[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 412 Reported in Senate (RS)]

                                                       Calendar No. 120

103d CONGRESS

  1st Session

                                 S. 412

                          [Report No. 103-79]

_______________________________________________________________________

                                 A BILL

  To amend title 49, United States Code, regarding the collection of 
 certain payments for shipments via motor common carriers of property 
   and nonhousehold goods freight forwarders, and for other purposes.

_______________________________________________________________________

                June 29 (legislative day, June 22), 1993

                        Reported with amendments
                                                       Calendar No. 120
103d CONGRESS
  1st Session
                                 S. 412

                          [Report No. 103-79]

  To amend title 49, United States Code, regarding the collection of 
 certain payments for shipments via motor common carriers of property 
   and nonhousehold goods freight forwarders, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 18 (legislative day, January 5), 1993

 Mr. Exon (for himself, Mr. Kerrey, Mr. Pressler, Mrs. Kassebaum, Mr. 
 Danforth, Mr. Hatch, Mr. Dorgan, Mr. Bond, Mr. Pryor, Mr. Burns, Mr. 
Gorton, Mr. Lott, Mr. Packwood, Mr. Pell, Mr. McConnell, Mr. Kerry, Mr. 
Lugar, Mr. Cochran, Mr. Mack, Mr. Thurmond, Mr. McCain, Mr. Faircloth, 
   Mr. Craig, Mr. Boren, Mr. Gregg, Mr. Kempthorne, and Mr. Mathews) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

                June 29 (legislative day, June 22), 1993

               Reported by Mr. Hollings, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
  To amend title 49, United States Code, regarding the collection of 
 certain payments for shipments via motor common carriers of property 
   and nonhousehold goods freight forwarders, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Undercharge Equity Act of 
-1-9-9-2-'-'-. 1993''.

SEC. 2. DETERMINATIONS OF REASONABLENESS OF CERTAIN RATES.

    -(-a-) -I-n -G-e-n-e-r-a-l-.---S-e-c-t-i-o-n Section 10701 of title 
49, United States Code, is amended by adding at the end the following 
new subsection:
    ``(f)(1) Subject to paragraph (10) of this subsection, when a claim 
is made by a motor carrier of property (other than a household goods 
carrier) or by a nonhousehold goods freight forwarder, or by a party 
representing such carrier or freight forwarder, regarding the 
collection of rates or charges in addition to the rates or charges 
originally billed and collected by the carrier or freight forwarder, 
the person against whom the claim is made may elect to satisfy such 
claim under paragraph (4) or (5) of this subsection, upon showing 
that--
            ``(A) such carrier or forwarder is no longer transporting 
        property or is transporting property for the purpose of 
        avoiding the application of this subsection; and
            ``(B) as to the claim at issue, (i) the person was offered 
        a transportation rate or charge by the carrier or forwarder 
        other than the rate or charge legally on file with the 
        Commission for that shipment, (ii) the person tendered freight 
        to the carrier or forwarder in reasonable reliance upon the 
        offered transportation rate or charge, (iii) the carrier or 
        forwarder did not properly or timely file with the Commission a 
        tariff providing for such transportation rate or charge or 
        failed to execute a valid contract for transportation services, 
        (iv) such transportation rate or charge was billed and 
        collected by the carrier or forwarder, and (v) the carrier or 
        forwarder demands additional payment of a higher rate or charge 
        filed in a tariff.
Satisfaction of the claim under paragraph (4) or (5) of this subsection 
shall be binding on the parties, and the parties shall not be subject 
to chapter 119 of this title.
    ``(2) If there is a dispute as to paragraph (1)(A) of this 
subsection, such dispute shall be resolved by the court in which the 
claim is brought. If there is a dispute as to paragraph (1)(B) (i) 
through (v) of this subsection, such dispute shall be resolved by the 
Commission. Pending the resolution of any such dispute, the person 
shall not have to pay any additional compensation to the carrier or 
forwarder.
    ``(3) In the event that a dispute arises as to the rate or charge 
that was legally applicable to the shipment, such dispute shall be 
resolved by the Commission within 1 year after the dispute arises.
    ``(4) A person from whom the additional legally applicable tariff 
rate or charge is sought may elect to satisfy such claim if the 
shipment weighed 10,000 pounds or less, by payment of 20 percent of the 
difference between the carrier's or forwarder's legally applicable 
tariff rate or charge and the rate or charge originally billed and 
collected.
    ``(5) A person from whom the additional legally applicable tariff 
rate or charge is sought may elect to satisfy such claim if each 
shipment weighed more than 10,000 pounds, by payment of 10 percent of 
the difference between the carrier's or forwarder's legally applicable 
tariff rate or charge and the rate or charge originally billed and 
collected.
    ``(6) Notwithstanding paragraphs (4) and (5) of this subsection, 
when a claim is made by a carrier or forwarder described in paragraph 
(1)(A) of this subsection, or by a party representing such carrier or 
forwarder, regarding the collection of rates or charges in addition to 
the rate or charge originally billed and collected by the carrier or 
forwarder, and the person against whom the claim is made is a small-
business -c-o-n-c-e-r-n-, concern or charitable organization, that 
person shall not be required to pay the claim and the claim shall be 
deemed satisfied. Satisfaction of the claim under this paragraph shall 
be binding on the parties, and the parties shall not be subject to 
chapter 119 of this title.
    ``(7) When a person from whom the additional legally applicable 
rate or charge is sought does not elect to use the provisions of 
paragraph (4), (5), or (6) of this subsection, the person may pursue 
all rights and remedies existing under this title.
    ``(8)(A) When a person proceeds under paragraph (7) of this 
subsection to challenge the reasonableness of the legally applicable 
rate or charge being claimed by the carrier or forwarder in addition to 
the rate or charge originally billed and collected, the person shall 
not have to pay any additional compensation to the carrier or forwarder 
until the Commission has made a determination (which shall be made 
within 1 year after such challenge) as to the reasonableness of the 
challenged rate or charge as applied to the shipment of the person 
against whom the claim is made. Subject to subparagraph (B) of this 
paragraph, the Commission shall require the person to furnish a bond, 
issued by a surety company found acceptable by the Secretary of the 
Treasury, or to establish an interest bearing escrow account.
    ``(B) The surety bond or interest bearing escrow account required 
under subparagraph (A) of this paragraph shall be set or established in 
an amount equal to--
            ``(i) 20 percent of the amount claimed by the carrier or 
        forwarder for the additional rate or charge, in the case of a 
        shipment weighing 10,000 pounds or less; and
            ``(ii) 10 percent of such claimed amount, in the case of a 
        shipment weighing more than 10,000 pounds.
    ``(9) Except as authorized in paragraphs (4), (5), and (6) of this 
subsection, nothing in this subsection shall relieve a motor carrier or 
freight forwarder of the duty to file and adhere to its rates, rules, 
and classifications as required in sections 10761 and 10762 of this 
title.
    ``(10) If a carrier or forwarder or party representing such carrier 
or forwarder makes a claim for additional rates or charges as described 
in paragraph (1) of this subsection, the person against whom the claim 
is made must notify such carrier, forwarder, or party as to the 
person's election to proceed under -p-a-r-a-g-r-a-p-h -(-2-) -o-r 
-(-3-) paragraph (4) or (5) of this subsection. Such notification--
            ``(A) with respect to a claim made before the date of 
        enactment of this subsection, shall be not later than the 30th 
        day after such date of enactment; and
            ``(B) with respect to any claim not described in 
        subparagraph (A) of this paragraph, shall be not later than the 
        60th day after the filing of an answer to a complaint in a 
        civil action for the collection of such rates or charges, or 
        not later than the 90th day after the date of enactment of this 
        subsection, whichever is later.
    -`-`-(-1-1-) -I-n -t-h-i-s -s-u-b-s-e-c-t-i-o-n-, -`-s-m-a-l-l--
-b-u-s-i-n-e-s-s -c-o-n-c-e-r-n-' -m-e-a-n-s -a -p-e-r-s-o-n -w-h-o 
-w-o-u-l-d -q-u-a-l-i-f-y -a-s -a -s-m-a-l-l---b-u-s-i-n-e-s-s 
-c-o-n-c-e-r-n -u-n-d-e-r -t-h-e -S-m-a-l-l -B-u-s-i-n-e-s-s -A-c-t 
-(-1-5 -U-.-S-.-C-. -6-3-1 -e-t -s-e-q-.-)-.-'-'-.
    ``(11) In this subsection--
            ``(A) `charitable organization' means an organization which 
        is exempt from taxation under section 503(c)(3) of the Internal 
        Revenue Code of 1986 (26 U.S.C. 503(c)(3)); and
            ``(B) `small-business concern' means a person who would 
        qualify as a small-business concern under the Small Business 
        Act (15 U.S.C. 631 et. seq.).''.

SEC. 3. STATUTE OF LIMITATIONS.

    (a) Motor Carrier Charges.--Section 11706(a) of title 49, United 
States Code, is amended by striking the period at the end and inserting 
in lieu thereof the following: ``; except that a common carrier 
providing transportation or service subject to the jurisdiction of the 
Commission under subchapter II of chapter 105 of this title--
            ``(1) must begin, within 24 months after the claim accrues, 
        a civil action to recover charges for such transportation or 
        service if such transportation or service is provided by the 
        carrier on or after the date of enactment of this exception and 
        before the date that is 1 year after such date of enactment; 
        and
            ``(2) must begin such a civil action within 18 months after 
        the claim accrues if such transportation or service is provided 
        by the carrier on or after the date that is 1 year after such 
        date of enactment.''.
    (b) Motor Carrier Overcharges.--Section 11706(b) of title 49, 
United States Code, is amended by striking the period at the end of the 
first sentence and inserting in lieu thereof the following: ``; except 
that a person must begin within 24 months after the claim accrues a 
civil action to recover overcharges from a carrier subject to the 
jurisdiction of the Commission under subchapter II of chapter 105 of 
this title for transportation or service taking place on or after the 
date of enactment of this exception and before the date that is 1 years 
after such date of enactment, and for transportation or service taking 
place on or after the date that is 1 year following such date of 
enactment, a person must begin such a civil action within 18 months 
after the claim accrues.''.
    (c) Conforming Amendment.--Section 11706(d) of title 49, United 
States Code, is amended by striking ``3-year period'' each place it 
appears and inserting in lieu thereof ``limitations period''.

SEC. 4. TARIFF RECONCILIATION RULES FOR MOTOR COMMON CARRIERS OF 
              PROPERTY.

    (a) In General.--Chapter 117 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 11712. Tariff reconciliation rules for motor common carriers of 
              property
    ``(a) Subject to Interstate Commerce Commission review and 
approval, motor carriers subject to the jurisdiction of the Commission 
under subchapter II of chapter 105 of this title and shippers may 
resolve, by mutual consent, overcharge and undercharge claims resulting 
from billing errors or incorrect tariff provisions arising from the 
inadvertent failure to properly and timely file and maintain agreed 
upon rates, rules, or classifications in compliance with sections 10761 
and 10762 of this title. Resolution of such claims among the parties 
shall not subject any party to the penalties of section 11901, 11902, 
11903, 11904, or 11914 of this title.
    ``(b) Nothing in this section shall relieve the motor carrier of 
the duty to file and adhere to its rates, rules, and classifications as 
required in sections 10761 and 10762, except as provided in subsection 
(a) of this section.
    ``(c) The Commission shall, within 90 days after the date of 
enactment of this section, institute a proceeding to establish rules 
pursuant to which the tariff requirements of section 10761 and 10762 of 
this title shall not apply under circumstances described in subsection 
(a) of this section.''.
    (b) Conforming Amendment.--The analysis for chapter 117 of title 
49, United States Code, is amended by adding at the end the following:

``11712. Tariff reconciliation rules for motor common carriers of 
                            property.''.

SEC. 5. EFFECTIVE DATE; APPLICABILITY.

    (a) General Rule.--Except as provided in subsection (b), the 
provisions of this Act (including the amendments made by this Act) 
shall take effect on the date of enactment of this Act.
    (b) Applicability of Section 2.--The amendments made by section 2 
shall apply to any proceeding before the Interstate Commerce 
Commission, and to any court action, which is pending or commenced on 
or after the date of enactment of this Act and which pertains to a 
claim arising from transportation shipments tendered any time prior to 
the date that is 18 months after such date of enactment. Unless 
Congress determines a continuing need for section 2 and enacts 
additional legislation, section 2 shall not apply to any such 
proceeding which pertains to a claim arising from transportation 
shipments tendered on or after the date that is 18 months following 
such date of enactment.
    (c) Report.--The Interstate Commerce Commission shall submit a 
report to Congress, within 1 year after the date of enactment of this 
Act, regarding whether there exists a justification for extending the 
applicability of section 2 beyond the limitation period specified in 
subsection (b).