[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1776 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1776

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 23, 2003

 Mr. Campbell introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To amend title 49, United States Code, relating to responsibility for 
 intermodal equipment compliance with commercial motor vehicle safety 
                 requirements, 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 ``Intermodal Equipment Safety and 
Responsibility Act of 2003''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Promoting safety on United States highways is a 
        national priority. The Secretary of Transportation has 
        promulgated the Federal Motor Carrier Safety Regulations to 
        further this purpose. The systematic maintenance, repair, and 
        inspection of equipment traveling on public highways in 
        interstate commerce are an integral part of this safety regime.
            (2) Intermodal transportation plays a significant role in 
        expanding the United States economy, which depends heavily upon 
        the ability to transport goods by various modes of 
        transportation.
            (3) Although motor carriers and their drivers often receive 
        trailers, chassis, containers, and other items of intermodal 
        equipment to be transported in interstate commerce, they do not 
        possess the requisite level of control or authority over this 
        intermodal equipment to perform the systematic maintenance, 
        repair, and inspection necessary to ensure compliance with the 
        applicable Federal Motor Carrier Safety Regulations and to 
        ensure the safety of United States highways.
            (4) As a result of roadside inspections, motor carriers and 
        their drivers are cited and fined for violations of the Federal 
        Motor Carrier Safety Regulations attributable to intermodal 
        equipment that they do not have the opportunity to 
        systematically maintain. These violations negatively affect the 
        safety records of motor carriers.

SEC. 3. PURPOSE.

    The purpose of this Act is to ensure that only those parties that 
control intermodal equipment transported on public highways in the 
United States (and thus have the opportunity and authority to 
systematically maintain, repair, and inspect the intermodal equipment) 
have legal responsibility for the safety of that equipment as it 
travels in interstate commerce.

SEC. 4. DEFINITIONS.

    Section 5901 of title 49, United States Code, is amended by adding 
at the end the following new paragraphs:
            ``(9) `motor carrier' includes--
                    ``(A) a motor private carrier, as defined in 
                section 13102 of this title; and
                    ``(B) an agent of a motor carrier.
            ``(10) `intermodal equipment'--
                    ``(A) means equipment that is commonly used in the 
                intermodal transportation of freight over public 
                highways as an instrumentality of foreign or interstate 
                commerce; and
                    ``(B) includes a trailer, chassis, container, and 
                any device associated with a trailer, chassis, or 
                container.
            ``(11) `equipment interchange agreement', with respect to 
        intermodal equipment, means a written document that--
                    ``(A) is executed by a controller of the equipment, 
                or its agent, and a motor carrier; and
                    ``(B) establishes the responsibilities and 
                liabilities of both parties as they relate to the 
                interchange of the equipment.
            ``(12) `controller', with respect to intermodal equipment, 
        means any party that has any legal right, title, or interest in 
        the equipment, except that a motor carrier--
                    ``(A) is not a controller of the equipment solely 
                because it provides or arranges for any part of the 
                intermodal transportation of the equipment; and
                    ``(B) may not be considered a controller of the 
                equipment if authority for systematic maintenance and 
                repairs of the equipment has not been delegated to the 
                motor carrier.
            ``(13) `interchange', with respect to intermodal equipment, 
        means the act of providing the equipment to a motor carrier for 
        the purpose of transporting the equipment for loading or 
        unloading by any party or repositioning the equipment for the 
        benefit of the equipment controller, except that such term does 
        not mean the leasing of the equipment to a motor carrier for 
        use in the motor carrier's over-the-road freight hauling 
        operations.
            ``(14) `applicable safety regulations' means the 
        regulations applicable to controllers of intermodal equipment 
        under section 5909 of this title.''.

SEC. 5. JURISDICTION OVER EQUIPMENT CONTROLLERS.

    Chapter 59 of title 49, United States Code, is amended by adding at 
the end the following new section:
``Sec. 5909. Jurisdiction over equipment controller
    ``The authority of the Secretary of Transportation to prescribe 
regulations on commercial motor vehicle safety under section 31136 of 
this title shall apply to controllers of intermodal equipment that is 
interchanged or to be interchanged.''.

SEC. 6. EQUIPMENT CONTROLLER RESPONSIBILITY.

    (a) In General.--Chapter 59 of title 49, United States Code, as 
amended by section 5, is further amended by adding at the end the 
following new section:
``Sec. 5910. Equipment inspection, repair, and maintenance
    ``(a) In General.--Notwithstanding any provision of an equipment 
interchange agreement, a controller of intermodal equipment that is 
interchanged or to be interchanged--
            ``(1) shall be responsible and held liable for the 
        systematic inspection, maintenance, and repair of the 
        equipment;
            ``(2) shall, each time prior to offering a motor carrier 
        the equipment for interchange, inspect the equipment and 
        provide such maintenance on, and make such repairs to, the 
        equipment to ensure that such equipment complies with all 
        applicable safety regulations at all times; and
            ``(3) shall not offer intermodal equipment to a motor 
        carrier unless such equipment has been inspected and repaired 
        as necessary to comply with such regulations.
    ``(b) Reimbursement.--
            ``(1) In general.--In the event that a repair of 
        interchanged intermodal equipment is necessary while in a motor 
        carrier's possession in order to comply with applicable safety 
        regulations, the controller of the equipment shall promptly 
        reimburse the motor carrier for the actual expenses that are 
        incurred by the motor carrier for the necessary repair, 
        together with compensation for any loss incurred by the motor 
        carrier by reason of delay in the transportation of the 
        equipment necessitated by the need for the repair.
            ``(2) Exception.--The controller of intermodal equipment 
        shall not be liable to provide reimbursement or compensation 
        for a repair to a motor carrier under paragraph (1) if the 
        motor carrier's negligence or willful misconduct caused the 
        condition requiring the repair.
    ``(c) Fines.--The Secretary may prescribe fines against controllers 
of intermodal equipment for violations of this section.''.

SEC. 7. SAFETY COMPLIANCE.

    (a) In General.--Chapter 59 of title 49, United States Code, as 
amended by section 6, is further amended by adding at the end the 
following new section:
``Sec. 5911. Compliance with safety regulations
    ``(a) Liability of Equipment Controller.--Notwithstanding any 
provision of an equipment interchange agreement, the controller of 
intermodal equipment covered by such agreement shall be liable for each 
violation of applicable safety regulations that is attributable to such 
equipment and shall pay any fine, penalty, and damages resulting from 
such violation, except that the controller of such equipment shall not 
be liable for any such violations that is proximately caused by the 
negligence or willful misconduct of a motor carrier that is not the 
controller of such equipment.
    ``(b) Limitation on Liability of Motor Carrier.--A motor carrier 
who receives intermodal equipment through interchange may not be held 
liable for a violation of applicable safety regulations that is 
attributable to such equipment other than under the circumstances and 
to the extent provided in subsection (a).
    ``(c) Limitation on Effect.--No record or report of a violation of 
applicable safety regulations attributable to interchanged intermodal 
equipment, whether issued by a Federal, State, or local law enforcement 
authority, shall have any effect on a motor carrier's overall safety 
rating or safety status measurement system score, as determined by the 
Federal Motor Carrier Safety Administration, or on a driving record of 
a driver for the motor carrier unless such violation was proximately 
caused by the negligence or willful misconduct of the motor carrier or 
driver, respectively.
    ``(d) Procedure for Records Corrections.--The Secretary of 
Transportation shall prescribe an expedited procedure to correct 
records or reports of violations that under subsection (c) should not 
have been adversely affected by a violation of applicable safety 
regulations.''.
    (b) Time for Prescribing Records Correction Procedures.--The 
Secretary shall issue final regulations setting forth the expedited 
procedures required by section 5910(d) of title 49, United States Code, 
not later than 180 days after the date of enactment of this Act.

SEC. 8. AUTHORITY TO INSPECT.

    Chapter 59 of title 49, United States Code, as amended by section 
7, is further amended by adding at the end the following new section:
``Sec. 5912. Authority to inspect
    ``(a) Authority.--The Secretary of Transportation is authorized to 
enter any facility of a controller of intermodal equipment interchanged 
for use on a public highway in order to inspect the equipment to 
determine whether the equipment complies with the applicable 
regulations.
    ``(b) Inspection Program.--The Secretary shall establish and 
implement with appropriate staffing an inspection and audit program at 
facilities of controllers of intermodal equipment in order to make 
determinations under subsection (a). Inspection of equipment and 
maintenance records for such equipment at such facility shall take 
place not less frequently than once every 3 months.
    ``(c) Non-Complying Equipment.--Any intermodal equipment that is 
determined under this section as failing to comply with applicable 
safety regulations shall be placed out of service and may not be used 
on a public highway until the repairs necessary to bring such equipment 
into compliance have been completed. Repairs of equipment placed out of 
service shall be documented in the maintenance records for such 
equipment.''.

SEC. 9. PROHIBITION ON RETALIATION.

    Chapter 59 of title 49, United States Code, as amended by section 
8, is further amended by adding at the end the following new section:
``Sec. 5913. Penalties for retaliation
    ``(a) Retaliation Prohibited.--A controller of intermodal equipment 
may not take any action to threaten, coerce, discipline, discriminate, 
or otherwise retaliate against a motor carrier in response to a request 
made by the motor carrier for maintenance or repair of equipment 
intended for interchange in order to comply with the applicable safety 
regulations.
    ``(b) Failure To Timely Provide Safe Equipment Deemed To Be 
Retaliation.--Upon receiving a motor carrier's request for maintenance 
or repair of intermodal equipment to be picked up by the motor carrier 
in an interchange of equipment, the controller of intermodal equipment 
shall be considered to have retaliated against the motor carrier for 
the purposes of this section if the controller of intermodal equipment 
fails to provide the motor carrier with the equipment in a condition 
compliant with the applicable safety regulations within 60 minutes 
after the motor carrier arrives to pick up the equipment at the place 
where the equipment is to be picked up.
    ``(c) Penalty.--A controller of intermodal equipment that violates 
subsection (a) shall be liable to the United States Government for a 
civil penalty of up to $10,000 for each violation.''.

SEC. 10. DELEGATION OF MAINTENANCE RESPONSIBILITY.

    Chapter 59 of title 49, United States Code, as amended by section 
9, is further amended by adding at the end the following new section:
``Sec. 5914. Maintenance responsibility
    ``A controller of intermodal equipment may not delegate its 
responsibility to systematically maintain and repair equipment intended 
for interchange to a motor carrier or motor carrier agent in an 
equipment interchange agreement.''.

SEC. 11. COMPATIBILITY OF STATE LAWS.

    (a) In General.--Chapter 59 of title 49, United States Code, as 
amended by section 10, is further amended by adding at the end the 
following new section:
``Sec. 5915. Compatibility of State laws
    ``(a) Preemption Generally.--Except as provided in subsection (b) 
or as otherwise authorized by Federal law, a law, regulation, order, or 
other requirement of a State or political subdivision of a State, or of 
a tribal organization, is preempted if compliance with such law, 
regulation, order, or other requirement would preclude compliance with 
a requirement imposed under this chapter.
    ``(b) Certain Rules not Preempted.--A law, regulation, order, or 
other requirement of a State or political subdivision of a State, or of 
a tribal organization, shall not be preempted under subsection (a) if 
such law, regulation, order, or other requirement is more stringent 
than, but otherwise compatible with, a requirement under this chapter.
    ``(c) Tribal Organization Defined.--In this section, the term 
`tribal organization' has the meaning given such term in section (4)(l) 
of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450b(l)).''.

SEC. 12. REPEAL OF OBSOLETE PROVISION.

    Section 5907 of title 49, United States Code, is repealed.

SEC. 13. CLERICAL AMENDMENTS.

    The table of sections at the beginning of such chapter is amended--
            (1) by striking the item relating to section 5907; and
            (2) by adding at the end the following:

``5909. Jurisdiction over equipment controller.
``5910. Equipment inspection, repair, and maintenance.
``5911. Compliance with safety regulations.
``5912. Authority to inspect.
``5913. Penalties for retaliation.
``5914. Maintenance responsibility.
``5915. Compatibility of State laws.''.

SEC. 14. IMPLEMENTING REGULATIONS.

    (a) Regulations.--The Secretary of Transportation, after notice and 
opportunity for comment, shall issue regulations implementing the 
provisions of this Act. The regulations shall be issued as part of the 
Federal Motor Carrier Safety Regulations of the Department of 
Transportation. The implementing regulations shall include--
            (1) a requirement to identify controllers of intermodal 
        equipment that is interchanged or intended for interchange in 
        intermodal transportation;
            (2) a requirement to match such equipment readily to its 
        controller through a unique identifying number;
            (3) a requirement to ensure that each controller of 
        intermodal equipment maintains a system of maintenance and 
        repair records for such equipment;
            (4) a requirement to evaluate the compliance of controllers 
        of intermodal equipment with the applicable Federal Motor 
        Carrier Safety Regulations;
            (5) a provision that prohibits controllers of intermodal 
        equipment that fail to attain satisfactory compliance with such 
        regulations from authorizing the placement of equipment on 
        public highways;
            (6) a requirement for the Secretary to consider the effect 
        that adequate maintenance facilities may have on safety 
        condition of equipment;
            (7) a process by which motor carriers and agents of motor 
        carriers may anonymously petition the Federal Motor Carrier 
        Safety Administration to undertake an investigation of a 
        noncompliant controller of intermodal equipment;
            (8) administrative procedures to resolve disputes arising 
        under the regulations; and
            (9) the inspection and audit program required under section 
        5912(b) of title 49, United States Code, as added by section 8.
    (b) Time for Issuing Regulations.--The regulations required under 
subsection (a) shall be developed pursuant to a rulemaking proceeding 
initiated not later than 120 days after the date of the enactment of 
this Act and shall be issued not later than one year after such date of 
enactment.
    (c) Definitions.--For the purposes of this section, the definitions 
set forth in section 5901 of title 49, United States Code, as amended 
by section 4, shall apply.

SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Federal Motor Carrier 
Safety Administration such sums as may be necessary for the 
establishment and implementation of the inspection program required 
under section 5912 of title 49, United States Code, as added by section 
8.

SEC. 16. EFFECTIVE DATE.

    Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 of this Act and the 
amendments made by such sections shall take effect 30 days after the 
date of the enactment of this Act.
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