (46 U.S.C. 801 et seq.) or the 
Intercoastal Shipping Act, 1933 (46 U.S.C. 843-848). Not later 
than 180 days after the date of enactment of this subparagraph, 
the Commission shall promulgate regulations implementing the 
provisions of this subparagraph.". 
49 u s e 10321. 
5 u s e 551. 
Time ex-
tension. 
TEMPORARY AUTHORITIES AND EMERGENCY TEMPORARY AUTHORITIES 
SEC. 23. Section 10928 of title 49, United States Code, is amended 
b y -
(1) inserting "(a)" before "Without"; 
(2) inserting "of passengers" after "motor carrier" each place 
such term appears; and 
(3) adding at the end thereof the following new subsections: 
"(b)(1) Without regard to subchapter II of chapter 103 of this title 
and subchapter II of chapter 5 of title 5, the Commission, pursuant to 
such regulations as the Commission may issue, may grant a motor 
carrier of property temporary authority to provide transportation to 
a place or in an area having no motor carrier of property capable of 
meeting the immediate needs of the place or area. Unless suspended 
or revoked, the Commission may grant the temporary authority for 
not more than 270 days. A grant of temporary authority does not 
establish a presumption that permanent authority to provide trans-
portation will be granted under this subchapter. 
"(2) The Commission shall take final action upon an application 
filed under this subsection no later than 90 days after the date the 
application is 
filed 
with the Commission. 
"(c)(1) Without regard to subchapter II of chapter 103 of this title 
and subchapter II of chapter 5 of title 5, the Commission, pursuant to 
such regulations as the Commission may issue, may grant a motor 
carrier of property emergency temporary authority to provide trans-
portation to a place or in an area having no motor carrier of property 
capable of meeting the immediate needs of the place or area if the 
Commission determines that, due to emergency conditions, there is 
not sufficient time to process an application for temporary authority 
under subsection (b) of this section. Unless suspended or revoked, the 
Commission may grant the emergency temporary authority for not 
more than 30 days, and the Commission may extend such authority 
for a period of not more than 90 days. A grant of emergency 
temporary authority does not establish a presumption that perma-
nent authority to ppovide transportation will be granted under this 
subchapter. 
"(2) The Commission shall take final action upon an application 
filed under this subsection not later than 15 days after the date the 
application is 
filed 
with the Commission.". 
COOPERATIVE ASSOCIATIONS 
SEC. 24. (a) Section 10526(a)(5)(A)(ii) of title 49, United States Code, 
is amended by striking out "15 percent" and inserting in lieu thereof 
"25 percent". 
0)X1) Subchapter II of chapter 105 of title 49, United States Code, is 
amended by adding at the end thereof the following new section: 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 815 
*'§ 10529. Limited authority over cooperative associations 
"(a) Notwithstanding section 10526(aX5) of this title, any coopera-
tive association (as defined by section 15(a) of the Agricultural 
Marketing Act (12 U.S.C. 1141j(a)) or a federation of cooperative 
associations which is required to notify the Commission under such 
section 10526(a)(5) shall prepare and maintain such records relating 
to transportation provided by such association or federation, in such 
form, as the Commission may require by regulation to carry out the 
provisions of such section 10526(aX5). iTie Commission or an 
employee designated by the Commission, may on demand and display 
of 
proper credentials— 
*X1) inspect and examine the lands, buildings, and equipment 
of 
such association or federation; and 
"(2) inspect and copy any record of such association or 
federation. 
"(b) Notwithstanding section 10526(a)(5) of this title, the Commis-
sion may require a cooperative association or federation of coopera-
tive associations described in subsection (a) of this section to file 
reports with the Commission containing answers to questions about 
transportation provided by such association or federation. 
"(c) The Commission may bring a civil action to enforce subsections 
(a) and (b) of this section or a regulation or order of the Commission 
issued under this section, when violated by a cooperative association 
or federation of cooperative associations described in subsection (a). 
"(dXD A person required to make a report to the Commission, 
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 bj^ the Commission, is liable to the United States 
Government for a civil penalty of not more than $500 for each 
violation and for not more than $250 for each additional day the 
violation continues. 
"(2) Trial in a civil action under paragraph (1) of this subsection 
shall be in the judicial district in which (A) the cooperative associ-
ation 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) A person, or an officer, employee, or agent of that person, that 
by any meems 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) A person required to make a report to the Commission, 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) willfuUjr does not specifically, completely, and truth-
fully answer that question in 30 days from the date the Commission 
requires the question to be answered, (3) willfully does not maintain 
that record in the form and manner prescribed by the Commission, (4) 
knowingly and willfully falsifies, destroys, mutilates, or changes that 
report or record, (5) mowingly and willfully files a false report or 
record with the Commission under this section, (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 of the 
49 u s e 10529. 
Notification; 
recordkeeping. 
49 u s e 10526. 
Inspection 
rights. 
Filing of 
reports. 
eivil action. 
Noncompliance 
penalty. 
Violations, 
penalties. 
79-194 
O—81—pt. 1 
55 : QL3 
94 STAT. 816 
PUBLIC LAW 96-296—JULY 1, 1980 
Repeal. 
49 u s e 10501. 
49 u s e 10525, 
10708, ante, pp. 
796,814, posf, pp. 
819, 818. 
Oral hearing; 
decisions. 
49 u s e 10305. 
49 u s e 10341. 
49 u s e 10921. 
Publication in 
Federal 
Register. 
Waiver. 
Commission issued under this section, shall be fined not more than 
$5,000.". 
(2) The analysis for subchapter 11 of chapter 105 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"10529. Limited authority over cooperative associations.". 
(c) Subsection (c) of section 11144 of title 49, United States Code, is 
hereby repealed. 
PROCEDURAL REFORM 
SEC. 25. (a) Section 10322 of title 49, United States Code, is amended 
to read as follows: 
*
*
§ 10322. Commission action and appellate procedure in non-rail 
proceedings 
"(a) This section applies to a matter before the Interstate Com-
merce Commission over which the Commission has jurisdiction under 
chapter 105 of this title, other than a matter involving a rail carrier 
providing transportation subject to the jurisdiction of the Commis-
sion under subchapter I of such chapter. The deadlines set forth in 
this section do not apply to the following sections of this subtitle: 
10525(c), 10708(b), 10922(hX2), 10928,11345a, and 11701(c). 
"(b)(1) Except as provided in paragraph (2) of this subsection, a 
division, individual commissioner, employee board, or an employee 
delegated under section 10305 of this title to make an initial decision 
in a matter related to a carrier (other than a rail carrier), or, in the 
case of a matter referred to a joint board under section 10341 of this 
title, such 
joint board— 
"(A) shall, in any case in which an oral hearing is held or the 
Commission has found that an issue of general transportation 
importance is involved, complete all evidentiary proceedings 
related to the matter not later than the 180th day following 
institution of the proceeding and shall issue in writing the initial 
decision not later than the 270th day following institution of the 
proceeding; and 
"(B) shall, in the case of all other proceedings subject to this 
section, issue in writing the initial decision by the 180th day 
following institution of the proceeding. 
If evidence is submitted in writing or testimony is taken at an oral 
hearing, the initial decision shall include specific findings of fact, 
specific and separate conclusions of law, an order, and justification 
for the findings of 
fact, conclusions of law, and order. 
"(2) In any case involving an application for authority to provide 
motor carrier transportation incidental to trailer-on-flatcar or con-
tainer-on-flatcar service by rciil under subchapter II of chapter 109 of 
this subtitle, a final decision on such application shall be issued in 
writing not later than the 180th day following the date such applica-
tion is 
filed 
with the Commission. 
"(3) At the earliest practicable time after the filing of an applica-
tion for authority under subchapter II of chapter 109 of this title, the 
Commission shall publish in the Federal Register notice of the filing 
of such application. 
"(c) The Commission, or a division designated by the Commission, 
may waive the requirement for an initial decision under subsection 
(b) of this section and may require the matter to be considered by the 
Commission or such division on finding that the matter involves a 
question of Commission policy, a new or novel issue of law, or an issue 
of general transportation importance or that wsdver of the initial 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 817 
decision is required for the timely execution of the Commission's 
functions. If the requirement for an initial decision is waived, a final 
decision shall be issued in writing within the time limit established 
for the issuance of the initial decision under subsection (b) of this 
section. 
"(d) In a proceeding under this section in which the parties have 
had at least an opportunity to submit evidence in written form, such 
parties shall have an opportunity to present arguments to the initial 
decisionmaker. The decisionmaker shall determine whether the 
arguments should be presented orally or in writing and may require 
that written arguments be submitted simultaneously with written 
submissions of evidence and that oral arguments be presented at an 
oral hearing. Upon issuance of an initial decision under this section, 
copies of such decision shall be served on the parties and submitted to 
the Commission. 
"(e) An initial decision under this section becomes a final decision 
on the 20th day after it is served on the interested parties, unless— 
"(1) an interested party files an appeal during the 20-day 
period or, if authorized by the Commission or division designated 
by the Commission, by the end of an additional period of not 
more than 20 days; or 
"(2) the Commission stays or postpones under subsection (f)(1) 
of this section the initial decision not later than the 20th day 
following the date it is served on the parties. 
"(f)(1) Before an initial decision under this section becomes a final 
decision, the Commission or a division or an employee board desig-
nated by the Commission, may review the initigd decision on its own 
initiative and shall review an initial decision if a timely appeal is 
filed under subsection (e) of this section. 
"(2) An initial decision may be reviewed on the record on which it is 
based or by a further hearing. If an initial decision is reviewed, it 
shall be stayed pending final determination of the matter and it 
becomes a final decision only after the final determination is made. If 
a timely appeal is filed under subsection (e) of this section, the final 
determination shall be made not later than the 50th day after the 
appeal is filed. If an initial decision under this section is reviewed by 
the Commission or a division or an employee board designated by the 
Commission on its own initiative, the final decision shall be made not 
later than the 50th day after initiation of such review. 
"(3) Notwithstanding the provisions of paragraph (2) of this subsec-
tion, if an initial decision under this section is reviewed by further 
hearing, such review shall be completed, and a final decision made, 
not later than the 120th day following the date the further hearing is 
granted. 
"(4) Review of, or appeal from, an initial decision under this section 
shall be conducted under section 557 of title 5. The Commission may 
prescribe rules limiting and defining the issues and pleadings on 
review under subsection (b) of 
such section. 
"(gXD The Commission may, at any time on its own initiative 
because of material error, new evidence, or substantially changed 
circumstances— 
"(A) reopen a proceeding; 
"(B) grant rehearing, reargument, or reconsideration of an 
action of 
the Commission; and 
"(C) change an action of the Commission. 
Initial decisions. 
Final decision 
review. 
Appeals. 
Commission 
action, 
proceeding 
reopening 
and 
reconsideration. 
94 STAT. 818 
PUBLIC LAW 96-296—JULY 1, 1980 
Stay of Commis-
sion action. 
Effective 
date. 
Time period, 
extension. 
Repeal. 
49 use 10327. 
Repeal. 
An interested party may petition to reopen and reconsider an action 
of the Commission under this paragraph under regulations of the 
Commission. 
"(2) The Commission may grant a rehearing, reargument, or 
reconsideration of an action of the Commission that was taken by a 
division or an employee board designated by the Commission if it 
finds that— 
"(A) the action involved a matter of general transportation 
importance; or 
"(B) the action would be affected materially because of clear 
and convincing new evidence or changed circumstances. 
An interested party may petition for rehearing, reargument, or 
reconsideration of an action of the Commission under this paragraph 
under regulations of the Commission. The Commission may stay an 
action pending a final determination under this paragraph. The 
Commission shall complete reconsideration and take final action by 
the 120th day after the petition is granted. 
"(3) If the Commission initiates any action under paragraph (1) of 
this subsection, final disposition under such paragraph shall be made 
not later than the 120th day following the date action is initiated. 
"(h) A final decision under this section shall be effective on the date 
it is served on the parties, and a civil action to enforce, enjoin, 
suspend, or set aside the decision may be filed after that date. 
"(i) In extraordinary circumstances, the Commission may extend a 
time period established by this section, except that the total of all 
such extensions with respect to any matter subject to the provisions 
of this section shall not exceed 90 days.". 
(b) Section 10323 of title 49, United States Code, is hereby repealed. 
(cXD Section 10324(a) of title 49, United States Code, is amended by 
striking out the last sentence. 
(2) Section 10324(c) of title 49, United States Code, is amended to 
read as follows: 
"(c) An action of the Commission under section 10327 of this title is 
enforceable, unless the Commission stays or postpones such action.". 
(d) Section 10325 of title 49, United States Code, is hereby repealed. 
(e) Section 10327(a) of title 49, United States Code, is amended by 
striking out "Notwithstanding sections 10322,10323, and 10324(c) of 
this title, this" and inserting in lieu thereof "This". 
(f) The index for subchapter II of chapter 103 of title 49, United 
States Code, is amended by striking out the items relating to Bections 
10322, 10323, 10324, and 10325 and inserting in lieu thereof the 
following: 
"10322. Commission action and appellate procedure in non-rail proceedings. 
"10323. Repealed. 
"10324. Commission action. 
"10325. Repealed.". 
ENFORCEMENT 
SEC. 26. (a) Section 11701(c) of title 49, United States Code, is 
amended by striking "related to a rail carrier". 
(b) Section 11707(e) of title 49, United States Code, is amended by 
adding the following at the end thereof: "For the purposes of th& 
subsection— 
"(1) an offer of compromise shall not constitute a disallowance 
of any part of the claim unless the carrier, in writing, informs the 
claimant that such part of the claim is disallowed and provides 
reasons for such disallowance; and 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 819 
"(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 disallowance, and 
informs the claimant that the insurer is acting on behalf of the 
carrier.". 
(c) Section 1114 of title 18, United States Code, is amended by 
inserting "Interstate Commerce Commission," after "Consumer 
Product Safety Commission,". 
49 u s e 11343, 
11344. 
Publication 
in Federal 
.Register. 
Ante, p. 816. 
MERGER PROCEDURE 
SEC. 27. (a) Subchapter HI of chapter 113 of title 49, United States 
Code, is amended by inserting after section 11345 the following new 
section: 
*'§ 11345a. Consolidation, merger, and acquisition of control: 49uscii345a. 
motor carrier of property procedure 
"(a) If a motor carrier of property providing transportation subject 
to the jurisdiction of the Interstate Commerce Commission under 
subchapter II of chapter 105 of this title is involved in a proposed 49 use 10521. 
transaction under section 11343 of this title, this section and section 
11344 of this title also apply to the transaction. The Commission shall 
publish notice of the application in the Federal Register by the end of 
the 30th day after the application is filed with the Commission. 
However, if the application is incomplete, the Commission shall 
reject it by the end of that period. The order of rejection is a final 
decision of the Commission under section 10322 of 
this title. 
"(b) Written comments about an application may be filed with the 
Commission within 45 days after notice of the application is pub-
lished under subsection (a) of this section. 
"(c) The Commission must conclude evidentiary proceedings by the 
240th day after the date of publication of notice under subsection (a) 
of this section. The Commission must issue a final decision by the 
180th day after the date it concludes the evidentiary proceedings. In 
extraordinary circumstemces, the Commission may extend a time 
period established by this section, except that the total of all such 
extensions with respect to any application shall not exceed 90 days. 
"(d) The Commission may waive the requirement that an initial Waiver. 
decision be made under section 10322 of this title and make a final 
decision itself when it determines that action is required for the 
timely execution of its functions under this subchapter or that an 
application governed by this section is of m^or transportation 
importance. The decision of the Commission under this subsection is 
a final decision under section 10322 of 
this title.". 
(b) The analysis of subchapter III of chapter 113 of title 49, United 
States Code, is amended by inserting after 
"11345. Cionsolidation, merger, and acquisition of control: rail carrier procedure." 
the following: 
"11345a. Consolidation, merger, and acquisition of control: motor carrier of property 
procedure.". 
SMALL COMMUNITY SERVICE STUDY 
SEC. 28. (a) The Interstate Commerce Commission shall make a full 
investigation and study of 
motor carrier service to small communities 
(with emphasis on communities of population 5,000 and under), and 
Report to 
President and 
eongress. 
94 STAT. 820 
PUBLIC LAW 96-296—JULY 1, 1980 
Contents 
of report. 
Data for 
report. 
Additional 
data. 
Contracts. 
Appropriation 
authorization. 
Infra. 
shall submit a report, including legislative or other recommenda-
tions, to the President and the Congress not later than September 1, 
1982. 
(b) The report shall include an analysis of the common carrier 
obligation to provide service to small community shippers and an 
assessment of whether the Commission is enforcing such obligation. 
If the Commission determines that it is not fully enforcing such 
obligation, then it shall expledn why not, and detail what steps it 
would need to take and what resources it would have to have in order 
to enforce such obligation. The report shall also describe the extent to 
which motor carriers were providing service to small communities 
prior to the date of enactment of this Act, and evaluate the effect of 
this Act on such service. The report shall include specific recommen-
dations regarding ways to ensure the provision and maintenance of 
motor carrier service to small communities. 
(c)(1) To develop data for its report, the Commission shall monitor— 
(A) complaints to determine the number and kinds of com-
plaints by small community shippers; and 
(B) applications for new and expanded service to determine 
whether motor carriers are seeking to serve small community 
shippers. 
(2) The Commission may develop additional data by any other 
means, including surveys of small community shippers and motor 
carriers providing service to such communities to determine the 
reliability of such service and the availability of quality and price 
options. The Commission is authorized to enter into contracts or 
agreements with public and private organizations to carry out such 
surveys of shippers and motor carriers. 
(d) There is hereby authorized to be appropriated for fiscal years 
1981 and 1982 such sums as are necessary to carry out the provisions 
of this section. 
INSURANCE 
SEC. 29. Section 10927(aXl) of title 49, United States Code, is 
amended by striking out "approved by the Commission." and insert-
ing in lieu thereof "approved by the Commission, in an amount not 
less than such amount as the Secretary of Transportation prescribes 
pursuant to, or as is required by, the provisions of section 30 the 
Motor Carrier Act of 1980.". 
Regulations. 
49 u s e 10927 
note. 
MINIMUM FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS 
SEC. 30. (a)(1) The Secretary of Transportation shall establish 
regulations to require minimal levels of financial responsibility 
sufficient to satisfy liability amounts to be determined by the Secre-
tary covering public liability, property damage, and environmental 
restoration for the transportation of property for hire by motor 
vehicle in the United States from a place in one State to a place in 
another State, from a place in a State to another place in such State 
through a place outside of such State, or between a place in a State 
and a place outside the United States. 
(2) The minimal level of financial responsibility established by the 
Secretary under paragraph (1) of this subsection for any vehicle shall 
not be less than $750,000, except that the Secretary, by regulation, 
may reduce such amount (but not to an amount less than $500,000) 
for any class of vehicles or operations for the two-year period 
beginning on the effective date of the regulations issued under such 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 821 
Amount 
reductions. 
Hazardous 
substances. 
paragraph or any part of such period if the Secretary finds that such 
reduction will not adversely affect public safety and will prevent a 
serious disruption in transportation service. 
(3) If, at the end of the one-year period beginning on the date of 
enactment of this Act, the Secretary has not established regulations 
to require minimal levels of financial responsibility as required by 
paragraph (1) of this subsection for any class of transportation of 
property for hire by motor vehicle from a place in a State to a place in 
another State or from a place in a State to another place in such State 
through another State, the levels of financial responsibility for such 
class of transportation shall be the $750,000 amount set forth in 
paragraph (2) of this subsection, until such time as the Secretary, by 
regulation, changes such amount under this subsection. Notwith-
standing the provisions of such paragraph, the Secretary may only 
make reductions in such amount under such paragraph for the two-
year period beginning on the 366th day following the date of enact-
ment of this Act or any part of such period. 
0)X1) The Secretary shall establish regulations to require minimal Regulations. 
levels of financial responsibility sufficient to satisfy liability amounts 
to be determined by the Secretary covering public liability, property 
damage, and environmental restoration for the transportation of 
hazardous materials (as defined by the Secretary), oil or hazardous 
substances (as defined by the Administrator of the Environmental 
Protection Agency), or hazardous wastes (as defined by the Adminis-
trator of the Environmental Protection Agency) by motor vehicle in 
interstate or intrastate commerce. 
(2) The minimal level of financial responsibility established by the 
Secretary under paragraph (1) of this subsection for any vehicle 
transporting in interstate or intrastate commerce— 
(A) hazardous substances (as defined by the Administrator of 
the Environmental Protection Agency) in cargo tanks, portable 
tanks, or hopper-type vehicles, with capacities in excess of 3,500 
water gallons, 
(B) in bulk class A explosives, poison gas, liquefied gas, or 
compressed gas, or 
(C) large quantities of radioactive materials, 
shall not be less than $5,000,000, except that the Secretary, by 
regulation, may reduce such amount (but not to an amount less than 
$1,000,000) for any class of vehicles or operations for the two-year 
period beginning on the effective date of the regulations issued under 
this subsection or any part of such period if the Secretary finds that 
such reduction will not adversely affect public safety and will prevent 
a serious disruption in transportation service. 
(3) The minimal level of financial responsibility established by the 
Secretary under paragraph (1) of this subsection for any vehicle 
transporting in interstate or intrastate commerce any material, oil, 
substance, or waste not subject to the provisions of paragraph (2) of 
this subsection shall not be less than $1,000,000, except that (A) the 
Secretary, by regulation, may reduce such amount (but not to an 
amount less than $500,000) for any class of vehicles or operations for 
the two-year period beginning on the effective date of the regulations 
issued under this subsection or any part of such period if the 
Secretary finds that such reduction will not adversely affect public 
safety and will prevent a serious disruption in transportation service, 
and (B) in the case of any class of vehicles transporting any such 
material, oil, substance, or waste in intrastate commerce other than 
in bulk, the Secretary, by regulation, may reduce such amount if the 
Amounts, 
limitation. 
94 STAT. 822 
PUBLIC LAW 96-296—JULY 1, 1980 
Amount 
reductions. 
Violation, 
determination 
of penalty 
amount. 
Civil penalty, 
recovery. 
Report to 
C!ongress. 
Recommen-
dations for 
further legis-
lation. 
Secretary finds that such reduction will not adversely affect public 
safety. 
(4) If, at the end of the one-year period beginning on the date of 
enactment of this Act, the Secretary has not established regulations 
to require minimal levels of financial responsibility as required by 
paragraph (1) of this subsection for any class of transportation of 
hazardous materials, oil, hazardous substsmces, or hazardous wastes 
by motor vehicle in interstate or intrastate commerce, the levels of 
financial responsibility for such class of transportation shall be the 
$5,000,000 amount set forth in paragraph (2) of this subsection or the 
$1,000,000 amount set forth in paragraph (3) of this subsection, as the 
case may be, until such time as the Secretary, by regulation, changes 
such amount under this subsection. Notwithstanding the provisions 
of paragraph (2) or (3)(A) of this subsection, the Secretary may only 
make reductions in such amount under such paragraph for the two-
year period beginning on the 366th day following the date of enact-
ment of this Act or any part of 
such period. 
(c) Financial responsibility may be established under this section 
by any one or any combination of the following methods acceptable to 
the Secretary: evidence of insurance, guarantee, surety bond, or 
qualification as a self-insurer. Any bond filed shall be issued by a 
bonding company authorized to do business in the United States. The 
Secretary shall establish, by regulation, methods and procedures to 
Eissure compliance with this section. 
(d)(1) Any person (except an employee who acts without knowledge) 
who is determined by the Secretary, after notice and opportunity for 
a hearing, to have knowingly violated this section or a regulation 
issued under this section shall be liable to the United States for civil 
penalty of not more than $10,000 for each violation, and if any such 
violation is a continuing one each day of violation constitutes a 
separate offense. The amount of any such penalty shall be assessed by 
the Secretary by written notice. In determining the amount of such 
penalty, the Secretary shall take into account the nature, circum-
stances, extent, and gravity of the violation committed and, with 
respect to the person found to have committed such violation, the 
degree of culpability, any history of prior offenses, ability to pay, 
effect on ability to continue to do business, and such other matters as 
justice may require. 
(2) Such civil penalty may be recovered in an action brought by the 
Attorney General on behalf of the United States in the appropriate 
district court of the United States or, prior to referral to the Attorney 
General, such civil penalty may be compromised by the Secretary. 
The amount of such penalty, when finally determined (or agreed 
upon in compromise), may be deducted from any sums owed by the 
United States to the person charged. All penalties collected under 
this subsection shall be deposited in the Treasury of the United States 
as miscellaneous receipts. 
(e) Not later than one year after the date of enactment of this Act, 
the Secretary shall report to Congress upon the regulations issued 
under this section. The Secretary shall describe the various levels of 
financial responsibility mandated and the rationale for selecting the 
final limits. The Secretary shall also include an estimate of the 
impact of the regulations upon the safety of motor vehicle transporta-
tion, the economic condition of the motor carrier industry (including, 
but not limited to, small and minority motor carriers and independ-
ent owner-operators), and the ability of the insurance industry to 
provide the designated coverage. The Secretary shall make recom-
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 823 
mendations with respect to the need for further legislation related to 
levels of financial responsibility, including to what extent, if any, 
minimum statutory levels should be modified. 
(f) This section shall only apply to motor vehicles having a gross 
vehicle weight rating of 10,000 pounds or more. 
(g) For purposes of 
this section, the term— 
(1) "Secretary" means the Secretary of Transportation; and 
(2) "State" (includii^ its use in the terms "interstate" and 
"intrastate") means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
American Samoa, Guam, and the Commonwealth of the North-
em Marianas. 
"Secretary." 
"State." 
Definitions. 
IMPOSITION OP STATE TAX ON MOTOR CARRIER TRANSPORTATION 
PROPERTY 
SEC. 31. (aXD Chapter 115 of title 49, United States Code, is 
amended by inserting after section 11503 the following new section: 
'*§ 11503a. Tax discrimination against motor carrier transporta- 49uscii503a. 
tion property 
"(a) In this section— 
"(1) 'assessment' means valuation for a property tax levied by a 
taxing district; 
"(2) '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' means property, as 
defined by the Interstate Commerce Commission, owned or used 
by a motor carrier of property providing transportation in 
interstate commerce whether or not such transportation is 
subject to the jurisdiction of the Commission under subchapter II 
of 
chapter 105 of 
this title; and 
"(4) 'commercial and industrial property' means property, 
other than transportation property and lana used primaruy for 
agricultural purposes or timber growing, devoted to a commer-
cial or industrial use and subject to a property tax levy. 
"(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 motor carrier transportation property at a value 
that has a higher ratio to the true market value of the motor 
carrier transportation property than the ratio that the assessed 
value of other commercial and industrial property in the same 
assessment jurisdiction has to the true market value of 
the other 
commercial and industrial property; 
"(2) levy or collect a tax on an assessment that may not be 
made under paragraph (1) of 
this subsection; 
"(3) levy or collect an ad valorem property tax on motor carrier 
transportetion property at a tax rate that exceeds the tax rate 
applicable to commercial and industrial property in the same 
assessment 
jurisdiction. 
"(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 Stotes, 
to 
prevent a 
49 use 10521. 
Prohibited 
discriminatory 
acts. 
94 STAT. 824 
PUBLIC LAW 96-296—JULY 1, 1980 
Granting 
of relief, 
conditions. 
Violations. 
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 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 jurisdic-
tion. 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 motor carrier transportation prop-
erty at a value that hgis 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 other 
commercial and industrial property; and 
"(2) 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.". 
(2) The chapter analysis of chapter 115 of title 49, United States 
Code, is amended by inserting after 
"11503. Tax discrimination against rail transportation property." 
the following: 
"11503a. Tax discrimination against motor carrier transportation property.". 
(b) Section 10521(b)(4) of title 49, United States Code, is amended by 
inserting "section 11503a and" after "in". 
49 u s e 10733. 
49 u s e 10521. 
"Recyclable 
materials." 
RATES FOR TRANSPORTATION OF RECYCLABLE MATERIALS 
SEC. 32. (a) Subchapter II of chapter 107 of title 49, United States 
Code, is amended by adding at the end thereof the following new 
section: 
"§ 10733. Rates for transportation of recyclable materials 
"(a) A motor carrier of property providing transportation subject to 
the jurisdiction of the Commission under subchapter II of chapter 105 
of this title may provide transportation of recyclable materials 
without charge or at a reduced rate. 
"(b) In this section, 'recyclable materials' means waste products for 
recycling or reuse in the furtherance of recognized pollution control 
programs.". 
(b) The analysis for subchapter II of chapter 107 of title 49, United 
States Code, is amended by adding at the end thereof the following: 
"10733. Rates for transportation of recyclable materials.". 
BUSINESS ENTERTAINMENT EXPENSES 
SEC. 33. (a) Subchapter III of chapter 107 of title 49, United States 
Code, is amended by adding at the end thereof the following new 
section: 
PUBLIC LAW 96-296—JULY 1, 1980 
94 STAT. 825 
''§10751. Business entertainment expenses 
"(a) Any business entertainment expense incurred by a person 
providing transportation subject to the jurisdiction of the Commis-
sion under chapter 105 of 
this title (other than transportation b
}
)
^ rail) 
shall not constitute a violation of 
section 10741 or 10761 of this title if 
such expense would not be unlawful if incurred by a person or 
corporation not subject to such jurisdiction of the Commission. 
"(b) Any business entertainment expense authorized imder this 
section that is paid or incurred by a person providing transportation 
subject to the jurisdiction of the Commission under chapter 105 of 
this title (other than transportation by rail) shall not be taken into 
account in determining the cost of service or the rate base for 
purposes of 
this title. 
"(c) Within 180 days after the date of enactment of the Motor 
Carrier Act of 1980, the Commission shall institute a rulemaking 
proceeding pursuant to which it shall issue rules establishing appro-
priate standards and guidelines for authorized business entertain-
ment expenses under this section. Such standards and guidelines 
shall be consistent with standards and guidelines applicable under 
existing law to persons not subject to this subtitle, including compet-
ing unregulated surface transportation carriers.". 
(b) The analysis for chapter 107 of title 49, United States Code, is 
amended by inserting immediately after the item relating to section 
10750 the following new item: 
"10751. Business entertainment expenses.". 
(c) Section 10761 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(c) This section shall not apply to expenses authorized under 
section 10751 of 
this title.". 
(d) Section 10741 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(e) This section shall not apply to expenses authorized under 
section 10751 of 
this title.". 
49 use 10751. 
49 u s e 10501 et 
seq. 
Infra. 
Standards and 
guidelines. 
Ante, p. 793. 
COORDINATED TRANSPORTATION SERVICES 
SEC. 34. (a) Section 10922 of 
title 49, United States Code, is amended Ante, p. 796. 
by adding the following new subsection: 
"(j) A motor common carrier of property may deliver to or receive 
from a rail carrier a trailer moving m trailer-on-flat-car service at 
any point on the route of the rail carrier if the motor carrier is 
authorized to serve the origin and destination points of the traffic". 
(b) Section 10923 of title 49, United States Code, is amended by Ante, p. 800. 
adding the following new subsection: 
"(e) A motor contract CEirrier of property may deliver to or receive 
from a rail carrier a trailer moving in trailer-on-flat-car service at 
any point on the route of the rail carrier if the motor carrier is 
authorized to serve the origin and destination points of the traffic". 
JOB REFERRAL 
SEC. 35. The Secretary of Labor shall establish, maintain, and 
periodically publish a comprehensive list of 
jobs available with motor 
carriers of property holding certificates or permits issued by the 
Interstate Commerce Commission under subchapter II of chapter 109 
of title 49, United States Code. Such list shall include that informa- 49 use i092i 
tion and detail, such as job descriptions and required skills, as the 
List of available 
jobs, publication. 
49 use 10921 
note. 
94 STAT. 826 
PUBLIC LAW 96-296—JULY 1, 1980 
Employment aid. Secretary deems relevant and necessary. In addition to publishing 
the list, the Secretary shall assist a person previously employed by 
any such carrier in finding other emplojnnent. In order to carry out 
this section, the Secretary may require regulated motor carriers of 
property to file reports, data, and other information. 
ADMINISTRATION 
SEC. 36. Section 10344(f) of title 49, United States Code, is amended 
Rent payment. 
by adding at the end thereof the following new sentence: "The 
Ciommission shall pay the rent for any space or facilities assigned 
under this subsection at rates determined in accordance with section 
210(j) of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 4900)).". 
Approved July 1, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1069 accompanying H.R. 6418 (Comm. on Public Works and 
Treinsportation). 
SENATE REPORT No. 96-641 (Comm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Apr. 15, considered and passed Senate. 
June 19, H.R. 6418 considered and passed House; passage vacated and S. 2245, 
amended, passed in lieu. 
June 20, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 27: 
July 1, Presidential statement.