[Congressional Record Volume 141, Number 180 (Tuesday, November 14, 1995)]
[House]
[Pages H12248-H12312]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      ICC TERMINATION ACT OF 1995

  Mr. QUILLEN. Mr. Speaker, by direction of the Committee on Rules, I 
call up House Resolution 259 and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 259

       Resolved, That at any time after the adoption of this 
     resolution the Speaker may, pursuant to clause 1(b) of rule 
     XXIII, declare the House resolved into the Committee of the 
     Whole House on the state of the Union for consideration of 
     the bill (H.R. 2539) to abolish the Interstate Commerce 
     Commission, to amend subtitle IV of title 49, United States 
     Code, to reform economic regulation of transportation, and 
     for other purposes. The first reading of the bill shall be 
     dispensed with. All points of order against consideration of 
     the bill for failure to comply with section 302(f) or 308(a) 
     of the Congressional Budget Act of 1974 are waived. General 
     debate shall be confined to the bill and shall not exceed one 
     hour equally divided and controlled by the chairman and 
     ranking minority member of the Committee on Transportation 
     and Infrastructure. After general debate the bill shall be 
     considered for amendment under the five-minute rule. It shall 
     be in order to consider as an original bill for the purpose 
     of amendment under the five-minute rule the amendment in the 
     nature of a substitute recommended by the Committee on 
     Transportation and Infrastructure now printed in the bill. 
     The committee amendment in the nature of a substitute shall 
     be considered by title rather than by section. The first 
     section and each title shall be considered as read. Points of 
     order against the committee amendment in the nature of a 
     substitute for failure to comply with clause 5(a) of rule XXI 
     or section 302(f) of the Congressional Budget Act of 1974 are 
     waived. Before consideration of any other amendment, if shall 
     be in order without intervention of any point of order to 
     consider the amendment caused by the chairman of the 
     Committee on Transportation and Infrastructure to be 
     printed in the portion of the Congressional Record 
     designated for the purpose in clause 6 of rule XXIII. That 
     amendment may be offered only by the chairman of the 
     Committee on Transportation and Infrastructure or his 
     designee, shall be considered as read, shall be debatable 
     for ten minutes equally divided and controlled by the 
     proponent and an opponent, shall not be subject to 
     amendment, and shall not be subject to a demand for 
     division of the question in the House or in the Committee 
     of the Whole. If that amendment is adopted, the bill, as 
     amended, shall be considered as the original bill for the 
     purpose of further amendment. During further consideration 
     of the bill for amendment, the Chairman of the Committee 
     of the Whole may accord priority in recognition on the 
     basis of whether the Member offering an amendment has 
     caused it to be printed in the portion of the 
     Congressional Record designated for the purpose in clause 
     6 of the rule XXIII. Amendments so printed shall be 
     considered as read. At the conclusion of consideration of 
     the bill for amendment the Committee shall rise and report 
     the bill to the House with such amendments as may have 
     been adopted. Any Member may demand a separate vote in the 
     House on any amendment adopted in the Committee of the 
     Whole to the bill or to the committee amendment in the 
     nature of a substitute. The previous question shall be 
     considered as ordered on the bill and amendments thereto 
     to final passage without intervening motion except one 
     motion to recommit with or without instructions.

  The SPEAKER pro tempore. The gentleman from Tennessee [Mr. Quillen] 
is recognized for 1 hour.
  Mr. QUILLEN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. QUILLEN asked and was given permission to revise and extend his 
remarks.)

                              {time}  1515

  Mr. QUILLEN. Mr. Speaker, for the purpose of debate only, I yield the 
customary 30 minutes to the distinguished ranking member of the Rules 
Committee, the gentleman from Massachusetts [Mr. Moakley], pending 
which I yield myself such time as I may consume. During consideration 
of this resolution, all time yielded is for the purpose of debate only.
  Mr. Speaker, House Resolution 259 is an open rule providing for the 
consideration of H.R. 2539, the ICC Termination Act of 1995. The rule 
provides 1 hour of general debate divided equally between the chairman 
and ranking minority member of the Committee on Transportation and 
Infrastructure.
  The rule waives section 302(f)--prohibiting consideration of 
legislation providing new entitlement authority in excess of a 
committee's allocation--and section 308(a)--requiring a CBO cost 
estimate in the committee report on legislation containing new 
entitlement, spending, or budget authority, or a change in revenues--of 
the Congressional Budget Act of 1974 against consideration of the bill.
  The bill creates the position of director of the transportation 
adjudication panel and prescribes the rate of pay for this position. 
This would be considered an entitlement and, therefore, requires these 
Budget Act waivers.
  The rule makes in order the Committee on Transportation and 
Infrastructure amendment in the nature of a substitute now printed in 
the bill as an original bill for the purpose of amendment. Section 
302(f) of the Congressional Budget Act and clause 5(a) of rule XXI--
prohibiting appropriations in a legislative bill--are waived against 
the committee amendment in the nature of a substitute.
  These waivers are necessary to protect provisions which authorize the 
Secretary of Transportation to collect registration fees and use them 
to cover costs of operations relating to the registration system 
without further appropriation.
  Mr. Speaker, the rule further provides for the consideration of a 
manager's amendment printed in the Congressional Record of November 13, 
1995, which is considered as read, not subject to amendment or to a 
division of the question, and is debatable for 10 minutes equally 
divided between the proponent and an opponent of the amendment. If 
adopted, the amendment is considered as part of the base text for the 
purpose of further amendment.
  Under the rule, the Chair may accord priority in recognition to 
members who 

[[Page H 12249]]
have preprinted their amendments in the Congressional Record. Finally, 
the rule provides one motion to recommit, with or without instructions.
  Mr. Speaker, H.R. 2539 provides for the immediate elimination of the 
Interstate Commerce Commission. The bill repeals many motor carrier and 
rail laws and regulations and reforms and transfers the remaining 
functions of the ICC to the Department of Transportation.
  The House provided no funding for the ICC in the fiscal year 1996 
transportation bill, and this measure will complete the formal 
elimination of the ICC.
  This bill is just one step in the long climb to reduce the size and 
scope of the Federal Government. This open rule will allow all Members 
to fully participate in the amendment process, and I urge my colleagues 
to support the rule and the bill.
  Mr. Speaker, I insert the following material into the Record on the 
amendment process under special rules reported by the Committee on 
Rules, 103d Congress versus 104th Congress:

  THE AMENDMENT PROCESS UNDER SPECIAL RULES REPORTED BY THE RULES COMMITTEE,\1\ 103D CONGRESS V. 104TH CONGRESS 
                                            [As of November 10, 1995]                                           
----------------------------------------------------------------------------------------------------------------
                                                  103d Congress                        104th Congress           
              Rule type              ---------------------------------------------------------------------------
                                       Number of rules    Percent of total   Number of rules    Percent of total
----------------------------------------------------------------------------------------------------------------
Open/Modified-open \2\..............                 46                 44                 53                 68
Modified Closed \3\.................                 49                 47                 19                 24
Closed \4\..........................                  9                  9                  6                  8
                                     ---------------------------------------------------------------------------
      Total.........................                104                100                 78                100
----------------------------------------------------------------------------------------------------------------
\1\ This table applies only to rules which provide for the original consideration of bills, joint resolutions or
  budget resolutions and which provide for an amendment process. It does not apply to special rules which only  
  waive points of order against appropriations bills which are already privileged and are considered under an   
  open amendment process under House rules.                                                                     
\2\ An open rule is one under which any Member may offer a germane amendment under the five-minute rule. A      
  modified open rule is one under which any Member may offer a germane amendment under the five-minute rule     
  subject only to an overall time limit on the amendment process and/or a requirement that the amendment be     
  preprinted in the Congressional Record.                                                                       
\3\ A modified closed rule is one under which the Rules Committee limits the amendments that may be offered only
  to those amendments designated in the special rule or the Rules Committee report to accompany it, or which    
  preclude amendments to a particular portion of a bill, even though the rest of the bill may be completely open
  to amendment.                                                                                                 
\4\ A closed rule is one under which no amendments may be offered (other than amendments recommended by the     
  committee in reporting the bill).                                                                             


                          SPECIAL RULES REPORTED BY THE RULES COMMITTEE, 104TH CONGRESS                         
                                            [As of November 10, 1995]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                 Disposition of 
    H. Res. No. (Date rept.)         Rule type           Bill No.              Subject                rule      
----------------------------------------------------------------------------------------------------------------
H. Res. 38 (1/18/95)...........  O................  H.R. 5...........  Unfunded Mandate        A: 350-71 (1/19/ 
                                                                        Reform.                 95).            
H. Res. 44 (1/24/95)...........  MC...............  H. Con. Res. 17..  Social Security.......  A: 255-172 (1/25/
                                                    H.J. Res. 1......  Balanced Budget Amdt..   95).            
H. Res. 51 (1/31/95)...........  O................  H.R. 101.........  Land Transfer, Taos     A: voice vote (2/
                                                                        Pueblo Indians.         1/95).          
H. Res. 52 (1/31/95)...........  O................  H.R. 400.........  Land Exchange, Arctic   A: voice vote (2/
                                                                        Nat'l. Park and         1/95).          
                                                                        Preserve.                               
H. Res. 53 (1/31/95)...........  O................  H.R. 440.........  Land Conveyance, Butte  A: voice vote (2/
                                                                        County, Calif.          1/95).          
H. Res. 55 (2/1/95)............  O................  H.R. 2...........  Line Item Veto........  A: voice vote (2/
                                                                                                2/95).          
H. Res. 60 (2/6/95)............  O................  H.R. 665.........  Victim Restitution....  A: voice vote (2/
                                                                                                7/95).          
H. Res. 61 (2/6/95)............  O................  H.R. 666.........  Exclusionary Rule       A: voice vote (2/
                                                                        Reform.                 7/95).          
H. Res. 63 (2/8/95)............  MO...............  H.R. 667.........  Violent Criminal        A: voice vote (2/
                                                                        Incarceration.          9/95).          
H. Res. 69 (2/9/95)............  O................  H.R. 668.........  Criminal Alien          A: voice vote (2/
                                                                        Deportation.            10/95).         
H. Res. 79 (2/10/95)...........  MO...............  H.R. 728.........  Law Enforcement Block   A: voice vote (2/
                                                                        Grants.                 13/95).         
H. Res. 83 (2/13/95)...........  MO...............  H.R. 7...........  National Security       PQ: 229-100; A:  
                                                                        Revitalization.         227-127 (2/15/  
                                                                                                95).            
H. Res. 88 (2/16/95)...........  MC...............  H.R. 831.........  Health Insurance        PQ: 230-191; A:  
                                                                        Deductibility.          229-188 (2/21/  
                                                                                                95).            
H. Res. 91 (2/21/95)...........  O................  H.R. 830.........  Paperwork Reduction     A: voice vote (2/
                                                                        Act.                    22/95).         
H. Res. 92 (2/21/95)...........  MC...............  H.R. 889.........  Defense Supplemental..  A: 282-144 (2/22/
                                                                                                95).            
H. Res. 93 (2/22/95)...........  MO...............  H.R. 450.........  Regulatory Transition   A: 252-175 (2/23/
                                                                        Act.                    95).            
H. Res. 96 (2/24/95)...........  MO...............  H.R. 1022........  Risk Assessment.......  A: 253-165 (2/27/
                                                                                                95).            
H. Res. 100 (2/27/95)..........  O................  H.R. 926.........  Regulatory Reform and   A: voice vote (2/
                                                                        Relief Act.             28/95).         
H. Res. 101 (2/28/95)..........  MO...............  H.R. 925.........  Private Property        A: 271-151 (3/2/ 
                                                                        Protection Act.         95).            
H. Res. 103 (3/3/95)...........  MO...............  H.R. 1058........  Securities Litigation   .................
                                                                        Reform.                                 
H. Res. 104 (3/3/95)...........  MO...............  H.R. 988.........  Attorney                A: voice vote (3/
                                                                        Accountability Act.     6/95).          
H. Res. 105 (3/6/95)...........  MO...............  .................  ......................  A: 257-155 (3/7/ 
                                                                                                95).            
H. Res. 108 (3/7/95)...........  Debate...........  H.R. 956.........  Product Liability       A: voice vote (3/
                                                                        Reform.                 8/95).          
H. Res. 109 (3/8/95)...........  MC...............  .................  ......................  PQ: 234-191 A:   
                                                                                                247-181 (3/9/   
                                                                                                95).            
H. Res. 115 (3/14/95)..........  MO...............  H.R. 1159........  Making Emergency Supp.  A: 242-190 (3/15/
                                                                        Approps.                95).            
H. Res. 116 (3/15/95)..........  MC...............  H.J. Res. 73.....  Term Limits Const.      A: voice vote (3/
                                                                        Amdt.                   28/95).         
H. Res. 117 (3/16/95)..........  Debate...........  H.R. 4...........  Personal                A: voice vote (3/
                                                                        Responsibility Act of   21/95).         
                                                                        1995.                                   
H. Res. 119 (3/21/95)..........  MC...............  .................  ......................  A: 217-211 (3/22/
                                                                                                95).            
H. Res. 125 (4/3/95)...........  O................  H.R. 1271........  Family Privacy          A: 423-1 (4/4/   
                                                                        Protection Act.         95).            
H. Res. 126 (4/3/95)...........  O................  H.R. 660.........  Older Persons Housing   A: voice vote (4/
                                                                        Act.                    6/95).          
H. Res. 128 (4/4/95)...........  MC...............  H.R. 1215........  Contract With America   A: 228-204 (4/5/ 
                                                                        Tax Relief Act of       95).            
                                                                        1995.                                   
H. Res. 130 (4/5/95)...........  MC...............  H.R. 483.........  Medicare Select          A: 253-172 (4/6/
                                                                        Expansion.              95).            
H. Res. 136 (5/1/95)...........  O................  H.R. 655.........  Hydrogen Future Act of  A: voice vote (5/
                                                                        1995.                   2/95).          
H. Res. 139 (5/3/95)...........  O................  H.R. 1361........  Coast Guard Auth. FY    A: voice vote (5/
                                                                        1996.                   9/95).          
H. Res. 140 (5/9/95)...........  O................  H.R. 961.........  Clean Water Amendments  A: 414-4 (5/10/  
                                                                                                95).            
H. Res. 144 (5/11/95)..........  O................  H.R. 535.........  Fish Hatchery--         A: voice vote (5/
                                                                        Arkansas.               15/95).         
H. Res. 145 (5/11/95)..........  O................  H.R. 584.........  Fish Hatchery--Iowa...  A: voice vote (5/
                                                                                                15/95).         
H. Res. 146 (5/11/95)..........  O................  H.R. 614.........  Fish Hatchery--         A: voice vote (5/
                                                                        Minnesota.              15/95).         
H. Res. 149 (5/16/95)..........  MC...............  H. Con. Res. 67..  Budget Resolution FY    PQ: 252-170 A:   
                                                                        1996.                   255-168 (5/17/  
                                                                                                95).            
H. Res. 155 (5/22/95)..........  MO...............  H.R. 1561........  American Overseas       A: 233-176 (5/23/
                                                                        Interests Act.          95).            
H. Res. 164 (6/8/95)...........  MC...............  H.R. 1530........  Nat. Defense Auth. FY   PQ: 225-191 A:   
                                                                        1996.                   233-183 (6/13/  
                                                                                                95).            
H. Res. 167 (6/15/95)..........  O................  H.R. 1817........  MilCon Appropriations   PQ: 223-180 A:   
                                                                        FY 1996.                245-155 (6/16/  
                                                                                                95).            
H. Res. 169 (6/19/95)..........  MC...............  H.R. 1854........  Leg. Branch Approps.    PQ: 232-196 A:   
                                                                        FY 1996.                236-191 (6/20/  
                                                                                                95).            
H. Res. 170 (6/20/95)..........  O................  H.R. 1868........  For. Ops. Approps. FY   PQ: 221-178 A:   
                                                                        1996.                   217-175 (6/22/  
                                                                                                95).            
H. Res. 171 (6/22/95)..........  O................  H.R. 1905........  Energy & Water          A: voice vote (7/
                                                                        Approps. FY 1996.       12/95).         
H. Res. 173 (6/27/95)..........  C................  H.J. Res. 79.....  Flag Constitutional     PQ: 258-170 A:   
                                                                        Amendment.              271-152 (6/28/  
                                                                                                95).            
H. Res. 176 (6/28/95)..........  MC...............  H.R. 1944........  Emer. Supp. Approps...  PQ: 236-194 A:   
                                                                                                234-192 (6/29/  
                                                                                                95).            
H. Res. 185 (7/11/95)..........  O................  H.R. 1977........  Interior Approps. FY    PQ: 235-193 D:   
                                                                        1996.                   192-238 (7/12/  
                                                                                                95).            
H. Res. 187 (7/12/95)..........  O................  H.R. 1977........  Interior Approps. FY    PQ: 230-194 A:   
                                                                        1996 #2.                229-195 (7/13/  
                                                                                                95).            
H. Res. 188 (7/12/95)..........  O................  H.R. 1976........  Agriculture Approps.    PQ: 242-185 A:   
                                                                        FY 1996.                voice vote (7/18/
                                                                                                95).            
H. Res. 190 (7/17/95)..........  O................  H.R. 2020........  Treasury/Postal         PQ: 232-192 A:   
                                                                        Approps. FY 1996.       voice vote (7/18/
                                                                                                95).            
H. Res. 193 (7/19/95)..........  C................  H.J. Res. 96.....  Disapproval of MFN to   A: voice vote (7/
                                                                        China.                  20/95).         
H. Res. 194 (7/19/95)..........  O................  H.R. 2002........  Transportation          PQ: 217-202 (7/21/
                                                                        Approps. FY 1996.       95).            
H. Res. 197 (7/21/95)..........  O................  H.R. 70..........  Exports of Alaskan      A: voice vote (7/
                                                                        Crude Oil.              24/95).         
H. Res. 198 (7/21/95)..........  O................  H.R. 2076........  Commerce, State         A: voice vote (7/
                                                                        Approps. FY 1996.       25/95).         
H. Res. 201 (7/25/95)..........  O................  H.R. 2099........  VA/HUD Approps. FY      A: 230-189 (7/25/
                                                                        1996.                   95).            
H. Res. 204 (7/28/95)..........  MC...............  S. 21............  Terminating U.S. Arms   A: voice vote (8/
                                                                        Embargo on Bosnia.      1/95).          
H. Res. 205 (7/28/95)..........  O................  H.R. 2126........  Defense Approps. FY     A: 409-1 (7/31/  
                                                                        1996.                   95).            
H. Res. 207 (8/1/95)...........  MC...............  H.R. 1555........  Communications Act of   A: 255-156 (8/2/ 
                                                                        1995.                   95).            
H. Res. 208 (8/1/95)...........  O................  H.R. 2127........  Labor, HHS Approps. FY  A: 323-104 (8/2/ 
                                                                        1996.                   95).            
H. Res. 215 (9/7/95)...........  O................  H.R. 1594........  Economically Targeted   A: voice vote (9/
                                                                        Investments.            12/95).         
H. Res. 216 (9/7/95)...........  MO...............  H.R. 1655........  Intelligence            A: voice vote (9/
                                                                        Authorization FY 1996.  12/95).         
H. Res. 218 (9/12/95)..........  O................  H.R. 1162........  Deficit Reduction       A: voice vote (9/
                                                                        Lockbox.                13/95).         
H. Res. 219 (9/12/95)..........  O................  H.R. 1670........  Federal Acquisition     A: 414-0 (9/13/  
                                                                        Reform Act.             95).            
H. Res. 222 (9/18/95)..........  O................  H.R. 1617........  CAREERS Act...........  A: 388-2 (9/19/  
                                                                                                95).            
H. Res. 224 (9/19/95)..........  O................  H.R. 2274........  Natl. Highway System..  PQ: 241-173 A:   
                                                                                                375-39-1 (9/20/ 
                                                                                                95).            
H. Res. 225 (9/19/95)..........  MC...............  H.R. 927.........  Cuban Liberty & Dem.    A: 304-118 (9/20/
                                                                        Solidarity.             95).            
H. Res. 226 (9/21/95)..........  O................  H.R. 743.........  Team Act..............  A: 344-66-1 (9/27/
                                                                                                95).            
H. Res. 227 (9/21/95)..........  O................  H.R. 1170........  3-Judge Court.........  A: voice vote (9/
                                                                                                28/95).         
H. Res. 228 (9/21/95)..........  O................  H.R. 1601........  Internatl. Space        A: voice vote (9/
                                                                        Station.                27/95).         
H. Res. 230 (9/27/95)..........  C................  H.J. Res. 108....  Continuing Resolution   A: voice vote (9/
                                                                        FY 1996.                28/95).         

[[Page H 12250]]
                                                                                                                
H. Res. 234 (9/29/95)..........  O................  H.R. 2405........  Omnibus Science Auth..  A: voice vote (10/
                                                                                                11/95).         
H. Res. 237 (10/17/95).........  MC...............  H.R. 2259........  Disapprove Sentencing   A: voice vote (10/
                                                                        Guidelines.             18/95).         
H. Res. 238 (10/18/95).........  MC...............  H.R. 2425........  Medicare Preservation   PQ: 231-194 A:   
                                                                        Act.                    227-192 (10/19/ 
                                                                                                95).            
H. Res. 239 (10/19/95).........  C................  H.R. 2492........  Leg. Branch Approps...  PQ: 235-184 A:   
                                                                                                voice vote (10/ 
                                                                                                31/95).         
H. Res. 245 (10/25/95).........  MC...............  H. Con. Res. 109.  Social Security         PQ: 228-191 A:   
                                                    H.R. 2491........   Earnings Reform.        235-185 (10/26/ 
                                                                       Seven-Year Balanced      95).            
                                                                        Budget.                                 
H. Res. 251 (10/31/95).........  C................  H.R. 1833........  Partial Birth Abortion  A: 237-190 (11/1/
                                                                        Ban.                    95).            
H. Res. 252 (10/31/95).........  MO...............  H.R. 2546........  D.C. Approps..........  A: 241-181 (11/1/
                                                                                                95).            
H. Res. 257 (11/7/95)..........  C................  H.J. Res. 115....  Cont. Res. FY 1996....  A: 216-210 (11/8/
                                                                                                95).            
H.Res. 258 (11/8/95)...........  MC...............  H.R. 2586........  Debt Limit............  A: 220-200 (11/10/
                                                                                                95).            
H. Res. 259 (11/9/95)..........  O................  H.R. 2539........  ICC Termination Act...  .................
----------------------------------------------------------------------------------------------------------------
Codes: O-open rule; MO-modified open rule; MC-modified closed rule; C-closed rule; A-adoption vote; D-defeated; 
  PQ-previous question vote. Source: Notices of Action Taken, Committee on Rules, 104th Congress.               


  Mr. QUILLEN. Mr. Speaker, I reserve the balance of my time.


                             general leave

  Mr. QUILLEN. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on House Resolution 259.
  The SPEAKER pro tempore (Mr. Upton). Is there objection to the 
request of the gentleman from Tennessee?
  There was no objection.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank my colleague, my dear friend from Tennessee [Mr. 
Quillen], for yielding me the customary half hour.
  Mr. Speaker, I am glad to see this open rule come to the floor today. 
This bill has some serious antiworker provisions that have to be fixed, 
and this open rule makes that a very real possibility. Without an open 
rule, Mr. Speaker, we would be unable to make sure that employees of 
class 2 and class 3 railroads are given the same worker protection as 
employees of class 1 railroads.
  If the worker protection amendment passes the House this afternoon, I 
may just vote for the bill, and all because we have been given an open 
rule, one that we have been fighting for since this Congress started. 
So, despite the Government shutdown, Capitol Hill has not completely 
gone to the dogs. Not yet.
  So I urge my colleagues to support this open rule.
  Mr. Speaker, I include for the Record the floor procedure in the 
104th Congress, compiled by the Democrats on the Committee on Rules:

                FLOOR PROCEDURE IN THE 104TH CONGRESS; COMPILED BY THE RULES COMMITTEE DEMOCRATS                
----------------------------------------------------------------------------------------------------------------
                                                                          Process used for floor   Amendments in
            Bill No.                    Title           Resolution No.         consideration           order    
----------------------------------------------------------------------------------------------------------------
H.R. 1*........................  Compliance........  H. Res. 6            Closed................           None.
H. Res. 6......................  Opening Day Rules   H. Res. 5            Closed; contained a              None.
                                  Package.                                 closed rule on H.R. 1                
                                                                           within the closed                    
                                                                           rule.                                
H.R. 5*........................  Unfunded Mandates.  H. Res. 38           Restrictive; Motion               N/A.
                                                                           adopted over                         
                                                                           Democratic objection                 
                                                                           in the Committee of                  
                                                                           the Whole to limit                   
                                                                           debate on section 4;                 
                                                                           Pre-printing gets                    
                                                                           preference.                          
H.J. Res. 2*...................  Balanced Budget...  H. Res. 44           Restrictive; only              2R; 4D.
                                                                           certain substitutes.                 
H. Res. 43.....................  Committee Hearings  H. Res. 43 (OJ)      Restrictive;                      N/A.
                                  Scheduling.                              considered in House                  
                                                                           no amendments.                       
H.R. 2*........................  Line Item Veto....  H. Res. 55           Open; Pre-printing                N/A.
                                                                           gets preference.                     
H.R. 665*......................  Victim Restitution  H. Res. 61           Open; Pre-printing                N/A.
                                  Act of 1995.                             gets preference.                     
H.R. 666*......................  Exclusionary Rule   H. Res. 60           Open; Pre-printing                N/A.
                                  Reform Act of                            gets preference.                     
                                  1995.                                                                         
H.R. 667*......................  Violent Criminal    H. Res. 63           Restrictive; 10 hr.               N/A.
                                  Incarceration Act                        Time Cap on                          
                                  of 1995.                                 amendments.                          
H.R. 668*......................  The Criminal Alien  H. Res. 69           Open; Pre-printing                N/A.
                                  Deportation                              gets preference;                     
                                  Improvement Act.                         Contains self-                       
                                                                           executing provision.                 
H.R. 728*......................  Local Government    H. Res. 79           Restrictive; 10 hr.               N/A.
                                  Law Enforcement                          Time Cap on                          
                                  Block Grants.                            amendments; Pre-                     
                                                                           printing gets                        
                                                                           preference.                          
H.R. 7*........................  National Security   H. Res. 83           Restrictive; 10 hr.               N/A.
                                  Revitalization                           Time Cap on                          
                                  Act.                                     amendments; Pre-                     
                                                                           printing gets                        
                                                                           preference.                          
H.R. 729*......................  Death Penalty/      N/A                  Restrictive; brought              N/A.
                                  Habeas.                                  up under UC with a 6                 
                                                                           hr. time cap on                      
                                                                           amendments.                          
S. 2...........................  Senate Compliance.  N/A                  Closed; Put on                   None.
                                                                           Suspension Calendar                  
                                                                           over Democratic                      
                                                                           objection.                           
H.R. 831.......................  To Permanently      H. Res. 88           Restrictive; makes in              1D.
                                  Extend the Health                        order only the                       
                                  Insurance                                Gibbons amendment;                   
                                  Deduction for the                        Waives all points of                 
                                  Self-Employed.                           order; Contains self-                
                                                                           executing provision.                 
H.R. 830*......................  The Paperwork       H. Res. 91           Open..................            N/A.
                                  Reduction Act.                                                                
H.R. 889.......................  Emergency           H. Res. 92           Restrictive; makes in              1D.
                                  Supplemental/                            order only the Obey                  
                                  Rescinding                               substitute.                          
                                  Certain Budget                                                                
                                  Authority.                                                                    
H.R. 450*......................  Regulatory          H. Res. 93           Restrictive; 10 hr.               N/A.
                                  Moratorium.                              Time Cap on                          
                                                                           amendments; Pre-                     
                                                                           printing gets                        
                                                                           preference.                          
H.R. 1022*.....................  Risk Assessment...  H. Res. 96           Restrictive; 10 hr.               N/A.
                                                                           Time Cap on                          
                                                                           amendments.                          
H.R. 926*......................  Regulatory          H. Res. 100          Open..................            N/A.
                                  Flexibility.                                                                  
H.R. 925*......................  Private Property    H. Res. 101          Restrictive; 12 hr.                1D.
                                  Protection Act.                          time cap on                          
                                                                           amendments; Requires                 
                                                                           Members to pre-print                 
                                                                           their amendments in                  
                                                                           the Record prior to                  
                                                                           the bill's                           
                                                                           consideration for                    
                                                                           amendment, waives                    
                                                                           germaneness and                      
                                                                           budget act points of                 
                                                                           order as well as                     
                                                                           points of order                      
                                                                           concerning                           
                                                                           appropriating on a                   
                                                                           legislative bill                     
                                                                           against the committee                
                                                                           substitute used as                   
                                                                           base text.                           
H.R. 1058*.....................  Securities          H. Res. 105          Restrictive; 8 hr.                 1D.
                                  Litigation Reform                        time cap on                          
                                  Act.                                     amendments; Pre-                     
                                                                           printing gets                        
                                                                           preference; Makes in                 
                                                                           order the Wyden                      
                                                                           amendment and waives                 
                                                                           germaneness against                  
                                                                           it.                                  
H.R. 988*......................  The Attorney        H. Res. 104          Restrictive; 7 hr.                N/A.
                                  Accountability                           time cap on                          
                                  Act of 1995.                             amendments; Pre-                     
                                                                           printing gets                        
                                                                           preference.                          
H.R. 956*......................  Product Liability   H. Res. 109          Restrictive; makes in          8D; 7R.
                                  and Legal Reform                         order only 15 germane                
                                  Act.                                     amendments and denies                
                                                                           64 germane amendments                
                                                                           from being considered.               
H.R. 1158......................  Making Emergency    H. Res. 115          Restrictive; Combines             N/A.
                                  Supplemental                             emergency H.R. 1158 &                
                                  Appropriations                           nonemergency 1159 and                
                                  and Rescissions.                         strikes the abortion                 
                                                                           provision; makes in                  
                                                                           order only pre-                      
                                                                           printed amendments                   
                                                                           that include offsets                 
                                                                           within the same                      
                                                                           chapter (deeper cuts                 
                                                                           in programs already                  
                                                                           cut); waives points                  
                                                                           of order against                     
                                                                           three amendments;                    
                                                                           waives cl 2 of rule                  
                                                                           XXI against the bill,                
                                                                           cl 2, XXI and cl 7 of                
                                                                           rule XVI against the                 
                                                                           substitute; waives cl                
                                                                           2(e) od rule XXI                     
                                                                           against the                          
                                                                           amendments in the                    
                                                                           Record; 10 hr time                   
                                                                           cap on amendments. 30                
                                                                           minutes debate on                    
                                                                           each amendment.                      
H.J. Res. 73*..................  Term Limits.......  H. Res. 116          Restrictive; Makes in           1D; 3R
                                                                           order only 4                         
                                                                           amendments considered                
                                                                           under a ``Queen of                   
                                                                           the Hill'' procedure                 
                                                                           and denies 21 germane                
                                                                           amendments from being                
                                                                           considered.                          
H.R. 4*........................  Welfare Reform....  H. Res. 119          Restrictive; Makes in         5D; 26R.
                                                                           order only 31                        
                                                                           perfecting amendments                
                                                                           and two substitutes;                 
                                                                           Denies 130 germane                   
                                                                           amendments from being                
                                                                           considered; The                      
                                                                           substitutes are to be                
                                                                           considered under a                   
                                                                           ``Queen of the Hill''                
                                                                           procedure; All points                
                                                                           of order are waived                  
                                                                           against the                          
                                                                           amendments.                          
H.R. 1271*.....................  Family Privacy Act  H. Res. 125          Open..................            N/A.
H.R. 660*......................  Housing for Older   H. Res. 126          Open..................            N/A.
                                  Persons Act.                                                                  
H.R. 1215*.....................  The Contract With   H. Res. 129          Restrictive; Self                  1D.
                                  America Tax                              Executes language                    
                                  Relief Act of                            that makes tax cuts                  
                                  1995.                                    contingent on the                    
                                                                           adoption of a                        
                                                                           balanced budget plan                 
                                                                           and strikes section                  
                                                                           3006. Makes in order                 
                                                                           only one substitute.                 
                                                                           Waives all points of                 
                                                                           order against the                    
                                                                           bill, substitute made                
                                                                           in order as original                 
                                                                           text and Gephardt                    
                                                                           substitute.                          
H.R. 483.......................  Medicare Select     H. Res. 130          Restrictive; waives cl             1D.
                                  Extension.                               2(1)(6) of rule XI                   
                                                                           against the bill;                    
                                                                           makes H.R. 1391 in                   
                                                                           order as original                    
                                                                           text; makes in order                 
                                                                           only the Dingell                     
                                                                           substitute; allows                   
                                                                           Commerce Committee to                
                                                                           file a report on the                 
                                                                           bill at any time.                    
H.R. 655.......................  Hydrogen Future     H. Res. 136          Open..................            N/A.
                                  Act.                                                                          
H.R. 1361......................  Coast Guard         H. Res. 139          Open; waives sections             N/A.
                                  Authorization.                           302(f) and 308(a) of                 
                                                                           the Congressional                    
                                                                           Budget Act against                   
                                                                           the bill's                           
                                                                           consideration and the                
                                                                           committee substitute;                
                                                                           waives cl 5(a) of                    
                                                                           rule XXI against the                 
                                                                           committee substitute.                
H.R. 961.......................  Clean Water Act...  H. Res. 140          Open; pre-printing                N/A.
                                                                           gets preference;                     
                                                                           waives sections                      
                                                                           302(f) and 602(b) of                 
                                                                           the Budget Act                       
                                                                           against the bill's                   
                                                                           consideration; waives                
                                                                           cl 7 of rule XVI, cl                 
                                                                           5(a) of rule XXI and                 
                                                                           section 302(f) of the                
                                                                           Budget Act against                   
                                                                           the committee                        
                                                                           substitute. Makes in                 
                                                                           order Shuster                        
                                                                           substitute as first                  
                                                                           order of business.                   
H.R. 535.......................  Corning National    H. Res. 144          Open..................            N/A.
                                  Fish Hatchery                                                                 
                                  Conveyance Act.                                                               
H.R. 584.......................  Conveyance of the   H. Res. 145          Open..................            N/A.
                                  Fairport National                                                             
                                  Fish Hatchery to                                                              
                                  the State of Iowa.                                                            
H.R. 614.......................  Conveyance of the   H. Res. 146          Open..................            N/A.
                                  New London                                                                    
                                  National Fish                                                                 
                                  Hatchery                                                                      
                                  Production                                                                    
                                  Facility.                                                                     

[[Page H 12251]]
                                                                                                                
H. Con. Res. 67................  Budget Resolution.  H. Res. 149          Restrictive; Makes in          3D; 1R.
                                                                           order 4 substitutes                  
                                                                           under regular order;                 
                                                                           Gephardt, Neumann/                   
                                                                           Solomon, Payne/Owens,                
                                                                           President's Budget if                
                                                                           printed in Record on                 
                                                                           5/17/95; waives all                  
                                                                           points of order                      
                                                                           against substitutes                  
                                                                           and concurrent                       
                                                                           resolution; suspends                 
                                                                           application of Rule                  
                                                                           XLIX with respect to                 
                                                                           the resolution; self-                
                                                                           executes Agriculture                 
                                                                           language.                            
H.R. 1561......................  American Overseas   H. Res. 155          Restrictive; Requires             N/A.
                                  Interests Act of                         amendments to be                     
                                  1995.                                    printed in the Record                
                                                                           prior to their                       
                                                                           consideration; 10 hr.                
                                                                           time cap; waives cl                  
                                                                           2(1)(6) of rule XI                   
                                                                           against the bill's                   
                                                                           consideration; Also                  
                                                                           waives sections                      
                                                                           302(f), 303(a),                      
                                                                           308(a) and 402(a)                    
                                                                           against the bill's                   
                                                                           consideration and the                
                                                                           committee amendment                  
                                                                           in order as original                 
                                                                           text; waives cl 5(a)                 
                                                                           of rule XXI against                  
                                                                           the amendment;                       
                                                                           amendment                            
                                                                           consideration is                     
                                                                           closed at 2:30 p.m.                  
                                                                           on May 25, 1995. Self-               
                                                                           executes provision                   
                                                                           which removes section                
                                                                           2210 from the bill.                  
                                                                           This was done at the                 
                                                                           request of the Budget                
                                                                           Committee.                           
H.R. 1530......................  National Defense    H. Res. 164          Restrictive; Makes in      36R; 18D; 2
                                  Authorization Act                        order only the            Bipartisan.
                                  FY 1996.                                 amendments printed in                
                                                                           the report; waives                   
                                                                           all points of order                  
                                                                           against the bill,                    
                                                                           substitute and                       
                                                                           amendments printed in                
                                                                           the report. Gives the                
                                                                           Chairman en bloc                     
                                                                           authority. Self-                     
                                                                           executes a provision                 
                                                                           which strikes section                
                                                                           807 of the bill;                     
                                                                           provides for an                      
                                                                           additional 30 min. of                
                                                                           debate on Nunn-Lugar                 
                                                                           section; Allows Mr.                  
                                                                           Clinger to offer a                   
                                                                           modification of his                  
                                                                           amendment with the                   
                                                                           concurrence of Ms.                   
                                                                           Collins.                             
H.R. 1817......................  Military            H. Res. 167          Open; waives cl. 2 and            N/A.
                                  Construction                             cl. 6 of rule XXI                    
                                  Appropriations;                          against the bill; 1                  
                                  FY 1996.                                 hr. general debate;                  
                                                                           Uses House passed                    
                                                                           budget numbers as                    
                                                                           threshold for                        
                                                                           spending amounts                     
                                                                           pending passage of                   
                                                                           Budget.                              
H.R. 1854......................  Legislative Branch  H. Res. 169          Restrictive; Makes in        5R; 4D; 2
                                  Appropriations.                          order only 11             Bipartisan.
                                                                           amendments; waives                   
                                                                           sections 302(f) and                  
                                                                           308(a) of the Budget                 
                                                                           Act against the bill                 
                                                                           and cl. 2 and cl. 6                  
                                                                           of rule XXI against                  
                                                                           the bill. All points                 
                                                                           of order are waived                  
                                                                           against the                          
                                                                           amendments.                          
H.R. 1868......................  Foreign Operations  H. Res. 170          Open; waives cl. 2,               N/A.
                                  Appropriations.                          cl. 5(b), and cl. 6                  
                                                                           of rule XXI against                  
                                                                           the bill; makes in                   
                                                                           order the Gilman                     
                                                                           amendments as first                  
                                                                           order of business;                   
                                                                           waives all points of                 
                                                                           order against the                    
                                                                           amendments; if                       
                                                                           adopted they will be                 
                                                                           considered as                        
                                                                           original text; waives                
                                                                           cl. 2 of rule XXI                    
                                                                           against the                          
                                                                           amendments printed in                
                                                                           the report. Pre-                     
                                                                           printing gets                        
                                                                           priority (Hall)                      
                                                                           (Menendez) (Goss)                    
                                                                           (Smith, NJ).                         
H.R. 1905......................  Energy & Water      H. Res. 171          Open; waives cl. 2 and            N/A.
                                  Appropriations.                          cl. 6 of rule XXI                    
                                                                           against the bill;                    
                                                                           makes in order the                   
                                                                           Shuster amendment as                 
                                                                           the first order of                   
                                                                           business; waives all                 
                                                                           points of order                      
                                                                           against the                          
                                                                           amendment; if adopted                
                                                                           it will be considered                
                                                                           as original text. Pre-               
                                                                           printing gets                        
                                                                           priority.                            
H.J. Res. 79...................  Constitutional      H. Res. 173          Closed; provides one              N/A.
                                  Amendment to                             hour of general                      
                                  Permit Congress                          debate and one motion                
                                  and States to                            to recommit with or                  
                                  Prohibit the                             without instructions;                
                                  Physical                                 if there are                         
                                  Desecration of                           instructions, the MO                 
                                  the American Flag.                       is debatable for 1 hr.               
H.R. 1944......................  Recissions Bill...  H. Res. 175          Restrictive; Provides             N/A.
                                                                           for consideration of                 
                                                                           the bill in the                      
                                                                           House; Permits the                   
                                                                           Chairman of the                      
                                                                           Appropriations                       
                                                                           Committee to offer                   
                                                                           one amendment which                  
                                                                           is unamendable;                      
                                                                           waives all points of                 
                                                                           order against the                    
                                                                           amendment.                           
H.R. 1868 (2nd rule)...........  Foreign Operations  H. Res. 177          Restrictive; Provides             N/A.
                                  Appropriations.                          for further                          
                                                                           consideration of the                 
                                                                           bill; makes in order                 
                                                                           only the four                        
                                                                           amendments printed in                
                                                                           the rules report (20                 
                                                                           min each). Waives all                
                                                                           points of order                      
                                                                           against the                          
                                                                           amendments; Prohibits                
                                                                           intervening motions                  
                                                                           in the Committee of                  
                                                                           the Whole; Provides                  
                                                                           for an automatic rise                
                                                                           and report following                 
                                                                           the disposition of                   
                                                                           the amendments.                      
H.R. 1977 *Rule Defeated*......  Interior            H. Res. 185          Open; waives sections             N/A.
                                  Appropriations.                          302(f) and 308(a) of                 
                                                                           the Budget Act and cl                
                                                                           2 and cl 6 of rule                   
                                                                           XXI; provides that                   
                                                                           the bill be read by                  
                                                                           title; waives all                    
                                                                           points of order                      
                                                                           against the Tauzin                   
                                                                           amendment; self-                     
                                                                           executes Budget                      
                                                                           Committee amendment;                 
                                                                           waives cl 2(e) of                    
                                                                           rule XXI against                     
                                                                           amendments to the                    
                                                                           bill; Pre-printing                   
                                                                           gets priority.                       
H.R. 1977......................  Interior            H. Res. 187          Open; waives sections             N/A.
                                  Appropriations.                          302(f), 306 and                      
                                                                           308(a) of the Budget                 
                                                                           Act; waives clauses 2                
                                                                           and 6 of rule XXI                    
                                                                           against provisions in                
                                                                           the bill; waives all                 
                                                                           points of order                      
                                                                           against the Tauzin                   
                                                                           amendment; provides                  
                                                                           that the bill be read                
                                                                           by title; self-                      
                                                                           executes Budget                      
                                                                           Committee amendment                  
                                                                           and makes NEA funding                
                                                                           subject to House                     
                                                                           passed authorization;                
                                                                           waives cl 2(e) of                    
                                                                           rule XXI against the                 
                                                                           amendments to the                    
                                                                           bill; Pre-printing                   
                                                                           gets priority.                       
H.R. 1976......................  Agriculture         H. Res. 188          Open; waives clauses 2            N/A.
                                  Appropriations.                          and 6 of rule XXI                    
                                                                           against provisions in                
                                                                           the bill; provides                   
                                                                           that the bill be read                
                                                                           by title; Makes Skeen                
                                                                           amendment first order                
                                                                           of business, if                      
                                                                           adopted the amendment                
                                                                           will be considered as                
                                                                           base text (10 min.);                 
                                                                           Pre-printing gets                    
                                                                           priority.                            
H.R. 1977 (3rd rule)...........  Interior            H. Res. 189          Restrictive; provides             N/A.
                                  Appropriations.                          for the further                      
                                                                           consideration of the                 
                                                                           bill; allows only                    
                                                                           amendments pre-                      
                                                                           printed before July                  
                                                                           14th to be                           
                                                                           considered; limits                   
                                                                           motions to rise.                     
H.R. 2020......................  Treasury Postal     H. Res. 190          Open; waives cl. 2 and            N/A.
                                  Appropriations.                          cl. 6 of rule XXI                    
                                                                           against provisions in                
                                                                           the bill; provides                   
                                                                           the bill be read by                  
                                                                           title; Pre-printing                  
                                                                           gets priority.                       
H.J. Res. 96...................  Disapproving MFN    H. Res. 193          Restrictive; provides             N/A.
                                  for China.                               for consideration in                 
                                                                           the House of H.R.                    
                                                                           2058 (90 min.) And                   
                                                                           H.J. Res. 96 (1 hr).                 
                                                                           Waives certain                       
                                                                           provisions of the                    
                                                                           Trade Act.                           
H.R. 2002......................  Transportation      H. Res. 194          Open; waives cl. 3 0f             N/A.
                                  Appropriations.                          rule XIII and section                
                                                                           401 (a) of the CBA                   
                                                                           against consideration                
                                                                           of the bill; waives                  
                                                                           cl. 6 and cl. 2 of                   
                                                                           rule XXI against                     
                                                                           provisions in the                    
                                                                           bill; Makes in order                 
                                                                           the Clinger/Solomon                  
                                                                           amendment waives all                 
                                                                           points of order                      
                                                                           against the amendment                
                                                                           (Line Item Veto);                    
                                                                           provides the bill be                 
                                                                           read by title; Pre-                  
                                                                           printing gets                        
                                                                           priority.                            
                                                                              *RULE AMENDED*                    
H.R. 70........................  Exports of Alaskan  H. Res. 197          Open; Makes in order              N/A.
                                  North Slope Oil.                         the Resources                        
                                                                           Committee amendment                  
                                                                           in the nature of a                   
                                                                           substitute as                        
                                                                           original text; Pre-                  
                                                                           printing gets                        
                                                                           priority; Provides a                 
                                                                           Senate hook-up with                  
                                                                           S. 395.                              
H.R. 2076......................  Commerce, Justice   H. Res. 198          Open; waives cl. 2 and            N/A.
                                  Appropriations.                          cl. 6 of rule XXI                    
                                                                           against provisions in                
                                                                           the bill; Pre-                       
                                                                           printing gets                        
                                                                           priority; provides                   
                                                                           the bill be read by                  
                                                                           title.                               
H.R. 2099......................  VA/HUD              H. Res. 201          Open; waives cl. 2 and            N/A.
                                  Appropriations.                          cl. 6 of rule XXI                    
                                                                           against provisions in                
                                                                           the bill; Provides                   
                                                                           that the amendment in                
                                                                           part 1 of the report                 
                                                                           is the first                         
                                                                           business, if adopted                 
                                                                           it will be considered                
                                                                           as base text (30                     
                                                                           min); waives all                     
                                                                           points of order                      
                                                                           against the Klug and                 
                                                                           Davis amendments; Pre-               
                                                                           printing gets                        
                                                                           priority; Provides                   
                                                                           that the bill be read                
                                                                           by title.                            
S. 21..........................  Termination of      H. Res. 204          Restrictive; 3 hours               ID.
                                  U.S. Arms Embargo                        of general debate;                   
                                  on Bosnia.                               Makes in order an                    
                                                                           amendment to be                      
                                                                           offered by the                       
                                                                           Minority Leader or a                 
                                                                           designee (1 hr); If                  
                                                                           motion to recommit                   
                                                                           has instructions it                  
                                                                           can only be offered                  
                                                                           by the Minority                      
                                                                           Leader or a designee.                
H.R. 2126......................  Defense             H. Res. 205          Open; waives cl.                  N/A.
                                  Appropriations.                          2(l)(6) of rule XI                   
                                                                           and section 306 of                   
                                                                           the Congressional                    
                                                                           Budget Act against                   
                                                                           consideration of the                 
                                                                           bill; waives cl. 2                   
                                                                           and cl. 6 of rule XXI                
                                                                           against provisions in                
                                                                           the bill; self-                      
                                                                           executes a strike of                 
                                                                           sections 8021 and                    
                                                                           8024 of the bill as                  
                                                                           requested by the                     
                                                                           Budget Committee; Pre-               
                                                                           printing gets                        
                                                                           priority; Provides                   
                                                                           the bill be read by                  
                                                                           title.                               
H.R. 1555......................  Communications Act  H. Res. 207          Restrictive; waives        2R/3D/3 Bi-
                                  of 1995.                                 sec. 302(f) of the          partisan.
                                                                           Budget Act against                   
                                                                           consideration of the                 
                                                                           bill; Makes in order                 
                                                                           the Commerce                         
                                                                           Committee amendment                  
                                                                           as original text and                 
                                                                           waives sec. 302(f) of                
                                                                           the Budget Act and                   
                                                                           cl. 5(a) of rule XXI                 
                                                                           against the                          
                                                                           amendment; Makes in                  
                                                                           order the Bliely                     
                                                                           amendment (30 min) as                
                                                                           the first order of                   
                                                                           business, if adopted                 
                                                                           it will be original                  
                                                                           text; makes in order                 
                                                                           only the amendments                  
                                                                           printed in the report                
                                                                           and waives all points                
                                                                           of order against the                 
                                                                           amendments; provides                 
                                                                           a Senate hook-up with                
                                                                           S. 652.                              
H.R. 2127......................  Labor/HHS           H. Res. 208          Open; Provides that               N/A.
                                  Appropriations                           the first order of                   
                                  Act.                                     business will be the                 
                                                                           managers amendments                  
                                                                           (10 min), if adopted                 
                                                                           they will be                         
                                                                           considered as base                   
                                                                           text; waives cl. 2                   
                                                                           and cl. 6 of rule XXI                
                                                                           against provisions in                
                                                                           the bill; waives all                 
                                                                           points of order                      
                                                                           against certain                      
                                                                           amendments printed in                
                                                                           the report; Pre-                     
                                                                           printing gets                        
                                                                           priority; Provides                   
                                                                           the bill be read by                  
                                                                           title.                               
H.R. 1594......................  Economically        H. Res. 215          Open; 2 hr of gen.                N/A.
                                  Targeted                                 debate. makes in                     
                                  Investments.                             order the committee                  
                                                                           substitute as                        
                                                                           original text.                       
H.R. 1655......................  Intelligence        H. Res. 216          Restrictive; waives               N/A.
                                  Authorization.                           sections 302(f),                     
                                                                           308(a) and 401(b) of                 
                                                                           the Budget Act. Makes                
                                                                           in order the                         
                                                                           committee substitute                 
                                                                           as modified by Govt.                 
                                                                           Reform amend                         
                                                                           (striking sec. 505)                  
                                                                           and an amendment                     
                                                                           striking title VII.                  
                                                                           Cl 7 of rule XVI and                 
                                                                           cl 5(a) of rule XXI                  
                                                                           are waived against                   
                                                                           the substitute.                      
                                                                           Sections 302(f) and                  
                                                                           401(b) of the CBA are                
                                                                           also waived against                  
                                                                           the substitute.                      
                                                                           Amendments must also                 
                                                                           be pre-printed in the                
                                                                           Congressional record.                
H.R. 1162......................  Deficit Reduction   H. Res. 218          Open; waives cl 7 of              N/A.
                                  Lock Box.                                rule XVI against the                 
                                                                           committee substitute                 
                                                                           made in order as                     
                                                                           original text; Pre-                  
                                                                           printing gets                        
                                                                           priority.                            
H.R. 1670......................  Federal             H. Res. 219          Open; waives sections             N/A.
                                  Acquisition                              302(f) and 308(a) of                 
                                  Reform Act of                            the Budget Act                       
                                  1995.                                    against consideration                
                                                                           of the bill; bill                    
                                                                           will be read by                      
                                                                           title; waives cl 5(a)                
                                                                           of rule XXI and                      
                                                                           section 302(f) of the                
                                                                           Budget Act against                   
                                                                           the committee                        
                                                                           substitute. Pre-                     
                                                                           printing gets                        
                                                                           priority.                            
H.R. 1617......................  To Consolidate and  H. Res. 222          Open; waives section             N/A. 
                                  Reform Workforce                         302(f) and 401(b) of                 
                                  Development and                          the Budget Act                       
                                  Literacy Programs                        against the                          
                                  Act (CAREERS).                           substitute made in                   
                                                                           order as original                    
                                                                           text (H.R. 2332), cl.                
                                                                           5(a) of rule XXI is                  
                                                                           also waived against                  
                                                                           the substitute.                      
                                                                           provides for                         
                                                                           consideration of the                 
                                                                           managers amendment                   
                                                                           (10 min.) If adopted,                
                                                                           it is considered as                  
                                                                           base text.                           

[[Page H 12252]]
                                                                                                                
H.R. 2274......................  National Highway    H. Res. 224          Open; waives section              N/A.
                                  System                                   302(f) of the Budget                 
                                  Designation Act                          Act against                          
                                  of 1995.                                 consideration of the                 
                                                                           bill; Makes H.R. 2349                
                                                                           in order as original                 
                                                                           text; waives section                 
                                                                           302(f) of the Budget                 
                                                                           Act against the                      
                                                                           substitute; provides                 
                                                                           for the consideration                
                                                                           of a managers                        
                                                                           amendment (10 min) If                
                                                                           adopted, it is                       
                                                                           considered as base                   
                                                                           text; Pre-printing                   
                                                                           gets priority.                       
H.R. 927.......................  Cuban Liberty and   H. Res. 225          Restrictive; waives cl          2R/2D.
                                  Democratic                               2(L)(2)(B) of rule XI                
                                  Solidarity Act of                        against consideration                
                                  1995.                                    of the bill; makes in                
                                                                           order H.R. 2347 as                   
                                                                           base text; waives cl                 
                                                                           7 of rule XVI against                
                                                                           the substitute; Makes                
                                                                           Hamilton amendment                   
                                                                           the first amendment                  
                                                                           to be considered (1                  
                                                                           hr). Makes in order                  
                                                                           only amendments                      
                                                                           printed in the report.               
H.R. 743.......................  The Teamwork for    H. Res. 226          Open; waives cl                   N/A.
                                  Employees and                            2(l)(2)(b) of rule XI                
                                  managers Act of                          against consideration                
                                  1995.                                    of the bill; makes in                
                                                                           order the committee                  
                                                                           amendment as original                
                                                                           text; Pre-printing                   
                                                                           get priority.                        
H.R. 1170......................  3-Judge Court for   H. Res. 227          Open; makes in order a            N/A.
                                  Certain                                  committee amendment                  
                                  Injunctions.                             as original text; Pre-               
                                                                           printing gets                        
                                                                           priority.                            
H.R. 1601......................  International       H. Res. 228          Open; makes in order a            N/A.
                                  Space Station                            committee amendment                  
                                  Authorization Act                        as original text; pre-               
                                  of 1995.                                 printing gets                        
                                                                           priority.                            
H.J. Res. 108..................  Making Continuing   H. Res. 230          Closed; Provides for    ..............
                                  Appropriations                           the immediate                        
                                  for FY 1996.                             consideration of the                 
                                                                           CR; one motion to                    
                                                                           recommit which may                   
                                                                           have instructions                    
                                                                           only if offered by                   
                                                                           the Minority Leader                  
                                                                           or a designee.                       
H.R. 2405......................  Omnibus Civilian    H. Res. 234          Open; self-executes a             N/A.
                                  Science                                  provision striking                   
                                  Authorization Act                        section 304(b)(3) of                 
                                  of 1995.                                 the bill (Commerce                   
                                                                           Committee request);                  
                                                                           Pre-printing gets                    
                                                                           priority.                            
H.R. 2259......................  To Disapprove       H. Res. 237          Restrictive; waives cl             1D.
                                  Certain                                  2(l)(2)(B) of rule XI                
                                  Sentencing                               against the bill's                   
                                  Guideline                                consideration; makes                 
                                  Amendments.                              in order the text of                 
                                                                           the Senate bill S.                   
                                                                           1254 as original                     
                                                                           text; Makes in order                 
                                                                           only a Conyers                       
                                                                           substitute; provides                 
                                                                           a senate hook-up                     
                                                                           after adoption.                      
H.R. 2425......................  Medicare            H. Res. 238          Restrictive; waives                1D.
                                  Preservation Act.                        all points of order                  
                                                                           against the bill's                   
                                                                           consideration; makes                 
                                                                           in order the text of                 
                                                                           H.R. 2485 as original                
                                                                           text; waives all                     
                                                                           points of order                      
                                                                           against H.R. 2485;                   
                                                                           makes in order only                  
                                                                           an amendment offered                 
                                                                           by the Minority                      
                                                                           Leader or a designee;                
                                                                           waives all points of                 
                                                                           order against the                    
                                                                           amendment; waives cl                 
                                                                           5 of rule                 
                                                                           XXI (\3/5\                           
                                                                           requirement on votes                 
                                                                           raising taxes).                      
H.R. 2492......................  Legislative Branch  H. Res. 239          Restrictive; provides             N/A.
                                  Appropriations                           for consideration of                 
                                  Bill.                                    the bill in the House.               
H.R. 2491......................  7 Year Balanced     H. Res. 245          Restrictive; makes in              1D.
H. Con. Res. 109...............   Budget                                   order H.R. 2517 as                   
                                  Reconciliation.                          original text; waives                
                                 Social Security                           all pints of order                   
                                  Earnings Test                            against the bill;                    
                                  Reform.                                  Makes in order only                  
                                                                           H.R. 2530 as an                      
                                                                           amendment only if                    
                                                                           offered by the                       
                                                                           Minority Leader or a                 
                                                                           designee; waives all                 
                                                                           points of order                      
                                                                           against the                          
                                                                           amendment; waives cl                 
                                                                           5 of rule                 
                                                                           XXI (\3/5\                           
                                                                           requirement on votes                 
                                                                           raising taxes).                      
H.R. 1833......................  Partial Birth       H. Res. 251          Closed................            N/A.
                                  Abortion Ban Act                                                              
                                  of 1995.                                                                      
H.R. 2546......................  D.C.                H. Res. 252          Restrictive; waives               N/A.
                                  Appropriations FY                        all points of order                  
                                  1996.                                    against the bill's                   
                                                                           consideration; Makes                 
                                                                           in order the Walsh                   
                                                                           amendment as the                     
                                                                           first order of                       
                                                                           business (10 min); if                
                                                                           adopted it is                        
                                                                           considered as base                   
                                                                           text; waives cl 2 and                
                                                                           6 of rule XXI against                
                                                                           the bill; makes in                   
                                                                           order the Bonilla,                   
                                                                           Gunderson and                        
                                                                           Hostettler amendments                
                                                                           (30 min); waives all                 
                                                                           points of order                      
                                                                           against the                          
                                                                           amendments; debate on                
                                                                           any further                          
                                                                           amendments is limited                
                                                                           to 30 min. each.                     
H.J. Res. 115..................  Further Continuing  H. Res. 257          Closed; Provides for              N/A.
                                  Appropriations                           the immediate                        
                                  for FY 1996.                             consideration of the                 
                                                                           CR; one motion to                    
                                                                           recommit which may                   
                                                                           have instructions                    
                                                                           only if offered by                   
                                                                           the Minority Leader                  
                                                                           or a designee.                       
H.R. 2586......................  Temporary Increase  H. Res. 258          Restrictive; Provides              5R.
                                  in the Statutory                         for the immediate                    
                                  Debt Limit.                              consideration of the                 
                                                                           CR; one motion to                    
                                                                           recommit which may                   
                                                                           have instructions                    
                                                                           only if offered by                   
                                                                           the Minority Leader                  
                                                                           or a designee; self-                 
                                                                           executes 4 amendments                
                                                                           in the rule; Solomon,                
                                                                           Medicare Coverage of                 
                                                                           Certain Anti-Cancer                  
                                                                           Drug Treatments,                     
                                                                           Habeas Corpus Reform,                
                                                                           Chrysler (MI); makes                 
                                                                           in order the Walker                  
                                                                           amend (40 min) on                    
                                                                           regulatory reform.                   
H.R. 2539......................  ICC Termination...  H. Res. 259          Open; waives section    ..............
                                                                           302(f) and section                   
                                                                           308(a).                              
H.J. Res. 115..................  Further Continuing  H. Res. 261          Closed; provides for              N/A.
                                  Appropriations                           the immediate                        
                                  for FY 1996.                             consideration of a                   
                                                                           motion by the                        
                                                                           Majority Leader or                   
                                                                           his designees to                     
                                                                           dispose of the Senate                
                                                                           amendments (1 hr).                   
H.R. 2586......................  Temporary Increase  H. Res. 262          Closed; provides for             N/A. 
                                  in the Statutory                         the immediate                        
                                  Limit on the                             consideration of a                   
                                  Public Debt.                             motion by the                        
                                                                           Majority Leader or                   
                                                                           his designees to                     
                                                                           dispose of the Senate                
                                                                           amendments (1 hr).                   
----------------------------------------------------------------------------------------------------------------
* Contract Bills, 67% restrictive; 33% open. ** All legislation, 55% restrictive; 45% open. *** Restrictive     
  rules are those which limit the number of amendments which can be offered, and include so called modified open
  and modified closed rules as well as completely closed rules and rules providing for consideration in the     
  House as opposed to the Committee of the Whole. This definition of restrictive rule is taken from the         
  Republican chart of resolutions reported from the Rules Committee in the 103rd Congress. **** Not included in 
  this chart are three bills which should have been placed on the Suspension Calendar. H.R. 101, H.R. 400, H.R. 
  440.                                                                                                          


  Mr. MOAKLEY. Mr. Speaker, I reserve the balance of my time.
  Mr. QUILLEN. Mr. Speaker, I would like to advise the gentleman from 
Massachusetts that I have no requests for time.
  Mr. MOAKLEY. Mr. Speaker, I thank the gentleman from Tennessee. I 
would like to tell the gentleman from Tennessee that I have two 
requests, and at this time I yield 1 minute to the gentleman from 
Minnesota [Mr. Oberstar].
  Mr. OBERSTAR. Mr. Speaker, I thank the former chairman for yielding 
me time. It is good to see the gentleman back here. I am so happy to 
see the gentleman looking so well and so fit back in this Chamber, 
where we need you.
  I take this time simply to say that I appreciate the Committee on 
Rules granting an open rule as we requested, so that we can have full 
and open debate, 1 hour of general debate and then open debate on any 
amendments that may be offered. There will be relatively few 
amendments. One will be of very great significance, and we will dispose 
of that issue at the time that it is offered.
  I would say to my colleagues on the Democratic side that I would hope 
the rule will pass without a recorded vote, and that we can get quickly 
to the business at hand under the ICC legislation. So I urge voice vote 
support of this very fair and appropriate open rule.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from West 
Virginia [Mr. Wise].
  Mr. WISE. Mr. Speaker, I, too, rise in support of the rule. I want to 
thank the gentleman from Pennsylvania [Mr. Shuster], committee 
chairman, and the gentlewoman from New York [Ms. Molinari], the 
subcommittee chairman, as well as the gentleman from Minnesota [Mr. 
Oberstar], the ranking member.
  Much of this bill is a bipartisan bill. Many of the provisions affect 
Members on both sides of the aisle. They have been worked out with a 
lot of negotiation and fairness. The bill does permit the areas where 
there are differences to have full and open debate. I look forward to 
that.
  No matter how people feel about the bill as it is later shaped, I 
think it is important to acknowledge this is an open rule, and we ought 
to be supporting it. I urge support of the rule.
  Ms. PRYCE. Mr. Speaker, I am pleased to rise in support of this open 
rule for the consideration of H.R. 2539, the ICC Termination Act.
  Under the terms of this very fair rule, the House will have ample 
opportunity to debate the major issues surrounding the closure of the 
Interstate Commerce Commission. First, we will consider the managers 
amendment, which, if adopted, will become part of the base text.
  Then, through the open amendment process, any Member can be heard on 
any germane amendment to the bill, as long as it is consistent with the 
standing rules of the House. As we have done in the past, this rule 
also accords priority in recognition to Members who have preprinted 
their amendments in the Congressional Record.

  H.R. 2539 abolishes the ICC while preserving its most important 
functions within an independent panel at the Department of 
Transportation. This Congress has already determined that the 
Interstate Commerce Commission, 

[[Page H 12253]]
which was created in 1887 to regulate interstate commerce, is no longer 
needed. The ICC will run out of money in December, and without this 
needed legislation, the Interstate Commerce Act will still be on the 
books without an agency to administer it. There are several functions 
of the ICC which are essential and must be transferred, including 
authority over line sales, mergers, abandonments, maximum rate 
regulation, and interchange agreements.
  Failure to pass this legislation would be extremely detrimental for 
the 600 cases pending at the ICC. Shippers, carriers, and States will 
be ill-served if this happens.
  This legislation reduces many of the burdensome regulations on 
shipping, truck, and rail companies. Retained regulatory functions are 
transferred to a three member independent board within the Department 
of Transportation.
  Terminating the ICC and transferring its remaining functions to the 
Department of Transportation is critical to our efforts to downsize and 
streamline the Federal Government. A year ago, we pledged to the 
American people that we would reduce the size and cost of Government, 
and this legislation brings us a step closer to a smaller, more 
effective Federal Government.
  Mr. Speaker, this fair, open rule was reported unanimously by the 
Rules Committee last week. I urge my colleagues to give it their full 
support, and to pass this important legislation without any delay.
  Mr. MOAKLEY. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. QUILLEN. Mr. Speaker, I yield back the balance of my time, and I 
move the previous question on the resolution.
  The previous question was ordered.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.
  The SPEAKER pro tempore. Pursuant to House Resolution 259 and rule 
XXIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the bill, H.R. 2539.

                              {time}  1523


                     in the committee of the whole

  Accordingly the House resolved itself into the Committee of the Whole 
House on the State of the Union for the consideration of the bill (H.R. 
2539) to abolish the Interstate Commerce Commission, to amend subtitle 
IV of title 49, United States Code, to reform economic regulation of 
transportation, and for other purposes, with Mr. Kingston in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the rule, the gentleman from Pennsylvania [Mr. Shuster] will be 
recognized for 30 minutes, and the gentleman from Minnesota [Mr. 
Oberstar] will be recognized for 30 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Shuster].
  Mr. SHUSTER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in strong support of this legislation, the ICC 
Termination Act of 1995. This is a very important piece of legislation 
which will eliminate the oldest regulatory agency in the Federal 
Government, the Interstate Commerce Commission. This bill in fact is 
the final chapter in a long history behind the termination of the ICC. 
The ICC has gone from about 2,000 employees and a $60 million a year 
budget down to 400 employees today and about a $30 million a year 
budget. And with this elimination of the ICC and the transference of 
residual functions to the Department of Transportation, it means that 
we will have about 120 employees and a budget of $7.9 million over in 
the Department of Transportation to handle the residual functions of 
both rail and motor carrier.
  It is essential that we move very quickly with this legislation. In 
fact, many of us would have liked to have had more time. However, the 
transportation appropriations bill which has cleared both bodies cuts 
out the funding of all funding for the ICC by December 31 of this year. 
That means that under Federal Government personnel regulations, the 
ICC, if we do not have in place this authorizing legislation to 
transfer residual functions, if we do not have it in place by December 
5, signed into law, then the ICC must RIF, that is eliminate, its 
entire work force, and send out those notices by that time. This would 
create chaos in the transportation industry.
  For example, if the ICC were to shut down without this authorizing 
legislation transferring remaining functions, it would be impossible 
for the railroads to record liens on purchase of new rolling stock. 
That is the equivalent of telling a car dealer that he can sell new 
cars, but there is nowhere he can go to transfer the title to the car. 
So it is absolutely crucial that we move quickly with this legislation.
  Now, the rail part of this legislation repeals and reduces numerous 
regulatory requirements. It eliminates the tariff filing with a 
requirement that the railroads must notify shippers of changes in 
rates. It repeals the separate rate regime for recyclable commodities. 
The bill focuses remaining regulation of rail transportation on the 
minimum necessary backstop of agency remedies to address problems 
involving rates, access to facilities, and the restructuring of the 
industry.
  The bill also includes provisions to facilitate the transfer of lines 
that would otherwise be abandoned, so another carrier can keep them in 
service, something of extreme importance to rural America.
  The bill also, in order to ensure fairness, provides that any 
proceeding that is begun before this bill is enacted, could be 
continued under the law in effect before enactment.
  Th bill continues the basic structure of the Staggers Act under which 
the freight railroad industry has seen remarkable recovery, primarily 
due to the benefits of deregulation.
  The most controversial issue in the bill relates to labor reforms on 
small railroad transactions. I want to emphasize as strongly as I can 
that it is essential to preserve rail service as provided in this 
legislation. The class 1 railroads are entering a new round of 
consolidation, that is the big railroads, and thousands of miles of 
track, whether we like it or not, are going to be abandoned. Without 
these reforms that reduce the cost of purchasing these lines by small 
operators, that is to say the class 2 operators and the class 3 
operators, the smaller railroads, this rail service is going to be lost 
forever.
  I would strongly urge opposition to any amendment that weakens the 
reforms in this bill, because if we impose labor protection on the 
small railroads, and we have no problem with the labor protection on 
the class 1, the large railroads, but if we impose labor protection on 
the small railroads in this bill, the effect is going to be massive 
abandonment of rail lines in rural America. So it is very important 
that we preserve the provisions in this bill.
  Another area of controversy relates to the protection of shippers, 
primarily grain shippers. We have made substantial compromises in this 
bill, and we are very concerned that the delicate balance between the 
various groups might be weakened by amendment and could disrupt the 
balance that we have crafted here.
  So for all these reasons, we are very hopeful and we strongly urge 
support for the rail provisions in this bill.
  With regard to the motor carrier provisions, the bill eliminates 
numerous unnecessary motor carrier functions, such as tariff filing and 
substantial rate regulation, except for household goods.
  The bill transfers the remaining motor carrier functions to the 
Department of Transportation, where they will be absorbed for the most 
part without any additional funding and will be within current 
personnel caps.
  The bill represents actually the fourth major motor carrier 
deregulation bill that Congress has passed in the last few years, 
including the Negotiated Rates Act of 1993, the preemption of State 
regulation of trucking, and the Trucking Industry Regulatory Reform Act 
of 1994.

                              {time}  1530

  In conclusion, Mr. Chairman, this is a good bill; it is a necessary 
bill; it is an urgent bill that reduces regulation, reduces government 
personnel and cost to the taxpayer. It is another step in a 15-year 
effort to modernize the rail and motor carrier industries.
  I might say that we do indeed expect to have further hearings next 
year to study further the question of further modernization. I urge all 
Members to support this bill.
  Mr. Chairman, I reserve the balance of my time.
  Mr. OBERSTAR. Mr. Chairman, I yield myself 4 minutes. 

[[Page H 12254]]

  I want to compliment our full committee chairman, the gentleman from 
Pennsylvania [Mr. Shuster], and the gentlewoman from New York [Ms. 
Molinari], the Chair of the Subcommittee on Railroads, and the 
gentleman from Wisconsin [Mr. Petri], Chair of the Subcommittee on 
Surface Transportation, and, on our side, the gentleman from West 
Virginia [Mr. Rahall], our ranking member on the Subcommittee on 
Surface Transportation, the gentleman from West Virginia [Mr. Wise], 
the ranking member on the Subcommittee on Railroads, and the gentleman 
from Illinois [Mr. Lipinski], who spent so much of his time as previous 
ranking member on the Subcommittee on Railroads helping to shape this 
legislation.
  This is an item long in the coming, an issue whose incubation period 
has been years, not days or weeks; but the actual shape of the bill 
itself has come very recently, after very long negotiations and 
discussions.
  Mr. Chairman, it is important legislation that will ensure 
continuation of very important, one could even say critical, safety and 
economic regulation of trucks and rails when the ICC, by action of the 
Committee on Appropriations, closes its doors in December.
  Like the gentleman from Pennsylvania [Mr. Shuster], I support this 
bill, mostly. I want to say to my good friend from Pennsylvania, we 
have worked very close, very hard. We spent a lot of time in frank, 
free, and open discussions trying to come to a resolution. We have 
reached agreement on most issues, but there is one of overriding 
significance, for me and I think for many on our side, that keeps us 
from coming to closure on the bill as a whole.
  Apart from the question of labor protective provisions, this has been 
a bipartisan bill; and I really appreciate the cooperation we have had 
on the Republican side, working with our Democratic minority Members to 
craft a bill that responds to important policy considerations.
  The bill, unfortunately, does take away severance pay benefits, which 
the law now provides for workers when they lose their job because of 
rail mergers or sale of rail lines. It also gives the ICC's successor 
the power to terminate severance pay and other job protections in 
collective bargaining agreements which employees and rail companies 
have freely negotiated.
  Mr. Chairman, my father was a founder of the steelworkers union in 
the iron ore mining country in northern Minnesota. He taught me from my 
very youth that an individual needed to respect family, faith, and the 
union contract. Ten years ago, when he died, he was buried with his 
steelworkers' contract in his hand. No legislative body should ever 
take that way from anybody, and I will not support any legislation that 
operates to that objective, ever.
  Now, there is a lot in this bill that we can and do support, and 
there will be an amendment offered by the gentleman from Kentucky [Mr. 
Whitfield] which I urge all Members on our side to support, and I hope 
a good number of free-thinking, open-minded, thinking Members on the 
Republican side will support as well. If that happens and that 
amendment passes, then this is a bill we can support on our side and 
will support. But if it fails, should the Whitfield amendment not pass, 
Mr. Chairman, then it is a bill that we cannot support and must oppose.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SHUSTER. Mr. Chairman, I yield 5 minutes to the distinguished 
gentlewoman from New York [Ms. Molinari], chairwoman of the 
Subcommittee on Railroads.
  Ms. MOLINARI. Mr. Chairman, I thank the gentleman for yielding me 
time.
  Mr. Chairman, I rise in very strong support of this extremely 
significant bill. It embodies a broad, bipartisan effort to delete 
obsolete and unnecessary regulation, to avoid the extra cost imposed by 
having an independent ICC, and to focus any remaining regulation on the 
essential safety net or backstop role to which it was properly 
relegated by the Staggers Act.
  Since 1980, the rail industry has come back from the verge of 
bankruptcy and possible nationalization to sound, private-sector 
health. This is due mostly to the deregulation of rail rates and other 
economic matters in the Staggers Act. Once the marketplace was allowed 
to operate in most rail matters, the industry prospered, and rail 
service was preserved.
  Not only are far more service options available to shippers today, 
but the rates the shippers pay have actually fallen by 50 percent on 
average since 1980 in constant dollars. Against this background, our 
task was to retain the successful attributes of the Staggers Act, while 
further pruning regulations that have since become obsolete.
  A few of these new deletions are the complete elimination of paper 
tariffs; eliminating all forms of entry, exit, and fare regulation; 
streamlining the process for approval of mergers and abandonments; and 
establishing clear, defined ground rules for the start-up and expansion 
of small railroads who can keep otherwise marginal rail lines in 
service.
  There are many, many more good illustrations of how comprehensive our 
review of this 108-year-old law has been. We have consulted in this 
process with shippers, with carriers and other concerned citizens. We 
have also held extensive hearings. Most of all, we have continued to 
refine this legislation to reflect continuing comment and input from 
interested parties.
  Let me just state one misrepresentation that has gone on. This bill 
does not terminate collective bargaining agreements in any way, shape, 
or form. In fact, the bill retains exactly the same standard that has 
been in merger statutes for decades: That agency approval of a merger 
displaces any other laws ``to the extent necessary to implement the 
merger.''
  This does not abrogate contracts, but the Whitfield amendment does 
alter laws. I will go into more detail when this is offered, but listen 
to me very clearly so everyone can understand what they are doing. The 
Whitfield amendment gives labor the power to halt the implementation of 
approved mergers involving smaller railroads. That is an amazing power 
we are giving.
  The amendment forbids work reassignments and shifts of work from a 
union work force. This directly contravenes existing law.
  Finally, Mr. Chairman, I want to stress the absolute necessity for 
quick enactment of ICC terminating legislation. Given the end of ICC 
funding on December 31, as the chairman has said, the agency would have 
to terminate its entire work force on December 5 unless it has an 
enacted law delineating exactly which functions must be transferred to 
the Department of Transportation.
  Although this bill may not be perfect, and there are still concerns, 
it surely represents a consensus efforts to fashion modern, market-
oriented regulation for the railroad industry; and I believe it 
strongly deserves the support of all Members.
  Mr. OBERSTAR. Mr. Chairman, I yield 3 minutes to the gentleman from 
West Virginia [Mr. Rahall], the ranking member of the Subcommittee on 
Surface Transportation.
  Mr. RAHALL. Mr. Chairman, I thank the distinguished ranking member 
for yielding me time.
  Mr. Chairman, it is, in a sense, appropriate that we consider 
legislation to complete the process of abolishing the oldest Federal 
regulatory agency today in an atmosphere where the Federal Government 
is unable to conduct its daily business due to a lack of 
appropriations.
  The Interstate Commerce Commission, created to combat the railroad 
robber barons, will be no longer with the enactment of the pending 
bill. The process of terminating the ICC, while Republican inspired, 
began last year under a Democratic majority in the Congress.
  It has been a thoughtful process, undertaken through both 
appropriations and authorizations over the course of the last year, 
culminating on this day with our consideration of H.R. 2539.
  This is, as such, not a meat ax approach to knocking off a Federal 
agency as some this year have proposed as part of their philosophical 
or economic jihad to make Government smaller.
  To be sure, there are essential functions at stake here, and this 
legislation transfers those ICC functions--both motor carrier and 
rail--to the Department of Transportation with many of 

[[Page H 12255]]
them being vested with a new Transportation Adjudication Panel.
  In my capacity last year as the chairman of the Subcommittee on 
Surface Transportation, and this year as its ranking Democrat, I have 
sought to insure that this legislation causes the least disruption to 
the trucking industry, its employees, and the general public.
  The Trucking Industry Regulatory Reform Act of 1994 not only began 
the process of downsizing the ICC's responsibilities, but further 
deregulated the motor carrier industry.
  In that law, as with this bill, however, we preserve regulatory 
regimes where they are necessary to promote the public interest.
  The area of household goods carriers, for example, will continue 
under some regulation.
  In addition, certain motor carrier practices, which well serve the 
industry and its customers, such as commodity classifications and 
ratemaking for intermodal shipments and joint lines, are maintained as 
well.
  Mr. Chairman, there is one other item, in this bill that should be 
noted. Last year, inadvertently, the Congress preempted the ability of 
local governments to regulate the tow truck industry. This was a 
mistake.
  The Congress did not intend to do this, and in fact, has no business 
intruding in this intrastate and local matter.
  The pending legislation would restore the local authority to engage 
in regulating the prices charged by tow trucks in nonconsensual towing 
situations.
  These are situations where the owner of the auto is unable to consent 
to it being towed, such as in cases of a severe accident.
  Finally, while my primary responsibility on this legislation is in 
the motor carrier area, I want to make note that its rail provisions 
have been modified to maintain the captive shipper protections 
contained in the Staggers Rail Act of 1980.
  These protections are especially necessary for shippers of bulk 
commodities, such as coal, iron ore and gain, who often have no viable 
transportation alternative but a single rail line.
  They are, as such, captive to that railroad, and could be subject to 
monopolistic pricing practices without the protections afforded them by 
the Staggers act, and now, this legislation.
  Mr. Chairman, while no fan to abolishing the ICC, under the 
circumstances, this legislation represents the best course of action to 
take and I urge it be adopted.
  Mr. SHUSTER. Mr. Chairman, I yield myself such time as I may consume 
to say that I appreciate the distinguished ranking member of the 
Subcommittee on Surface Transportation expressing his support for this 
legislation.
  Mr. Chairman, I yield 5 minutes to the gentleman from Wisconsin [Mr. 
Petri], the distinguished chairman of the Subcommittee on Surface 
Transportation.
  Mr. PETRI. Mr. Chairman, the motor carrier provisions in the ICC 
Termination Act of 1995 continue the economic deregulation of this 
industry which began in 1980 and was followed by various other 
deregulation initiatives, including three major bills just last 
Congress. It is important to note, in reviewing this bill, that 
substantial deregulation of the motor carrier industry has already been 
accomplished.
  This bill before us will abolish the ICC and eliminate many of the 
Commission's remaining motor carrier functions that are no longer 
appropriate in today's current competitive motor carrier industry.
  Functions and responsibilities which do remain are transferred to 
either the Department of Transportation--which primarily will oversee 
registration and licensing--or the Transportation Adjudication Panel--
which primarily will be responsible for the limited remaining rate 
regulation and tariff filings, final resolution of undercharge claims, 
and approval and oversight of agreements for antitrust immunity. Much 
of the regulation that remains has been streamlined and reformed, such 
as limiting agreements for antitrust immunity to 3-year periods.
  While we have provided for continued deregulation in this bill, I do 
believe we could have gone further. In the interests of working in a 
bipartisan and timely fashion, the bill does contain many compromises, 
and so many interested groups are not totally satisfied, just as I am 
not. Those groups which were looking for more significant reforms 
should know that opportunities for further reform do exist in the 
future.
  The committee intends to closely monitor the status of the industry 
and the need to retain those remaining functions that are transferred 
to the Department and to the panel. This bill should not be considered 
as the final word on these matters.
  It is imperative that we complete our work on this bill today since 
the ICC is funded only through the end of this year.
  The bill before us will not only terminate the ICC, but will also 
achieve significant reforms in the motor carrier industry, and I ask 
for the support of the Members of the House for the bill as it is 
brought before us.

                              {time}  1545

  Mr. OBERSTAR. Mr. Chairman, I yield 3\1/2\ minutes to the gentleman 
from West Virginia [Mr. Wise], the ranking member on the Subcommittee 
on Railroads.
  Mr. WISE. Mr. Chairman, I am not quite sure how I am rising right 
now. I am rising in support of the process, and definitely in favor of 
the Whitfield amendment. We will see at the end of the day whether I am 
supporting the bill.
  Mr. Chairman, I do think the Whitfield amendment is that important in 
the bill. I do think that the gentleman from Pennsylvania [Mr. Shuster] 
and the gentlewoman from New York [Ms. Molinari], the subcommittee 
chair, have done an excellent job. I also want to thank the gentleman 
from Illinois [Mr. Lipinski], former ranking member, for his help and 
assistance and advice in making this transition as I move to the 
ranking membership. The gentleman has been great to work with.
  Mr. Chairman, this bill undertakes to do a lot that is important. 
There is clearly a need to address the situation with the Interstate 
Commerce Commission. It is my understanding the bill needs to be 
enacted into law by December 5, in order to avoid the layoff of all ICC 
employees on that date.
  So, many of the issues that are of concern to all Members, 
abandonment, captive shipping situations, common carrier, have been 
addressed in a bipartisan way. For that, I am grateful to the gentleman 
from Pennsylvania, the full committee chair, and to the gentlewoman 
from New York, the subcommittee chair.
  Mr. Chairman, let us talk for a minute about what is, I think, going 
to be a main bone of contention on this bill, and that is the Whitfield 
amendment. Some Members would say why would there be any labor 
protection at all? I think it is important to understand the delicate 
balance that exists in the rail industry.
  Mr. Chairman, the rail industry has a situation where collective 
bargaining agreements can be overridden by the ICC. Well, the quid pro 
quo for that is labor protection. If we are able to override somebody's 
collective bargaining agreement, then at the same time we need to give 
them some kind of protection. That is the purpose of labor protection.
  Indeed, the Whitfield amendment kind of surprised me, to be honest 
with my colleagues, because I think it is not as strong as I would have 
liked from a labor protection standpoint. But I think it is a fair and 
reasonable compromise, and I know the gentleman from Kentucky has 
worked very hard on that.
  Mr. Chairman, there is another way we can go on this if Members want. 
If we do not want labor protection, then let us not also have the 
constraints on labor either. Permit them to truly operate in the 
marketplace. That means that strikes can be called at any moment; that 
means that the Class 1 railroads can face a shutdown, as opposed to the 
6 days of shutdown that we have seen across the country since 1980 and 
the enactment of the Staggers Deregulation Rail Act. There is another 
way we can go on this.
  If Members really like the free market, they can have a belly full of 
it, but I do not think that is what people want and certainly this 
Congress has tried to craft a delicate balance.
  So, Mr. Chairman, I would urge Members to remember that as they 
consider this. The labor protection provisions 

[[Page H 12256]]
have provided labor peace. I think it is important to note in the 
Whitfield amendment in several cases we go from 6 years to 1 year in 
many of the situations, and that is a significant concession I feel as 
well.
  Mr. Chairman, I would urge support of that amendment, and hopefully, 
if that passes, I can urge support of the bill.
  Mr. SHUSTER. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from California [Mr. Kim], a member of the committee.
  Mr. KIM. Mr. Chairman, I rise in strong support of this ICC 
Termination Act, and urge my colleagues to support the bill.
  Mr. Chairman, this legislation is a major step on the road to 
government deregulation and downsizing. Many of us were sent to 
Congress this year with a clear purpose: End the burdensome 
regulations, eliminate wasteful spending, and downsize the Federal 
Government. This bill does all of those.
  The ICC is a perfect example of an agency that has outlived its 
usefulness and become obsolete. The ICC was created back in the 1800's 
when railroads carried most cargo and passenger traffic in the country. 
Entire communities depended on one mode of transportation and many 
towns were dependent upon one railroad company. Back then, the railroad 
had tremendous monopoly power and we needed the ICC to regulate and 
control the monopoly industry.
  But, Mr. Chairman, times have changed. Today we have cars, trucks, 
trains, ships, and airplanes to move cargo and passengers. 
Transportation is a competitive industry now and we do not need a huge 
bureaucracy to regulate the competition. The ICC has become obsolete 
and it is time for it to go.
  Mr. Chairman, when my committee first held hearings on the ICC, many 
of us felt that we could simply eliminate ICC overnight. We quickly 
realized that is not possible. Before we can eliminate the ICC, we have 
to do something about all the mandates, the regulations of the 
Interstate Commerce Act, mandates and regulations that, by the way, 
have been piling up since way back in the 1800's. Just eliminating the 
ICC will create chaos for the companies required by the law to follow 
these mandates.
  Mr. Chairman, let me give just one example of what will happen if we 
cut off the ICC without changing these mandates. The railroads are 
required by law to file liens on their equipment with the ICC. Without 
a place to file their liens, they would not be able to go to the bank 
and borrow money for equipment.
  Mr. Chairman, to avoid this hardship, our committee went through the 
Interstate Commerce Act and reviewed all the mandates and requirements. 
Then our committee wrote a bill that eliminated obsolete and 
unnecessary provisions. Then we consolidated what was left into a 
minimum safety net for the consumers, workers, shippers, and carriers. 
Then we transferred these regulations to the Department of 
Transportation, where they can be handled with a minimum number of 
personnel and minimum amount of money.
  By doing this, we keep the bureaucracy and regulatory costs at the 
lowest possible level. Our bill eliminates the ICC in a responsible and 
orderly manner. We eliminate the burdensome regulation and cut 
Government spending by $21 million a year and reduce the bureaucracy. 
Mr. Chairman, this bill yields tremendous benefits.
  Mr. OBERSTAR. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Illinois [Mr. Lipinski], former ranking member of the 
Subcommittee on Railroads, who has contributed so much to the shaping 
of the legislation that we bring to the floor today.
  Mr. Chairman, I compliment the gentleman on the time that he has 
spent and the effort he has made and the original ideas contributed to 
the splendid piece of legislation before us.
  Mr. LIPINSKI. Mr. Chairman, H.R. 2539 will eliminate the Interstate 
Commerce Commission, the Nation's oldest independent Federal agency. I 
think we can all agree this is consistent with the direction Congress 
has been moving with substantial deregulation of the railroad and motor 
carrier industries in the past 15 years.
  Although many Members, including me, have opposed elimination of the 
ICC in years past, we recognize that the time has come to take this 
action. As the ranking member of the Subcommittee on Railroads, a 
position which I held for the first 10 months of this Congress, I had 
the opportunity to consider the functions of the ICC in great detail 
through hearings our subcommittee held last winter. On the majority of 
issues contained in this legislation, both the Republicans and the 
Democrats worked together to craft legislation we can all support. I 
want to commend Chairman Shuster and Chairwoman Molinari and their 
staffs for the bipartisan manner in which we began the drafting of this 
measure and for their attempts resolve the remaining issues of 
difference.
  However, despite our best cooperative efforts, there is one provision 
currently contained in H.R. 2539 which prevents me from supporting the 
legislation in its current form. In its present form, H.R. 2539 
contains a hostile provision that destroys the long-standing rights of 
certain rail workers. I understand that our colleague from Kentucky, 
Mr. Whitfield, will be offering an amendment to correct this injustice. 
I urge support of that amendment.
  Elimination of the Interstate Commerce Commission is something we 
should all support. Abrogating contracts between railroads and their 
employees is something we should not. Vote for the Whitfield amendment, 
and if it passes, vote for this bill.
  If the amendment fails, I urge every Member of this body to oppose 
H.R. 2539, and stand up for the American working men and women.
  Mr. SHUSTER. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Colorado [Mr. Hefley].
  Mr. HEFLEY. Mr. Chairman, I want to thank the gentleman from 
Pennsylvania for yielding the time, and also for his tremendous work on 
this piece of legislation. Also, I would like to extend my thanks to 
the gentlewoman from New York [Ms. Molinari] for her work as well.
  Mr. Chairman, as you know I have been introducing legislation, 
amendments to appropriations bills, and so forth, over the past 7 or 8 
years to abolish our Nation's oldest regulatory agency, the Interstate 
Commerce Commission. When I first started doing that, we were almost 
laughed out of the Chamber. Then, the next year we got a few more 
votes.
  Mr. Chairman, I remember the year that it almost passed in this House 
Chamber. I sat over there on that front row with the gentleman from 
Michigan [Mr. Dingell], who was a very articulate spokesman in favor of 
keeping the ICC. I said, ``We did not get it this year, but we are 
going to get it. We ought to sit down in a reasonable way and figure 
out how to phase this agency out.''
  Mr. Chairman, that is exactly what the gentleman from Pennsylvania 
[Mr. Shuster] has done. The gentleman has produced a bill that will 
reasonably begin to phase this agency out. When several of my 
colleagues and I started this, like the gentleman from Texas [Mr. 
DeLay] and the gentleman from California [Mr. Cox], who is here and 
will speak on it today, we thought it was almost a losing battle. Now, 
the day has come and I am very proud of that day.
  Mr. Chairman, I do still have some concerns about this legislation. 
If I might, I would like to engage the gentleman from Pennsylvania in a 
colloquy just for a moment.
  Mr. Chairman, I think my biggest concern with the legislation is that 
it still leaves in place a lot of regulation that could and should 
probably continue to be scaled down or eliminated. I would like to 
encourage the gentleman to hold hearings in 1996 concerning further 
deregulation of the transportation industry. I believe the gentleman 
indicated earlier that that is what his plans were.
  Mr. SHUSTER. Mr. Chairman, if the gentleman would yield, I want to 
assure the gentleman that that is exactly what our plans are and we 
will be holding hearings next year.
  Mr. HEFLEY. Mr. Chairman, reclaiming my time, I would further request 
that the workload of the adjudication panel, and I have some concerns 
about the adjudication panel, but that workload be closely monitored. 

[[Page H 12257]]
After several issues are resolved over the next year or two, the role 
of the panel, I think, should naturally decrease. If that does happen, 
I would ask that the funding levels be reconsidered and reduced 
accordingly for 1997 and 1998.
  Mr. SHUSTER. Mr. Chairman, if the gentleman would continue to yield, 
I would say to the gentleman that we certainly intend to look at it 
very closely.
  Mr. HEFLEY. Mr. Chairman, again reclaiming my time, finally I 
appreciate the willingness of the gentleman from Pennsylvania to 
include several changes in the manager's amendments which were brought 
up by myself and the gentleman from Texas [Mr. DeLay].
  The changes regarding the panel's authority over partial line 
abandonments help give rail carriers authority to conduct their 
business as the market dictates and not as the Federal Government 
dictates. Removing the language allowing the adjudication panel to 
conduct investigations at their initiative would assure that the panel 
does not assume an investigative power that Congress does not intend 
for it to have.
  Mr. Chairman, with these changes and promises for the future, I am 
happy to stand here and support the bill which will eliminate the ICC.
  Mr. OBERSTAR. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Tennessee [Mr. Clement].
  (Mr. CLEMENT asked and was given permission to revise and extend his 
remarks.)
  Mr. CLEMENT. Mr. Chairman, I rise to enter into a colloquy with the 
distinguished chairman of the Committee on Transportation and 
Infrastructure.
  Mr. Chairman, as we dismantle the Interstate Commerce Commission and 
transfer its functions to the Department of Transportation and the 
States, I believe that it is important that we declare our intent not 
to burden the State with any unfunded mandates. Moreover, I believe it 
is important to declare our positive intent to preserve State revenues.
  My concern is with a section 13908 of H.R. 2539 entitled 
``Registration and Other Reforms,'' which directs the Secretary of 
Transportation to replace four existing motor carrier information 
systems, including the Single State Registration System, with a single 
Federal system.
  Mr. Chairman, last year Tennessee collected $4.4 million in Single 
State Registration System fees, which went to pay for 51 percent of 
their truck and bus safety program. Nationwide, a total of $90 million 
in revenues are collected by the States under the Single State 
Registration System. These fees in no way affect our efforts to reduce 
Federal spending.
  Mr. Chairman, I would like to receive the assurance of the gentleman 
from Pennsylvania [Mr. Shuster] that these discretionary State funds 
would not be jeopardized by the rulemaking called for in this section 
of the bill.
  Mr. SHUSTER. Mr. Chairman, if the gentleman would yield, I thank the 
gentleman for his concern. The bill strikes a compromise between those 
who wanted to eliminate the Single State Registration System because it 
was burdensome and alleged to be costly, and the States who wanted to 
keep the program intact.
  In conducting his review, the Secretary will determine whether to 
replace the existing Single State Registration System with a new 
system, and as well consider the safety and the funding needs of the 
States. The States are also to be fully involved in this process, I 
would say to my friend.
  Mr. CLEMENT. Mr. Chairman, reclaiming my time, I thank the gentleman 
for participating in this colloquy with me. The gentleman has resolved 
a lot of problems that might otherwise have existed.
  Mr. Chairman, I also stand in support of the Whitfield amendment. It 
is a good amendment and it ought to be passed.

                              {time}  1600

  Mr. SHUSTER. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from California [Mr. Cox].
  Mr. COX of California. Mr. Chairman, I thank the chairman for 
yielding time to me.
  Mr. Chairman, the closet thing to eternal life on earth, Ronald 
Reagan once said, is a government agency. If that is true, then the 
ICC, the Interstate Commerce Commission, should at least be cannonized. 
It has been around an awfully long time.
  How old is the ICC? It is so old that during Grover Cleveland's 
second term it was then the oldest Government regulatory agency. That 
is because it was formed by Congress in 1886 in Grover Cleveland's 
first term. It was put together by Congress with a single purpose, to 
regulate railroad rates, but like Government agencies so often do, it 
expanded its mission and grew so that eventually it covered not only 
railroads but also buses, trucks, household movers and on and on.
  In its salad days before bipartisan congressional majorities clipped 
its wing, the ICC was a regulatory terror. It became the textbook 
example of mindless regulation. Liberal consumer groups, free market 
conservatives alike opposed it. And as a result of this consensus, the 
ICC's overregulation was trimmed back by Democrats and Republicans, 
first in 1908, with the passage of three deregulatory bills: the 
Staggers Act; the Motor Carrier and Household Goods Transportation Act; 
then in 1982, the Congress passed the Bus Regulatory Reform Act. And 
last year Congress eliminated the requirement that 90 percent of 
trucking rates be filed with the ICC.
  Together these bills have effectively deregulated all surface 
transportation in America, and they cut the number of ICC employees to 
80 percent. But the ICC continues to live on.
  What incidentally has been the effect of all of the deregulation? It 
has been a boon to consumers. Railroad rates, which rose during the 
decade prior to the 1980 cutback, have since decreased by 25 percent. 
That has reduced the cost of items ranging from cars and trucks to 
electricity, which after all is powered by coal shipped on rail.
  According to the Department of Transportation, ICC deregulation has 
saved consumers $20 billion since 1980. The ICC remains, however, a 
relic of the 19th century. Even though it is a shell of its former 
self, it still is alive and kicking.
  Despite the dramatic decline in its authority and its operations, the 
ICC continues to impose unnecessary regulatory burdens that require 
Federal approval, for example, just to operate a trucking company, or 
that require common carriage rates, prices, in the rail industry to be 
filed with Federal authorities even though the Federal authorities no 
longer have control over those very rates.
  Mr. Chairman, enough is enough. We are supposed to be running a 
government, not an antique collection. By accomplishing the long 
overdue termination of the ICC, legislation that I have long sponsored, 
Republicans in Congress will finish the job and demonstrate our firm 
commitment to eliminating Government waste and needless bureaucracy.
  Mr. OBERSTAR. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Minnesota [Mr. Vento], a gentleman who has been an 
indefatigable advocate for working men and women, especially the 
organized labor movement.
  Mr. VENTO. Mr. Chairman, I thank the gentleman for his kind comments 
and for his work on the committee and for the chairman and their work.
  This is, after all, the way that the measure should be dealt with, on 
the authorizing basis. While the underlying measure reinvents the ICC 
as the Transportation Adjudication Panel [TAP] and seems necessary 
finally because of the funding cut off to the ICC. This is the right 
way to do it through the authorizing law. However, the bill, H.R. 2539, 
raises many concerns for our country's working men and women and 
working families. Embedded into the measure is an unnecessary assault 
by this new Congress on working men and women. As a result of the 
Republican leadership's control of this House, the working people of 
our Nation are facing tax increases to pay for an upper-class tax 
break, efforts to repeal Davis-Bacon, proposals to gut OSHA, and a 
refusal to budge on an updated minimum wage. Now, the majority wants to 
take away the right of employees to collectively bargain contracts.
  Mr. Chairman, I object to the provisions in H.R. 2539 which would 
allow the successor to the ICC to abrogate, 

[[Page H 12258]]
through merger, longstanding employee protections which were 
collectively bargained. That is why I support the Whitfield amendment 
to be offered later this day. Without such an amendment to this 
measure, any transaction involving class II and class III railroads, 
which includes all railroads with up to $250 million of annual revenue, 
could disregard important employee rights. This is unfair and 
unacceptable. Mergers and acquisitions should not use the workers as 
the grease for the gears of such combinations. Such business 
transactions should preserve the sanctity of labor contracts and stand 
on their business merit, not destroy railroad labor employee 
protections.
  Under current law, railroad employees who lose their jobs because of 
a merger are eligible for up to 6 years of severance pay. Under this 
bill, they will get only a 60-day notice of layoff. Again, this is 
unfair and unacceptable. The purpose of this protection is not to 
reward someone for not working, but rather to ensure that jobs are 
preserved--and in fact, that is what happens. This provision works and 
workers remain employed because of it. Furthermore, this provision has 
been achieved in good faith bargaining by labor and management and the 
law or regulators ought to respect such an agreement.
  Mr. Chairman, recently we have learned anew the profound impact a 
merger and acquisition may have upon hundreds of jobs in Minnesota. The 
Burlington Northern-Santa Fe merger this year has confused and clouded 
important labor employee contract provisions that have been in place 
for over three decades. Hundreds of long-time Burlington Northern 
workers do not know today whether they will keep their jobs, or even 
have the opportunity to move 600-700 miles to a new community to 
maintain a job. This is not fair; this is not equitable. These large 
railroad mergers are not stalled or impaired by employee protection 
provisions, in fact through attrition and an ordered reorganization, 
employee protections can be maintained. Finally, the Rail Labor Act 
provides for collective bargaining and affords the full opportunity to 
resolve issues by a management-labor agreement-- the law and the 
regulators should be neutral. Mergers, acquisitions, modernization of 
the railroads are not being held up by labor or employees. The law 
should not intrude and mandate criteria. Let's leave the essential 
employee protections in place. Let's support the Whitfield amendment 
today.

  The Whitfield amendment attempts to repair the damage this 
legislation would inflict on U.S. railworkers. The amendment would 
preserve the integrity of collective bargaining, and ensure labor 
protections for employees of small and medium rail carriers in case of 
acquisition or merger. This is fair, this is equitable, and we should 
signal to rail management and labor our support for their contractual 
accords.
  I urge my colleagues to support the Whitfield amendment and put some 
equity and dignity back in this bill for the workers of America.
  Mr. SHUSTER. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Texas [Mr. Barton].
  (Mr. BARTON of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. BARTON of Texas. Mr. Chairman, I rise in opposition to the 
Whitfield amendment for the following reasons: The Whitfield amendment 
would create, would mandate a 1-year labor protection for workers of 
class 2 and 3 railroads. A class 2 railroad has operating revenues 
between $20 and $250 million. The class 3 railroads have operating 
revenues of less than $20 million. So class 2 and 3 railroads are very 
small railroads. We do not need to mandate in Federal law 1-year labor 
buy-out agreements.
  The bill before us, H.R. 2539, does create a safe harbor. I want to 
thank the chairman for creating the safe harbor from some of these 
expensive mandates. It would give representatives of the labor unions 
and representatives of the railroads an opportunity to go before the 
Department of Transportation and hear both sides of the argument and 
then determine whether and what type of labor protection should be 
required.
  The bill before us retains existing law that gives agency approval of 
a merger and then requires, as I just said, the DOT to hear the case in 
terms of labor protection.
  We do not need to mandate a 1-year labor protection in this by 
accepting the Whitfield amendment.
  I do want to commend the gentleman from Kentucky [Mr. Whitfield] and 
the supporters of their amendment though because they have backed down 
from 5 years to 1 year, and that is at least moving in the right 
direction. So I would hope that we would oppose the amendment and keep 
the bill as is.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. BARTON of Texas. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Mr. Chairman, I thank the gentleman for yielding to me.
  I want to emphasize that there is nothing in here which would 
prohibit the class 2 railroads and labor from entering into a 
negotiations for labor protection. They can have 1 year, 5 years, 10 
years. All this does is say that the small railroads, the Federal 
Government will not mandate that they must have labor protection.
  Mr. BARTON of Texas. Mr. Chairman, reclaiming my time, I point out 
that the American Short Line Railroad Association strongly opposes the 
Whitfield amendment.
  Mr. OBERSTAR. Mr. Chairman, I yield 4 minutes to the gentleman from 
New York [Mr. Nadler], who has played a very important role in the 
shaping of this legislation.
  Mr. NADLER. Mr. Chairman, I am not a great fan of deregulation. I do 
not believe we should abolish the ICC. I am not a great fan of this 
bill.
  But I rise today to thank the gentleman from Pennsylvania [Mr. 
Shuster], the chairman, and his staff for working with me in addressing 
some particular major concerns I had with a number of provisions of the 
bill.
  The bill as originally drafted would have terminated the feeder line 
development program. Many railroads are the only carriers of goods to 
and from certain areas of the country. Because of this monopoly, there 
must be an ability to protect shippers and residents of such areas from 
decisions by a railroad, perhaps after a merger, by a railroad that 
enjoys the local monopoly status to eliminate service to an area.
  This program has provided for many years that, if a railroad does not 
provide service on a line it owns, it can be compelled to sell that 
portion of the line to a railroad that will provide service in that 
area.
  This provision has been utilized successfully in many cases, for 
example, by railroads such as the Northern & Eastern and the Tennessee 
Central Railroad. These railroads are now profitable, viable, and 
support their communities' economy, none of which would have been 
possible without the provisions of current law that are commonly known 
as the feeder line development program. It is for these reasons I am 
pleased that the chairman's en bloc amendments to this bill will 
preserve these provisions of the law and this program.

  The second concern I had was that the common carrier provisions of 
the law were diluted in the original bill to the point that it would 
have undermined one of the original purposes of the ICC. That is to 
protect shippers and the general public from monopolies and to enable 
commerce to flow freely. Under the existing law a railroad is mandated 
to provide service to anyone who makes a reasonable request for that 
service. Many of these requests are from small communities which do not 
have other viable ways to ship their goods or from small shippers of 
whom the same is true. Requests can also come from large shippers that 
rely on one railroad to carry their goods.
  In both cases, if a railroad is allowed to deny or minimize services, 
they are given the power to decide which communities and which 
businesses will prosper and which will die. In a perfect world, we 
might let carriers decide who they would service. The reality is that 
we only have so many rail lines in this country and that it is 
imperative that we preserve the common carrier provision so that anyone 
can get service. That is why it was imperative that this provision be 
amended to more closely resemble the current law.
  As I said earlier, I want to thank Chairman Shuster for working with 

[[Page H 12259]]
  me to see that the feeder line development program is included, which 
it is, and the common carrier provision is still a viable part of the 
new regulatory body of law that will oversee interstate commerce. I 
think that, with the chairman's en bloc amendment, it will.
  At the same time, I need to express my dismay with the process and 
the haste with which this bill was brought before us. As a member of 
the Committee on Transportation and Infrastructure, we received a 280-
page bill on Thursday night and were asked to review, evaluate, and 
vote on amendments in 4 days, 4 days to determine how we were going to 
restructure a body of law that had taken 100 years to develop. It is my 
understanding that the reason we had to do a bill in such haste is that 
the Committee on Appropriations had not provided funding for the ICC, 
and we had to amend the law accordingly and quickly.
  I hope that in the future we will take more deliberate speed in 
amending such a major body of law. But again, I wanted to thank the 
chairman and his staff for working out what I believe to be a 
satisfactory resolution of the two problems, the common carrier 
doctrine and of the feeder line development program.
  Mr. SHUSTER. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Wisconsin [Mr. Roth].
  Mr. ROTH. Mr. Chairman, I thank the chairman for yielding time to me.
  Wise men have said that the nearest thing to eternal life or 
immortality is to be a Federal agency or a Federal commission. I guess 
it is true. Today we are debating the demise of the Interstate Commerce 
Commission founded in 1887. That is 108 years ago. In 1887 railroads 
did have an iron grip on how products were sent to market, but that has 
been a long time ago. Congressional Members who wish to continue this 
commission and who want to save it after 108 years are looking 
backward. I think we have to look forward. If we are going to release 
our economy, allow our economy and our businesses to grow, then I think 
we must get in step with the 21st century. So I am very much in favor 
of this legislation.
  I think the ICC was useful at one time, but it has outlived its 
usefulness. For example, I know the largest hauler of freight in this 
country is a 21st century company but yet, stated briefly, the ICC 
continues to require financial reports of this motor carrier, despite 
the fact that it no longer has a need for them. It has moved out of the 
business of regulating years ago, yet all the paperwork required has 
cost the company hundreds of thousands of dollars.

                              {time}  1615

  The ICC claims it needs the reports so that it can in turn, now 
listen to this, so that it can present an annual report to Congress. 
What do we need with an annual report? Who reads it? We are so busy 
doing all of the other things, but Congress keeps the ICC in existence 
that is, more and more bureaucracy, more and more paperwork. That is 
why today when the President said the Government was shutdown, only the 
essential workers had to come to work, 800,000 nonessential employees 
headed for home. Maybe that is why, we have too much Government, my 
colleagues, we have got too much redtape.
  Let us use some common sense, and let us pass this legislation. Let 
us bring our country into the 21st century.
  Mr. OBERSTAR. Mr. Chairman, I yield 2 minutes to the distinguished 
gentlewoman from Missouri [Ms. McCarthy].
  Ms. McCARTHY. Mr. Chairman, I rise today to urge support for the 
Whitfield amendment and, with adoption of that amendment, to recommend 
support for the bill. Inclusion of the Whitfield language will make 
this a bill worthy of passage.
  One of the functions of the ICC is to evaluate and approve railway 
mergers. The impacts of such mergers can be wide and far reaching--
affecting other railroads, rail passengers, rail employees, farmers, 
small businesses, and shippers who depend on reliable, affordable rail 
transit. It is in the national interest to ensure that mergers which 
take place do not have a deleterious effect on any of these important 
functions.
  It is essential that the new Department of Transportation panel, 
created under this legislation, be vigilant and thorough in its 
examination of rail mergers. Only through full and complete 
consideration of such a merger can all of the potential ramifications 
be properly examined. It is also important that other appropriate 
voices, such as that of the Attorney General, be a part of the 
deliberative process.
  We have an obligation, Mr. Chairman, to ensure that the public has 
access to affordable modes of rail transportation, that small railroads 
can compete with the larger ones, and that rail employees be treated 
fairly. I expect the new DOT panel to fully take into account these 
important issues when considering railroad mergers.
  Mr. SHUSTER. Mr. Chairman, I have no further requests for time, and I 
reserve the balance of my time.
  Mr. OBERSTAR. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, the labor issue aside, the bill that we are considering 
does strike a good balance between continuing deregulation of the rail 
and motor carrier industries while at the same time preserving very 
important safety and economic regulatory powers needed to protect 
shippers against abuses that will not be remedied by competition. In 
the rail arena the legislation eliminates many and modifies other 
railroad economic regulatory requirements and transfers remaining ICC 
rail oversight responsibilities to a newly created transportation 
adjudicatory panel housed within the Department of Transportation. The 
bill repeals requirements that freight rail carriers file rates with 
the Federal Government. It repeals prohibitions against transporting 
commodities produced by the carrier itself or which the carrier owns. 
It repeals requirements that railroads get Federal rail regulatory 
approval to issue securities or to assume financial liabilities with 
respect to other securities. It does, however, maintain, this 
legislation does, some critical functions that both the rail industry 
and the shippers agree are necessary: maximum rate standards to protect 
captive shippers from unreasonably high rates. The common carrier 
obligation is restated here, the legal duty of a rail carrier to 
provide transportation on reasonable request, a longstanding provision 
of American law. It protects requirements or preserves requirements 
that rail carriers establish rates, classifications, rules, and 
practices governing rail transportation, and it preserves the authority 
of the Federal Government to review and to order changes in those 
items. All of these are necessary to maintain the balance in a rail 
transportation field that I feel, and many are fearful, would not be 
maintained simply by competition alone. This panel that we create, this 
arbitration or adjudicatory panel rather, will have authority to exempt 
railroads and rail services from regulatory requirements through 
administrative action rather than going through the laborious process 
of lawsuits and through the Justice Department's antitrust suit 
authority.
  We did make progress in the area protecting captive shippers from 
possible market abuse. That is a longstanding problem in this rail 
arena, one that goes back into the 19th century and the early part of 
this century. Captive shippers are particularly a concern in the coal 
sector where powerplants are so dependent upon coal and upon the one 
means of bringing coal to their plant. We have got protections in here 
that are in the interests of all who use electricity produced by coal. 
Soon our chairman will offer a bill manager's amendment which will 
further clarify the roles of the Secretary and the Transportation 
Adjudication Panel.

  On the trucking side, the motor carrier side, the bill eliminates 
virtually all remaining tariff filings. It deregulates significant 
portions of the household goods market. It eliminates the possibility 
of future undercharge claims, an issue that we have had to deal with so 
intensively last year and again this year. It eliminates the Federal 
role in routine commercial disputes. It retains a limited number of key 
provisions--uniform commercial rules, and, for small regional carriers 
that compete with national carriers, provisions of current law that 
protect those small carriers and provisions of law that protect 
shippers in the household goods marketplace.

[[Page H 12260]]

  But I do want to come back to the point that disturbs me so greatly, 
and that is the failure to preserve the safety net that railworkers now 
have when they lose their jobs due to mergers or line sales. We had 
labor protective provisions in airline deregulation, and my colleagues 
know that in the first 5 years after airline deregulation, 1978 to 
1983, there were 22 new entrants into the airline business. But within 
8 years those 22 new entrants were swallowed up; there are only 5 left, 
and there is only 1 left today. But not once were the labor protective 
provisions for airline workers imposed, not once.
  Just last night, as I was on my way back to Washington, the 
Minneapolis-St. Paul airport, I was stopped by a Northwest Airline 
employee, a baggage handler. He had been an Eastern Airlines employee, 
and there was anger in his voice, anger in his eyes, over the 
deregulation, and he talked about this bill that we are taking up 
today, and he said, ``Don't let happen to rail workers what happened to 
us. We never got any protection. We lost our jobs.'' This merger swept 
people away and made huge profits for the big corporate owners, and the 
little guy got crushed, and that voice still rings in my mind today, my 
heart today, and I do not want to see that happen, and I urge my 
colleagues' support for the Whitfield amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SHUSTER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I want to emphasize, in fact empathize as well as 
emphasize, with what my good friend from Minnesota has just said and 
the words of that airline captain, ``Don't let them do to railroads 
what was done to the big airlines.'' We are not letting that happened 
with the class 1 railroads. That is the important point to be made, Mr. 
Chairman. We are not touching labor protection as it pertains to the 
big railroads. The labor protection that is in place stays in place. 
What we are doing, however, is with the small railroads, the class 2 
railroads. We are saying that we are not going to impose mandatory 
government-imposed labor protection.
  Now the class 2 railroads, the management and labor, can negotiate 
any kind of labor protection they want to negotiate. That is perfectly 
permissible within this legislation. All we are saying is we are not 
going to mandate, the Federal Government is not going to mandate, what 
the labor protection will be, and why not? Because with the small 
railroads, Mr. Chairman, our major concern is to keep them running, and 
the problem we face is, if a small railroad is faced with the 
opportunity to acquire a line or merge in order to keep that line 
functioning, to keep to keep that little railroad operating, we do not 
want to be in the position of saying, ``You must accept federally 
mandated labor protection,'' because the result will be the unintended 
consequence of that line being abandoned. WE do not want abandonments. 
We want these small railroads to keep running.
  In addition I would say, particularly to my colleagues on both sides 
of the aisle, ``if you're from rural America, and if you have these 
small railroads in your district, you had better be very, very 
concerned about the Federal Government mandating labor protection on 
these small railroads, because the result is going to be the 
abandonment of those railroads because they simply can't afford to pay 
the labor protection in many cases.''
  So we continue to support the full labor protection. We do not touch 
it as far as the large railroads are concerned, but indeed we say with 
the small railroads, ``Let's be very careful that we don't mandate 
Federal protection because we want to keep those lines running in the 
small communities across America.'' That seems to be the most 
contentious issue we have outlined and emphasized our reasons for 
asking support for this bill and opposition to the Whitfield amendment.

  Mr. OBERSTAR. Mr. Chairman, I yield myself the balance of my time.
  The CHAIRMAN. The gentleman from Minnesota is recognized for 30 
seconds.
  Mr. OBERSTAR. Mr. Chairman, let me just use my 30 seconds to say when 
we are talking about these small railroads, let us just remember that 
the small railroads, the class 2, include Wisconsin Central, which 
Business Week magazine earlier this year estimated was one of the 1,000 
most valuable corporations in the United States with a stock market 
value of $800 million. That is not small where I come from.

                              {time}  1630

  Mr. SHUSTER. Mr. Chairman, I would say to my friend, the class 2 can 
also be a little railroad with only $21 million a year in revenue.
  Mr. Chairman, I yield the balance of my time to the gentleman from 
Michigan [Mr. Smith].
  Mr. SMITH of Michigan. Mr. Chairman, I chaired the budget working 
group that recommended we terminate the Interstate Commerce Commission.
  Mr. Chairman, it is time for the Interstate Commerce Commission to 
go. This bureaucracy was created in the 1880's to regulate emerging 
railroad monopolies. It is only fitting that one of the first agencies 
that we kill in the first year of the Republican revolution be the 
oldest independent regulatory agency in the Federal Government.
  But the case for eliminating the ICC is much greater than just trophy 
hunting. Much of what the ICC does has been made unnecessary over the 
past decade and a half of transportation deregulation. Much of what 
remains needs to go, too. Tariff filing, probably the most obvious 
example of why we should kill the ICC, is a boon for bureaucrats, but a 
burden on trucking companies.
  For these reasons, I support the ICC Termination Act. But I wish it 
could have gone farther and eliminated more. The bill creates an 
independent Transportation Adjudication Panel. I fear that this ensures 
that too much of what the ICC does--and who does it--may remain the 
same.
  Currently there are three seats for ICC Commissioners and two are 
vacant. The adjudication panel created by this bill would consist of 
three members, and ``On the effective date * * * the members of the 
Interstate Commerce Commission then serving unexpired terms shall 
become members of the panel.'' It also allows staff of the current 
commissioners to transfer.
  Are we just changing the name on the door? I would prefer that this 
panel did not exist and remaining essential regulatory issues be folded 
into the Department of Transportation.
  Also this bill allows rail merger issues to be reviewed by the 
Transportation Adjudication Panel. I would also prefer that this 
function be performed by the Department of Justice, which handles 
mergers for all other industries.
  The administration has stated that the President will likely veto 
this legislation because it ``renam[es] the ICC and mov[es] its most 
burdensome regulatory elements to a new Federal entity.'' In my view, 
there is truth to this.
  Mr. Chairman, I wish our knife were sharper, and I hope it will be as 
we cut in the future. I urge a ``yes'' vote on this bill.
  Mr. HAYES. Mr. Chairman, during this budgetary stalemate, at a time 
when the political rhetoric overshadows the substance and importance of 
our efforts to streamline the Federal Government, we have a rare 
opportunity to move forward an issue in which bipartisan support 
exists. Both the executive branch and Congress have called for the ICC 
to be abolished. Accordingly, I am confident that the remaining 
details, although contentious, will be worked out during our debate 
here today and in conference with the Senate. I especially commend 
Chairman Shuster for his willingness to work with Members to resolve 
particular problems.
  I, therefore, rise to urge the adoption of H.R. 2539. This bill will 
provide for a prudent and orderly transition of the ICC's vital 
functions to the independent Transportation Adjudication Board within 
the Department of Transportation, while getting rid of wasteful and 
unnecessary tasks. I believe that H.R. 2539 will further ensure that 
such a transition does not prejudice current market activities or 
conditions and appropriately accounts for the expectations of the 
regulated community.
  No Federal agency epitomizes the outdated, obsolete mentality of 
Federal bureaucrats more than the ICC. The ICC's original jurisdiction 
has been extended over the years across the regulatory spectrum--from 
railroad and other surface transportation matters to the telegraph, 
cable, and securities industries. The subsequent creation of 
specialized oversight agencies, such as the Securities and Exchange 
Commission, left the ICC with duplicate authority that should have been 
eliminated long ago. The cumulative impact of deregulation of the 
railroad, trucking, and intercity bus industries in the 1980's caused 
the ICC to go from as many as 2,000 employees in the 1970's to the 
current level of 400 today, underscoring the need to reduce the ICC's 
regulatory role further.
  The ICC was created in 1887 in response to outcries from farmers, 
small merchants, and 

[[Page H 12261]]
shippers to appropriately control the practices of unfair rates and 
inadequate competition. It is ironic that these concerns, over 100 
years later, once again are at the heart of our debate.
  I was pleased to see an agreement included in the bill that is 
intended to guarantee preservation of the captive shipper protection 
authority of the ICC. Southwest Louisiana's economy depends on the 
efficient movement of bulk commodities, such as agricultural and 
petrochemical products. Transferring such protections to the 
Transportation Adjudication Panel is essential to ensure their access 
to a competitive transportation market. I thank my colleague Nick Joe 
Rahall for his tireless work on this issue.
  Additionally, meeting the demand of agricultural producers to get 
commodities to market at a competitive rate on time during the harvest 
season is the major problem facing rail grain users, particularly rice 
farmers in my district. Substantial progress has been made in 
developing acceptable safeguards to enforce contracts and rates 
suitably. While all my concerns were not allayed here today, I believe 
that stronger language akin to the Senate version is needed and will 
ultimately be approved.
  Finally, the en bloc amendment will establish a level playing field 
that does not upset the present balance of the ICC's obligation to 
protect the public interest with the need for efficiencies in the 
marketplace through consolidation and mergers. Potential captive 
shippers in my district fear that the penchant for mergers could place 
them at the mercy of rates that limit their ability to compete. I was 
glad to see that my suggestions were included in the bill to better 
guarantee such competitive rates without adversely impacting railroads 
seeking to improve their own competitive position.
  I urge my colleagues to approve this measure and look forward to 
resolving the outstanding issues in a thoughtful and amicable fashion.
  Mr. POMEROY. Mr. Chairman, I rise in strong opposition to H.R. 2539, 
the Interstate Commerce Commission Termination Act.
  North Dakota is a leading producer of many agricultural commodities 
such as wheat, durum, barley, canola, and sunflowers. A large portion 
of these commodities are shipped to processing facilities beyond our 
borders. The farmers and grain elevators in my State fit the classic 
definition of the captive shipper lacking access to effective 
alternative means of transportation. We do not enjoy access to any 
waterways and trucks are not considered a viable alternative to rail 
transportation. In fact, the North Dakota Public Service Commission 
estimates that it would take 650,000 long-haul trucks to move 1 year's 
harvest to market. That's more trucks than we have people in my State.
  Because North Dakota's economy depends on moving our commodities to 
market by rail, it is critical for us to have access to affordable and 
reliable rail service. I have concerns about several provisions of this 
bill, but one affects my State directly.
  H.R. 2539 deletes a provision in current law which has been critical 
in maintaining rail service in North Dakota. Commonly known as the 
``Andrews amendment,'' this law prohibits the wholesale abandonment of 
railroads in North Dakota by Burlington Northern [BN].
  In the early 1980's, BN planned to abandon over 20 percent of its 
railroad miles in my State. Such a wholesale abandonment would have 
been devastating to the farmers and small grain elevators who depended 
on those lines to get their commodities to market. The Andrews 
amendment originally allowed BN to abandon 350 miles in North Dakota. 
Subsequent legislation allowed BN to pursue abandonment when it was 
shown that no customer demand existed for a line.
  Due to our dependence on a single railroad and a lack of access to 
competing modes of transportation, many farmers and elevator owners do 
not have any economically feasible options. The Andrews amendment has 
played a critical role in ensuring that BN took a go slow approach to 
abandoning lines in North Dakota.
  For the Record, I am also submitting two letters. One from myself to 
Representative Susan Molinari, chairwoman for the Subcommittee on 
Railroads and the second from the North Dakota Public Service 
Commissioners stating their support for continuing the Andrews 
amendment.
  Additionally, I am concerned this legislation unfairly tips the 
balance too far in favor of the railroads. The pre-emption of State and 
Federal laws takes away the option shippers have to pursue common law 
remedies. Also the power to suspend rates or practices while a charge 
of unfavorable treatment is reviewed has been suspended.

                                Congress of the United States,

                                                 October 10, 1995.
     Hon. Susan Molinari,
     Chairwoman, Subcommittee on Railroads, Committee on 
         Transportation and Infrastructure, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairwoman Molinari: As you prepare to introduce 
     legislation to merge the Interstate Commerce Commission (ICC) 
     into the Department of Transportation (DOT), I am writing to 
     express my strong support for preserving a vital protection 
     for North Dakota farmers and grain shippers against wholesale 
     railroad abandonment.
       To realize the importance of this provision to North 
     Dakota, one must first understand the unparalleled degree to 
     which North Dakota agriculture is dependent upon railroad 
     transportation. North Dakota is the nation's most prolific 
     producer of agriculture commodities--our farmers lead the 
     nation in the production of wheat, durum, barley and 
     sunflowers. And North Dakota is uniquely dependent upon 
     railroads to transport these commodities to market.
        North Dakota is not only the nation's largest agriculture 
     producer, it is also, geographically, the most remote from 
     processing centers and points of export. Unlike other large 
     agriculture producing states, there is no realistic 
     alternative mode of transportation to rail. Barge traffic is 
     unavailable and trucking bulk shipments over such great 
     distances is not economically viable.
       As a result, on average, the 475 local country grain 
     elevators in North Dakota rely on railroads to ship 75 
     percent of their commodities to market. The majority of these 
     elevators fit the textbook definition of ``captive shipper,'' 
     where the railroad faces no effective competition. To 
     illustrate this point, consider the circumstances of the 
     grain elevator in Beach, North Dakota. The elevator in Beach 
     is 750 miles from the nearest grain market, 750 miles from 
     the nearest navigable waterway, and 150 miles from the 
     nearest competing railroad.
       Although North Dakota's overwhelming reliance on railroads 
     continues to create difficulties in the marketing of grain, 
     for the last 15 years, we have achieved a degree of stability 
     for our farmers and shippers through an abandonment 
     limitation--the socalled ``Andrews amendment.''
       In the early 1980's, Burlington Northern (BN) railroad 
     filed applications with the ICC to abandon 1,200 miles of 
     rail in North Dakota--more than 20 percent of the total 
     railroad miles in the state. The proposal threatened the 
     livelihood of farmers and small grain elevators across the 
     state. In response, Senator Mark Andrews (R-ND) offered an 
     amendment stating that Burlington Northern railroad could not 
     abandon more than 350 miles of rail in North Dakota (P.L. 97-
     102, Sec. 402).
       It should be noted that the Andrews amendment was modified 
     by the FY 1992 Department of Transportation Appropriations 
     Act to permit BN to exceed the 350 mile statutory limit for a 
     abandonments under the exemption provided by section 1152 of 
     title 49 of the Code of Federal Regulations. As you know, 
     this provision allows railroads to bypass normal abandonment 
     proceedings when it is demonstrated that there is no customer 
     demand for the line. Therefore, the Andrews amendment is not 
     a prohibition on rail abandonment--it is a reasonable 
     safeguard that recognizes the unique dependence of North 
     Dakota on rail transportation.
       In sum, as you consider changes to the Interstate Commerce 
     Act, I strongly urge you to preserve the abandonment 
     limitation provided by P.L. 97-102. I appreciate your careful 
     consideration of this important issue.
           Sincerely,
                                                     Earl Pomeroy,
     Member of Congress.
                                                                    ____

                                        Public Service Commission,


                                        State of North Dakota,

                                    Bismark, ND, October 23, 1995.
     Hon. Susan Molinari,
     Chairwoman, Subcommittee on Railroads,
     Committee on Transportation and Intrastruc- ture, Rayburn 
         House Office Building, Washington, DC
       Dear Chairwoman Molinari: Congressman Pomeroy has already 
     contacted you concerning the vital importance of the 
     ``Andrews Amendment'' which prohibits wholesale rail 
     abandonment in North Dakota (copy attached). As the agency 
     that is responsible for representing our state's 
     transportation interests before Congress and federal 
     agencies, we share in his concern and urge congressional 
     action to retain this protection.
       North Dakota is perhaps the Nation's most agricultural 
     state. We are often the leading producer of major commodities 
     such as wheat (flour), durum (pasta), barley (beer and animal 
     feed), and sunflower (oil and food). Virtually all of this 
     grain is shipped to consumption centers and processors that 
     are located hundreds and even thousands of miles away.
       North Dakota is highly dependent on rail transportation 
     because of its location and its lack of other transportation 
     alternatives. Unlike their counterparts in other grain 
     producing states, North Dakota grain shippers are located an 
     average of 450 miles from the nearest source of water 
     transportation and trucks just are not a viable alternative. 
     It would take nearly 650,000 long-haul trucks to move one 
     year's harvest to market.
       North Dakota's grain industry had more competitive choices 
     25 years ago. At that time the state was served by five 
     national rail carriers; today there are two. These carriers 
     can be far more aggressive concerning abandonments because, 
     in all likelihood, if they abandon a line, farmers and grain 
     companies will simply be forced to deliver their grain to 
     that same railroad at some more 

[[Page H 12262]]
     distant point. These local entities would experience higher delivery 
     costs and local roads would see experience far greater wear. 
     Elevators which have made capital investments to their 
     facilities would be left with significant stranded 
     investments.
       The ``Andrews Amendment'' was put in place to force North 
     Dakota's major rail carrier to take a go-slow approach to 
     abandonments. It has worked to the benefit of both the state 
     and the railroad. Less than half of the lines proposed for 
     abandonment in 1981 have been abandoned. Some of the once-
     targeted lines have even been upgraded and now serve as major 
     sources of freight revenue for the railroad.
       North Dakota will, quite possibly, be faced with another 
     major abandonment threat in the near future. Recent and 
     pending mega rail mergers, the advent of even larger rail 
     cars, and proposed changes to the Interstate Commerce Act 
     threaten to create a renewed interest in ``system 
     rationalization.''
       North Dakota has not opposed a single abandonment 
     application in the past ten years but we do not welcome the 
     prospects of another round of wholesale abandonments. The 
     ``Andrews Amendment'' prevents such a threat.
       It is important to remember that this provision does not 
     preclude abandonments. Hundreds of miles of track have been 
     abandoned since its passage and even more unused lines could 
     be abandoned today if their operator chose to make the 
     required filings with the ICC.
       The ``Andrews Amendment'' simply prohibits a railroad from 
     abandoning a line in anticipation of future free market 
     occurrences and forces them to respond to changed market 
     conditions rather than presupposing them.
       We appreciate and urge your favorable support.
           Sincerely,
     Bruce Hagen,
                                                     Commissioner.
     Susan E. Wefald,
                                                        President.
     Leo M. Reinbold,
                                                     Commissioner.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the Committee amendment in the nature of a 
substitute shall be considered by titles as an original bill for the 
purposes of amendment. The first section in each title is considered as 
read.
  Before consideration of any other amendment it shall be in order to 
consider the amendment printed in the designated place in the 
Congressional Record if offered by the gentleman from Pennsylvania [Mr. 
Shuster] or his designee. That amendment shall be considered as read, 
may amend portions of the bill not yet read for amendment, is not 
subject to amendment, and is not subject to a demand for a division of 
the question. Debate on the amendment is limited to 10 minutes, equally 
divided and controlled by the proponent and an opponent of the 
amendment.
  If that amendment is adopted, the bill as then perfected will be 
considered as an original bill for the purpose of further amendment.
  During consideration of the bill for amendment, the Chairman of the 
Committee of the Whole may accord priority in recognition to a Member 
who has caused an amendment to be printed in the designated place in 
the Congressional Record. Those amendments will be considered as read.
  The Clerk will designate section 1.
  The text of section 1 is as follows:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``ICC Termination Act of 
     1995''.


                    amendment offered by mr. shuster

  Mr. SHUSTER. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment offered by Mr. Shuster:
       Page 5, line 24, insert ``common carrier'' after ``a person 
     providing''.
       Page 7, line 8, insert ``with respect to regulation of rail 
     transportation'' after ``provided under this part''.
       Page 9, line 24, insert ``The enactment of the ICC 
     Termination Act of 1995 shall have no effect on which 
     employees and employers are covered by the Railway Labor Act, 
     the Railroad Retirement Act of 1974, the Railroad Retirement 
     Tax Act, and the Railroad Unemployment Insurance Act.'' after 
     ``local governmental authority.''.
       Page 12, in the table of sections for subchapter I of 
     chapter 105, strike ``Inflation-based rate increases'' and 
     insert in lieu thereof ``Rail cost adjustment factor''.
       Page 13, line 21, strike ``shall recognize'' and insert in 
     lieu thereof ``shall give due consideration to--
       ``(A) the amount of traffic which is transported at 
     revenues which do not contribute to going concern value and 
     the efforts made to minimize such traffic;
       ``(B) the amount of traffic which contributes only 
     marginally to fixed costs and the extent to which, if any, 
     rates on such traffic can be changed to maximize the revenues 
     from such traffic; and
       ``(C) the carrier's mix of rail traffic to determine 
     whether one commodity is paying an unreasonable share of the 
     carrier's overall revenues,

     recognizing''.
       Page 14, lines 2 through 5, strike ``to establish 
     simplified'' and all that follows through ``evidence is 
     impractical''.
       Page 14, line 11, strike ``including'' and insert in lieu 
     thereof ``to the extent required by section 10507,''.
       Page 17, line 11, strike ``11101'' and insert in lieu 
     thereof ``10902''.
       Page 29, line 11, strike ``Class I''.
       Page 29, lines 12 and 13, strike ``Panel's Rail Form A'' 
     and insert in lieu thereof ``Uniform Rail Costing System''.
       Page 30, line 7, through page 31, line 3, amend section 
     10508 to read as follows:

     ``Sec. 10508. Rail cost adjustment factor

       ``(a) The Panel shall, as often as practicable, but in no 
     event less often than quarterly, publish a rail cost 
     adjustment factor which shall be a fraction, the numerator of 
     which is the latest published Index of Railroad Costs (which 
     index shall be compiled or verified by the Panel, with 
     appropriate adjustments to reflect the change in composition 
     of railroad costs, including the quality and mix of material 
     and labor) and the denominator of which is the same index for 
     the fourth quarter of every fifth year, beginning with the 
     fourth quarter of 1992.
       ``(b) The rail cost adjustment factor published by the 
     Panel under subsection (a) of this section shall take into 
     account changes in railroad productivity. The Panel shall 
     also publish a similar index that does not take into account 
     changes in railroad productivity.
       Page 31, line 22, insert ``The district courts of the 
     United States shall not have jurisdiction pursuant to this 
     section based on section 1331 or 1337 of title 28, United 
     States Code.'' after ``parties otherwise agree.''.
       Page 31, after line 22, insert the following:
       ``(d)(1) A summary of each contract for the transportation 
     of agricultural commodities entered into under this section 
     shall be filed with the Panel, containing such 
     nonconfidential information as the Panel prescribes. The 
     Panel shall publish special rules for such contracts in order 
     to ensure that the essential terms of the contract are 
     available to the general public.
       Page 31, line 23, strike ``(d)'' and insert in lieu thereof 
     ``(2)''.
       Page 32, after line 6, insert the following new subsection:
       ``(f) A rail carrier that enters into a contract as 
     authorized by this section remains subject to the common 
     carrier obligation set forth in section 10901, with respect 
     to rail transportation not provided under such a contract.
       Page 37, in the table of sections for chapter 107, insert 
     at the end the following new item:

``10707. Railroad development.

       Page 45, line 10, strike ``paragraph (2) or''.
       Page 45, lines 13 through 22, strike paragraph (2).
       Page 45, line 23, strike ``(3)'' and insert in lieu thereof 
     ``(2)''.
       Page 47, line 18, strike ``6 months'' and insert in lieu 
     thereof ``4 months''.
       Page 48, line 2, page 49, lines 21 and 25, and page 50, 
     line 5, strike ``6-month'' and insert in lieu thereof ``4-
     month''.
       Page 51, line 20, insert ``The Panel does not have 
     authority under this chapter over construction, acquisition, 
     operation, abandonment, or discontinuance of spur, 
     industrial, team, switching, or side tracks.'' after ``or 
     side tracks.''.
       Page 51, after line 20, insert the following new section:

     ``Sec. 10707. Railroad development

       ``(a) In this section, the term `financially responsible 
     person' means a person who--
       ``(1) is capable of paying the constitutional minimum value 
     of the railroad line proposed to be acquired; and
       ``(2) is able to assure that adequate transportation will 
     be provided over such line for a period of not less than 3 
     years.

     Such term includes a governmental authority but does not 
     include a Class I or Class II rail carrier.
       ``(b)(1) When the Panel finds that--
       ``(A)(i) the public convenience and necessity require or 
     permit the sale of a particular railroad line under this 
     section; or
       ``(ii) a railroad line is on a system diagram map as 
     required under section 10703 of this title, but the rail 
     carrier owning such line has not filed a notice of intent to 
     abandon such line under section 10703 of this title before an 
     application to purchase such line, or any required 
     preliminary filing with respect to such application, is filed 
     under this section; and
       ``(B) an application to purchase such line has been filed 
     by a financially responsible person,

     the Panel shall require the rail carrier owning the railroad 
     line to sell such line to such financially responsible person 
     at a price not less than the constitutional minimum value.
       ``(2) For purposes of this subsection, the constitutional 
     minimum value of a particular railroad line shall be presumed 
     to be not less than the net liquidation value of such line or 
     the going concern value of such line, whichever is greater.
       ``(c)(1) For purposes of this section, the Panel may 
     determine that the public convenience and necessity require 
     or permit the 

[[Page H 12263]]
     sale of a railroad line if the Panel determines, after a hearing on the 
     record, that--
       ``(A) the rail carrier operating such line refuses within a 
     reasonable time to make the necessary efforts to provide 
     adequate service to shippers who transport traffic over such 
     line;
       ``(B) the transportation over such line is inadequate for 
     the majority of shippers who transport traffic over such 
     line;
       ``(C) the sale of such line will not have a significantly 
     adverse financial effect on the rail carrier operating such 
     line;
       ``(D) the sale of such line will not have an adverse effect 
     on the overall operational performance of the rail carrier 
     operating such line; and
       ``(E) the sale of such line will be likely to result in 
     improved railroad transportation for shippers that transport 
     traffic over such line.
       ``(2) In a proceeding under this subsection, the burden of 
     proving that the public convenience and necessity require or 
     permit the sale of a particular railroad line is on the 
     person filing the application to acquire such line. If the 
     Panel finds under this subsection that the public convenience 
     and necessity require or permit the sale of a particular 
     railroad line, the Panel shall concurrently notify the 
     parties of such finding and publish such finding in the 
     Federal Register.
       ``(d) In the case of any railroad line subject to sale 
     under subsection (a) of this section, the Panel shall, upon 
     the request of the acquiring carrier, require the selling 
     carrier to provide to the acquiring carrier trackage rights 
     to allow a reasonable interchange with the selling carrier or 
     to move power equipment or empty rolling stock between 
     noncontiguous feeder lines operated by the acquiring carrier. 
     The Panel shall require the acquiring carrier to provide the 
     selling carrier reasonable compensation for any such trackage 
     rights.
       ``(e) The Panel shall require, to the maximum extent 
     practicable, the use of the employees who would normally have 
     performed work in connection with a railroad line subject to 
     a sale under this section.
       ``(f) In the case of a railroad line which carried less 
     than 3,000,000 gross ton miles of traffic per mile in the 
     preceding calendar year, whenever a purchasing carrier under 
     this section petitions the Panel for joint rates applicable 
     to traffic moving over through routes in which the purchasing 
     carrier may practicably participate, the Panel shall, within 
     30 days after the date such petition is filed and pursuant to 
     section 10505(a) of this title, require the establishment of 
     reasonable joint rates and divisions over such route.
       ``(g)(1) Any person operating a railroad line acquired 
     under this section may elect to be exempt from any of the 
     provisions of this part, except that such a person may not be 
     exempt from the provisions of chapter 105 of this title with 
     respect to transportation under a joint rate.
       ``(2) The provisions of paragraph (1) of this subsection 
     shall apply to any line of railroad which was abandoned 
     during the 18-month period immediately prior to the effective 
     date of the Staggers Rail Act of 1980 and was subsequently 
     purchased by a financially responsible person.
       ``(h) If a purchasing carrier under this section proposes 
     to sell or abandon all or any portion of a purchased railroad 
     line, such purchasing carrier shall offer the right of first 
     refusal with respect to such line or portion thereof to the 
     carrier which sold such line under this section. Such offer 
     shall be made at a price equal to the sum of the price paid 
     by such purchasing carrier to such selling carrier for such 
     line or portion thereof and the fair market value (less 
     deterioration) of any improvements made, as adjusted to 
     reflect inflation.
       ``(i) Any person operating a railroad line acquired under 
     this section may determine preconditions, such as payment of 
     a subsidy, which must be met by shippers in order to obtain 
     service over such lines, but such operator must notify the 
     shippers on the line of its intention to impose such 
     preconditions.
       Page 52, line 9, insert ``Commitments which deprive a 
     carrier of its ability to respond to reasonable requests for 
     common carrier service are not reasonable.'' after ``requests 
     for service.''.
       Page 53, line 3, insert ``20 days have expired after'' 
     after ``service terms unless''.
       Page 53, lines 11 and 12, strike ``, including appropriate 
     periods of notice.'' and insert in lieu thereof ``. Final 
     regulations shall be adopted by the Panel not later than 180 
     days after the date of the enactment of the ICC Termination 
     Act of 1995.''.
       Page 66, line 12, insert ``in order to perfect the security 
     interest that is the subject of such instrument'' after 
     ``filed with the Panel''.
       Page 68, after line 15, insert the following new 
     subsection:
       ``(g) The Panel shall collect, maintain, and keep open for 
     public inspection a railway equipment register consistent 
     with the manner and format maintained by the Interstate 
     Commerce Commission as of the date of the enactment of the 
     ICC Termination Act of 1995.
       Page 69, line 8, insert ``(except section 11122)'' after 
     ``under this subchapter''.
       Page 73, line 19, strike ``rights. Any trackage rights'' 
     and insert in lieu thereof ``rights and access to other 
     facilities. Any trackage rights and related''.
       Page 73, line 20, insert ``operating terms and'' after 
     ``shall provide for''.
       Page 74, lines 21 and 22, strike ``Secretary of 
     Transportation'' and insert in lieu thereof ``Attorney 
     General''.
       Page 84, lines 2 and 3, strike ``The Panel may begin an 
     investigation under this part on its own initiative or on 
     complaint.'' and insert in lieu thereof ``Except as otherwise 
     provided in this part, the Panel may begin an investigation 
     under this part only on complaint.''.
       Page 85, line 24, insert ``in a United States District 
     Court'' after ``civil action''.
       Page 105, line 3, strike the first comma and all that 
     follows through the period on line 5 and insert a period.
       Page 115, line 6, before ``authority'' insert 
     ``appropriate''.
       Page 115, strike lines 7 and 8 and insert a period.
       Page 117, line 4, strike ``shall''.
       Page 132, line 4, strike ``has'' and insert ``and the Panel 
     have''.
       Page 133, after line 17, insert the following:
       ``(b) Limitation.--The Panel may not exempt a water carrier 
     from the application of, or compliance with, sections 13701 
     and 13702 for transportation in noncontiguous domestic trade.
       Page 133, line 18, strike ``(b)'' and insert ``(c)''.
       Page 136, line 2, after ``section 13703'' insert ``or 
     14302''.
       Page 136, in the matter following line 3--
       (1) redesignate the items relating to sections 13707-13712 
     as items relating to sections 13708-13713, respectively;
       (2) insert after the item relating to section 13706 the 
     following:

`` `13707. Payment of rates.''; and

       (3) strike the item relating to section 13710, as 
     redesignated by paragraph (1), and insert the following:
`` `13710. Additional billing and collecting practices.''.

       Page 136, lines 14 and 15, strike ``described in section 
     13102(9)(A), or'' and insert a comma.
       Page 136, line 17, after the comma insert ``or''.
       Page 136, after line 17, insert the following:
       ``(C) rates, rules, and classifications made collectively 
     by motor carriers under agreement pursuant to section 13703,
       Page 138, lines 9 and 10, strike ``described in section 
     13102(9)(A)''.
       Page 140, line 13, strike ``kept open'' and insert ``make 
     the tariffs as changed available''.
       Page 141, line 11, strike ``in'' and insert ``of''.
       Page 141, lines 12 and 13, strike ``households described in 
     section 13102(9)(B)'' and insert ``household goods''.
       Page 142, line 7, strike ``described in section 
     13102(9)(A)''.
       Page 143, strike lines 5 through 8 and insert the 
     following:
       ``(4) Independently established rates.--Any carrier which 
     is a party to an agreement under paragraph (1) is not, and 
     may not be precluded, from independently establishing its own 
     rates, classification, and mileages or from adopting and 
     using a noncollectively made classification or mileage guide.
       ``(5) Investigations.--
       ``(A) Reasonableness.--The Panel may suspend and 
     investigate the reasonableness of any rate, rule, 
     classification, or rate adjustment of general application 
     made pursuant to an agreement under this section.
       ``(B) Actions not in the public interest.--The Panel may 
     investigate any action taken pursuant to an agreement 
     approved under this section. If the Panel finds that the 
     action is not in the public interest, the Panel may take such 
     measures as may be necessary to protect the public interest 
     with regard to the action, including issuing an order 
     directing the parties to cease and desist or modify the 
     action.
       Page 143, line 9, strike ``(5)'' and insert ``(6)''.
       Page 144, line 18, after the period insert the following:

     Parties to the agreement may continue to undertake activities 
     pursuant to the previously approved agreement while the 
     renewal request is pending.
       Page 145, strike line 11 and insert the following:
       ``(g) Industry Standard Guides.--
       ``(1) In general.--
       ``(A) Public availability.--Routes, rates, classifications, 
     mileage guides, and rules established under agreements 
     approved under this section shall be published and made 
     available for public inspection upon request.
       ``(B) Participation of carriers.--
       ``(i) In general.--A motor carrier of property whose 
     routes, rates, classifications, mileage guides, rules, or 
     packaging are determined or governed by publications 
     established under agreements approved under this section must 
     participate in the determining or governing publication for 
     such provisions to apply.
       ``(ii) Power of attorney.--The motor carrier of property 
     shall issue a power of attorney to the publishing agent and, 
     upon its acceptance, the agent shall issue a written 
     certification to the motor carrier affirming its 
     participation in the governing publication, and the 
     certification shall be made available for public inspection.
       ``(2) Mileage limitation.--No carrier subject
       Page 145, line 15, strike ``(1)'' and insert ``(A)''.
       Page 145, move lines 15 through 21 two ems to the right.
       Page 145, strike line 16 and all that follows through 
     ``which'' on line 17 and insert ``that 

[[Page H 12264]]
     is developed independently of any other publication of mileage 
     developed by any other carrier and that''.
       Page 145, line 19, strike ``(2)'' and insert ``(B)''.
       Page 149, after line 16, insert the following:

     ``Sec. 13707. Payment of rates

       ``(a) Transfer of Possession Upon Payment.--Except as 
     provided in subsection (b), a carrier providing 
     transportation or service subject to jurisdiction under this 
     part shall give up possession at the destination of the 
     property transported by it only when payment for the 
     transportation or service is made.
       ``(b) Exceptions.--
       ``(1) Regulations.--Under regulations of the Secretary 
     governing the payment for transportation and service and 
     preventing discrimination, those carriers may give up 
     possession at destination of property transported by them 
     before payment for the transportation or service. The 
     regulations of the Secretary may provide for weekly or 
     monthly payment for transportation provided by motor carriers 
     and for periodic payment for transportation provided by water 
     carriers.
       ``(2) Extensions of credit to governmental entities.--Such 
     a carrier (including a motor carrier being used by a 
     household goods freight forwarder) may extend credit for 
     transporting property for the United States Government, a 
     State, a territory or possession of the United States, or a 
     political subdivision of any of them.
       Redesignate subsequent sections of chapter 137 on pages 149 
     through 163, accordingly.
       Page 149, line 18, strike ``Timing'' and insert 
     ``Disclosure''.
       Page 149, line 23, before the period insert ``and shall 
     also disclose, at such time, whether and to whom any 
     allowance or reduction in charges is made''.
       Page 150, lines 13 and 14, strike ``Before Effective Date'' 
     and insert ``at Rates Other Than Legal Tariff Rates''.
       Page 150, line 21, after the comma insert ``or under 
     subchapter I of chapter 135''.
       Page 151, line 12, after ``Commission'' insert ``or the 
     Panel, as required,''.
       Page 151, line 20, after ``Commission'' insert ``or the 
     Panel, as required,''.
       Page 152, line 21, before the period insert ``, or chapter 
     149''.
       Page 154, line 7, before ``title'' insert ``part or, for 
     transportation provided before the effective date of this 
     section, all rights and remedies that existed under this''.
       Page 157, strike lines 11 and 12 and insert the following:

     ``Sec. 13710. Additional billing and collecting practices''

       Page 157, line 20, after ``rate'' insert ``applicable to 
     its shipment or''.
       Page 157, line 23, strike ``With'' and all that follows 
     through ``when'' on line 25 and insert ``When''.
       Page 158, line 5, strike ``In those cases'' and insert the 
     following:
       ``(3) Billing disputes.--
       ``(A) Initiated by motor carriers.--In those cases''
       Page 158, strike line 16 and all that follows through 
     ``if'' on line 18 and insert the following:

       ``(B) Initiated by shippers.--If''.
       Page 160, line 1, before ``that'' insert ``subject to 
     jurisdiction under subchapter I of chapter 135 or, before the 
     effective date of this section, to have provided 
     transportation''.
       Page 160, line 2, strike ``before'' and insert ``, as in 
     effect on the day before''.
       Page 160, line 7, after ``between'' insert ``(1)''.
       Page 160, line 8, after ``with'' insert ``this chapter or, 
     with respect to transportation provided before the effective 
     date of this section, in accordance with''.
       Page 160, line 9, strike ``of this title'' and insert ``, 
     as in effect on the date the transportation was provided,''.
       Page 160, line 10, strike ``and'' and insert ``, and (2)''.
       Page 160, line 13, strike ``of this title''.
       Page 160, lines 14 and 15, strike ``of this title''.
       Page 161, line 11, after ``Commission'' insert ``or the 
     Panel, as required,''.
       Page 161, line 18, after ``Commission'' insert ``or the 
     Panel, as required,''.
       Page 162, line 20, strike ``relating'' and all that follows 
     through the period on line 22 and insert the following:
     as in effect on the day before such effective date, as such 
     sections relate to a filed tariff rate and other general 
     tariff requirements.
       Page 163, line 1, strike ``13708'' and insert ``13709''.
       Page 163, after line 8, insert the following:
       ``(g) Applicability to Pending Cases.--This section shall 
     apply to all cases and proceedings pending on the effective 
     date of this section.
       Page 164, in the item relating to section 13904 in the 
     matter following line 7, strike ``motor carriers''.
       Page 168, line 18, strike ``Express''.
       Page 169, lines 7 and 8, strike ``Except as provided in 
     section 14501(a), any'' and insert ``Any''.
       Page 169, line 11, strike ``the 30th'' and all that follows 
     through ``and'' on line 14 and insert ``such time as''.
       Page 169, line 16, strike the period and insert the 
     following:

     , but in no case later than the 30th day following the date 
     on which the motor carrier of passengers first begins 
     providing transportation entirely in one State under this 
     paragraph.
       Page 173, line 15, after ``(3)'' insert a comma.
       Page 174, after line 11, insert the following:
       ``(d) Motor Carrier Defined.--In this section and sections 
     13905 and 13906, the term `motor carrier' includes foreign 
     motor carriers and foreign motor private carriers.
       Page 174, line 23, strike ``motor carrier''.
       Page 175, strike line 7 and move the matter on lines 8 
     through 10 after the subsection heading on line 6.
       Page 175, strike lines 11 through 16.
       Page 176, after line 1, insert the following:
       ``(a) Person Holding ICC Authority.--Any person having 
     authority to provide transportation or service as a motor 
     carrier, freight forwarder, or broker under this title, as in 
     effect on the day before the effective date of this section, 
     shall be deemed, for purposes of this part, to be registered 
     to provide such transportation or service under this part.
       Redesignate subsequent subsections on page 176 accordingly.
       Page 176, line 22, strike ``of the registrant''.
       Page 186, line 22, after the period insert the following:

     In issuing the regulations, the Secretary shall consider 
     whether or not to integrate the requirements of section 13304 
     into the new system and may integrate such requirements into 
     the new system.
       Page 188, line 3, strike ``under section 14504,'' and 
     insert ``(including filings and fees authorized under section 
     14504),''.
       Page 196, line 19, before the period insert ``and 
     brokers''.
       Page 198, at the end of the matter following line 23, 
     insert the following:

``14303. Consolidation, merger, and acquisition of control of motor 
              carriers of passengers.

       Page 201, line 14, strike ``of this title''.
       Page 205, after line 11, insert the following:
       ``(g) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Household goods.--The term `household goods' has the 
     meaning such term had under section 10102(11) of this title, 
     as in effect on the day before the effective date of this 
     section.
       ``(2) Transportation.--The term `transportation' means 
     transportation that would be subject to the jurisdiction of 
     the Interstate Commerce Commission under subchapter II of 
     chapter 105 of this title, as in effect on the day before 
     such effective date, if such subchapter were still in effect.

     ``Sec. 14303. Consolidation, merger, and acquisition of 
       control of motor carriers of passengers

       ``(a) Approval Required.--The following transactions 
     involving motor carriers of passengers subject to 
     jurisdiction under subchapter I of chapter 135 may be carried 
     out only with the approval of the Panel:
       ``(1) Consolidation or merger of the properties or 
     franchises of at least 2 carriers into one operation for the 
     ownership, management, and operation of the previously 
     separately owned properties.
       ``(2) A purchase, lease, or contract to operate property of 
     another carrier by any number of carriers.
       ``(3) Acquisition of control of a carrier by any number of 
     carriers.
       ``(4) Acquisition of control of at least 2 carriers by a 
     person that is not a carrier.
       ``(5) Acquisition of control of a carrier by a person that 
     is not a carrier but that controls any number of carriers.
       ``(b) Standard for Approval.--The Panel shall approve and 
     authorize a transaction under this section when it finds the 
     transaction is consistent with the public interest. The Panel 
     shall consider at least the following:
       ``(1) The effect of the proposed transaction on the 
     adequacy of transportation to the public.
       ``(2) The total fixed charges that result from the proposed 
     transaction.
       ``(3) The interest of carrier employees affected by the 
     proposed transaction.

     The Panel may impose conditions governing the transaction.
       ``(c) Determination of Completeness of Application.--Within 
     30 days after the date on which an application is filed under 
     this section, the Panel shall either publish a notice of the 
     application in the Federal Register or reject the application 
     if it is incomplete.
       ``(d) Comments.--Written comments about an application may 
     be filed with the Panel within 45 days after the date on 
     which notice of the application is published under subsection 
     (c).
       ``(e) Deadlines.--The Panel shall conclude evidentiary 
     proceedings by the 240th day after the date on which notice 
     of the application is published under subsection (c). The 
     Panel shall issue a final decision by the 180th day after the 
     conclusion of the evidentiary proceedings. The Panel may 
     extend a time period under this subsection; except that the 
     total of all such extensions with respect to any application 
     shall not exceed 90 days.
       ``(f) Effect of Approval.--A carrier or corporation 
     participating in or resulting from a transaction approved by 
     the Panel under this section, or exempted by the Panel from 
     the application of this section pursuant to section 13541, 
     may carry out the transaction, own and operate property, and 
     exercise control or franchises acquired through the 
     transaction without the approval of a State authority. A 
     carrier, corporation, or 

[[Page H 12265]]
     person participating in the approved or exempted transaction is exempt 
     from the antitrust laws and from all other law, including 
     State and municipal law, as necessary to let that person 
     carry out the transaction, hold, maintain, and operate 
     property, and exercise control or franchises acquired through 
     the transaction.
       ``(g) Limitation on Applicability.--This section shall not 
     apply to transactions involving carriers whose aggregate 
     gross operating revenues were not more than $2,000,000 during 
     a period of 12 consecutive months ending not more than 6 
     months before the date of the agreement of the parties.
       Page 205, line 17, strike ``two'' and insert ``2''.
       Page 206, line 12, strike ``two'' and insert ``2''.
     Page 208, line 2, strike ``performed'' and all that follows 
     through ``without'' on line 5 and insert ``performed 
     without''.
       Page 212, line 6, after ``exceeds'' insert a comma.
       Page 218, line 7, strike ``will be'' and insert ``is''.
       Page 218, line 12, strike ``will minimize'' and insert 
     ``minimizes''.
       Page 218, line 15, strike ``will result'' and insert 
     ``results''.
       Page 221, after line 12, insert the following:
       ``(d) Limitation.--The Secretary and the Panel only have 
     authority under this section with respect to matters within 
     their respective jurisdictions under this part.
       Page 222, lines 12 and 13, strike ``, through its own 
     attorneys,''.
       Page 222, line 17, strike ``of Transportation''.
       Page 222, lines 17 and 18, strike ``Intermodal Surface 
     Transportation'' and insert ``the''.
       Page 223, after line 2, insert the following:
       ``(a) In General.--
       Page 223, line 3, strike ``(a)'' and insert ``(1)''.
       Page 223, line 3, strike ``Order'' and insert ``order''.
       Page 223, move lines 3 through 9 two ems to the right.
       Move the sentence beginning on line 4 of page 224 after the 
     period on line 9 of page 223.
       Move paragraph (2) on lines 17 through 21 of page 223 after 
     line 9 on page 223.
       Page 223, strike lines 10 and 11 and insert the following:
       ``(b) Liability and Damages for Exceeding Tariff Rate.--
       Page 223, move lines 12 through 16 two ems to the left.
       Page 223, line 16, strike ``of this title''.
       Page 223, line 26, strike ``of this title''.
       Page 224, line 1, strike ``(1) or (2) of this section''.
       Page 226, strike lines 10 through 14 and insert the 
     following:
       ``(e) Attorney's Fees.--The district court shall award a 
     reasonable attorney's fee under this section. The district 
     court shall tax and collect that fee as part of the costs of 
     the action.
       
       Page 226, line 10, strike ``
       Page 227, line 6, strike ``of this title''.
       Page 227, lines 13 and 14, strike ``subsection (b)'' and 
     all that follows through ``section'' on line 15 and insert 
     ``subsections (b) and (c)''.
       Page 227, line 17, strike ``of this section''.
       Page 229, line 12, strike ``filed''.
       Page 229, line 12, strike ``of this title.''
       Page 230, strike lines 18 through 24 and insert the 
     following:
       ``(1) Limitation of liability.--A carrier may limit 
     liability imposed under subsection (a) by establishing rates 
     for the transportation of property (other than household 
     goods) under which the liability of the carrier for such 
     property (A) is limited to a value established by written or 
     electronic declaration of the shipper or by a mutual written 
     agreement between the carrier and shipper, or (B) is 
     contained in a schedule of rules and rates maintained by the 
     carrier and provided to the shipper upon request. The 
     schedule shall clearly state its dates of applicability.
       Page 231, line 11, strike the parenthetical phrase.
       Page 237, line 6, strike ``In any case'' and all that 
     follows through the period on line 12 and insert the 
     following:

     The arbitrator may determine which party shall pay the cost 
     or a portion of the cost of the arbitration proceeding.
       Page 239, line 1, strike ``motor''.
       Page 240, line 18, strike ``those types of''.
       Page 240, after line 18, insert the following:
       ``(g) Review by Secretary.--Not later than 36 months after 
     the effective date of this section, the Secretary shall 
     complete a review of the dispute settlement program 
     established under this section. If, after notice and 
     opportunity for comment, the Secretary determines that 
     changes are necessary to such program to ensure the fair and 
     equitable resolution of disputes under this section, the 
     Secretary shall implement such changes and transmit a report 
     to Congress on such changes.
       Page 241, line 4, after ``with'' insert ``section 13702 or, 
     with respect to transportation provided before the effective 
     date of this section,''.
       Page 241, line 4, strike ``of this title'' and insert a 
     comma.
       Page 241, line 7, strike ``filed''.
       Page 246, line 23, strike ``subsection (a) or (b) of''.
       Page 248, line 6, strike ``Agents and others'' and insert 
     ``Others''.
       Page 249, line 4, after ``person'' insert a comma.
       Page 252, line 9, after ``registration'' insert ``of a 
     foreign motor carrier or foreign motor private carrier''.
       Page 257, in the table of sections of subchapter II of 
     chapter 7, strike the item relating to section 725 and 
     redesignate the subsequent items accordingly.
       Page 269, lines 16 through 25, strike section 725.
       Page 270, lines 1 and 4, redesignate sections 726 and 727 
     as sections 725 and 726, respectively.
       Page 271, line 2, after ``Panel'' insert ``or the 
     Secretary''.
       Page 271, line 3, after ``Panel'' insert ``or the 
     Secretary''.
       Page 271, line 3, strike ``or times'' and insert ``and to 
     such extent''.
       Page 271, line 24, insert ``The Panel shall promptly 
     rescind all regulations established by the Interstate 
     Commerce Commission that are based on provisions of law 
     repealed and not substantively reenacted by this Act.'' after 
     ``operation of law.''.
       Page 277, after line 22, insert the following:
       (1) in section 5005(a)(4) by striking ``5201(7)'' and 
     inserting ``5201(6)'';
       Page 277, line 23, strike ``(1)'' and insert ``(2)''.
       Page 278, line 1, strike ``(2)'' and insert ``(3)''.
       Page 278, after line 5, insert the following:
       (B) in section 5201(2) by striking ``a motor common 
     carrier, or express carrier'' and inserting ``or a motor 
     carrier'';
       (C) in section 5201(4)--
       (i) by striking ``common''; and
       (ii) by striking ``permit'' and inserting ``registration'';
       (D) in section 5201(5)--
       (i) by striking ``common'' each place it appears;
       (ii) by striking ``10102(14)'' and inserting ``13102(11)''; 
     and
       (iii) by striking ``certificate of public convenience and 
     necessity'' and inserting ``registration'';
       (E) by striking paragraph (6);
       (F) by redesignating paragraphs (7) and (8) as paragraphs 
     (6) and (7), respectively;
       (G) in section 5201(6), as so redesignated, by striking 
     ``certificate of public convenience and necessity'' and 
     inserting ``certificate or registration'';
       Redesignate subsequent subparagraphs on page 278, 
     accordingly.
       Page 278, line 10, strike ``(B)'' and insert ``(H)''.
       Page 278, lines 10 and 11, strike ``paragraph,'' and all 
     that follows through the semicolon on line 12 and insert the 
     following:

     paragraph--
       (i) by striking ``Commission'' and inserting ``Panel''; and
       (ii) by striking ``motor common carrier'' each place it 
     appears and inserting ``motor carrier'';
       Page 278, line 22, strike ``and''.
       Page 279, line 2, strike the period and insert ``; and''.
       Page 279, after line 2, insert the following:
       (M) in section 5215(a) by striking ``motor common carrier'' 
     and inserting ``motor carrier''.
       Page 280, line 10, strike ``Board'' and insert ``Panel''.
       Page 282, line 5, strike ``Board'' and insert ``Panel''.
       Page 283, line 15, strike ``board'' and insert ``Panel''.
       Page 291, line 1, before ``part'' insert ``common carriers 
     of passengers under''.
       Page 291, line 3, before ``part'' insert ``carriers of 
     passengers under''.
       Page 291, line 9, strike ``11501(g)(2)'' and insert 
     ``14501(b)(2)''.

  The CHAIRMAN. Pursuant to the rule, the gentleman from Pennsylvania 
[Mr. Shuster] will be recognized for 5 minutes, and the gentleman from 
Minnesota [Mr. Oberstar] will be recognized for 5 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Shuster].
  Mr. SHUSTER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I will say this is a bipartisan amendment which has the 
support of both sides of the aisle on our committee. I would emphasize 
that this manager's amendment is something we have worked out with the 
various Members.
  First of all, Mr. Chairman, the railroad provisions provide that in 
the clarification, that nothing in the bill is intended to change in 
any way the current coverage of the Railway Labor Act and the Railroad 
Retirement and Unemployment Act;
  Second, restoration of certain Staggers Act captive shipper 
protections, such as the so-called Long-Cannon guidelines, requirements 
for filing of contract summaries and minimum notification periods for 
changes in rates;
  Third, restoration of the feeder line development program, which 
provides shippers with a procedure by which to preserve rail service 
that is threatened by abandonment;
  Fourth, restrictions on the investigative authority of the 
transportation adjudicatory panel which will inherit 

[[Page H 12266]]
remaining rail regulatory activities, as well as other technical 
clarifications.
  With regard to the motor carrier provisions, there are several 
technical and clarifying changes to the motor carrier rate provisions. 
There is a reinstating of provisions from current law relating to the 
payment of rates, bus carrier merger authority, and updating several 
provisions from the Negotiated Rates Act of 1994; further, clarifying 
that carriers currently holding ICC operating authority are deemed to 
be registered with the Department of Transportation.
  Next, there are several changes to the current household goods 
provisions, including revisions to pooling authority and the 
determination of which party should pay the cost of the loss and damage 
arbitration, and establishing that carriers will be able to establish 
``released value'' liability rates, and that such rates may be set by 
electronic device, as is permitted under current law. The provision 
makes no changes in the underlying Carmack amendment.
  Finally, I note that under the rule, the amendment, if adopted, is 
made part of the original text for purposes of amendment, so Members' 
rights to amend this package of amendments is fully protected.
  Mr. Chairman, I urge support of the amendment.
  Mr. OBERSTAR. Mr. Chairman, I yield myself 2 minutes.
  Mr. Chairman, the Chairman of the committee has correctly described 
the amendment as a bipartisan amendment, one on which we have worked 
together and have come to an agreement to improve the bill, and he has 
described quite well broad provisions in this manager's amendment. It 
does include the Long-Cannon criteria which are very important to our 
colleague, the gentleman from West Virginia [Mr. Rahall].
  It includes a provision that requires summaries of agricultural 
contracts to be filed with the panel. It includes a requirement that 
contract carriers remain subject to the common carrier obligation. It 
requires a feeder line development provision that would allow the panel 
to order the sale of a railroad line from a railroad that was not 
providing satisfactory service to another railroad in order to provide 
better service. Both of these are items that our colleague, the 
gentleman from New York [Mr. Nadler] is interested in.
  It includes provisions to prohibit contract commitments that prevent 
a carrier from responding to reasonable requests for service, 
reasonable and hence vital to the common carrier obligation. I think 
that issue is reasonably resolved.
  Mr. Chairman, there are several other amendments, particularly 
concerning abandonment, that I think are very important to this bill. 
The gentleman from Pennsylvania [Mr. Shuster] and I were fully agreed 
that we ought to insist on allowing abandonments to be reconfigured to 
make them more viable as stand-alone short lines and reduce the review 
period for abandonment from 6 months to 4 months.
  All in all, Mr. Chairman, this is a very inclusive and carefully 
crafted piece of legislation that improves the overall status of this 
legislation.
  Mr. Chairman, I am happy to yield 2 minutes to the gentleman from 
West Virginia [Mr. Rahall].
  Mr. RAHALL. Mr. Chairman, I thank the distinguished ranking minority 
Member for yielding time to me, and certainly associate myself with his 
comments, as well as the comments of our distinguished chairman, the 
gentleman from Pennsylvania [Mr. Shuster].
  Mr. Chairman, this is an issue that has been of critical importance 
to those in the coal fields who are captive to one rail line or are 
captive shippers of coal and other bulk commodities as well, I might 
add, across the Nation.
  As the gentleman from Minnesota mentioned, this amendment embodies 
the Long-Cannon guidelines as they relate to captive shippers, and that 
puts in place the current law that has worked well for us in the coal 
fields since the enactment of the Staggers Rail Act in 1980. It does 
provide for reasonable rates charged by railroads on these captive 
shippers, and for this I salute the gentleman from Pennsylvania, as 
well as the gentleman from Minnesota [Mr. Oberstar], for their working 
together with me, and for those of us who do represent captive 
shippers, whether they be coal, iron ore, grain, or whatever the bulk 
commodity may be, so I urge adoption of the Shuster en bloc amendments.
  Mr. PETRI. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I support this committee amendment. Since the 
subcommittee and full committee markups 2 weeks ago, we have had the 
opportunity to further review the legislative provisions and consider 
the further comments of the various groups, including carriers and 
shippers, as to ways to improve the bill. Some of the motor carrier 
provisions reflect the recommendations made by affected groups, the 
Department of Transportation, and the Interstate Commerce Commission, 
and relate to bus mergers, household goods arbitration disputes, cargo 
liability and a few other areas. The majority of provisions, however, 
are simply technical or conforming in nature.
  I urge adoption of the amendment.
  Mr. OBERSTAR. Mr. Chairman, I yield 30 seconds to the gentleman from 
West Virginia [Mr. Wise].
  Mr. WISE. Mr. Chairman, I rise to thank the committee chairman for 
this amendment. It does meet with a lot of problems, and I rise to 
remember that a lot of the problems in this bill are really not 
philosophical, they are regional, and the chairman has dealt well with 
this. I also have a concern about captive shipping as well. I 
appreciate a chance to vote for this amendment.
  Mr. OBERSTAR. Mr. Chairman, I yield the balance of our time to the 
gentleman from Illinois [Mr. Lipinski].
  Mr. LIPINSKI. Mr. Chairman, I thank the ranking member for yielding 
time to me.
  Mr. Chairman, I simply want to say that this manager's amendment is a 
product of outstanding cooperation and bipartisanship between the 
gentleman from Pennsylvania [Mr. Shuster], the gentleman from Minnesota 
[Mr. Oberstar], the gentleman from Wisconsin [Mr. Petri], the gentleman 
from West Virginia [Mr. Rahall], and the gentlewoman from New York [Ms. 
Molinari], and it is in the true spirit of the committee that all of us 
have served on for a long period of time. It is very nice to see that 
in this day and age, with the hostility that sometimes exists here 
between the majority and the minority, that we have managed to 
supersede that on our committee. I have always felt our committee has a 
special bipartisan flavor to it, and I compliment all the parties 
involved for working out this manager's amendment.
  I particularly salute the chairman and the ranking minority member 
for working this out, because I know they have worked on numerous 
problems like this over the course of many years on the Committee on 
Transportation and Infrastructure.
  Mr. OBERSTAR. Mr. Chairman, I yield back the balance of my time, and 
I urge support of the amendment.
  Mr. SHUSTER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Pennsylvania [Mr. Shuster].
  The amendment was agreed to.
  The CHAIRMAN. Are there any other amendments to section 1?
  If not, the Clerk will designate title I.
  The text of title I is as follows:
          TITLE I--ABOLITION OF INTERSTATE COMMERCE COMMISSION

     SEC. 101. ABOLITION.

       The Interstate Commerce Commission is abolished.

     SEC. 102. RAIL PROVISIONS.

       (a) Amendment.--Subtitle IV of title 49, United States 
     Code, is amended to read as follows:

                ``SUBTITLE IV--INTERSTATE TRANSPORTATION

                             ``PART A--RAIL

``Chapter                                                          Sec.
  ``101. GENERAL PROVISIONS.......................................10101
  ``103. JURISDICTION.............................................10301
  ``105. RATES....................................................10501
  ``107. LICENSING................................................10701
  ``109. OPERATIONS...............................................10901
  ``111. FINANCE..................................................11101
  ``113. FEDERAL-STATE RELATIONS..................................11301
  ``115. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES........11501
  ``117. CIVIL AND CRIMINAL PENALTIES.............................11701

    ``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
                               FORWARDERS

``Chapter                                                          Sec.
  ``131. GENERAL PROVISIONS.......................................13101
  ``133. ADMINISTRATIVE PROVISIONS................................13301

[[Page H 12267]]

  ``135. JURISDICTION.............................................13501
  ``137. RATES AND THROUGH ROUTES.................................13701
  ``139. REGISTRATION.............................................13901
  ``141. OPERATIONS OF CARRIERS...................................14101
  ``143. FINANCE..................................................14301
  ``145. FEDERAL-STATE RELATIONS..................................14501
  ``147. ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES............14701
  ``149. CIVIL AND CRIMINAL PENALTIES.............................14901

                             ``PART A--RAIL

                   ``CHAPTER 101--GENERAL PROVISIONS

``Sec.
``10101. Rail transportation policy.
``10102. Definitions.
``10103. Remedies are exclusive.

     ``Sec. 10101. Rail transportation policy

       ``In regulating the railroad industry, it is the policy of 
     the United States Government--
       ``(1) to allow, to the maximum extent possible, competition 
     and the demand for services to establish reasonable rates for 
     transportation by rail;
       ``(2) to minimize the need for Federal regulatory control 
     over the rail transportation system and to require fair and 
     expeditious regulatory decisions when regulation is required;
       ``(3) to promote a safe and efficient rail transportation 
     system by allowing rail carriers to earn adequate revenues, 
     as determined by the Panel;
       ``(4) to ensure the development and continuation of a sound 
     rail transportation system with effective competition among 
     rail carriers and with other modes, to meet the needs of the 
     public and the national defense;
       ``(5) to foster sound economic conditions in transportation 
     and to ensure effective competition and coordination between 
     rail carriers and other modes;
       ``(6) to maintain reasonable rates where there is an 
     absence of effective competition and where rail rates provide 
     revenues which exceed the amount necessary to maintain the 
     rail system and to attract capital;
       ``(7) to reduce regulatory barriers to entry into and exit 
     from the industry;
       ``(8) to operate transportation facilities and equipment 
     without detriment to the public health and safety;
       ``(9) to encourage honest and efficient management of 
     railroads;
       ``(10) to require rail carriers, to the maximum extent 
     practicable, to rely on individual rate increases, and to 
     limit the use of increases of general applicability;
       ``(11) to encourage fair wages and safe and suitable 
     working conditions in the railroad industry;
       ``(12) to avoid undue concentrations of market power and to 
     prohibit unlawful discrimination;
       ``(13) to ensure the availability of accurate cost 
     information in regulatory proceedings, while minimizing the 
     burden on rail carriers of developing and maintaining the 
     capability of providing such information; and
       ``(14) to encourage and promote energy conservation.

     ``Sec. 10102. Definitions

       ``In this part--
       ``(1) `car service' includes (A) the use, control, supply, 
     movement, distribution, exchange, interchange, and return of 
     locomotives, cars, other vehicles, and special types of 
     equipment used in the transportation of property by a rail 
     carrier, and (B) the supply of trains by a rail carrier;
       ``(2) `control', when referring to a relationship between 
     persons, includes actual control, legal control, and the 
     power to exercise control, through or by (A) common 
     directors, officers, stockholders, a voting trust, or a 
     holding or investment company, or (B) any other means;
       ``(3) `Panel' means the Transportation Adjudication Panel;
       ``(4) `person', in addition to its meaning under section 1 
     of title 1, includes a trustee, receiver, assignee, or 
     personal representative of a person;
       ``(5) `rail carrier' means a person providing common 
     carrier railroad transportation for compensation, but does 
     not include street, suburban, or interurban electric railways 
     not operated as part of the general system of rail 
     transportation;
       ``(6) `railroad' includes--
       ``(A) a bridge, car float, lighter, ferry, and intermodal 
     equipment used by or in connection with a railroad;
       ``(B) the road used by a rail carrier and owned by it or 
     operated under an agreement; and
       ``(C) a switch, spur, track, terminal, terminal facility, 
     and a freight depot, yard, and ground, used or necessary for 
     transportation;
       ``(7) `rate' means a rate, fare, or charge for 
     transportation;
       ``(8) `State' means a State of the United States and the 
     District of Columbia;
       ``(9) `transportation' includes--
       ``(A) a locomotive, car, vehicle, yard, property, facility, 
     instrumentality, or equipment of any kind related to the 
     movement of passengers or property, or both, by rail, 
     regardless of ownership or an agreement concerning use; and
       ``(B) services related to that movement, including receipt, 
     delivery, elevation, transfer in transit, refrigeration, 
     icing, ventilation, storage, handling, and interchange of 
     passengers and property; and
       ``(10) `United States' means the States of the United 
     States and the District of Columbia.

     ``Sec. 10103. Remedies are exclusive

       ``Except as otherwise provided in this part, the remedies 
     provided under this part with respect to regulation of rail 
     transportation are exclusive and preempt the remedies 
     provided under Federal or State law.

                      ``CHAPTER 103--JURISDICTION

``Sec.
``10301. General jurisdiction.
``10302. Authority to exempt rail carrier transportation.

     ``Sec. 10301. General jurisdiction

       ``(a)(1) Subject to this chapter and other law, the Panel 
     has jurisdiction over transportation by rail carrier that 
     is--
       ``(A) only by railroad; or
       ``(B) by railroad and water, when the transportation is 
     under common control, management, or arrangement for a 
     continuous carriage or shipment.
       ``(2) Jurisdiction under paragraph (1) applies only to 
     transportation in the United States between a place in--
       ``(A) a State and a place in the same or another State;
       ``(B) a State and a place in a territory or possession of 
     the United States;
       ``(C) a territory or possession of the United States and a 
     place in another such territory or possession;
       ``(D) a territory or possession of the United States and 
     another place in the same territory or possession;
       ``(E) the United States and another place in the United 
     States through a foreign country; or
       ``(F) the United States and a place in a foreign country.
       ``(b) The jurisdiction of the Panel over--
       ``(1) transportation by rail carriers, and the remedies 
     provided in this part with respect to rates, classifications, 
     rules (including car service, interchange, and other 
     operating rules), practices, routes, services, and facilities 
     of such carriers; and
       ``(2) the construction, acquisition, operation, 
     abandonment, or discontinuance of spur, industrial, team, 
     switching, or side tracks, or facilities, even if the tracks 
     are located, or intended to be located, entirely in one 
     State,

     is exclusive.
       ``(c)(1) In this subsection--
       ``(A) the term `local governmental authority'--
       ``(i) has the same meaning given that term by section 
     5302(a) of this title; and
       ``(ii) includes a person or entity that contracts with the 
     local governmental authority to provide transportation 
     services; and
       ``(B) the term `mass transportation' means transportation 
     services described in section 5302(a) of this title that are 
     provided by rail.
       ``(2) Except as provided in paragraph (3), the Panel does 
     not have jurisdiction under this part over mass 
     transportation provided by a local governmental authority.
       ``(3)(A) Notwithstanding paragraph (2) of this subsection, 
     a local governmental authority, described in paragraph (2), 
     is subject to applicable laws of the United States related 
     to--
       ``(i) safety;
       ``(ii) the representation of employees for collective 
     bargaining; and
       ``(iii) employment retirement, annuity, and unemployment 
     systems or other provisions related to dealings between 
     employees and employers.
       ``(B) The Panel has jurisdiction under sections 10902 and 
     10903 of this title over mass transportation provided by a 
     local governmental authority. The enactment of the ICC 
     Termination Act of 1995 shall have no effect on which 
     employees and employers are covered by the Railway Labor Act, 
     the Railroad Retirement Act of 1974, the Railroad Retirement 
     Tax Act, and the Railroad Unemployment Insurance Act after 
     local governmental authority.

     ``Sec. 10302. Authority to exempt rail carrier transportation

       ``(a) In a matter related to a rail carrier providing 
     transportation subject to the jurisdiction of the Panel under 
     this part, the Panel, to the maximum extent consistent with 
     this part, shall exempt a person, class of persons, or a 
     transaction or service whenever the Panel finds that the 
     application of a provision of this part--
       ``(1) is not necessary to carry out the transportation 
     policy of section 10101 of this title; and
       ``(2) either--
       ``(A) the transaction or service is of limited scope; or
       ``(B) the application of the provision is not needed to 
     protect shippers from the abuse of market power.
       ``(b) The Panel may, where appropriate, begin a proceeding 
     under this section on its own initiative or on application by 
     the Secretary of Transportation or an interested party. The 
     Panel shall, within 90 days after receipt of any such 
     application, determine whether to begin an appropriate 
     proceeding. If the Panel decides not to begin a proceeding, 
     the reasons for the decision shall be published in the 
     Federal Register. Any proceeding begun as a result of an 
     application under this subsection shall be completed within 
     one year after it is begun.
       ``(c) The Panel may specify the period of time during which 
     an exemption granted under this section is effective.
       ``(d) The Panel may revoke an exemption, to the extent it 
     specifies, when it finds that application of a provision of 
     this part to the person, class, or transportation is 
     necessary to carry out the transportation policy of section 
     10101 of this title. The Panel shall, within 90 days after 
     receipt of a request for revocation under this subsection, 
     determine whether to begin an appropriate proceeding. If the 
     Panel decides not to begin a proceeding, the reasons for the 
     decision shall be published in the Federal Register. Any 
     proceeding begun as a result of a request under this 
     subsection shall be completed within one year after it is 
     begun.
       ``(e) No exemption order issued pursuant to this section 
     shall operate to relieve any rail carrier from an obligation 
     to provide contractual terms for liability and claims which 
     are consistent with the provisions of section 11506 of this 
     title. Nothing in this subsection or section 11506 of this 
     title shall prevent rail carriers from offering alternative 
     terms nor give the Panel the authority to require any 
     specific level of rates or 

[[Page H 12268]]
     services based upon the provisions of section 11506 of this title.
       ``(f) The Panel may exercise its authority under this 
     section to exempt transportation that is provided by a rail 
     carrier.
       ``(g) The Panel may not exercise its authority under this 
     section to relieve a rail carrier of its obligation to 
     protect the interests of employees as required by this part.

                          ``CHAPTER 105--RATES

                   ``SUBCHAPTER I--GENERAL AUTHORITY

``Sec.
``10501. Standards for rates, classifications, through routes, rules, 
              and practices.
``10502. Authority for rail carriers to establish rates, 
              classifications, rules, and practices.
``10503. Authority for rail carriers to establish through routes.
``10504. Authority and criteria: rates, classifications, rules, and 
              practices prescribed by Panel.
``10505. Authority: through routes, joint classifications, rates, and 
              divisions prescribed by Panel.
``10506. Rate agreements: exemption from antitrust laws.
``10507. Determination of market dominance in rail rate proceedings.
``10508. Rail cost adjustment factor.
``10509. Contracts.

                 ``SUBCHAPTER II--SPECIAL CIRCUMSTANCES

``10521. Government traffic.
``10522. Emergency rates.
``10523. Car utilization.

                     ``SUBCHAPTER III--LIMITATIONS

``10541. Prohibitions against discrimination by rail carriers.
``10542. Facilities for interchange of traffic.
``10543. Continuous carriage of freight.
``10544. Transportation services or facilities furnished by shipper.
``10545. Demurrage charges.
``10546. Designation of certain routes by shippers.

                   ``SUBCHAPTER I--GENERAL AUTHORITY

     ``Sec. 10501. Standards for rates, classifications, through 
       routes, rules, and practices

       ``(a) A through route established by a rail carrier must be 
     reasonable. Divisions of joint rates by rail carriers must be 
     made without unreasonable discrimination against a 
     participating carrier and must be reasonable.
       ``(b) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part may not 
     discriminate in its rates against a connecting line of 
     another rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part or unreasonably 
     discriminate against that line in the distribution of traffic 
     that is not routed specifically by the shipper.
       ``(c) Except as provided in subsection (d) of this section 
     and unless a rate is prohibited by a provision of this part, 
     a rail carrier providing transporation subject to the 
     jurisdiction of the Panel under this part may establish any 
     rate for transportation or other service provided by the rail 
     carrier.
       ``(d)(1) If the Panel determines, under section 10507 of 
     this title, that a rail carrier has market dominance over the 
     transportation to which a particular rate applies, the rate 
     established by such carrier for such transportation must be 
     reasonable.
       ``(2) In determining whether a rate established by a rail 
     carrier is reasonable for purposes of this section, the Panel 
     shall give due consideration to--
       ``(A) the amount of traffic which is transported at 
     revenues which do not contribute to going concern value and 
     the efforts made to minimize such traffic;
       ``(B) the amount of traffic which contributes only 
     marginally to fixed costs and the extent to which, if any, 
     rates on such traffic can be changed to maximize the revenues 
     from such traffic; and
       ``(C) the carrier's mix of rail traffic to determine 
     whether one commodity is paying an unreasonable share of the 
     carrier's overall revenues,

     recognizing the policy of this part that rail carriers shall 
     earn adequate revenues, as established by the Panel under 
     section 10504(a)(2) of this title.
       ``(3) The Panel shall, within one year after the date of 
     the enactment of this paragraph, complete the pending 
     Interstate Commerce Commission non-coal rate guidelines.

     ``Sec. 10502. Authority for rail carriers to establish rates, 
       classifications, rules, and practices

       ``A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part 
     shall establish reasonable--
       ``(1) rates, to the extent required by section 10507 
     divisions of joint rates, and classifications for 
     transportation and service it may provide under this part; 
     and
       ``(2) rules and practices on matters related to that 
     transportation or service.

     ``Sec. 10503. Authority for rail carriers to establish 
       through routes

       ``Rail carriers providing transportation subject to the 
     jurisdiction of the Panel under this part shall establish 
     through routes with each other, shall establish rates and 
     classifications applicable to those routes, and shall 
     establish rules for their operation and provide--
       ``(1) reasonable facilities for operating the through 
     route; and
       ``(2) reasonable compensation to persons entitled to 
     compensation for services related to the through route.

     ``Sec. 10504. Authority and criteria: rates, classifications, 
       rules, and practices prescribed by Panel

       ``(a)(1) When the Panel, after a full hearing, decides that 
     a rate charged or collected by a rail carrier for 
     transportation subject to the jurisdiction of the Panel under 
     this part, or that a classification, rule, or practice of 
     that carrier does or will violate this part, the Panel may 
     prescribe the maximum rate, classification, rule, or practice 
     to be followed. The Panel may order the carrier to stop the 
     violation. When a rate, classification, rule, or practice is 
     prescribed under this subsection, the affected carrier may 
     not publish, charge, or collect a different rate and shall 
     adopt the classification and observe the rule or practice 
     prescribed by the Panel.
       ``(2) The Panel shall maintain and revise as necessary 
     standards and procedures for establishing revenue levels for 
     rail carriers providing transportation subject to its 
     jurisdiction under this part that are adequate, under honest, 
     economical, and efficient management, to cover total 
     operating expenses, including depreciation and obsolescence, 
     plus a reasonable and economic profit or return (or both) on 
     capital employed in the business. The Panel shall make an 
     adequate and continuing effort to assist those carriers in 
     attaining revenue levels prescribed under this paragraph. 
     Revenue levels established under this paragraph should--
       ``(A) provide a flow of net income plus depreciation 
     adequate to support prudent capital outlays, assure the 
     repayment of a reasonable level of debt, permit the raising 
     of needed equity capital, and cover the effects of inflation; 
     and
       ``(B) attract and retain capital in amounts adequate to 
     provide a sound transportation system in the United States.
       ``(3) On the basis of the standards and procedures 
     described in paragraph (2), the Panel shall annually 
     determine which rail carriers are earning adequate revenues.
       ``(b) The Panel may begin a proceeding under this section 
     on its own initiative or on complaint. A complaint under 
     subsection (a) of this section must be made under section 
     11501 of this title, but the proceeding may also be in 
     extension of a complaint pending before the Panel.

     ``Sec. 10505. Authority: through routes, joint 
       classifications, rates, and divisions prescribed by Panel

       ``(a)(1) The Panel may, and shall when it considers it 
     desirable in the public interest, prescribe through routes, 
     joint classifications, joint rates, the division of joint 
     rates, and the conditions under which those routes must be 
     operated, for a rail carrier providing transportation subject 
     to the jurisdiction of the Panel under this part.
       ``(2) The Panel may require a rail carrier to include in a 
     through route substantially less than the entire length of 
     its railroad and any intermediate railroad operated with it 
     under common management or control if that intermediate 
     railroad lies between the terminals of the through route only 
     when--
       ``(A) required under sections 10541, 10542, or 10902 of 
     this title;
       ``(B) inclusion of those lines would make the through route 
     unreasonably long when compared with a practicable 
     alternative through route that could be established; or
       ``(C) the Panel decides that the proposed through route is 
     needed to provide adequate, and more efficient or economic, 
     transportation.
     The Panel shall give reasonable preference, subject to this 
     subsection, to the rail carrier originating the traffic when 
     prescribing through routes.
       ``(b) The Panel shall prescribe the division of joint rates 
     to be received by a rail carrier providing transportation 
     subject to its jurisdiction under this part when it decides 
     that a division of joint rates established by the 
     participating carriers under section 10503 of this title, or 
     under a decision of the Panel under subsection (a) of this 
     section, does or will violate section 10501 of this title.
       ``(c) If a division of a joint rate prescribed under a 
     decision of the Panel is later found to violate section 10501 
     of this title, the Panel may decide what division would have 
     been reasonable and order adjustment to be made retroactive 
     to the date the complaint was filed, the date the order for 
     an investigation was made, or a later date that the Panel 
     decides is justified. The Panel may make a decision under 
     this subsection effective as part of its original decision.

     ``Sec. 10506. Rate agreements: exemption from antitrust laws

       ``(a)(1) In this subsection--
       ``(A) the term `affiliate' means a person controlling, 
     controlled by, or under common control or ownership with 
     another person and `ownership' refers to equity holdings in a 
     business entity of at least 5 percent;
       ``(B) the term `single-line rate' refers to a rate or 
     allowance proposed by a single rail carrier that is 
     applicable only over its line and for which the 
     transportation (exclusive of terminal services by switching, 
     drayage or other terminal carriers or agencies) can be 
     provided by that carrier; and
       ``(C) the term `practicably participates in the movement' 
     shall have such meaning as the Panel shall by regulation 
     prescribe.
       ``(2)(A) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part that is a party 
     to an agreement of at least 2 rail carriers that relates to 
     rates (including charges between rail carriers and 
     compensation paid or received for the use of facilities and 
     equipment), classifications, divisions, or rules related to 
     them, or procedures for joint consideration, initiation, 
     publication, or establishment of them, shall apply to the 
     Panel for approval of that agreement under this subsection. 
     The Panel shall approve the agreement only when it finds that 
     the making and carrying out of the agreement will further the 
     transportation policy of section 10101 of this title and may 
     require compliance with conditions necessary to make the 

[[Page H 12269]]
     agreement further that policy as a condition of its approval. If the 
     Panel approves the agreement, it may be made and carried out 
     under its terms and under the conditions required by the 
     Panel, and the Sherman Act (15 U.S.C. 1, et seq.), the 
     Clayton Act (15 U.S.C. 12, et seq.), the Federal Trade 
     Commission Act (15 U.S.C. 41, et seq.), sections 73 and 74 of 
     the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of 
     June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) do not apply 
     to parties and other persons with respect to making or 
     carrying out the agreement. However, the Panel may not 
     approve or continue approval of an agreement when the 
     conditions required by it are not met or if it does not 
     receive a verified statement under subparagraph (B) of 
     this paragraph.
       ``(B) The Panel may approve an agreement under subparagraph 
     (A) of this paragraph only when the rail carriers applying 
     for approval file a verified statement with the Panel. Each 
     statement must specify for each rail carrier that is a party 
     to the agreement--
       ``(i) the name of the carrier;
       ``(ii) the mailing address and telephone number of its 
     headquarter's office; and
       ``(iii) the names of each of its affiliates and the names, 
     addresses, and affiliates of each of its officers and 
     directors and of each person, together with an affiliate, 
     owning or controlling any debt, equity, or security interest 
     in it having a value of at least $1,000,000.
       ``(3)(A) An organization established or continued under an 
     agreement approved under this subsection shall make a final 
     disposition of a rule or rate docketed with it by the 120th 
     day after the proposal is docketed. Such an organization may 
     not--
       ``(i) permit a rail carrier to discuss, to participate in 
     agreements related to, or to vote on single-line rates 
     proposed by another rail carrier, except that for purposes of 
     general rate increases and broad changes in rates, 
     classifications, rules, and practices only, if the Panel 
     finds at any time that the implementation of this clause is 
     not feasible, it may delay or suspend such implementation in 
     whole or in part;
       ``(ii) permit a rail carrier to discuss, to participate in 
     agreements related to, or to vote on rates related to a 
     particular interline movement unless that rail carrier 
     practicably participates in the movement; or
       ``(iii) if there are interline movements over two or more 
     routes between the same end points, permit a carrier to 
     discuss, to participate in agreements related to, or to vote 
     on rates except with a carrier which forms part of a 
     particular single route. If the Panel finds at any time that 
     the implementation of this clause is not feasible, it may 
     delay or suspend such implementation in whole or in part.
       ``(B)(i) In any proceeding in which a party alleges that a 
     rail carrier voted or agreed on a rate or allowance in 
     violation of this subsection, that party has the burden of 
     showing that the vote or agreement occurred. A showing of 
     parallel behavior does not satisfy that burden by itself.
       ``(ii) In any proceeding in which it is alleged that a 
     carrier was a party to an agreement, conspiracy, or 
     combination in violation of a Federal law cited in subsection 
     (a)(2)(A) of this section or of any similar State law, proof 
     of an agreement, conspiracy, or combination may not be 
     inferred from evidence that two or more rail carriers acted 
     together with respect to an interline rate or related matter 
     and that a party to such action took similar action with 
     respect to a rate or related matter on another route or 
     traffic. In any proceeding in which such a violation is 
     alleged, evidence of a discussion or agreement between or 
     among such rail carrier and one or more other rail carriers, 
     or of any rate or other action resulting from such discussion 
     or agreement, shall not be admissible if the discussion or 
     agreement--
       ``(I) was in accordance with an agreement approved under 
     paragraph (2) of this subsection; or
       ``(II) concerned an interline movement of the rail carrier, 
     and the discussion or agreement would not, considered by 
     itself, violate the laws referred to in the first sentence of 
     this clause.
     In any proceeding before a jury, the court shall determine 
     whether the requirements of subclause (I) or (II) are 
     satisfied before allowing the introduction of any such 
     evidence.
       ``(C) An organization described in subparagraph (A) of this 
     paragraph shall provide that transcripts or sound recordings 
     be made of all meetings, that records of votes be made, and 
     that such transcripts or recordings and voting records be 
     submitted to the Panel and made available to other Federal 
     agencies in connection with their statutory responsibilities 
     over rate bureaus, except that such material shall be kept 
     confidential and shall not be subject to disclosure under 
     section 552 of title 5, United States Code.
       ``(4) Notwithstanding any other provision of this 
     subsection, one or more rail carriers may enter into an 
     agreement, without obtaining prior Panel approval, that 
     provides solely for compilation, publication, and other 
     distribution of rates in effect or to become effective. The 
     Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 
     12 et seq.), the Federal Trade Commission Act (15 U.S.C. 41 
     et seq.), sections 73 and 74 of the Wilson Tariff Act (15 
     U.S.C. 8 and 9), and the Act of June 19, 1936 (15 U.S.C. 13, 
     13a, 13b, 21a) shall not apply to parties and other persons 
     with respect to making or carrying out such agreement. 
     However, the Panel may, upon application or on its own 
     initiative, investigate whether the parties to such an 
     agreement have exceeded its scope, and upon a finding that 
     they have, the Panel may issue such orders as are necessary, 
     including an order dissolving the agreement, to ensure that 
     actions taken pursuant to the agreement are limited as 
     provided in this paragraph.
       ``(5)(A) Whenever two or more shippers enter into an 
     agreement to discuss among themselves that relates to the 
     amount of compensation such shippers propose to be paid by 
     rail carriers providing transportation subject to the 
     jurisdiction of the Panel under this part, for use by such 
     rail carriers of rolling stock owned or leased by such 
     shippers, the shippers shall apply to the Panel for approval 
     of that agreement under this paragraph. The Panel shall 
     approve the agreement only when it finds that the making and 
     carrying out of the agreement will further the transportation 
     policy set forth in section 10101 of this title and may 
     require compliance with conditions necessary to make the 
     agreement further that policy as a condition of approval. If 
     the Panel approves the agreement, it may be made and carried 
     out under its terms and under the terms required by the 
     Panel, and the antitrust laws set forth in paragraph (2) of 
     this subsection do not apply to parties and other persons 
     with respect to making or carrying out the agreement. The 
     Panel shall approve or disapprove an agreement under this 
     paragraph within one year after the date application for 
     approval of such agreement is made.
       ``(B) If the Panel approves an agreement described in 
     subparagraph (A) of this paragraph and the shippers entering 
     into such agreement and the rail carriers proposing to use 
     rolling stock owned or leased by such shippers, under payment 
     by such carriers or under a published allowance, are unable 
     to agree upon the amount of compensation to be paid for the 
     use of such rolling stock, any party directly involved in the 
     negotiations may require that the matter be settled by 
     submitting the issues in dispute to the Panel. The Panel 
     shall render a binding decision, based upon a standard of 
     reasonableness and after taking into consideration any past 
     precedents on the subject matter of the negotiations, no 
     later than 90 days after the date of the submission of the 
     dispute to the Panel.
       ``(C) Nothing in this paragraph shall be construed to 
     change the law in effect prior to the effective date of the 
     Staggers Rail Act of 1980 with respect to the obligation of 
     rail carriers to utilize rolling stock owned or leased by 
     shippers.
       ``(b) The Panel may require an organization established or 
     continued under an agreement approved under this section to 
     maintain records and submit reports. The Panel may inspect a 
     record maintained under this section.
       ``(c) The Panel may review an agreement approved under 
     subsection (a) of this section and shall change the 
     conditions of approval or terminate it when necessary to 
     comply with the public interest and subsection (a). The Panel 
     shall postpone the effective date of a change of an agreement 
     under this subsection for whatever period it determines to be 
     reasonably necessary to avoid unreasonable hardship.
       ``(d) The Panel may begin a proceeding under this section 
     on its own initiative or on application. Action of the Panel 
     under this section--
       ``(1) approving an agreement;
       ``(2) denying, ending, or changing approval;
       ``(3) prescribing the conditions on which approval is 
     granted; or
       ``(4) changing those conditions,

     has effect only as related to application of the antitrust 
     laws referred to in subsection (a) of this section.
       ``(e) The Panel shall review each agreement approved under 
     subsection (a) of this section periodically, but at least 
     once every 3 years--
       ``(1) to determine whether the agreement or an organization 
     established or continued under one of those agreements still 
     complies with the requirements of that subsection and the 
     public interest; and
       ``(2) to evaluate the success and effect of that agreement 
     or organization on the consuming public and the national rail 
     freight transportation system.

     If the Panel finds that an agreement or organization does not 
     conform to the requirements of that subsection, it shall end 
     or suspend its approval.
       ``(f)(1) The Federal Trade Commission, in consultation with 
     the Antitrust Division of the Department of Justice, shall 
     prepare periodically an assessment of, and shall report to 
     the Panel on--
       ``(A) possible anticompetitive features of--
       ``(i) agreements approved or submitted for approval under 
     subsection (a) of this section; and
       ``(ii) an organization operating under those agreements; 
     and
       ``(B) possible ways to alleviate or end an anticompetitive 
     feature, effect, or aspect in a manner that will further the 
     goals of this part and of the transportation policy of 
     section 10101 of this title.
       ``(2) Reports received by the Panel under this subsection 
     shall be published and made available to the public under 
     section 552(a) of title 5.

     ``Sec. 10507. Determination of market dominance in rail rate 
       proceedings

       ``(a) In this section, `market dominance' means an absence 
     of effective competition from other rail carriers or modes of 
     transportation for the transportation to which a rate 
     applies.
       ``(b) When a rate for transportation by a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part is challenged as being unreasonably 
     high, the Panel shall determine, within 90 days after the 
     start of a proceeding, whether the rail carrier proposing the 
     rate has market dominance over the transportation to which 
     the rate applies. The Panel may make that determination on 
     its own initiative or on complaint. A finding by the Panel 
     that the rail carrier does not have market dominance is 
     determinative in a proceeding under this part related to that 
     rate or transportation unless changed or set aside by the 
     Panel or set aside by a court of competent jurisdiction.
       ``(c) When the Panel finds in any proceeding that a rail 
     carrier proposing or defending a rate for transportation has 
     market dominance over the transportation to which the rate 
     applies, it may then determine that rate to be unreasonable 
     if it exceeds a reasonable maximum for that 

[[Page H 12270]]
     transportation. However, a finding of market dominance does not 
     establish a presumption that the proposed rate exceeds a 
     reasonable maximum.
       ``(d)(1)(A) In making a determination under this section, 
     the Panel shall find that the rail carrier establishing the 
     challenged rate does not have market dominance over the 
     transportation to which the rate applies if such rail carrier 
     proves that the rate charged results in a revenue-variable 
     cost percentage for such transportation that is less than 180 
     percent.
       ``(B) For purposes of this section, variable costs for a 
     rail carrier shall be determined only by using such carrier's 
     unadjusted costs, calculated using the Uniform Rail Costing 
     System cost finding methodology (or an alternative 
     methodology adopted by the Panel in lieu thereof) and indexed 
     quarterly to account for current wage and price levels in the 
     region in which the carrier operates, with adjustments 
     specified by the Panel. A rail carrier may meet its burden of 
     proof under this subsection by establishing its variable 
     costs in accordance with this paragraph, but a shipper may 
     rebut that showing by evidence of such type, and in 
     accordance with such burden of proof, as the Panel shall 
     prescribe.
       ``(2) A finding by the Panel that a rate charged by a rail 
     carrier results in a revenue-variable cost percentage for the 
     transportation to which the rate applies that is equal to or 
     greater than 180 percent does not establish a presumption 
     that--
       ``(A) such rail carrier has or does not have market 
     dominance over such transportation; or
       ``(B) the proposed rate exceeds or does not exceed a 
     reasonable maximum.

     ``Sec. 10508. Rail cost adjustment factor

       ``(a) The Panel shall, as often as practicable, but in no 
     event less often than quarterly, publish a rail cost 
     adjustment factor which shall be a fraction, the numerator of 
     which is the latest published Index of Railroad Costs (which 
     index shall be compiled or verified by the Panel, with 
     appropriate adjustments to reflect the change in composition 
     of railroad costs, including the quality and mix of material 
     and labor) and the denominator of which is the same index for 
     the fourth quarter of every fifth year, beginning with the 
     fourth quarter of 1992.
       ``(b) The rail cost adjustment factor published by the 
     Panel under subsection (a) of this section shall take into 
     account changes in railroad productivity. The Panel shall 
     also publish a similar index that does not take into account 
     changes in railroad productivity.

     ``Sec. 10509. Contracts

       ``(a) One or more rail carriers providing transportation 
     subject to the jurisdiction of the Panel under this part may 
     enter into a contract with one or more purchasers of rail 
     services to provide specified services under specified rates 
     and conditions.
       ``(b) A party to a contract entered into under this section 
     shall have no duty in connection with services provided under 
     such contract other than those duties specified by the terms 
     of the contract.
       ``(c)(1) A contract that is authorized by this section, and 
     transportation under such contract, shall not be subject to 
     this part, and may not be subsequently challenged before the 
     Panel or in any court on the grounds that such contract 
     violates a provision of this part.
       ``(2) The exclusive remedy for any alleged breach of a 
     contract entered into under this section shall be an action 
     in an appropriate State court or United States district 
     court, unless the parties otherwise agree. The district 
     courts of the United States shall not have jurisdiction 
     pursuant to this section based on section 1331 or 1337 of 
     title 28, United States Code.
       ``(d)(1) A summary of each contract for the transportation 
     of agricultural commodities entered into under this section 
     shall be filed with the Panel, containing such 
     nonconfidential information as the Panel prescribes. The 
     Panel shall publish special rules for such contracts in order 
     to ensure that the essential terms of the contract are 
     available to the general public.
       ``(2) Documents, papers, and records (and any copies 
     thereof) relating to a contract described in subsection (a) 
     shall not be subject to the mandatory disclosure requirements 
     of section 552 of title 5.
       ``(e) Any lawful contract between a rail carrier and one or 
     more purchasers of rail service that was in effect on the 
     effective date of the Staggers Rail Act of 1980 shall be 
     considered a contract authorized by this section.
       ``(f) A rail carrier that enters into a contract as 
     authorized by this section remains subject to the common 
     carrier obligation set forth in section 10901, with respect 
     to rail transportation not provided under such a contract.

                 ``SUBCHAPTER II--SPECIAL CIRCUMSTANCES

     ``Sec. 10521. Government traffic

       ``A rail carrier providing transportation or service for 
     the United States Government may transport property for the 
     United States Government without charge or at a rate reduced 
     from the applicable commercial rate. Section 3709 of the 
     Revised Statutes (41 U.S.C. 5) does not apply when 
     transportation for the United States Government can be 
     obtained from a rail carrier lawfully operating in the area 
     where the transportation would be provided.

     ``Sec. 10522. Emergency rates

       ``(a) The Panel may authorize a rail carrier providing 
     transportation or service subject to its jurisdiction under 
     this part to give reduced rates for service and 
     transportation of property to or from an area in the United 
     States to provide relief during emergencies. When the Panel 
     takes action under this subsection, it must--
       ``(1) define the area of the United States in which the 
     reduced rates will apply;
       ``(2) specify the period during which the reduced rates are 
     to be in effect; and
       ``(3) define the class of persons entitled to the reduced 
     rates.
       ``(b) The Panel may specify those persons entitled to 
     reduced rates by reference to those persons designated as 
     being in need of relief by the United States Government or by 
     a State government authorized to assist in providing relief 
     during the emergency. The Panel may act under this section 
     without regard to subchapter II of chapter 5 of title 5.

     ``Sec. 10523. Car utilization

       ``In order to encourage more efficient use of freight cars, 
     notwithstanding any other provision of this part, rail 
     carriers shall be permitted to establish premium charges for 
     special services or special levels of services not otherwise 
     applicable to the movement. The Panel shall facilitate 
     development of such charges so as to increase the utilization 
     of equipment.

                     ``SUBCHAPTER III--LIMITATIONS

     ``Sec. 10541. Prohibitions against discrimination by rail 
       carriers

       ``(a)(1) A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part may 
     not subject a person, place, port, or type of traffic to 
     unreasonable discrimination.
       ``(2) For purposes of this section, a rail carrier engages 
     in unreasonable discrimination when it charges or receives 
     from a person a different compensation for a service 
     rendered, or to be rendered, in transportation the rail 
     carrier may perform under this part than it charges or 
     receives from another person for performing a like and 
     contemporaneous service in the transportation of a like kind 
     of traffic under substantially similar circumstances.
       ``(b) This section shall not apply to--
       ``(1) contracts described in section 10509 of this title;
       ``(2) rail rates applicable to different routes; or
       ``(3) discrimination against the traffic of another carrier 
     providing transportation by any mode.
       ``(c) Differences between rates, classifications, rules, 
     and practices of rail carriers do not constitute a violation 
     of this section if such differences result from different 
     services provided by rail carriers.

     ``Sec. 10542. Facilities for interchange of traffic

       ``A rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part shall provide 
     reasonable, proper, and equal facilities that are within its 
     power to provide for the interchange of traffic between, and 
     for the receiving, forwarding, and delivering of passengers 
     and property to and from, its respective line and a 
     connecting line of another rail carrier.

     ``Sec. 10543. Continuous carriage of freight

       ``A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part may 
     not enter a combination or arrangement to prevent the 
     carriage of freight from being continuous from the place of 
     shipment to the place of destination whether by change of 
     time schedule, carriage in different cars, or by other means. 
     The carriage of freight by those rail carriers is considered 
     to be a continuous carriage from the place of shipment to the 
     place of destination when a break of bulk, stoppage, or 
     interruption is not made in good faith for a necessary 
     purpose, and with the intent of avoiding or unnecessarily 
     interrupting the continuous carriage or of evading this part.

     ``Sec. 10544. Transportation services or facilities furnished 
       by shipper

       ``A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part may 
     publish a charge or allowance for transportation or service 
     for property when the owner of the property, directly or 
     indirectly, furnishes a service related to or an 
     instrumentality used in the transportation or service. The 
     Panel may prescribe the maximum reasonable charge or 
     allowance a rail carrier subject to its jurisdiction may pay 
     for a service or instrumentality furnished under this 
     section. The Panel may begin a proceeding under this section 
     on its own initiative or on application.

     ``Sec. 10545. Demurrage charges

       ``A rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part shall compute 
     demurrage charges, and establish rules related to those 
     charges, in a way that fulfills the national needs related 
     to--
       ``(1) freight car use and distribution; and
       ``(2) maintenance of an adequate supply of freight cars to 
     be available for transportation of property.

     ``Sec. 10546. Designation of certain routes by shippers

       ``(a)(1) When a person delivers property to a rail carrier 
     for transportation subject to the jurisdiction of the Panel 
     under this part, the person may direct the rail carrier to 
     transport the property over an established through route. 
     When competing rail lines constitute a part of the route, the 
     person shipping the property may designate the lines over 
     which the property will be transported. The designation must 
     be in writing. A rail carrier may be directed to transport 
     property over a particular through route when--
       ``(A) there are at least 2 through routes over which the 
     property could be transported;
       ``(B) a through rate has been established for 
     transportation over each of those through routes; and
       ``(C) the rail carrier is a party to those routes and 
     rates.
       ``(2) A rail carrier directed to route property transported 
     under paragraph (1) of this subsection must issue a through 
     bill of lading containing the routing instructions and 
     transport the property according to the instructions. 

[[Page H 12271]]
     When the property is delivered to a connecting rail carrier, that rail 
     carrier must also receive and transport it according to the 
     routing instructions and deliver it to the next succeeding 
     rail carrier or consignee according to the instructions.
       ``(b) The Panel may prescribe exceptions to the authority 
     of a person to direct the movement of traffic under 
     subsection (a) of this section.

                        ``CHAPTER 107--LICENSING

``Sec.
``10701. Authorizing construction and operation of railroad lines.
``10702. Finance and construction transactions by Class II and Class 
              III rail carriers and noncarriers.
``10703. Filing and procedure for notice of intent to abandon or 
              discontinue.
``10704. Offers to purchase to avoid abandonment and discontinuance.
``10705. Offering abandoned rail properties for sale for public 
              purposes.
``10706. Exception.
``10707. Railroad development.

     ``Sec. 10701. Authorizing construction and operation of 
       railroad lines

       ``(a) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part may--
       ``(1) construct an extension to any of its railroad lines;
       ``(2) construct an additional railroad line;
       ``(3) acquire or operate an extended or additional railroad 
     line; or
       ``(4) provide transportation over, or by means of, an 
     extended or additional railroad line;
     only if the Panel issues a certificate authorizing such 
     activity under subsection (c).
       ``(b) A proceeding to grant authority under subsection (a) 
     of this section begins when an application is filed. On 
     receiving the application, the Panel shall give reasonable 
     public notice of the beginning of such proceeding.
       ``(c) The Panel shall issue a certificate authorizing 
     activities for which such authority is requested in an 
     application filed under subsection (b) unless the Panel finds 
     that such activities are inconsistent with the public 
     convenience and necessity. Such certificate may approve the 
     application as filed, or with modifications, and may require 
     compliance with conditions the Panel finds necessary in the 
     public interest.
       ``(d)(1) When a certificate has been issued by the Panel 
     under this section or section 10702 authorizing the 
     construction or extension of a railroad line, no other rail 
     carrier may block any construction or extension authorized by 
     such certificate by refusing to permit the carrier to cross 
     its property if--
       ``(A) the construction does not unreasonably interfere with 
     the operation of the crossed line;
       ``(B) the operation does not materially interfere with the 
     operation of the crossed line; and
       ``(C) the owner of the crossing line compensates the owner 
     of the crossed line.
       ``(2) If the parties are unable to agree on the terms of 
     operation or the amount of payment for purposes of paragraph 
     (1) of this subsection, either party may submit the matters 
     in dispute to the Panel for determination. The Panel shall 
     make a determination under this paragraph within 90 days 
     after the dispute is submitted for determination.
       ``(e) The Panel may require any rail carrier proposing both 
     to construct and operate a new railroad line pursuant to this 
     section to provide a fair and equitable arrangement for the 
     protection of the interests of railroad employees who may be 
     affected thereby no less protective of and beneficial to the 
     interests of such employees than those established pursuant 
     to section 11126 of this title.
       ``(f) Subsections (a), (b), (c), and (e) of this section 
     shall only apply to Class I rail carriers.

     ``Sec. 10702. Finance and construction transactions by Class 
       II and Class III rail carriers and noncarriers

       ``(a)(1) A Class II or Class III (as defined by the Panel) 
     rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part, or a noncarrier, 
     may--
       ``(A) construct an extension of any of its railroad lines;
       ``(B) construct an additional railroad line; or
       ``(C) acquire or operate a railroad line,
     only if the Panel issues a certificate authorizing such 
     activity under subsection (c).
       ``(2) A certificate issued by the Panel under subsection 
     (c) shall also be required for--
       ``(A) a Class II or Class III rail carrier providing 
     transportation subject to the jurisdiction of the Panel under 
     this part, or a noncarrier to provide transportation over, or 
     by means of, a railroad line by trackage rights, lease, or 
     joint ownership or joint use of the railroad line (and 
     terminals incidental thereto);
       ``(B) a consolidation or merger of the properties or 
     franchises of at least 2 Class II or Class III rail carriers 
     into one corporation for the ownership, management, and 
     operation of the previously separately owned properties;
       ``(C) the acquisition of control of a Class II or Class III 
     rail carrier by one or more Class II or Class III rail 
     carriers;
       ``(D) the acquisition of control of at least 2 Class II or 
     Class III rail carriers by a person that is not a rail 
     carrier; and
       ``(E) the acquisition of control of a Class II or Class III 
     rail carrier by a person that is not a rail carrier but that 
     controls at least one Class II or Class III rail carrier.
       ``(b) A proceeding to grant authority under subsection (a) 
     begins when an application is filed. On receiving the 
     application, the Panel shall give reasonable public notice of 
     the beginning of such proceeding.
       ``(c) The Panel shall issue a certificate authorizing 
     activities for which such authority is requested in an 
     application filed under subsection (b) unless the Panel finds 
     that such activities are inconsistent with the public 
     convenience and necessity because--
       ``(1) as a result of the transaction, there is likely to be 
     substantial lessening of competition, creation of a monopoly, 
     or restraint of trade in freight surface transportation in 
     any region of the United States; and
       ``(2) the anticompetitive effects of the transaction 
     outweigh the public interest in meeting significant 
     transportation needs.

     Such certificate may approve the application as filed, or 
     with modifications, and may require compliance with 
     conditions the Panel finds necessary in the public interest.
       ``(d) When a person is involved in a transaction for which 
     approval is sought under this section, the Panel shall 
     require such person to protect the interest of affected 
     employees to an extent equal to the protection required under 
     sections 2 through 5 of the Worker Adjustment and Retraining 
     Notification Act (29 U.S.C. 2101-2104).
       ``(e) The authority of the Panel over transactions 
     described in subsection (a)(2) is exclusive. A rail carrier 
     or corporation participating in or resulting from such a 
     transaction may carry out the transaction, own and operate 
     property, and exercise control or franchises acquired through 
     the transaction without the approval of a State authority. A 
     rail carrier, corporation, or person participating in that 
     transaction is exempt from the antitrust laws and from all 
     other law, including State and municipal law, as necessary to 
     let that rail carrier, corporation, or person carry out the 
     transaction, hold, maintain, and operate property and 
     exercise control or franchises acquired through the 
     transaction.

     ``Sec. 10703. Filing and procedure for notice of intent to 
       abandon or discontinue

       ``(a)(1) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part who intends 
     to--
       ``(A) abandon any part of its railroad lines; or
       ``(B) discontinue the operation of all rail transportation 
     over any part of its railroad lines,

     must file a notice of intent relating thereto with the Panel. 
     An abandonment or discontinuance may be carried out only as 
     authorized under this chapter.
       ``(2) When a rail carrier providing transportation subject 
     to the jurisdiction of the Panel under this part files a 
     notice of intent, the notice shall include--
       ``(A) an accurate and understandable summary of the rail 
     carrier's reasons for the proposed abandonment or 
     discontinuance;
       ``(B) a statement indicating that each interested person is 
     entitled to make recommendations to the Panel on the future 
     of the rail line; and
       ``(C)(i) a statement that the line is available for sale in 
     accordance with section 10704 of this title, (ii) a statement 
     that the rail carrier will promptly provide to each 
     interested party an estimate of the minimum purchase price, 
     calculated in accordance with section 10704 of this title and 
     (iii) the name and business address of the person who is 
     authorized to discuss sale terms for the rail carrier.
       ``(3) The rail carrier shall--
       ``(A) send by certified mail a copy of the notice of intent 
     to the chief executive officer of each State that would be 
     directly affected by the proposed abandonment or 
     discontinuance;
       ``(B) post a copy of the notice in each terminal and 
     station on each portion of a railroad line proposed to be 
     abandoned or over which all transportation is to be 
     discontinued;
       ``(C) publish a copy of the notice for 3 consecutive weeks 
     in a newspaper of general circulation in each county in which 
     each such portion is located;
       ``(D) mail a copy of the notice, to the extent practicable, 
     to all shippers that have made significant use (as designated 
     by the Panel) of the railroad line during the 12 months 
     preceding the filing of the notice of intent; and
       ``(E) attach to the notice filed with the Panel an 
     affidavit certifying the manner in which subparagraphs (A) 
     through (D) of this paragraph have been satisfied, and 
     certifying that subparagraphs (A) through (D) have been 
     satisfied within the most recent 30 days prior to the date 
     the notice of intent is filed.
       ``(b)(1) Except as provided in paragraph (2) or subsection 
     (d), abandonment and discontinuance may occur as provided in 
     section 10704.
       ``(2) The Panel shall require as a condition of any 
     abandonment or discontinuance under this section provisions 
     to protect the interests of employees. The provisions shall 
     be at least as beneficial to those interests as the 
     provisions established under sections 11126 and 24706(c) of 
     this title.
       ``(c)(1) In this subsection, the term `potentially subject 
     to abandonment' has the meaning given the term in regulations 
     of the Panel. The regulations may include standards that vary 
     by region of the United States and by railroad or group of 
     railroads.
       ``(2) Each rail carrier shall maintain a complete diagram 
     of the transportation system operated, directly or 
     indirectly, by the rail carrier. The rail carrier shall 
     submit to the Panel and publish amendments to its diagram 
     that are necessary to maintain the accuracy of the diagram. 
     The diagram shall--
       ``(A) include a detailed description of each of its 
     railroad lines potentially subject to abandonment; and
       ``(B) identify each railroad line for which the rail 
     carrier plans to file a notice of intent to abandon or 
     discontinue under subsection (a) of this section.
       ``(d) The Panel may disapprove a proposed abandonment or 
     discontinuance if the Panel finds it inconsistent with the 
     public convenience and necessity.

[[Page H 12272]]


     ``Sec. 10704. Offers to purchase to avoid abandonment and 
       discontinuance

       ``(a) Any rail carrier which has filed a notice of intent 
     to abandon or discontinue shall provide promptly to a party 
     considering an offer to purchase and shall provide 
     concurrently to the Panel--
       ``(1) a statement of the minimum purchase price required;
       ``(2) its most recent reports on the physical condition of 
     that part of the railroad line involved in the proposed 
     abandonment or discontinuance;
       ``(3) traffic, revenue, and other data necessary to 
     determine the commercial potential of the railroad line; and
       ``(4) any other information that the Panel considers 
     necessary to allow a potential offeror to calculate an 
     adequate purchase offer.
       ``(b) Within 4 months after a notice of intent is filed 
     under section 10703, any person may offer to purchase the 
     railroad line that is the subject of such notice of intent. 
     Such offer shall be filed concurrently with the Panel. If the 
     offer to purchase is less than the minimum purchase price 
     stated pursuant to subsection (a)(1), the offer shall explain 
     the basis of the disparity, and the manner in which the offer 
     is calculated.
       ``(c)(1) Unless the Panel, within 15 days after the 
     expiration of the 4-month period described in subsection (b), 
     finds that one or more financially responsible persons 
     (including a governmental authority) have offered to purchase 
     that part of the railroad line to be abandoned or over which 
     all rail transportation is to be discontinued, abandonment or 
     discontinuance may be carried out in accordance with section 
     10703.
       ``(2) If the Panel finds that such an offer or offers to 
     purchase have been made within such period, abandonment or 
     discontinuance shall be postponed until--
       ``(A) the carrier and a financially responsible person have 
     reached agreement on a transaction for sale of the line; or
       ``(B) the conditions and amount of compensation are 
     established under subsection (e).
       ``(d) Except as provided in subsection (e)(3), if the rail 
     carrier and a financially responsible person (including a 
     governmental authority) fail to agree on the amount or terms 
     of the purchase, either party may, within 30 days after the 
     offer is made, request that the Panel establish the 
     conditions and amount of compensation.
       ``(e)(1) Whenever the Panel is requested to establish the 
     conditions and amount of compensation under this section--
       ``(A) the Panel shall render its decision within 30 days;
       ``(B) the Panel shall determine the price and other terms 
     of sale, except that in no case shall the Panel set a price 
     which is below the fair market value of the line (including, 
     unless otherwise mutually agreed, all facilities on the line 
     or portion necessary to provide effective transportation 
     services).
       ``(2) The decision of the Panel shall be binding on both 
     parties, except that the person who has offered to purchase 
     the line may withdraw his offer within 10 days of the Panel's 
     decision. In such a case, the abandonment or discontinuance 
     may be carried out immediately, unless other offers are being 
     considered pursuant to paragraph (3) of this subsection.
       ``(3) If a rail carrier receives more than one offer to 
     purchase, it shall select the offeror with whom it wishes to 
     transact business, and complete the sale agreement, or 
     request that the Panel establish the conditions and amount of 
     compensation before the 40th day after the expiration of the 
     4-month period described in subsection (b). If no agreement 
     on sale is reached within such 40-day period and the Panel 
     has not been requested to establish the conditions and amount 
     of compensation, any other offeror whose offer was made 
     within the 4-month period described in subsection (b) may 
     request that the Panel establish the conditions and amount of 
     compensation. If the Panel has established the conditions and 
     amount of compensation, and the original offer has been 
     withdrawn, any other offeror whose offer was made within the 
     4-month period described in subsection (b) may accept the 
     Panel's decision within 20 days after such decision, and the 
     Panel shall require the carrier to enter into a sale 
     agreement with such offeror, if such sale agreement 
     incorporates the Panel's decision.
       ``(4) No purchaser of a line or portion of line sold under 
     this section may transfer or discontinue service on such line 
     prior to the end of the second year after consummation of the 
     sale, nor may such purchaser transfer such line, except to 
     the rail carrier from whom it was purchased, prior to the end 
     of the fifth year after consummation of the sale.
       ``(f) Upon abandonment of a railroad line under this 
     section, the obligation of the rail carrier abandoning the 
     line to provide transportation on that line, as required by 
     section 10901(a), is extinguished.

     ``Sec. 10705. Offering abandoned rail properties for sale for 
       public purposes

       ``When a rail carrier files a notice of intent to abandon 
     or discontinue under section 10703, the Panel shall find 
     whether the rail properties that are involved in the proposed 
     abandonment or discontinuance are appropriate for use for 
     public purposes, including highways, other forms of mass 
     transportation, conservation, energy production or 
     transmission, or recreation. If the Panel finds that the rail 
     properties proposed to be abandoned are appropriate for 
     public purposes and not required for continued rail 
     operations, the properties may be sold, leased, exchanged, or 
     otherwise disposed of only under conditions provided in the 
     order of the Panel. The conditions may include a prohibition 
     on any such disposal for a period of not more than 180 days 
     after the effective date of the order, unless the properties 
     have first been offered, on reasonable terms, for sale for 
     public purposes.

     ``Sec. 10706. Exception

       ``Notwithstanding section 10701 and subchapter II of 
     chapter 111 of this title, and without the approval of the 
     Panel, a rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part may enter 
     into arrangements for the joint ownership or joint use of 
     spur, industrial, team, switching, or side tracks. The 
     Panel does not have authority under this chapter over 
     construction, acquisition, operation, abandonment, or 
     discontinuance of spur, industrial, team, switching, or 
     side tracks.

     ``Sec. 10707. Railroad development

       ``(a) In this section, the term `financially responsible 
     person' means a person who--
       ``(1) is capable of paying the constitutional minimum value 
     of the railroad line proposed to be acquired; and
       ``(2) is able to assure that adequate transportation will 
     be provided over such line for a period of not less than 3 
     years.

     Such term includes a governmental authority but does not 
     include a Class I or Class II rail carrier.
       ``(b)(1) When the Panel finds that--
       ``(A)(i) the public convenience and necessity require or 
     permit the sale of a particular railroad line under this 
     section; or
       ``(ii) a railroad line is on a system diagram map as 
     required under section 10703 of this title, but the rail 
     carrier owning such line has not filed a notice of intent to 
     abandon such line under section 10703 of this title before an 
     application to purchase such line, or any required 
     preliminary filing with respect to such application, is filed 
     under this section; and
       ``(B) an application to purchase such line has been filed 
     by a financially responsible person,

     the Panel shall require the rail carrier owning the railroad 
     line to sell such line to such financially responsible person 
     at a price not less than the constitutional minimum value.
       ``(2) For purposes of this subsection, the constitutional 
     minimum value of a particular railroad line shall be presumed 
     to be not less than the net liquidation value of such line or 
     the going concern value of such line, whichever is greater.
       ``(c)(1) For purposes of this section, the Panel may 
     determine that the public convenience and necessity require 
     or permit the sale of a railroad line if the Panel 
     determines, after a hearing on the record, that--
       ``(A) the rail carrier operating such line refuses within a 
     reasonable time to make the necessary efforts to provide 
     adequate service to shippers who transport traffic over such 
     line;
       ``(B) the transportation over such line is inadequate for 
     the majority of shippers who transport traffic over such 
     line;
       ``(C) the sale of such line will not have a significantly 
     adverse financial effect on the rail carrier operating such 
     line;
       ``(D) the sale of such line will not have an adverse effect 
     on the overall operational performance of the rail carrier 
     operating such line; and
       ``(E) the sale of such line will be likely to result in 
     improved railroad transportation for shippers that transport 
     traffic over such line.
       ``(2) In a proceeding under this subsection, the burden of 
     proving that the public convenience and necessity require or 
     permit the sale of a particular railroad line is on the 
     person filing the application to acquire such line. If the 
     Panel finds under this subsection that the public convenience 
     and necessity require or permit the sale of a particular 
     railroad line, the Panel shall concurrently notify the 
     parties of such finding and publish such finding in the 
     Federal Register.
       ``(d) In the case of any railroad line subject to sale 
     under subsection (a) of this section, the Panel shall, upon 
     the request of the acquiring carrier, require the selling 
     carrier to provide to the acquiring carrier trackage rights 
     to allow a reasonable interchange with the selling carrier or 
     to move power equipment or empty rolling stock between 
     noncontiguous feeder lines operated by the acquiring carrier. 
     The Panel shall require the acquiring carrier to provide the 
     selling carrier reasonable compensation for any such trackage 
     rights.
       ``(e) The Panel shall require, to the maximum extent 
     practicable, the use of the employees who would normally have 
     performed work in connection with a railroad line subject to 
     a sale under this section.
       ``(f) In the case of a railroad line which carried less 
     than 3,000,000 gross ton miles of traffic per mile in the 
     preceding calendar year, whenever a purchasing carrier under 
     this section petitions the Panel for joint rates applicable 
     to traffic moving over through routes in which the purchasing 
     carrier may practicably participate, the Panel shall, within 
     30 days after the date such petition is filed and pursuant to 
     section 10505(a) of this title, require the establishment of 
     reasonable joint rates and divisions over such route.
       ``(g)(1) Any person operating a railroad line acquired 
     under this section may elect to be exempt from any of the 
     provisions of this part, except that such a person may not be 
     exempt from the provisions of chapter 105 of this title with 
     respect to transportation under a joint rate.
       ``(2) The provisions of paragraph (1) of this subsection 
     shall apply to any line of railroad which was abandoned 
     during the 18-month period immediately prior to the effective 
     date of the Staggers Rail Act of 1980 and was subsequently 
     purchased by a financially responsible person.
       ``(h) If a purchasing carrier under this section proposes 
     to sell or abandon all or any portion of a purchased railroad 
     line, such purchasing carrier shall offer the right of first 
     refusal with respect to such line or portion thereof to the 
     carrier which sold such line under this section. 

[[Page H 12273]]
     Such offer shall be made at a price equal to the sum of the price paid 
     by such purchasing carrier to such selling carrier for such 
     line or portion thereof and the fair market value (less 
     deterioration) of any improvements made, as adjusted to 
     reflect inflation.
       ``(i) Any person operating a railroad line acquired under 
     this section may determine preconditions, such as payment of 
     a subsidy, which must be met by shippers in order to obtain 
     service over such lines, but such operator must notify the 
     shippers on the line of its intention to impose such 
     preconditions.

                       ``CHAPTER 109--OPERATIONS

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec.
``10901. Providing transportation, service, and rates.
``10902. Use of terminal facilities.
``10903. Switch connections and tracks.

                      ``SUBCHAPTER II--CAR SERVICE

``10921. Criteria.
``10922. Compensation and practice.
``10923. Rerouting traffic on failure of rail carrier to serve the 
              public.
``10924. War emergencies; embargoes imposed by carriers.

                 ``SUBCHAPTER III--REPORTS AND RECORDS

``10941. Definitions.
``10942. Uniform accounting system.
``10943. Depreciation charges.
``10944. Records: form; inspection; preservation.
``10945. Reports by rail carriers, lessors, and associations.

               ``SUBCHAPTER IV--RAILROAD COST ACCOUNTING

``10961. Implementation of cost accounting principles.
``10962. Rail carrier cost accounting system.
``10963. Cost availability.
``10964. Accounting and cost reporting.

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

     ``Sec. 10901. Providing transportation, service, and rates

       ``(a) A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part 
     shall provide the transportation or service on reasonable 
     request. A rail carrier shall not be found to have violated 
     this section because it fulfills its reasonable commitments 
     under contracts authorized under section 10509 of this title 
     before responding to reasonable requests for service. 
     Commitments which deprive a carrier of its ability to respond 
     to reasonable requests for common carrier service are not 
     reasonable.
       ``(b) A rail carrier shall also provide to any person, on 
     request, rates and other service terms. The response by a 
     rail carrier to a request for rates and other service terms 
     shall be--
       ``(1) in writing and forwarded to the requesting person 
     promptly after receipt of the request; or
       ``(2) promptly made available in electronic form.
       ``(c) A rail carrier may not increase any common carrier 
     rates or change any common carrier service terms unless 20 
     days have expired after written notice is provided in 
     accordance with subsection (d) to--
       ``(1) any person who has requested such rates or terms 
     under subsection (b); and
       ``(2) any person who has made arrangements with the carrier 
     for a shipment that would be subject to such increased rates 
     or changed terms.
       ``(d) The Panel shall, by regulation, establish rules to 
     implement this section. Final regulations shall be adopted by 
     the Panel not later than 180 days after the date of the 
     enactment of the ICC Termination Act of 1995.

     ``Sec. 10902. Use of terminal facilities

       ``(a) The Panel may require terminal facilities, including 
     main-line tracks for a reasonable distance outside of a 
     terminal, owned by a rail carrier providing transportation 
     subject to the jurisdiction of the Panel under this part, to 
     be used by another rail carrier if the Panel finds that use 
     to be practicable and in the public interest without 
     substantially impairing the ability of the rail carrier 
     owning the facilities or entitled to use the facilities to 
     handle its own business. The rail carriers are responsible 
     for establishing the conditions and compensation for use of 
     the facilities. However, if the rail carriers cannot agree, 
     the Panel may establish conditions and compensation for use 
     of the facilities under the principle controlling 
     compensation in condemnation proceedings. The compensation 
     shall be paid or adequately secured before a rail carrier may 
     begin to use the facilities of another rail carrier under 
     this section.
       ``(b) A rail carrier whose terminal facilities are required 
     to be used by another rail carrier under this section is 
     entitled to recover damages from the other rail carrier for 
     injuries sustained as the result of compliance with the 
     requirement or for compensation for the use, or both as 
     appropriate, in a civil action, if it is not satisfied with 
     the conditions for use of the facilities or if the amount of 
     the compensation is not paid promptly.
       ``(c)(1) The Panel may require rail carriers to enter into 
     reciprocal switching agreements, where it finds such 
     agreements to be practicable and in the public interest, or 
     where such agreements are necessary to provide competitive 
     rail service. The rail carriers entering into such an 
     agreement shall establish the conditions and compensation 
     applicable to such agreement, but, if the rail carriers 
     cannot agree upon such conditions and compensation within a 
     reasonable period of time, the Panel may establish such 
     conditions and compensation.
       ``(2) The Panel may require reciprocal switching agreements 
     entered into by rail carriers pursuant to this subsection to 
     contain provisions for the protection of the interests of 
     employees affected thereby.
       ``(d) The Panel shall complete any proceeding under 
     subsection (a) or (b) within 180 days after the filing of the 
     request for relief.

     ``Sec. 10903. Switch connections and tracks

       ``(a) On application of the owner of a lateral branch line 
     of railroad, or of a shipper tendering interstate traffic for 
     transportation, a rail carrier providing transportation 
     subject to the jurisdiction of the Panel under this part 
     shall construct, maintain, and operate, on reasonable 
     conditions, a switch connection to connect that branch line 
     or private side track with its railroad and shall furnish 
     cars to move that traffic to the best of its ability without 
     discrimination in favor of or against the shipper when the 
     connection--
       ``(1) is reasonably practicable;
       ``(2) can be made safely; and
       ``(3) will furnish sufficient business to justify its 
     construction and maintenance.
       ``(b) If a rail carrier fails to install and operate a 
     switch connection after application is made under subsection 
     (a) of this section, the owner of the lateral branch line of 
     railroad or the shipper may file a complaint with the Panel 
     under section 11501 of this title. The Panel shall 
     investigate the complaint and decide the safety, 
     practicability, justification, and compensation to be paid 
     for the connection. The Panel may direct the rail carrier to 
     comply with subsection (a) of this section only after a full 
     hearing.

                      ``SUBCHAPTER II--CAR SERVICE

     ``Sec. 10921. Criteria

       ``(a)(1) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part shall furnish 
     safe and adequate car service and establish, observe, and 
     enforce reasonable rules and practices on car service. The 
     Panel may require a rail carrier to provide facilities and 
     equipment that are reasonably necessary to furnish safe and 
     adequate car service if the Panel decides that the rail 
     carrier has materially failed to furnish that service. The 
     Panel may begin a proceeding under this paragraph when an 
     interested person files an application with it. The Panel may 
     act only after a hearing on the record and an affirmative 
     finding, based on the evidence presented, that--
       ``(A) providing the facilities or equipment will not 
     materially and adversely affect the ability of the rail 
     carrier to provide safe and adequate transportation;
       ``(B) the amount spent for the facilities or equipment, 
     including a return equal to the rail carrier's current cost 
     of capital, will be recovered; and
       ``(C) providing the facilities or equipment will not impair 
     the ability of the rail carrier to attract adequate capital.
       ``(2) The Panel may require a rail carrier to file its car 
     service rules with the Panel.
       ``(b) The Panel may designate and appoint agents and 
     agencies to make and carry out its directions related to car 
     service and matters under sections 10923 and 10924(a)(1) of 
     this title.

     ``Sec. 10922. Compensation and practice

       ``(a) The regulations of the Panel on car service shall 
     encourage the purchase, acquisition, and efficient use of 
     freight cars. The regulations may include--
       ``(1) the compensation to be paid for the use of a 
     locomotive, freight car, or other vehicle;
       ``(2) the other terms of any arrangement for the use by a 
     rail carrier of a locomotive, freight car, or other vehicle 
     not owned by the rail carrier using the locomotive, freight 
     car, or other vehicle, whether or not owned by another 
     carrier, shipper, or third person; and
       ``(3) sanctions for nonobservance.
       ``(b) The rate of compensation to be paid for each type of 
     freight car shall be determined by the expense of owning and 
     maintaining that type of freight car, including a fair return 
     on its cost giving consideration to current costs of capital, 
     repairs, materials, parts, and labor. In determining the rate 
     of compensation, the Panel shall consider the transportation 
     use of each type of freight car, the national level of 
     ownership of each type of freight car, and other factors that 
     affect the adequacy of the national freight car supply.

     ``Sec. 10923. Rerouting traffic on failure of rail carrier to 
       serve the public

       ``(a) When the Panel considers that a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part cannot transport the traffic offered to 
     it in a manner that properly serves the public, the Panel may 
     direct the handling, routing, and movement of the traffic of 
     that rail carrier and its distribution over other railroad 
     lines to promote commerce and service to the public. Subject 
     to subsection (b)(2) of this section, the rail carriers may 
     establish the terms of compensation between themselves.
       ``(b)(1) Except as provided in paragraph (2) of this 
     subsection, the Panel may act under this section on its own 
     initiative or on application without regard to subchapter II 
     of chapter 5 of title 5.
       ``(2) When the rail carriers do not agree on the terms of 
     compensation under this section, the Panel may establish the 
     terms for them in a later proceeding.
       ``(c) When there is a shortage of equipment, congestion of 
     traffic, or other emergency declared by the Panel, it may 
     prescribe temporary through routes that are desirable in the 
     public interest on its own initiative or on application 
     without regard to subchapter II of chapter 7 of this title, 
     and subchapter II of chapter 5 of title 5.

     ``Sec. 10924. War emergencies; embargoes imposed by carriers

       ``(a)(1) When the President, during time of war or 
     threatened war, notifies the Panel that it is essential to 
     the defense and security of the 

[[Page H 12274]]
     United States to give preference or priority to the movement of certain 
     traffic, the Panel shall direct that preference or priority 
     be given to that traffic.
       ``(2) When the President, during time of war or threatened 
     war, demands that preference and precedence be given to the 
     transportation of troops and material of war over all other 
     traffic, all rail carriers providing transportation subject 
     to the jurisdiction of the Panel under this part shall adopt 
     every means within their control to facilitate and expedite 
     the military traffic.
       ``(b) An embargo imposed by any such rail carrier does not 
     apply to shipments consigned to agents of the United States 
     Government for its use. The rail carrier shall deliver those 
     shipments as promptly as possible.

                 ``SUBCHAPTER III--REPORTS AND RECORDS

     ``Sec. 10941. Definitions

       ``In this subchapter--
       ``(1) the terms `rail carrier' and `lessor' include a 
     receiver or trustee of a rail carrier and lessor, 
     respectively;
       ``(2) the term `lessor' means a person owning a railroad 
     that is leased to and operated by a carrier providing 
     transportation subject to the jurisdiction of the Panel under 
     this part; and
       ``(3) the term `association' means an organization 
     maintained by or in the interest of a group of rail carriers 
     providing transportation or service subject to the 
     jurisdiction of the Panel under this part that performs a 
     service, or engages in activities, related to transportation 
     under this part.

     ``Sec. 10942. Uniform accounting system

       ``The Panel may prescribe a uniform accounting system for 
     classes of rail carriers providing transportation subject to 
     the jurisdiction of the Panel under this part. To the maximum 
     extent practicable, the Panel shall conform such system to 
     generally accepted accounting principles, and shall 
     administer this subchapter in accordance with such 
     principles.

     ``Sec. 10943. Depreciation charges

       ``The Panel shall, for a class of rail carriers providing 
     transportation subject to its jurisdiction under this part, 
     prescribe, and change when necessary, those classes of 
     property for which depreciation charges may be included under 
     operating expenses and a rate of depreciation that may be 
     charged to a class of property. The Panel may classify those 
     rail carriers for purposes of this section. A rail carrier 
     for whom depreciation charges and rates of depreciation are 
     in effect under this section for any class of property may 
     not--
       ``(1) charge to operating expenses a depreciation charge on 
     a class of property other than that prescribed by the Panel;
       ``(2) charge another rate of depreciation; or
       ``(3) include other depreciation charges in operating 
     expenses.

     ``Sec. 10944. Records: form; inspection; preservation

       ``(a) The Panel may prescribe the form of records required 
     to be prepared or compiled under this subchapter--
       ``(1) by rail carriers and lessors, including records 
     related to movement of traffic and receipts and expenditures 
     of money; and
       ``(2) by persons furnishing cars to or for a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part to the extent related to those cars or 
     that service.
       ``(b) The Panel, or an employee designated by the Panel, 
     may on demand and display of proper credentials--
       ``(1) inspect and examine the lands, buildings, and 
     equipment of a rail carrier or lessor; and
       ``(2) inspect and copy any record of--
       ``(A) a rail carrier, lessor, or association; and
       ``(B) a person controlling, controlled by, or under common 
     control with a rail carrier if the Panel considers inspection 
     relevant to that person's relation to, or transaction with, 
     that rail carrier.
       ``(c) The Panel may prescribe the time period during which 
     operating, accounting, and financial records must be 
     preserved by rail carriers, lessors, and persons furnishing 
     cars.

     ``Sec. 10945. Reports by rail carriers, lessors, and 
       associations

       ``(a) The Panel may require rail carriers, lessors, and 
     associations, or classes of them as the Panel may prescribe, 
     to file annual, periodic, and special reports with the Panel 
     containing answers to questions asked by it.
       ``(b)(1) An annual report shall contain an account, in as 
     much detail as the Panel may require, of the affairs of the 
     rail carrier, lessor, or association for the 12-month period 
     ending on December 31 of each year.
       ``(2) An annual report shall be filed with the Panel by the 
     end of the third month after the end of the year for which 
     the report is made unless the Panel extends the filing date 
     or changes the period covered by the report. The annual 
     report and, if the Panel requires, any other report made 
     under this section, shall be made under oath.

               ``SUBCHAPTER IV--RAILROAD COST ACCOUNTING

     ``Sec. 10961. Implementation of cost accounting principles

       ``Not less than once every five years after the 
     promulgation of original rules implementing the cost 
     accounting principles established by the Railroad Accounting 
     Principles Board, the Panel shall review such principles and 
     shall, by rule, make such changes in such principles as are 
     required to achieve the regulatory purposes of this part. The 
     Panel shall insure that the rules promulgated under this 
     section are the most efficient and least burdensome means by 
     which the required information may be developed for 
     regulatory purposes. To the maximum extent practicable, the 
     Panel shall conform such rules to generally accepted 
     accounting principles.

     ``Sec. 10962. Rail carrier cost accounting system

       ``(a) Each rail carrier shall have and maintain a cost 
     accounting system that is in compliance with the rules 
     promulgated by the Panel under section 10961 of this title. A 
     rail carrier may, after notifying the Panel, make 
     modifications in such system unless, within 60 days after the 
     date of notification, the Panel finds such modifications to 
     be inconsistent with the rules promulgated by the Panel under 
     section 10961 of this title.
       ``(b) For purposes of determining whether the cost 
     accounting system of a rail carrier is in compliance with the 
     rules promulgated by the Panel, the Panel shall have the 
     right to examine and make copies of any documents, papers, or 
     records of such rail carrier relating to compliance with such 
     rules. Such documents, papers, and records (and any copies 
     thereof) shall not be subject to the mandatory disclosure 
     requirements of section 552 of title 5.

     ``Sec. 10963. Cost availability

       ``As required by the rules of the Panel governing discovery 
     in Panel proceedings, rail carriers shall make relevant cost 
     data available to shippers, States, ports, communities, and 
     other interested parties that are a party to a Panel 
     proceeding in which such data are required.

     ``Sec. 10964. Accounting and cost reporting

       ``(a) To obtain expense and revenue information for 
     regulatory purposes, the Panel may promulgate reasonable 
     rules for rail carriers providing transportation subject to 
     the jurisdiction of the Panel under this part, prescribing 
     expense and revenue accounting and reporting requirements 
     consistent with generally accepted accounting principles 
     uniformly applied to such carriers. Such requirements shall 
     be cost effective and compatible with and not duplicative of 
     the managerial and responsibility accounting requirements of 
     those carriers. To the extent such rules are required solely 
     to provide expense and revenue information necessary for 
     determining railroad costs in regulatory proceedings under 
     this part, such rules shall be promulgated in accordance with 
     the cost accounting principles established by the Railroad 
     Accounting Principles Board.
       ``(b) Any reports required by the rules established by the 
     Panel under this section shall include only information 
     considered necessary for disclosure under the cost accounting 
     principles established by the Board or under generally 
     accepted accounting principles or the requirements of the 
     Securities and Exchange Commission.

                         ``CHAPTER 111--FINANCE

        ``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS

``Sec.
``11101. Equipment trusts: recordation; evidence of indebtedness.

                     ``SUBCHAPTER II--COMBINATIONS

``11121. Scope of authority.
``11122. Limitation on pooling and division of transportation or 
              earnings.
``11123. Consolidation, merger, and acquisition of control.
``11124. Consolidation, merger, and acquisition of control: conditions 
              of approval.
``11125. Consolidation, merger, and acquisition of control: procedure.
``11126. Employee protective arrangements in transactions involving 
              rail carriers.
``11127. Supplemental orders.

        ``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS

     ``Sec. 11101. Equipment trusts: recordation; evidence of 
       indebtedness

       ``(a) A mortgage, lease equipment trust agreement, 
     conditional sales agreement, or other instrument evidencing 
     the mortgage, lease, conditional sale, or bailment of or 
     security interest in railroad cars, locomotives, or other 
     rolling stock, or accessories used on such railroad cars, 
     locomotives, or other rolling stock (including 
     superstructures and racks), intended for a use related to 
     interstate commerce shall be filed with the Panel in order to 
     perfect the security interest that is the subject of such 
     instrument. An assignment of a right or interest under one of 
     those instruments and an amendment to that instrument or 
     assignment including a release, discharge, or satisfaction of 
     any part of it shall also be filed with the Panel. The 
     instrument, assignment, or amendment must be in writing, 
     executed by the parties to it, and acknowledged or verified 
     under Panel regulations. When filed under this section, that 
     document is notice to, and enforceable against, all persons. 
     A document filed under this section does not have to be 
     filed, deposited, registered, or recorded under another law 
     of the United States, a State (or its political 
     subdivisions), or territory or possession of the United 
     States, related to filing, deposit, registration, or 
     recordation of those documents.
       ``(b) The Panel shall maintain a system for recording each 
     document filed under subsection (a) of this section and mark 
     each of them with a consecutive number and the date and hour 
     of their recordation. The Panel shall maintain and keep open 
     for public inspection an index of documents filed under that 
     subsection. That index shall include the name and address of 
     the principal debtors, trustees, guarantors, and other 
     parties to those documents and may include other facts that 
     will assist in determining the rights of the parties to those 
     transactions.
       ``(c) The Panel shall to the greatest extent practicable 
     perform its functions under this section through contracts 
     with private sector entities.
       ``(d) The Panel shall assess user fees for services 
     performed by the Panel or a contractor thereof under this 
     section. Such fees may be used by the Panel to offset its 
     costs, to the extent provided in advance in appropriations 
     Acts.

[[Page H 12275]]

       ``(e) A mortgage, lease, equipment trust agreement, 
     conditional sales agreement, or other instrument evidencing 
     the mortgage, lease, conditional sale, or bailment of or 
     security interest in railroad cars, locomotives, or other 
     rolling stock, or accessories used on such railroad cars, 
     locomotives, or other rolling stock (including 
     superstructures and racks), or any assignment thereof, 
     which--
       ``(1) is duly constituted under the laws of a country other 
     than the United States; and
       ``(2) relates to property that bears the reporting marks 
     and identification numbers of any person domiciled in or 
     corporation organized under the laws of such country,

     shall be recognized with the same effect as having been filed 
     under this section.
       ``(f) Interests with respect to which documents are filed 
     or recognized under this section are deemed perfected in all 
     jurisdictions, and shall be governed by applicable State or 
     foreign law in all matters not specifically governed by this 
     section.
       ``(g) The Panel shall collect, maintain, and keep open for 
     public inspection a railway equipment register consistent 
     with the manner and format maintained by the Interstate 
     Commerce Commission as of the date of the enactment of the 
     ICC Termination Act of 1995.

                     ``SUBCHAPTER II--COMBINATIONS

     ``Sec. 11121. Scope of authority

       ``(a) The authority of the Panel under this subchapter is 
     exclusive. A rail carrier or corporation participating in or 
     resulting from a transaction approved by or exempted by the 
     Panel under this subchapter may carry out the transaction, 
     own and operate property, and exercise control or franchises 
     acquired through the transaction without the approval of a 
     State authority. A rail carrier, corporation, or person 
     participating in that approved or exempted transaction is 
     exempt from the antitrust laws and from all other law, 
     including State and municipal law, as necessary to let that 
     rail carrier, corporation, or person carry out the 
     transaction, hold, maintain, and operate property, and 
     exercise control or franchises acquired through the 
     transaction.
       ``(b) The requirement to obtain the approval or 
     authorization of the Panel under this subchapter (except 
     section 11122) shall only apply to transactions involving at 
     least one Class I rail carrier, and shall not apply to 
     transactions described in section 10702.

     ``Sec. 11122. Limitation on pooling and division of 
       transportation or earnings

       ``(a) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part may not agree 
     or combine with another of those rail carriers to pool or 
     divide traffic or services or any part of their earnings 
     without the approval of the Panel under this section or 
     section 10923 of this title. The Panel may approve and 
     authorize the agreement or combination if the rail carriers 
     involved assent to the pooling or division and the Panel 
     finds that a pooling or division of traffic, services, or 
     earnings--
       ``(1) will be in the interest of better service to the 
     public or of economy of operation; and
       ``(2) will not unreasonably restrain competition.
       ``(b) The Panel may impose conditions governing the pooling 
     or division and may approve and authorize payment of a 
     reasonable consideration between the rail carriers.
       ``(c) The Panel may begin a proceeding under this section 
     on its own initiative or on application.

     ``Sec. 11123. Consolidation, merger, and acquisition of 
       control

       ``(a) The following transactions involving rail carriers 
     providing transportation subject to the jurisdiction of the 
     Panel under this part may be carried out only with the 
     approval and authorization of the Panel:
       ``(1) Consolidation or merger of the properties or 
     franchises of at least 2 rail carriers into one corporation 
     for the ownership, management, and operation of the 
     previously separately owned properties.
       ``(2) A purchase, lease, or contract to operate property of 
     another rail carrier by any number of rail carriers.
       ``(3) Acquisition of control of a rail carrier by any 
     number of rail carriers.
       ``(4) Acquisition of control of at least 2 rail carriers by 
     a person that is not a rail carrier.
       ``(5) Acquisition of control of a rail carrier by a person 
     that is not a rail carrier but that controls any number of 
     rail carriers.
       ``(6) Acquisition by a rail carrier of trackage rights 
     over, or joint ownership in or joint use of, a railroad line 
     (and terminals incidental to it) owned or operated by another 
     rail carrier.
       ``(b) A person may carry out a transaction referred to in 
     subsection (a) of this section or participate in achieving 
     the control or management, including the power to exercise 
     control or management, in a common interest of more than one 
     of those rail carriers, regardless of how that result is 
     reached, only with the approval and authorization of the 
     Panel under this subchapter. In addition to other 
     transactions, each of the following transactions are 
     considered achievements of control or management:
       ``(1) A transaction by a rail carrier that has the effect 
     of putting that rail carrier and person affiliated with it, 
     taken together, in control of another rail carrier.
       ``(2) A transaction by a person affiliated with a rail 
     carrier that has the effect of putting that rail carrier and 
     persons affiliated with it, taken together, in control of 
     another rail carrier.
       ``(3) A transaction by at least 2 persons acting together 
     (one of whom is a rail carrier or is affiliated with a rail 
     carrier) that has the effect of putting those persons and 
     rail carriers and persons affiliated with any of them, or 
     with any of those affiliated rail carriers, taken together, 
     in control of another rail carrier.
       ``(c) A person is affiliated with a rail carrier under this 
     subchapter if, because of the relationship between that 
     person and a rail carrier, it is reasonable to believe that 
     the affairs of another rail carrier, control of which may be 
     acquired by that person, will be managed in the interest of 
     the other rail carrier.

     ``Sec. 11124. Consolidation, merger, and acquisition of 
       control: conditions of approval

       ``(a) The Panel may begin a proceeding to approve and 
     authorize a transaction referred to in section 11123 of this 
     title on application of the person seeking that authority. 
     When an application is filed with the Panel, the Panel shall 
     notify the chief executive officer of each State in which 
     property of the rail carriers involved in the proposed 
     transaction is located and shall notify those rail carriers. 
     The Panel shall hold a public hearing unless the Panel 
     determines that a public hearing is not necessary in the 
     public interest.
       ``(b) In a proceeding under this section which involves the 
     merger or control of at least two Class I railroads, as 
     defined by the Panel, the Panel shall consider at least--
       ``(1) the effect of the proposed transaction on the 
     adequacy of transportation to the public;
       ``(2) the effect on the public interest of including, or 
     failing to include, other rail carriers in the area involved 
     in the proposed transaction;
       ``(3) the total fixed charges that result from the proposed 
     transaction;
       ``(4) the interest of rail carrier employees affected by 
     the proposed transaction; and
       ``(5) whether the proposed transaction would have an 
     adverse effect on competition among rail carriers in the 
     affected region or in the national rail system.
       ``(c) The Panel shall approve and authorize a transaction 
     under this section when it finds the transaction is 
     consistent with the public interest. The Panel may impose 
     conditions governing the transaction, including the 
     divestiture of parallel tracks or requiring the granting of 
     trackage rights and access to other facilities. Any trackage 
     rights and related conditions imposed to alleviate 
     anticompetitive effects of the transaction shall provide for 
     operating terms and compensation levels to ensure that such 
     effects are alleviated. When the transaction contemplates a 
     guaranty or assumption of payment of dividends or of fixed 
     charges or will result in an increase of total fixed charges, 
     the Panel may approve and authorize the transaction only if 
     it finds that the guaranty, assumption, or increase is 
     consistent with the public interest. The Panel may require 
     inclusion of other rail carriers located in the area involved 
     in the transaction if they apply for inclusion and the Panel 
     finds their inclusion to be consistent with the public 
     interest.
       ``(d) In a proceeding under this section which does not 
     involve the merger or control of at least two Class I 
     railroads, as defined by the Panel, the Panel shall approve 
     such an application unless it finds that--
       ``(1) as a result of the transaction, there is likely to be 
     substantial lessening of competition, creation of a monopoly, 
     or restraint of trade in freight surface transportation in 
     any region of the United States; and
       ``(2) the anticompetitive effects of the transaction 
     outweigh the public interest in meeting significant 
     transportation needs.

     In making such findings, the Panel shall, with respect to any 
     application that is part of a plan or proposal developed 
     under section 333(a)-(d) of this title, accord substantial 
     weight to any recommendations of the Attorney General.
       ``(e)(1) To the extent provided in this subsection, a 
     proceeding under this subchapter relating to a transaction 
     involving at least one Class I rail carrier shall not be 
     considered an adjudication required by statute to be 
     determined on the record after opportunity for an agency 
     hearing, for the purposes of subchapter II of chapter 5 of 
     title 5, United States Code.
       ``(2) Ex parte communications, as defined in section 
     551(14) of title 5, United States Code, shall be permitted in 
     proceedings described in paragraph (1) of this subsection, 
     subject to the requirements of paragraph (3) of this 
     subsection.
       ``(3)(A) Any member or employee of the Panel who makes or 
     receives a written ex parte communication concerning the 
     merits of a proceeding described in paragraph (1) shall 
     promptly place the communication in the public docket of the 
     proceeding.
       ``(B) Any member or employee of the Panel who makes or 
     receives an oral ex parte communication concerning the merits 
     of a proceeding described in paragraph (1) shall promptly 
     place a written summary of the oral communication in the 
     public docket of the proceeding.
       ``(4) Nothing in this subsection shall be construed to 
     require the Panel or any of its members or employees to 
     engage in any ex parte communication with any person. Nothing 
     in this subsection or any other law shall be construed to 
     limit the authority of the members or employees of the Panel, 
     in their discretion, to note in the docket or otherwise 
     publicly the occurrence and substance of an ex parte 
     communication.

     ``Sec. 11125. Consolidation, merger, and acquisition of 
       control: procedure

       ``(a) The Panel shall publish notice of the application 
     under section 11124 in the Federal Register by the end of the 
     30th day after the application is filed with the Panel. 
     However, if the application is incomplete, the Panel shall 
     reject it by the end of that period. The order of rejection 
     is a final action of the Panel. The published notice shall 
     indicate whether the application involves--
       ``(1) the merger or control of at least two Class I 
     railroads, as defined by the Panel, to be decided within the 
     time limits specified in subsection (b) of this section;
       ``(2) transactions of regional or national transportation 
     significance, to be decided within 

[[Page H 12276]]
     the time limits specified in subsection (c) of this section; or
       ``(3) any other transaction covered by this section, to be 
     decided within the time limits specified in subsection (d) of 
     this section.
       ``(b) If the application involves the merger or control of 
     two or more Class I railroads, as defined by the Panel, the 
     following conditions apply:
       ``(1) Written comments about an application may be filed 
     with the Panel within 45 days after notice of the application 
     is published under subsection (a) of this section. Copies of 
     such comments shall be served on the Attorney General, who 
     may decide to intervene as a party to the proceeding. That 
     decision must be made by the 15th day after the date of 
     receipt of the written comments, and if the decision is to 
     intervene, preliminary comments about the application must be 
     sent to the Panel by the end of the 15th day after the date 
     of receipt of the written comments.
       ``(2) The Panel shall require that applications 
     inconsistent with an application, notice of which was 
     published under subsection (a) of this section, and 
     applications for inclusion in the transaction, be filed with 
     it by the 90th day after publication of notice under that 
     subsection.
       ``(3) The Panel must conclude evidentiary proceedings by 
     the end of the 6th month after the date of publication of 
     notice under subsection (a) of this section. The Panel must 
     issue a final decision by the 90th day after the date on 
     which it concludes the evidentiary proceedings.
       ``(c) If the application involves a transaction other than 
     the merger or control of at least two Class I railroads, as 
     defined by the Panel, which the Panel has determined to be of 
     regional or national transportation significance, the 
     following conditions apply:
       ``(1) Written comments about an application, including 
     comments of the Attorney General, may be filed with the Panel 
     within 30 days after notice of the application is published 
     under subsection (a) of this section.
       ``(2) The Panel shall require that applications 
     inconsistent with an application, notice of which was 
     published under subsection (a) of this section, and 
     applications for inclusion in the transaction, be filed with 
     it by the 60th day after publication of notice under that 
     subsection.
       ``(3) The Panel must conclude any evidentiary proceedings 
     by the 125th day after the date of publication of notice 
     under subsection (a) of this section. The Panel must issue a 
     final decision by the 40th day after the date on which it 
     concludes the evidentiary proceedings.
       ``(d) For all applications under this section other than 
     those specified in subsections (b) and (c) of this section, 
     the following conditions apply:
       ``(1) Written comments about an application, including 
     comments of the Attorney General, may be filed with the Panel 
     within 30 days after notice of the application is published 
     under subsection (a) of this section.
       ``(2) The Panel must conclude any evidentiary proceedings 
     by the 105th day after the date of publication of notice 
     under subsection (a) of this section. The Panel must issue a 
     final decision by the 40th day after the date on which it 
     concludes the evidentiary proceedings.

     ``Sec. 11126. Employee protective arrangements in 
       transactions involving rail carriers

       ``When approval is sought for a transaction under sections 
     11124 and 11125 of this title, the Panel shall require the 
     rail carrier to provide a fair arrangement at least as 
     protective of the interests of employees who are affected by 
     the transaction as the terms imposed under section 5(2)(f) of 
     the Interstate Commerce Act before February 5, 1976, and the 
     terms established under section 24706(c) of this title. 
     Notwithstanding this part, the arrangement may be made by the 
     rail carrier and the authorized representative of its 
     employees. The arrangement and the order approving the 
     transaction must require that the employees of the affected 
     rail carrier will not be in a worse position related to their 
     employment as a result of the transaction during the 4 years 
     following the effective date of the final action of the Panel 
     (or if an employee was employed for a lesser period of 
     time by the rail carrier before the action became 
     effective, for that lesser period).

     ``Sec. 11127. Supplemental orders

       ``When cause exists, the Panel may make appropriate orders 
     supplemental to an order made in a proceeding under sections 
     11122 through 11126 of this title.

                 ``CHAPTER 113--FEDERAL-STATE RELATIONS

``Sec.
``11301. Tax discrimination against rail transportation property.
``11302. Withholding State and local income tax by rail carriers.

     ``Sec. 11301. Tax discrimination against rail transportation 
       property

       ``(a) In this section--
       ``(1) the term `assessment' means valuation for a property 
     tax levied by a taxing district;
       ``(2) the term `assessment jurisdiction' means a 
     geographical area in a State used in determining the assessed 
     value of property for ad valorem taxation;
       ``(3) the term `rail transportation property' means 
     property, as defined by the Panel, owned or used by a rail 
     carrier providing transportation subject to the jurisdiction 
     of the Panel under this part; and
       ``(4) the term `commercial and industrial property' means 
     property, other than transportation property and land used 
     primarily for agricultural purposes or timber growing, 
     devoted to a commercial or industrial use and subject to a 
     property tax levy.
       ``(b) The following acts unreasonably burden and 
     discriminate against interstate commerce, and a State, 
     subdivision of a State, or authority acting for a State or 
     subdivision of a State may not do any of them:
       ``(1) Assess rail transportation property at a value that 
     has a higher ratio to the true market value of the rail 
     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 rail 
     transportation property at a tax rate that exceeds the tax 
     rate applicable to commercial and industrial property in the 
     same assessment jurisdiction.
       ``(4) Impose another tax that discriminates against a rail 
     carrier providing transportation subject to the jurisdiction 
     of the Panel under this part.
       ``(c) Notwithstanding section 1341 of title 28 and without 
     regard to the amount in controversy or citizenship of the 
     parties, a district court of the United States has 
     jurisdiction, concurrent with other jurisdiction of courts of 
     the United States and the States, to prevent a violation of 
     subsection (b) of this section. Relief may be granted under 
     this subsection only if the ratio of assessed value to true 
     market value of rail transportation property exceeds by at 
     least 5 percent the ratio of assessed value to true market 
     value of other commercial and industrial property in the same 
     assessment jurisdiction. The burden of proof in determining 
     assessed value and true market value is governed by State 
     law. If the ratio of the assessed value of other commercial 
     and industrial property in the assessment jurisdiction to the 
     true market value of all other commercial and industrial 
     property cannot be determined to the satisfaction of the 
     district court through the random-sampling method known as a 
     sales assessment ratio study (to be carried out under 
     statistical principles applicable to such a study), the court 
     shall find, as a violation of this section--
       ``(1) an assessment of the rail transportation property at 
     a value that has a higher ratio to the true market value of 
     the rail transportation property than the assessed value of 
     all other property subject to a property tax levy in the 
     assessment jurisdiction has to the true market value of all 
     other commercial and industrial property; and
       ``(2) the collection of an ad valorem property tax on the 
     rail transportation property at a tax rate that exceeds the 
     tax ratio rate applicable to taxable property in the taxing 
     district.

     ``Sec. 11302. Withholding State and local income tax by rail 
       carriers

       ``(a) No part of the compensation paid by a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part to an employee who performs regularly 
     assigned duties as such an employee on a railroad in more 
     than one State shall be subject to the income tax laws of any 
     State or subdivision of that State, other than the State or 
     subdivision thereof of the employee's residence.
       ``(b) A rail carrier withholding pay from an employee under 
     subsection (a) of this section shall file income tax 
     information returns and other reports only with the State and 
     subdivision of residence of the employee.

    ``CHAPTER 115--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

``Sec.
``11501. General authority.
``11502. Enforcement by the Panel.
``11503. Enforcement by the Attorney General.
``11504. Rights and remedies of persons injured by rail carriers.
``11505. Limitation on actions by and against rail carriers.
``11506. Liability of rail carriers under receipts and bills of lading.

     ``Sec. 11501. General authority

       ``(a) Except as otherwise provided in this part, the Panel 
     may begin an investigation under this part only on complaint. 
     If the Panel finds that a rail carrier is violating this 
     part, the Panel shall take appropriate action to compel 
     compliance with this part.
       ``(b) A person, including a governmental authority, may 
     file with the Panel a complaint about a violation of this 
     part by a rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part. The 
     complaint must state the facts that are the subject of the 
     violation. The Panel may dismiss a complaint it determines 
     does not state reasonable grounds for investigation and 
     action. However, the Panel may not dismiss a complaint 
     made against a rail carrier providing transportation 
     subject to the jurisdiction of the Panel under this part 
     because of the absence of direct damage to the 
     complainant.
       ``(c) A formal investigative proceeding begun by the Panel 
     under subsection (a) of this section is dismissed 
     automatically unless it is concluded by the Panel with 
     administrative finality by the end of the third year after 
     the date on which it was begun.

     ``Sec. 11502. Enforcement by the Panel

       ``The Panel may bring a civil action--
       ``(1) to enjoin a rail carrier from violating sections 
     10701 through 10706 of this title, or a regulation prescribed 
     or order or certificate issued under any of those sections;
       ``(2) to enforce subchapter II of chapter 111 of this title 
     and to compel compliance with the order of the Panel under 
     that subchapter; and
       ``(3) to enforce an order of the Panel, except a civil 
     action to enforce an order for the payment of money, when it 
     is violated by a rail carrier providing transportation 
     subject to the jurisdiction of the Panel under this part.

[[Page H 12277]]


     ``Sec. 11503. Enforcement by the Attorney General

       ``The Attorney General may, and on request of the Panel 
     shall, bring court proceedings to enforce this part, or a 
     regulation or order of the Panel or certificate or permit 
     issued under this part, and to prosecute a person violating 
     this part or a regulation or order of the Panel or 
     certificate or permit issued under this part.

     ``Sec. 11504. Rights and remedies of persons injured by rail 
       carriers

       ``(a) A person injured because a rail carrier providing 
     transportation or service subject to the jurisdiction of the 
     Panel under this part does not obey an order of the Panel, 
     except an order for the payment of money, may bring a civil 
     action in a United States District Court to enforce that 
     order under this subsection.
       ``(b) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part is liable for 
     damages sustained by a person as a result of an act or 
     omission of that carrier in violation of this part.
       ``(c)(1) A person may file a complaint with the Panel under 
     section 11501(b) of this title or bring a civil action under 
     subsection (b) of this section to enforce liability against a 
     rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part.
       ``(2) When the Panel makes an award under subsection (b) of 
     this section, the Panel shall order the rail carrier to pay 
     the amount awarded by a specific date. The Panel may order a 
     rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part to pay damages only 
     when the proceeding is on complaint. The person for whose 
     benefit an order of the Panel requiring the payment of money 
     is made may bring a civil action to enforce that order under 
     this paragraph if the rail carrier does not pay the amount 
     awarded by the date payment was ordered to be made.
       ``(d)(1) When a person begins a civil action under 
     subsection (b) of this section to enforce an order of the 
     Panel requiring the payment of damages by a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part, the text of the order of the Panel 
     must be included in the complaint. In addition to the 
     district courts of the United States, a State court of 
     general jurisdiction having jurisdiction of the parties has 
     jurisdiction to enforce an order under this paragraph. The 
     findings and order of the Panel are competent evidence of the 
     facts stated in them. Trial in a civil action brought in a 
     district court of the United States under this paragraph is 
     in the judicial district--
       ``(A) in which the plaintiff resides;
       ``(B) in which the principal operating office of the rail 
     carrier is located; or
       ``(C) through which the railroad line of that carrier runs.

     In a civil action under this paragraph, the plaintiff is 
     liable for only those costs that accrue on an appeal taken by 
     the plaintiff.
       ``(2) All parties in whose favor the award was made may be 
     joined as plaintiffs in a civil action brought in a district 
     court of the United States under this subsection and all the 
     rail carriers that are parties to the order awarding damages 
     may be joined as defendants. Trial in the action is in the 
     judicial district in which any one of the plaintiffs could 
     bring the action against any one of the defendants. Process 
     may be served on a defendant at its principal operating 
     office when that defendant is not in the district in which 
     the action is brought. A judgment ordering recovery may be 
     made in favor of any of those plaintiffs against the 
     defendant found to be liable to that plaintiff.
       ``(3) The district court shall award a reasonable 
     attorney's fee as a part of the damages for which a rail 
     carrier is found liable under this subsection. The district 
     court shall tax and collect that fee as a part of the costs 
     of the action.

     ``Sec. 11505. Limitation on actions by and against rail 
       carriers

       ``(a) A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part must 
     begin a civil action to recover charges for transportation or 
     service provided by the carrier within 3 years after the 
     claim accrues.
       ``(b) A person must file a complaint with the Panel to 
     recover damages under section 11504(b) of this title within 2 
     years after the claim accrues.
       ``(c) The limitation period under subsection (b) of this 
     section is extended for 6 months from the time written notice 
     is given to the claimant by the rail carrier of disallowance 
     of any part of the claim specified in the notice if a written 
     claim is given to the rail carrier within that limitation 
     period. The limitation period under subsection (b) of this 
     section is extended for 90 days from the time the rail 
     carrier begins a civil action under subsection (a) of 
     this section to recover charges related to the same 
     transportation or service, or collects (without beginning 
     a civil action under that subsection) the charge for that 
     transportation or service if that action is begun or 
     collection is made within the appropriate period.
       ``(d) A person must begin a civil action to enforce an 
     order of the Panel against a rail carrier for the payment of 
     money within one year after the date the order required the 
     money to be paid.
       ``(e) This section applies to transportation for the United 
     States Government. The time limitations under this section 
     are extended, as related to transportation for or on behalf 
     of the United States Government, for 3 years from the date 
     of--
       ``(1) payment of the rate for the transportation or service 
     involved;
       ``(2) subsequent refund for overpayment of that rate; or
       ``(3) deduction made under section 3726 of title 31, 
     whichever is later.
       ``(f) A claim related to a shipment of property accrues 
     under this section on delivery or tender of delivery by the 
     rail carrier.

     ``Sec. 11506. Liability of rail carriers under receipts and 
       bills of lading

       ``(a) A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part 
     shall issue a receipt or bill of lading for property it 
     receives for transportation under this part. That rail 
     carrier and any other rail carrier that delivers the property 
     and is providing transportation or service subject to the 
     jurisdiction of the Panel under this part are liable to the 
     person entitled to recover under the receipt or bill of 
     lading. The liability imposed under this subsection is for 
     the actual loss or injury to the property caused by--
       ``(1) the receiving rail carrier;
       ``(2) the delivering rail carrier; or
       ``(3) another rail carrier over whose line or route the 
     property is transported in the United States or from a place 
     in the United States to a place in an adjacent foreign 
     country when transported under a through bill of lading.

     Failure to issue a receipt or bill of lading does not affect 
     the liability of a rail carrier. A delivering rail carrier is 
     deemed to be the rail carrier performing the line-haul 
     transportation nearest the destination but does not include a 
     rail carrier providing only a switching service at the 
     destination.
       ``(b) The rail carrier issuing the receipt or bill of 
     lading under subsection (a) of this section or delivering the 
     property for which the receipt or bill of lading was issued 
     is entitled to recover from the rail carrier over whose line 
     or route the loss or injury occurred the amount required to 
     be paid to the owners of the property, as evidenced by a 
     receipt, judgment, or transcript, and the amount of its 
     expenses reasonably incurred in defending a civil action 
     brought by that person.
       ``(c)(1) A rail carrier may not limit or be exempt from 
     liability imposed under subsection (a) of this section except 
     as provided in this subsection. A limitation of liability or 
     of the amount of recovery or representation or agreement in a 
     receipt, bill of lading, contract, or rule in violation of 
     this section is void.
       ``(2) A rail carrier of passengers may limit its liability 
     under its passenger rate for loss or injury of baggage 
     carried on trains carrying passengers.
       ``(3) A rail carrier providing transportation or service 
     subject to the jurisdiction of the Panel under this part may 
     establish rates for transportation of property under which--
       ``(A) the liability of the rail carrier for such property 
     is limited to a value established by written declaration of 
     the shipper or by a written agreement between the shipper and 
     the carrier; or
       ``(B) specified amounts are deducted, pursuant to a written 
     agreement between the shipper and the carrier, from any claim 
     against the carrier with respect to the transportation of 
     such property.
       ``(d)(1) A civil action under this section may be brought 
     in a district court of the United States or in a State court.
       ``(2)(A) A civil action under this section may only be 
     brought--
       ``(i) against the originating rail carrier, in the judicial 
     district in which the point of origin is located;
       ``(ii) against the delivering rail carrier, in the judicial 
     district in which the principal place of business of the 
     person bringing the action is located if the delivering 
     carrier operates a railroad or a route through such judicial 
     district, or in the judicial district in which the point of 
     destination is located; and
       ``(iii) against the carrier alleged to have caused the loss 
     or damage, in the judicial district in which such loss or 
     damage is alleged to have occurred.
       ``(B) In this section, `judicial district' means (i) in the 
     case of a United States district court, a judicial district 
     of the United States, and (ii) in the case of a State court, 
     the applicable geographic area over which such court 
     exercises jurisdiction.
       ``(e) A rail carrier may not provide by rule, contract, or 
     otherwise, a period of less than 9 months for filing a claim 
     against it under this section and a period of less than 2 
     years for bringing a civil action against it under this 
     section. The period for bringing a civil action is computed 
     from the date the carrier gives a person written notice that 
     the carrier has disallowed any part of the claim specified in 
     the notice. For the purposes of this subsection--
       ``(1) an offer of compromise shall not constitute a 
     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
       ``(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.

              ``CHAPTER 117--CIVIL AND CRIMINAL PENALTIES

``Sec.
``11701. General civil penalties.
``11702. Interference with railroad car supply.
``11703. Record keeping and reporting violations.
``11704. Unlawful disclosure of information.
``11705. Disobedience to subpoenas.
``11706. General criminal penalty when specific penalty not provided.
``11707. Punishment of corporation for violations committed by certain 
              individuals.

[[Page H 12278]]


     ``Sec. 11701. General civil penalties

       ``(a) Except as otherwise provided in this section, a rail 
     carrier providing transportation subject to the jurisdiction 
     of the Panel under this part, an officer or agent of that 
     rail carrier, or a receiver, trustee, lessee, or agent of one 
     of them, knowingly violating an order of the Panel under this 
     part is liable to the United States Government for a civil 
     penalty of $5,000 for each violation. Liability under this 
     subsection is incurred for each distinct violation. A 
     separate violation occurs for each day the violation 
     continues.
       ``(b) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part, or a receiver 
     or trustee of that rail carrier, violating a regulation or 
     order of the Panel under section 10924 (a)(2) or (b) of this 
     title is liable to the United States Government for a civil 
     penalty of $500 for each violation and for $25 for each day 
     the violation continues.
       ``(c) A person knowingly authorizing, consenting to, or 
     permitting a violation of sections 10701 through 10706 of 
     this title or of a requirement or a regulation under any of 
     those sections, is liable to the United States Government for 
     a civil penalty of not more than $5,000.
       ``(d) A rail carrier, receiver, or operating trustee 
     violating an order or direction of the Panel under section 
     10923 or 10924(a)(1) of this title is liable to the United 
     States Government for a civil penalty of at least $100 but 
     not more than $500 for each violation and for $50 for each 
     day the violation continues.
       ``(e)(1) A person required under subchapter III of chapter 
     109 of this title to make, prepare, preserve, or submit to 
     the Panel a record concerning transportation subject to the 
     jurisdiction of the Panel under this part that does not make, 
     prepare, preserve, or submit that record as required under 
     that subchapter, is liable to the United States Government 
     for a civil penalty of $500 for each violation.
       ``(2) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part, and a lessor, 
     receiver, or trustee of that rail carrier, violating section 
     10944(b)(1) of this title, is liable to the United States 
     Government for a civil penalty of $100 for each violation.
       ``(3) A rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part, a lessor, 
     receiver, or trustee of that rail carrier, a person 
     furnishing cars, and an officer, agent, or employee of one of 
     them, required to make a report to the Panel or answer a 
     question that does not make the report or does not 
     specifically, completely, and truthfully answer the question, 
     is liable to the United States Government for a civil penalty 
     of $100 for each violation.
       ``(4) A separate violation occurs for each day a violation 
     under this subsection continues.
       ``(f) Trial in a civil action under subsections (a) through 
     (e) of this section is in the judicial district in which the 
     rail carrier has its principal operating office or in a 
     district through which the railroad of the rail carrier runs.

     ``Sec. 11702. Interference with railroad car supply

       ``(a) A person that offers or gives anything of value to 
     another person acting for or employed by a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part intending to influence an action of 
     that other person related to supply, distribution, or 
     movement of cars or vehicles used in the transportation of 
     property, or because of the action of that other person shall 
     be fined not more than $1,000, imprisoned for not more than 2 
     years, or both.
       ``(b) A person acting for or employed by a rail carrier 
     providing transportation subject to the jurisdiction of the 
     Panel under this part that solicits, accepts, or receives 
     anything of value--
       ``(1) intending to be influenced by it in an action of that 
     person related to supply, distribution, or movement of cars, 
     vehicles, or vessels used in the transportation of property; 
     or
       ``(2) because of the action of that person,
     shall be fined not more than $1,000, imprisoned for not more 
     than 2 years, or both.

     ``Sec. 11703. Record keeping and reporting violations

       ``A person required to make a report to the Panel, or make, 
     prepare, or preserve a record, under subchapter III of 
     chapter 109 of this title about transportation subject to the 
     jurisdiction of the Panel under this part that knowingly and 
     willfully--
       ``(1) makes a false entry in the report or record;
       ``(2) destroys, mutilates, changes, or by another means 
     falsifies the record;
       ``(3) does not enter business related facts and 
     transactions in the record;
       ``(4) makes, prepares, or preserves the record in violation 
     of a regulation or order of the Panel; or
       ``(5) files a false report or record with the Panel,

     shall be fined not more than $5,000, imprisoned for not more 
     than 2 years, or both.

     ``Sec. 11704. Unlawful disclosure of information

       ``(a) A--
       ``(1) rail carrier providing transportation subject to the 
     jurisdiction of the Panel under this part, or an officer, 
     agent, or employee of that rail carrier, or another person 
     authorized to receive information from that rail carrier, 
     that knowingly discloses to another person, except the 
     shipper or consignee; or
       ``(2) a person who solicits or knowingly receives,

     information described in subsection (b) without the consent 
     of the shipper or consignee shall be fined not more than 
     $1,000.
       ``(b) The information referred to in subsection (a) is 
     information about the nature, kind, quantity, destination, 
     consignee, or routing of property tendered or delivered to 
     that rail carrier for transportation provided under this 
     part, or information about the contents of a contract 
     authorized under section 10509 of this title, that may be 
     used to the detriment of the shipper or consignee or may 
     disclose improperly, to a competitor, the business 
     transactions of the shipper or consignee.
       ``(c) This part does not prevent a rail carrier or broker 
     providing transportation subject to the jurisdiction of the 
     Panel under this part from giving information--
       ``(1) in response to legal process issued under authority 
     of a court of the United States or a State;
       ``(2) to an officer, employee, or agent of the United 
     States Government, a State, or a territory or possession of 
     the United States; or
       ``(3) to another rail carrier or its agent to adjust mutual 
     traffic accounts in the ordinary course of business.
       ``(d) An employee of the Panel delegated to make an 
     inspection or examination under section 10944 of this title 
     who knowingly discloses information acquired during that 
     inspection or examination, except as directed by the Panel, a 
     court, or a judge of that court, shall be fined not more than 
     $500, imprisoned for not more than 6 months, or both.
       ``(e) A person that knowingly discloses confidential data 
     made available to such person under section 10963 of this 
     title by a rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part shall be fined 
     not more than $50,000.

     ``Sec. 11705. Disobedience to subpoenas

       ``A person not obeying a subpoena or requirement of the 
     Panel to appear and testify or produce records shall be fined 
     at least $100 but not more than $5,000, imprisoned for not 
     more than one year, or both.

     ``Sec. 11706. General criminal penalty when specific penalty 
       not provided

       ``When another criminal penalty is not provided under this 
     chapter, a rail carrier providing transportation subject to 
     the jurisdiction of the Panel under this part, and when that 
     rail carrier is a corporation, a director or officer of the 
     corporation, or a receiver, trustee, lessee, or person acting 
     for or employed by the corporation that, alone or with 
     another person, willfully violates this part or an order 
     prescribed under this part, shall be fined not more than 
     $5,000. However, if the violation is for discrimination in 
     rates charged for transportation, the person may be 
     imprisoned for not more than 2 years in addition to being 
     fined under this section. A separate violation occurs each 
     day a violation of section 11122 of this title continues.

     ``Sec. 11707. Punishment of corporation for violations 
       committed by certain individuals

       ``An act or omission that would be a violation of this part 
     if committed by a director, officer, receiver, trustee, 
     lessee, agent, or employee of a rail carrier providing 
     transportation or service subject to the jurisdiction of the 
     Panel under this part that is a corporation is also a 
     violation of this part by that corporation. The penalties of 
     this chapter apply to that violation. When acting in the 
     scope of their employment, the actions and omissions of 
     individuals acting for or employed by that rail carrier are 
     considered to be the actions and omissions of that rail 
     carrier as well as that individual.''.
       (b) Conforming Amendment.--The item relating to subtitle IV 
     in the table of subtitles of title 49, United States Code, is 
     amended by striking ``Commerce'' and inserting in lieu 
     thereof ``Transportation''.

     SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT FORWARDER 
                   PROVISIONS.

       Subtitle IV of title 49, United States Code, is further 
     amended by adding at the end the following:

    ``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
                               FORWARDERS

                   ``CHAPTER 131--GENERAL PROVISIONS

``Sec.
``13101. Transportation policy.
``13102. Definitions.
``13103. Remedies as cumulative.

     ``Sec. 13101. Transportation policy

       ``(a) In General.--To ensure the development, coordination, 
     and preservation of a transportation system that meets the 
     transportation needs of the United States, including the 
     United States Postal Service and national defense, it is the 
     policy of the United States Government to oversee the modes 
     of transportation and--
       ``(1) in overseeing those modes--
       ``(A) to recognize and preserve the inherent advantage of 
     each mode of transportation;
       ``(B) to promote safe, adequate, economical, and efficient 
     transportation;
       ``(C) to encourage sound economic conditions in 
     transportation, including sound economic conditions among 
     carriers;
       ``(D) to encourage the establishment and maintenance of 
     reasonable rates for transportation, without unreasonable 
     discrimination or unfair or destructive competitive 
     practices;
       ``(E) to cooperate with each State and the officials of 
     each State on transportation matters; and
       ``(F) to encourage fair wages and working conditions in the 
     transportation industry;
       ``(2) in overseeing transportation by motor carrier, to 
     promote competitive and efficient transportation services in 
     order to--
       ``(A) encourage fair competition, and reasonable rates for 
     transportation by motor carriers of property;
       ``(B) promote efficiency in the motor carrier 
     transportation system and to require fair and expeditious 
     decisions when required;
       ``(C) meet the needs of shippers, receivers, passengers, 
     and consumers;
       ``(D) allow a variety of quality and price options to meet 
     changing market demands and the diverse requirements of the 
     shipping and traveling public; 

[[Page H 12279]]

       ``(E) allow the most productive use of equipment and energy 
     resources;
       ``(F) enable efficient and well-managed carriers to earn 
     adequate profits, attract capital, and maintain fair wages 
     and working conditions;
       ``(G) provide and maintain service to small communities and 
     small shippers and intrastate bus services;
       ``(H) provide and maintain commuter bus operations;
       ``(I) improve and maintain a sound, safe, and competitive 
     privately owned motor carrier system;
       ``(J) promote greater participation by minorities in the 
     motor carrier system; and
       ``(K) promote intermodal transportation; and
       ``(3) in overseeing transportation by motor carrier of 
     passengers--
       ``(A) to cooperate with the States on transportation 
     matters for the purpose of encouraging the States to exercise 
     intrastate regulatory jurisdiction in accordance with the 
     objectives of this part;
       ``(B) to provide Federal procedures which ensure that 
     intrastate regulation is exercised in accordance with this 
     part; and
       ``(C) to ensure that Federal reform initiatives enacted by 
     section 31138 and the Bus Regulatory Reform Act of 1982 are 
     not nullified by State regulatory actions.
       ``(b) Administration To Carry Out Policy.--This part shall 
     be administered and enforced to carry out the policy of this 
     section.

     ``Sec. 13102. Definitions

       ``In this part, the following definitions shall apply:
       ``(1) Broker.--The term `broker' means a person, other than 
     a motor carrier or an employee or agent of a motor carrier, 
     that as a principal or agent sells, offers for sale, 
     negotiates for, or holds itself out by solicitation, 
     advertisement, or otherwise as selling, providing, or 
     arranging for, transportation by motor carrier for 
     compensation.
       ``(2) Carrier.--The term `carrier' means a motor carrier, a 
     water carrier, and a freight forwarder.
       ``(3) Contract carriage.--The term `contract carriage' 
     means--
       ``(A) for transportation provided before the effective date 
     of this section, service provided pursuant to a permit issued 
     under section 10923, as in effect on the day before the 
     effective date of this section; and
       ``(B) for transportation provided on or after such date, 
     service provided under an agreement entered into under 
     section 14101(b).
       ``(4) Control.--The term `control', when referring to a 
     relationship between persons, includes actual control, legal 
     control, and the power to exercise control, through or by--
       ``(A) common directors, officers, stockholders, a voting 
     trust, or a holding or investment company, or
       ``(B) any other means.
       ``(5) Foreign motor carrier.--The term `foreign motor 
     carrier' means a person (including a motor carrier of 
     property but excluding a motor private carrier)--
       ``(A)(i) that is domiciled in a contiguous foreign country; 
     or
       ``(ii) that is owned or controlled by persons of a 
     contiguous foreign country; and
       ``(B) in the case of a person that is not a motor carrier 
     of property, that provides interstate transportation of 
     property by motor vehicle under an agreement or contract 
     entered into with a motor carrier of property (other than a 
     motor private carrier or a motor carrier of property 
     described in subparagraph (A)).
       ``(6) Foreign motor private carrier.--The term `foreign 
     motor private carrier' means a person (including a motor 
     private carrier but excluding a motor carrier of property)--
       ``(A)(i) that is domiciled in a contiguous foreign country; 
     or
       ``(ii) that is owned or controlled by persons of a 
     contiguous foreign country; and
       ``(B) in the case of a person that is not a motor private 
     carrier, that provides interstate transportation of property 
     by motor vehicle under an agreement or contract entered into 
     with a person (other than a motor carrier of property or a 
     motor private carrier described in subparagraph (A)).
       ``(7) Freight forwarder.--The term `freight forwarder' 
     means a person holding itself out to the general public 
     (other than as a pipeline, rail, motor, or water carrier) to 
     provide transportation of property for compensation and in 
     the ordinary course of its business--
       ``(A) assembles and consolidates, or provides for 
     assembling and consolidating, shipments and performs or 
     provides for break-bulk and distribution operations of the 
     shipments;
       ``(B) assumes responsibility for the transportation from 
     the place of receipt to the place of destination; and
       ``(C) uses for any part of the transportation a carrier 
     subject to jurisdiction under this part.
     The term does not include a person using transportation of an 
     air carrier subject to part A of subtitle VII.
       ``(8) Highway.--The term `highway' means a road, highway, 
     street, and way in a State.
       ``(9) Household goods.--The term `household goods', as used 
     in connection with transportation, means personal effects and 
     property used or to be used in a dwelling, when a part of the 
     equipment or supply of such dwelling, and similar property if 
     the transportation of such effects or property is--
       ``(A) arranged and paid for by the householder, including 
     transportation of property from a factory or store when the 
     property is purchased by the householder with intent to use 
     in his or her dwelling, or
       ``(B) arranged and paid for by another party.
       ``(10) Household goods freight forwarder.--The term 
     `household goods freight forwarder' means a freight forwarder 
     of one or more of the following items: household goods, 
     unaccompanied baggage, or used automobiles.
       ``(11) Motor carrier.--The term `motor carrier' means a 
     person providing motor vehicle transportation for 
     compensation.
       ``(12) Motor private carrier.--The term `motor private 
     carrier' means a person, other than a motor carrier, 
     transporting property by motor vehicle when--
       ``(A) the transportation is as provided in section 13501 of 
     this title;
       ``(B) the person is the owner, lessee, or bailee of the 
     property being transported; and
       ``(C) the property is being transported for sale, lease, 
     rent, or bailment or to further a commercial enterprise.
       ``(13) Motor vehicle.--The term `motor vehicle' means a 
     vehicle, machine, tractor, trailer, or semitrailer propelled 
     or drawn by mechanical power and used on a highway in 
     transportation, or a combination determined by the Secretary, 
     but does not include a vehicle, locomotive, or car operated 
     only on a rail, or a trolley bus operated by electric power 
     from a fixed overhead wire, and providing local passenger 
     transportation similar to street-railway service.
       ``(14) Noncontiguous domestic trade.--The term 
     `noncontiguous domestic trade' means transportation subject 
     to jurisdiction under chapter 135 involving traffic 
     originating in or destined to Alaska, Hawaii, or a territory 
     or possession of the United States.
       ``(15) Panel.--The term `Panel' means the Transportation 
     Adjudication Panel.
       ``(16) Person.--The term `person', in addition to its 
     meaning under section 1 of title 1, includes a trustee, 
     receiver, assignee, or personal representative of a person.
       ``(17) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(18) State.--The term `State' means the 50 States of the 
     United States and the District of Columbia.
       ``(19) Transportation.--The term `transportation' 
     includes--
       ``(A) a motor vehicle, vessel, warehouse, wharf, pier, 
     dock, yard, property, facility, instrumentality, or equipment 
     of any kind related to the movement of passengers or 
     property, or both, regardless of ownership or an agreement 
     concerning use; and
       ``(B) services related to that movement, including receipt, 
     delivery, elevation, transfer in transit, refrigeration, 
     icing, ventilation, storage, handling, and interchange of 
     passengers and property.
       ``(20) United states.--The term `United States' means the 
     States of the United States and the District of Columbia.
       ``(21) Vessel.--The term `vessel' means a watercraft or 
     other artificial contrivance that is used, is capable of 
     being used, or is intended to be used, as a means of 
     transportation by water.
       ``(22) Water carrier.--The term `water carrier' means a 
     person providing water transportation for compensation.

     ``Sec. 13103. Remedies as cumulative

       ``Except as otherwise provided in this part, the remedies 
     provided under this part are in addition to remedies existing 
     under another law or common law.

                ``CHAPTER 133--ADMINISTRATIVE PROVISIONS

``Sec.
``13301. Powers.
``13302. Intervention.
``13303. Service of notice in proceedings.
``13304. Service of process in court proceedings.

     ``Sec. 13301. Powers

       ``(a) General Powers of Secretary.--Except as otherwise 
     specified, the Secretary shall carry out this part. 
     Enumeration of a power of the Secretary in this part does not 
     exclude another power the Secretary may have in carrying out 
     this part. The Secretary may prescribe regulations in 
     carrying out this part.
       ``(b) Obtaining Information.--The Secretary may obtain from 
     carriers providing, and brokers for, transportation and 
     service subject to this part, and from persons controlling, 
     controlled by, or under common control with those carriers or 
     brokers to the extent that the business of that person is 
     related to the management of the business of that carrier or 
     broker, information the Secretary decides is necessary to 
     carry out this part.
       ``(c) Subpoena Power.--
       ``(1) By secretary.--The Secretary may subpoena witnesses 
     and records related to a proceeding under this part from any 
     place in the United States, to the designated place of the 
     proceeding. If a witness disobeys a subpoena, the Secretary, 
     or a party to a proceeding under this part, may petition a 
     court of the United States to enforce that subpoena.
       ``(2) Enforcement.--The district courts of the United 
     States have jurisdiction to enforce a subpoena issued under 
     this section. Trial is in the district in which the 
     proceeding is conducted. The court may punish a refusal to 
     obey a subpoena as a contempt of court.
       ``(d) Testimony of Witnesses.--
       ``(1) Procedure for taking testimony.--In a proceeding 
     under this part, the Secretary may take the testimony of a 
     witness by deposition and may order the witness to produce 
     records. A party to a proceeding pending under this part may 
     take the testimony of a witness by deposition and may require 
     the witness to produce records at any time after a proceeding 
     is at issue on petition and answer.
       ``(2) Subpoena.--If a witness fails to be deposed or to 
     produce records under paragraph (1) of this subsection, the 
     Secretary may subpoena the witness to take a deposition, 
     produce the records, or both.
       ``(3) Depositions.--A deposition may be taken before a 
     judge of a court of the United States, a United States 
     magistrate judge, a clerk of a 

[[Page H 12280]]
     district court, or a chancellor, justice, or judge of a supreme or 
     superior court, mayor or chief magistrate of a city, judge of 
     a county court, or court of common pleas of any State, or a 
     notary public who is not counsel or attorney of a party or 
     interested in the proceeding.
       ``(4) Notice of deposition.--Before taking a deposition, 
     reasonable notice must be given in writing by the party or 
     the attorney of that party proposing to take a deposition to 
     the opposing party or the attorney of record of that party, 
     whoever is nearest. The notice shall state the name of the 
     witness and the time and place of taking the deposition.
       ``(5) Transcript.--The testimony of a person deposed under 
     this subsection shall be taken under oath. The person taking 
     the deposition shall prepare, or cause to be prepared, a 
     transcript of the testimony taken. The transcript shall be 
     subscribed by the deponent.
       ``(6) Foreign country.--The testimony of a witness who is 
     in a foreign country may be taken by deposition before an 
     officer or person designated by the Secretary or agreed on by 
     the parties by written stipulation filed with the Secretary. 
     A deposition shall be filed with the Secretary promptly.
       ``(e) Witness Fees.--Each witness summoned before the 
     Secretary or whose deposition is taken under this section and 
     the individual taking the deposition are entitled to the same 
     fees and mileage paid for those services in the courts of the 
     United States.
       ``(f) Powers of Panel.--For those provisions of this part 
     that are specified to be carried out by the Panel, the Panel 
     shall have the same powers as the Secretary has under this 
     section.

     ``Sec. 13302. Intervention

       ``Under regulations of the Secretary, reasonable notice of, 
     and an opportunity to intervene and participate in, a 
     proceeding under this part related to transportation subject 
     to jurisdiction under subchapter I of chapter 135 shall be 
     given to interested persons.

     ``Sec. 13303. Service of notice in proceedings

       ``(a) Agents for Service of Process.--A carrier, a broker, 
     or a freight forwarder providing transportation or service 
     subject to jurisdiction under chapter 135 shall designate, in 
     writing, an agent by name and post office address on whom 
     service of notices in a proceeding before, and of actions of, 
     the Secretary may be made.
       ``(b) Filing With State.--A motor carrier providing 
     transportation under this part shall also file the 
     designation with the appropriate authority of each State in 
     which it operates. The designation may be changed at any time 
     in the same manner as originally made.
       ``(c) Notice.--A notice to a motor carrier, freight 
     forwarder, or broker shall be served personally or by mail on 
     the motor carrier, freight forwarder, or broker or on its 
     designated agent. Service by mail on the designated agent 
     shall be made at the address filed for the agent. When notice 
     is given by mail, the date of mailing is considered to be the 
     time when the notice is served. If a motor carrier, freight 
     forwarder, or broker does not have a designated agent, 
     service may be made by posting a copy of the notice at the 
     headquarters of the Department of Transportation.

     ``Sec. 13304. Service of process in court proceedings

       ``(a) Designation of Agent.--A motor carrier or broker 
     providing transportation subject to jurisdiction under 
     chapter 135 of this title, including a motor carrier or 
     broker operating within the United States while providing 
     transportation between places in a foreign country or between 
     a place in one foreign country and a place in another foreign 
     country, shall designate an agent in each State in which it 
     operates by name and post office address on whom process 
     issued by a court with subject matter jurisdiction may be 
     served in an action brought against that carrier or broker. 
     The designation shall be in writing and filed with the 
     Department of Transportation. If a designation under this 
     subsection is not made, service may be made on any agent of 
     the carrier or broker within that State.
       ``(b) Change.--A designation under this section may be 
     changed at any time in the same manner as originally made.

                      ``CHAPTER 135--JURISDICTION

              ``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION

``Sec.
``13501. General jurisdiction.
``13502. Exempt transportation between Alaska and other States.
``13503. Exempt motor vehicle transportation in terminal areas.
``13504. Exempt motor carrier transportation entirely in one State.
``13505. Transportation furthering a primary business.
``13506. Miscellaneous motor carrier transportation exemptions.
``13507. Mixed loads of regulated and unregulated property.
``13508. Limited authority over cooperative associations.

             ``SUBCHAPTER II--WATER CARRIER TRANSPORTATION

``13521. General jurisdiction.

              ``SUBCHAPTER III--FREIGHT FORWARDER SERVICE

``13531. General jurisdiction.

                  ``SUBCHAPTER IV--AUTHORITY TO EXEMPT

``13541. Authority to exempt transportation or services.

              ``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION

     ``Sec. 13501. General jurisdiction

       ``The Secretary and the Panel have jurisdiction, as 
     specified in this part, over transportation by motor carrier 
     and the procurement of that transportation, to the extent 
     that passengers, property, or both, are transported by motor 
     carrier--
       ``(1) between a place in--
       ``(A) a State and a place in another State;
       ``(B) a State and another place in the same State through 
     another State;
       ``(C) the United States and a place in a territory or 
     possession of the United States to the extent the 
     transportation is in the United States;
       ``(D) the United States and another place in the United 
     States through a foreign country to the extent the 
     transportation is in the United States; or
       ``(E) the United States and a place in a foreign country to 
     the extent the transportation is in the United States; and
       ``(2) in a reservation under the exclusive jurisdiction of 
     the United States or on a public highway.

     ``Sec. 13502. Exempt transportation between Alaska and other 
       States

       ``To the extent that transportation by a motor carrier 
     between a place in Alaska and a place in another State under 
     section 13501 is provided in a foreign country--
       ``(1) neither the Secretary nor the Panel has jurisdiction 
     to impose a requirement over conduct of the motor carrier in 
     the foreign country conflicting with a requirement of that 
     country; but
       ``(2) the motor carrier, as a condition of providing 
     transportation in the United States, shall comply, with 
     respect to all transportation provided between Alaska and the 
     other State, with the requirements of this part related to 
     rates and practices applicable to the transportation.

     ``Sec. 13503. Exempt motor vehicle transportation in terminal 
       areas

       ``(a) Transportation by Carriers.--
       ``(1) In general.--Neither the Secretary nor the Panel has 
     jurisdiction under this subchapter over transportation by 
     motor vehicle provided in a terminal area when the 
     transportation--
       ``(A) is a transfer, collection, or delivery;
       ``(B) is provided by--
       ``(i) a rail carrier subject to jurisdiction under chapter 
     105;
       ``(ii) a water carrier subject to jurisdiction under 
     subchapter II of this chapter; or
       ``(iii) a freight forwarder subject to jurisdiction under 
     subchapter III of this chapter; and
       ``(C) is incidental to transportation or service provided 
     by the carrier or freight forwarder that is subject to 
     jurisdiction under chapter 105 of this title or under 
     subchapter II or III of this chapter.
       ``(2) Applicability of other provisions.--Transportation 
     exempt from jurisdiction under paragraph (1) of this 
     subsection is subject to jurisdiction under chapter 105 when 
     provided by such a rail carrier, under subchapter II of this 
     chapter when provided by such a water carrier, and under 
     subchapter III of this chapter when provided by such a 
     freight forwarder.
       ``(b) Transportation by Agent.--
       ``(1) In general.--Except to the extent provided by 
     paragraph (2) of this subsection, neither the Secretary nor 
     the Panel has jurisdiction under this subchapter over 
     transportation by motor vehicle provided in a terminal area 
     when the transportation--
       ``(A) is a transfer, collection, or delivery; and
       ``(B) is provided by a person as an agent or under other 
     arrangement for--
       ``(i) a rail carrier subject to jurisdiction under chapter 
     105 of this title;
       ``(ii) a motor carrier subject to jurisdiction under this 
     subchapter;
       ``(iii) a water carrier subject to jurisdiction under 
     subchapter II of this chapter; or
       ``(iv) a freight forwarder subject to jurisdiction under 
     subchapter III of this chapter.
       ``(2) Treatment of transportation by principal.--
     Transportation exempt from jurisdiction under paragraph (1) 
     of this subsection is considered transportation provided by 
     the carrier or service provided by the freight forwarder for 
     whom the transportation was provided and is subject to 
     jurisdiction under chapter 105 of this title when provided 
     for such a rail carrier, under this subchapter when provided 
     for such a motor carrier, under subchapter II of this chapter 
     when provided for such a water carrier, and under subchapter 
     III of this chapter when provided for such a freight 
     forwarder.

     ``Sec. 13504. Exempt motor carrier transportation entirely in 
       one State

       ``Neither the Secretary nor the Panel has jurisdiction 
     under this subchapter over transportation, except 
     transportation of household goods, by a motor carrier 
     operating solely within the State of Hawaii. The State of 
     Hawaii may regulate transportation exempt from jurisdiction 
     under this section and, to the extent provided by a motor 
     carrier operating solely within the State of Hawaii, 
     transportation exempt under section 13503 of this title.

     ``Sec. 13505. Transportation furthering a primary business

       ``(a) In General.--Neither the Secretary nor the Panel has 
     jurisdiction under this part over the transportation of 
     property by motor vehicle when--
       ``(1) the property is transported by a person engaged in a 
     business other than transportation; and
       ``(2) the transportation is within the scope of, and 
     furthers a primary business (other than transportation) of 
     the person.
       ``(b) Corporate Families.--
       ``(1) In general.--Neither the Secretary nor the Panel has 
     jurisdiction under this part over transportation of property 
     by motor vehicle for compensation provided by a person who is 
     a member of a corporate family for other members of such 
     corporate family.

[[Page H 12281]]

       ``(2) Definition.--In this section, `corporate family' 
     means a group of corporations consisting of a parent 
     corporation and all subsidiaries in which the parent 
     corporation owns directly or indirectly a 100 percent 
     interest.

     ``Sec. 13506. Miscellaneous motor carrier transportation 
       exemptions

       ``(a) In General.--Neither the Secretary nor the Panel has 
     jurisdiction under this part over--
       ``(1) a motor vehicle transporting only school children and 
     teachers to or from school;
       ``(2) a motor vehicle providing taxicab service and having 
     a capacity of not more than 6 passengers and not operated on 
     a regular route or between specified places;
       ``(3) a motor vehicle owned or operated by or for a hotel 
     and only transporting hotel patrons between the hotel and the 
     local station of a common carrier;
       ``(4) a motor vehicle controlled and operated by a farmer 
     and transporting--
       ``(A) the farmer's agricultural or horticultural 
     commodities and products; or
       ``(B) supplies to the farm of the farmer;
       ``(5) a motor vehicle controlled and operated by a 
     cooperative association (as defined by section 15(a) of the 
     Agricultural Marketing Act (12 U.S.C. 1141j(a)) or by a 
     federation of cooperative associations if the federation has 
     no greater power or purposes than a cooperative association, 
     except that if the cooperative association or federation 
     provides transportation for compensation between a place in a 
     State and a place in another State, or between a place in a 
     State and another place in the same State through another 
     State--
       ``(A) for a nonmember that is not a farmer, cooperative 
     association, federation, or the United States Government, the 
     transportation (except for transportation otherwise exempt 
     under this subchapter)--
       ``(i) shall be limited to transportation incidental to the 
     primary transportation operation of the cooperative 
     association or federation and necessary for its effective 
     performance; and
       ``(ii) may not exceed in each fiscal year 25 percent of the 
     total transportation of the cooperative association or 
     federation between those places, measured by tonnage; and
       ``(B) the transportation for all nonmembers may not exceed 
     in each fiscal year, measured by tonnage, the total 
     transportation between those places for the cooperative 
     association or federation and its members during that fiscal 
     year;
       ``(6) transportation by motor vehicle of--
       ``(A) ordinary livestock;
       ``(B) agricultural or horticultural commodities (other than 
     manufactured products thereof);
       ``(C) commodities listed as exempt in the Commodity List 
     incorporated in ruling numbered 107, March 19, 1958, Bureau 
     of Motor Carriers, Interstate Commerce Commission, other than 
     frozen fruits, frozen berries, frozen vegetables, cocoa 
     beans, coffee beans, tea, bananas, or hemp, or wool imported 
     from a foreign country, wool tops and noils, or wool waste 
     (carded, spun, woven, or knitted);
       ``(D) cooked or uncooked fish, whether breaded or not, or 
     frozen or fresh shellfish, or byproducts thereof not intended 
     for human consumption, other than fish or shellfish that have 
     been treated for preserving, such as canned, smoked, pickled, 
     spiced, corned, or kippered products; and
       ``(E) livestock and poultry feed and agricultural seeds and 
     plants, if such products (excluding products otherwise exempt 
     under this paragraph) are transported to a site of 
     agricultural production or to a business enterprise engaged 
     in the sale to agricultural producers of goods used in 
     agricultural production;
       ``(7) a motor vehicle used only to distribute newspapers;
       ``(8)(A) transportation of passengers by motor vehicle 
     incidental to transportation by aircraft;
       ``(B) transportation of property (including baggage) by 
     motor vehicle as part of a continuous movement which, prior 
     or subsequent to such part of the continuous movement, has 
     been or will be transported by an air carrier or (to the 
     extent so agreed by the United States and approved by the 
     Secretary) by a foreign air carrier; or
       ``(C) transportation of property by motor vehicle in lieu 
     of transportation by aircraft because of adverse weather 
     conditions or mechanical failure of the aircraft or other 
     causes due to circumstances beyond the control of the carrier 
     or shipper;
       ``(9) the operation of a motor vehicle in a national park 
     or national monument;
       ``(10) a motor vehicle carrying not more than 15 
     individuals in a single, daily roundtrip to commute to and 
     from work;
       ``(11) transportation of used pallets and used empty 
     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);
       ``(12) transportation of natural, crushed, vesicular rock 
     to be used for decorative purposes;
       ``(13) transportation of wood chips;
       ``(14) brokers for motor carriers of passengers, except as 
     provided in section 13904(d)); or
       ``(15) transportation of broken, crushed, or powdered 
     glass.
       ``(b) Exempt Unless Otherwise Necessary.--Except to the 
     extent the Secretary or Panel, as applicable, finds it 
     necessary to exercise jurisdiction to carry out the 
     transportation policy of section 13101, neither the Secretary 
     nor the Panel has jurisdiction under this part over--
       ``(1) transportation provided entirely in a municipality, 
     in contiguous municipalities, or in a zone that is adjacent 
     to, and commercially a part of, the municipality or 
     municipalities, except--
       ``(A) when the transportation is under common control, 
     management, or arrangement for a continuous carriage or 
     shipment to or from a place outside the municipality, 
     municipalities, or zone; or
       ``(B) that in transporting passengers over a route between 
     a place in a State and a place in another State, or between a 
     place in a State and another place in the same State through 
     another State, the transportation is exempt from jurisdiction 
     under this part only if the motor carrier operating the motor 
     vehicle also is lawfully providing intrastate transportation 
     of passengers over the entire route under the laws of each 
     State through which the route runs;
       ``(2) transportation by motor vehicle provided casually, 
     occasionally, or reciprocally but not as a regular occupation 
     or business, except when a broker or other person sells or 
     offers for sale passenger transportation provided by a person 
     authorized to transport passengers by motor vehicle under an 
     application pending, or registration issued, under this part; 
     or
       ``(3) the emergency towing of an accidentally wrecked or 
     disabled motor vehicle.

     ``Sec. 13507. Mixed loads of regulated and unregulated 
       property

       ``A motor carrier of property providing transportation 
     exempt from jurisdiction under paragraph (6), (8), (11), 
     (12), or (13) of section 13506(a) may transport property 
     under such paragraph in the same vehicle and at the same time 
     as property which the carrier is authorized to transport 
     under a registration issued under section 13902(a). Such 
     transportation shall not affect the unregulated status of 
     such exempt property or the regulated status of the property 
     which the carrier is authorized to transport under such 
     registration.

     ``Sec. 13508. Limited authority over cooperative associations

       ``(a) In General.--Notwithstanding section 13506(a)(5), any 
     cooperative association (as defined by section 15(a) of the 
     Agricultural Marketing Act (12 U.S.C. 1141j(a))) or a 
     federation of cooperative associations shall prepare and 
     maintain such records relating to transportation provided by 
     such association or federation, in such form as the Secretary 
     or the Panel may require by regulation to carry out the 
     provisions of such section 13506(a)(5). The Secretary or the 
     Panel, or an employee designated by the Secretary or the 
     Panel, may on demand and display of proper credentials--
       ``(1) 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) Reports.--Notwithstanding section 13506(a)(5), the 
     Secretary or the Panel may require a cooperative association 
     or federation of cooperative associations described in 
     subsection (a) of this section to file reports with the 
     Secretary or the Panel containing answers to questions about 
     transportation provided by such association or federation.
       ``(c) Enforcement.--The Secretary or the Panel may bring a 
     civil action to enforce subsections (a) and (b) of this 
     section or a regulation or order of the Secretary or the 
     Panel issued under this section, when violated by a 
     cooperative association or federation of cooperative 
     associations described in subsection (a).
       ``(d) Reporting Penalties.--
       ``(1) In general.--A person required to make a report to 
     the Secretary or the Panel, answer a question, or maintain a 
     record under this section, or an officer, agent, or employee 
     of that person, that--
       ``(A) does not make the report;
       ``(B) does not specifically, completely, and truthfully 
     answer the question; or
       ``(C) does not maintain the record in the form and manner 
     prescribed under this section;
     is liable to the United States 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) Venue.--Trial in a civil action under paragraph (1) 
     shall be in the judicial district in which--
       ``(A) the cooperative association or federation of 
     cooperative associations has its principal office;
       ``(B) the violation occurred; or
       ``(C) the offender is found.
     Process in the action may be served in the judicial district 
     of which the offender is an inhabitant or in which the 
     offender may be found.
       ``(e) Evasion Penalties.--A person, or an officer, 
     employee, or agent of that person, that by any means 
     knowingly and willfully tries to evade compliance with the 
     provisions of this section shall be fined at least $200 but 
     not more than $500 for the first violation and at least $250 
     but not more than $2,000 for a subsequent violation.
       ``(f) Recordkeeping Penalties.--A person required to make a 
     report, answer a question, or maintain a record under this 
     section, or an officer, agent, or employee of that person, 
     that--
       ``(1) willfully does not make that report;
       ``(2) willfully does not specifically, completely, and 
     truthfully answer that question in 30 days from the date that 
     the question is required to be answered;
       ``(3) willfully does not maintain that record in the form 
     and manner prescribed;
       ``(4) knowingly and willfully falsifies, destroys, 
     mutilates, or changes that report or record;
       ``(5) knowingly and willfully files a false report or 
     record under this section;
       ``(6) knowingly and willfully makes a false or incomplete 
     entry in that record about a business-related fact or 
     transaction; or
       ``(7) knowingly and willfully maintains a record in 
     violation of a regulation or order issued under this section;

     shall be fined not more than $5,000.

[[Page H 12282]]


             ``SUBCHAPTER II--WATER CARRIER TRANSPORTATION

     ``Sec. 13521. General jurisdiction

       ``(a) General Rules.--The Secretary and the Panel have 
     jurisdiction over transportation insofar as water carriers 
     are concerned--
       ``(1) by water carrier between a place in a State and a 
     place in another State, even if part of the transportation is 
     outside the United States;
       ``(2) by water carrier and motor carrier from a place in a 
     State to a place in another State; except that if part of the 
     transportation is outside the United States, the Secretary 
     only has jurisdiction over that part of the transportation 
     provided--
       ``(A) by motor carrier that is in the United States; and
       ``(B) by water carrier that is from a place in the United 
     States to another place in the United States; and
       ``(3) by water carrier or by water carrier and motor 
     carrier between a place in the United States and a place 
     outside the United States, to the extent that--
       ``(A) when the transportation is by motor carrier, the 
     transportation is provided in the United States;
       ``(B) when the transportation is by water carrier to a 
     place outside the United States, the transportation is 
     provided by water carrier from a place in the United States 
     to another place in the United States before transshipment 
     from a place in the United States to a place outside the 
     United States; and
       ``(C) when the transportation is by water carrier from a 
     place outside the United States, the transportation is 
     provided by water carrier from a place in the United States 
     to another place in the United States after transshipment to 
     a place in the United States from a place outside the United 
     States.
       ``(b) Limitation.--The Panel may not exempt a water carrier 
     from the application of, or compliance with, sections 13701 
     and 13702 for transportation in noncontiguous domestic trade.
       ``(c) Definitions.--In this section, the terms `State' and 
     `United States' include the territories and possessions of 
     the United States.

              ``SUBCHAPTER III--FREIGHT FORWARDER SERVICE

     ``Sec. 13531. General jurisdiction

       ``(a) In General.--The Secretary and the Panel have 
     jurisdiction, as specified in this part, over service that a 
     freight forwarder undertakes to provide, or is authorized or 
     required under this part to provide, to the extent 
     transportation is provided in the United States and is 
     between--
       ``(1) a place in a State and a place in another State, even 
     if part of the transportation is outside the United States;
       ``(2) a place in a State and another place in the same 
     State through a place outside the State; or
       ``(3) a place in the United States and a place outside the 
     United States.
       ``(b) Exemption of Certain Air Carrier Service.--Neither 
     the Secretary nor the Panel has jurisdiction under subsection 
     (a) of this section over service undertaken by a freight 
     forwarder using transportation of an air carrier subject to 
     part A of subtitle VII of this title.

                  ``SUBCHAPTER IV--AUTHORITY TO EXEMPT

     ``Sec. 13541. Authority to exempt transportation or services

       ``(a) In General.--In any matter subject to jurisdiction 
     under this part, the Secretary or the Panel, as applicable, 
     shall exempt a person, class of persons, or a transaction or 
     service from the application of a provision of this part, or 
     use this exemption authority to modify the application of a 
     provision of this part as it applies to such person, class, 
     transaction, or service, when the Secretary or Panel finds 
     that the application of that provision in whole or in part--
       ``(1) is not necessary to carry out the transportation 
     policy of section 13101;
       ``(2) is not needed to protect shippers from the abuse of 
     market power or that the transaction or service is of limited 
     scope; and
       ``(3) is in the public interest.
       ``(b) Initiation of Proceeding.--The Secretary or Panel, as 
     applicable, may, where appropriate, begin a proceeding under 
     this section on the Secretary's or Panel's own initiative or 
     on application by an interested party.
       ``(c) Period of Exemption.--The Secretary or Panel, as 
     applicable, may specify the period of time during which an 
     exemption granted under this section is effective.
       ``(d) Revocation.--The Secretary or Panel, as applicable, 
     may revoke an exemption, to the extent specified, on finding 
     that application of a provision of this part to the person, 
     class, or transportation is necessary to carry out the 
     transportation policy of section 13101.
       ``(e) Limitations.--The exemption authority under this 
     section may not be used to relieve a person from the 
     application of, and compliance with, any law, rule, 
     regulation, standard, or order pertaining to cargo loss and 
     damage, insurance, safety fitness, or activities approved 
     under section 13703 or not terminated under section 
     13907(d)(2).

                ``CHAPTER 137--RATES AND THROUGH ROUTES

``Sec.
``13701. Requirements for reasonable rates, classifications, through 
              routes, rules, and practices for certain transportation.
``13702. Tariff requirement for certain transportation.
``13703. Certain collective activities; exemption from antitrust laws.
``13704. Household goods rates--estimates; guarantees of service.
``13705. Requirements for through routes among motor carriers of 
              passengers.
``13706. Liability for payment of rates.
``13707. Payment of Rates.
``13708. Billing and collecting practices.
``13709. Procedures for resolving claims involving unfiled, negotiated 
              transportation rates.
``13710. Additional billing and collecting practices.
``13711. Alternative procedure for resolving undercharge disputes.
``13712. Government traffic.
``13713. Food and grocery transportation.

     ``Sec. 13701. Requirements for reasonable rates, 
       classifications, through routes, rules, and practices for 
       certain transportation

       ``(a) Reasonableness.--
       ``(1) Certain household goods transportation; joint rates 
     involving water transportation.--A rate, classification, 
     rule, or practice related to transportation or service 
     provided by a carrier subject to jurisdiction under chapter 
     135 for transportation or service involving--
       ``(A) a movement of household goods,
       ``(B) a rate for a movement by or with a water carrier in 
     noncontiguous domestic trade, or
       ``(C) rates, rules, and classifications made collectively 
     by motor carriers under agreement pursuant to section 13703,
     must be reasonable.
       ``(2) Through routes and divisions of joint rates.--Through 
     routes and divisions of joint rates for such transportation 
     or service must be reasonable.
       ``(b) Prescription by Panel for Violations.--When the Panel 
     finds it necessary to stop or prevent a violation of 
     subsection (a), the Panel shall prescribe the rate, 
     classification, rule, practice, through route, or division of 
     joint rates to be applied for such transportation or service.
       ``(c) Zone of Reasonableness.--
       ``(1) In general.--For purposes of this section, a rate or 
     division of a carrier for service in noncontiguous domestic 
     trade is reasonable if the aggregate of increases and 
     decreases in any such rate or division is not more than 10 
     percent above, or more than 10 percent below, the rate or 
     division in effect 1 year before the effective date of the 
     proposed rate or division.
       ``(2) Adjustments to the zone.--The percentage specified in 
     paragraph (1) shall be increased or decreased, as the case 
     may be, by the percentage change in the Producers Price 
     Index, as published by the Department of Labor, that has 
     occurred during the most recent 1-year period before the date 
     the rate or division in question first took effect.

     ``Sec. 13702. Tariff requirement for certain transportation

       ``(a) In General.--A carrier subject to jurisdiction under 
     chapter 135 may provide transportation or service that is--
       ``(1) in noncontiguous domestic trade, except with regard 
     to bulk cargo, forest products, recycled metal scrap, waste 
     paper, and paper waste; or
       ``(2) for movement of household goods;

     only if the rate for such transportation or service is 
     contained in a tariff that is in effect under this section. 
     The carrier may not charge or receive a different 
     compensation for the transportation or service than the rate 
     specified in the tariff, whether by returning a part of that 
     rate to a person, giving a person a privilege, allowing the 
     use of a facility that affects the value of that 
     transportation or service, or another device. A rate 
     contained in a tariff shall be stated in money of the United 
     States.
       ``(b) Tariff Requirements for Noncontiguous Domestic 
     Trade.--
       ``(1) Filing.--A carrier providing transportation or 
     service described in subsection (a)(1) shall publish and file 
     with the Panel tariffs containing the rates established for 
     such transportation or service. The carriers shall keep such 
     tariffs available for public inspection. The Panel shall 
     prescribe the form and manner of publishing, filing, and 
     keeping tariffs available for public inspection under this 
     subsection.
       ``(2) Contents.--The Panel may prescribe any specific 
     information and charges to be identified in a tariff, but at 
     a minimum tariffs must identify plainly--
       ``(A) the carriers that are parties to it;
       ``(B) the places between which property will be 
     transported;
       ``(C) terminal charges if a carrier provides transportation 
     or service subject to jurisdiction under subchapter III of 
     chapter 135;
       ``(D) privileges given and facilities allowed; and
       ``(E) any rules that change, affect, or determine any part 
     of the published rate.
       ``(3) Inland divisions.--A carrier providing transportation 
     or service described in subsection (a)(1) under a joint rate 
     for a through movement shall not be required to state 
     separately or otherwise reveal in tariff filings the inland 
     divisions of that through rate.
       ``(4) Time-volume rates.--Rates in tariffs filed under this 
     subsection may vary with the volume of cargo offered over a 
     specified period of time.
       ``(5) Changes.--The Panel may permit carriers to change 
     rates, classifications, rules, and practices without filing 
     complete tariffs under this subsection that cover matter that 
     is not being changed when the Panel finds that action to be 
     consistent with the public interest. Those carriers may 
     either--
       ``(A) publish new tariffs that incorporate changes, or
       ``(B) plainly indicate the proposed changes in the tariffs 
     then in effect and make the tariffs as changed available for 
     public inspection.
       ``(c) Tariff Requirements for Household Goods Carriers.--
       ``(1) In general.--A carrier providing transportation 
     described in subsection (a)(2) shall maintain rates and 
     related rules and practices 

[[Page H 12283]]
     in a tariff. The tariff must be submitted to the Panel for inspection 
     and be made available for inspection by shippers upon 
     reasonable request.
       ``(2) Notice of availability.--A carrier that maintains a 
     tariff under this subsection may not enforce the provisions 
     of the tariff unless the carrier has given notice that the 
     tariff is available for inspection in its bill of lading or 
     by other actual notice to individuals whose shipments are 
     subject to the tariff.
       ``(3) Requirements.--A carrier that maintains a tariff 
     under this subsection is bound by the tariff except as 
     otherwise provided in this part. A tariff that does not 
     comply with this subsection may not be enforced against any 
     individual shipper.
       ``(4) Incorporation by reference.--A carrier may 
     incorporate by reference the rates, terms, and other 
     conditions of a tariff in agreements covering the 
     transportation of household goods.
       ``(5) Complaints.--A complaint that a rate or related rule 
     or practice maintained in a tariff under this subsection 
     violates section 13701(a) may be submitted to the Panel for 
     resolution.
       ``(d) Invalidation.--The Panel may invalidate a tariff 
     prepared by a carrier or carriers under this section if that 
     tariff violates this section or a regulation of the Panel 
     carrying out this section.

     ``Sec. 13703. Certain collective activities; exemption from 
       antitrust laws

       ``(a) Agreements.--
       ``(1) Authority to enter.--A motor carrier providing 
     transportation or service subject to jurisdiction under 
     chapter 135 may enter into an agreement with one or more such 
     carriers to establish--
       ``(A) through routes and joint rates;
       ``(B) rates for the transportation of household goods;
       ``(C) classifications;
       ``(D) mileage guides;
       ``(E) rules;
       ``(F) divisions;
       ``(G) rate adjustments of general application based on 
     industry average carrier costs (so long as there is no 
     discussion of individual markets or particular single-line 
     rates); or
       ``(H) procedures for joint consideration, initiation, or 
     establishment of matters described in subparagraphs (A) 
     through (G).
       ``(2) Submission of agreement to panel; approval.--An 
     agreement entered into under subsection (a) may be submitted 
     by any carrier or carriers that are parties to such agreement 
     to the Panel for approval and may be approved by the Panel 
     only if it finds that such agreement is in the public 
     interest.
       ``(3) Conditions.--The Panel may require compliance with 
     reasonable conditions consistent with this part to assure 
     that the agreement furthers the transportation policy set 
     forth in section 13101.
       ``(4) Independently established rates.--Any carrier which 
     is a party to an agreement under paragraph (1) is not, and 
     may not be precluded, from independently establishing its own 
     rates, classification, and mileages or from adopting and 
     using a noncollectively made classification or mileage guide.
       ``(5) Investigations.--
       ``(A) Reasonableness.--The Panel may suspend and 
     investigate the reasonableness of any rate, rule, 
     classification, or rate adjustment of general application 
     made pursuant to an agreement under this section.
       ``(B) Actions not in the public interest.--The Panel may 
     investigate any action taken pursuant to an agreement 
     approved under this section. If the Panel finds that the 
     action is not in the public interest, the Panel may take such 
     measures as may be necessary to protect the public interest 
     with regard to the action, including issuing an order 
     directing the parties to cease and desist or modify the 
     action.
       ``(6) Effect of approval.--If the Panel approves the 
     agreement or renews approval of the agreement, it may be made 
     and carried out under its terms and under the conditions 
     required by the Panel, and the antitrust laws, as defined in 
     the first section of the Clayton Act (15 U.S.C. 12), do not 
     apply to parties and other persons with respect to making or 
     carrying out the agreement.
       ``(b) Records.--The Panel may require an organization 
     established or continued under an agreement approved under 
     this section to maintain records and submit reports. The 
     Panel, or its delegate, may inspect a record maintained under 
     this section, or monitor any organization's compliance with 
     this section.
       ``(c) Review.--The Panel may review an agreement approved 
     under this section, on its own initiative or on request, and 
     shall change the conditions of approval or terminate it when 
     necessary to protect the public interest. Action of the Panel 
     under this section--
       ``(1) approving an agreement,
       ``(2) denying, ending, or changing approval,
       ``(3) prescribing the conditions on which approval is 
     granted, or
       ``(4) changing those conditions,

     has effect only as related to application of the antitrust 
     laws referred to in subsection (a).
       ``(d) Expiration of Approvals; Renewals.--Subject to 
     subsection (c), approval of an agreement under subsection (a) 
     shall expire 3 years after the date of approval unless 
     renewed under this subsection. The approval may be renewed 
     upon request of the parties to the agreement if such parties 
     resubmit the agreement to the Panel, the agreement is 
     unchanged, and the Panel approves such renewal. The Panel 
     shall approve the renewal unless it finds that the renewal is 
     not in the public interest. Parties to the agreement may 
     continue to undertake activities pursuant to the previously 
     approved agreement while the renewal request is pending.
       ``(e) Existing Agreements.--Agreements approved under 
     former section 10706(b) and in effect on the day before the 
     effective date of this section shall be treated for purposes 
     of this section as approved by the Panel under this section 
     beginning on such effective date.
       ``(f) Limitations on Statutory Construction.--
       ``(1) Undercharge claims.--Nothing in this section shall 
     serve as a basis for any undercharge claim.
       ``(2) Obligation of shipper.--Nothing in this title, the 
     ICC Termination Act of 1995, or any amendments or repeals 
     made by such Act shall be construed as creating any 
     obligation for a shipper based solely on a classification 
     that was on file with the Interstate Commerce Commission or 
     elsewhere on the day before the effective date of this 
     section.
       ``(g) Industry Standard Guides.--
       ``(1) In general.--
       ``(A) Public availability.--Routes, rates, classifications, 
     mileage guides, and rules established under agreements 
     approved under this section shall be published and made 
     available for public inspection upon request.
       ``(B) Participation of carriers.--
       ``(i) In general.--A motor carrier of property whose 
     routes, rates, classifications, mileage guides, rules, or 
     packaging are determined or governed by publications 
     established under agreements approved under this section must 
     participate in the determining or governing publication for 
     such provisions to apply.
       ``(ii) Power of attorney.--The motor carrier of property 
     shall issue a power of attorney to the publishing agent and, 
     upon its acceptance, the agent shall issue a written 
     certification to the motor carrier affirming its 
     participation in the governing publication, and the 
     certification shall be made available for public inspection.
       ``(2) Mileage limitation.--No carrier subject to 
     jurisdiction under subchapter I or III of chapter 135 may 
     enforce collection of its mileage rates unless such carrier--
       ``(A) uses an independent publication of mileage that is 
     developed independently of any other publication of mileage 
     developed by any other carrier and that can be examined by 
     any interested person upon reasonable request; or
       ``(B) is a participant in a publication of mileages 
     formulated under an agreement approved under this section.
       ``(h) Single Line Rate Defined.--In this section, the term 
     `single line rate' means a rate, charge, or allowance 
     proposed by a single motor carrier that is applicable only 
     over its line and for which the transportation can be 
     provided by that carrier.

     ``Sec. 13704. Household goods rates--estimates; guarantees of 
       service

       ``(a) In General.--
       ``(1) Authority.--Subject to the provisions of paragraph 
     (2) of this subsection, a motor carrier providing 
     transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135 may establish a rate for 
     the transportation of household goods which is based on the 
     carrier's written, binding estimate of charges for providing 
     such transportation.
       ``(2) Nonpreferential; nonpredatory.--Any rate established 
     under this subsection must be available on a nonpreferential 
     basis to shippers and must not result in charges to shippers 
     which are predatory.
       ``(b) Rates for Guaranteed Service.--
       ``(1) Authority.--Subject to the provisions of paragraph 
     (2) of this subsection, a motor carrier providing 
     transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135 may establish rates for the 
     transportation of household goods which guarantee that the 
     carrier will pick up and deliver such household goods at the 
     times specified in the contract for such services and provide 
     a penalty or per diem payment in the event the carrier fails 
     to pick up or deliver such household goods at the specified 
     time. The charges, if any, for such guarantee and penalty 
     provision may vary to reflect one or more options available 
     to meet a particular shipper's needs.
       ``(2) Authority of secretary to require nonguaranteed 
     service rates.--Before a carrier may establish a rate for any 
     service under paragraph (1) of this subsection, the Secretary 
     may require such carrier to have in effect and keep in 
     effect, during any period such rate is in effect under 
     paragraph (1), a rate for such service which does not 
     guarantee the pick up and delivery of household goods at the 
     times specified in the contract for such services and which 
     does not provide a penalty or per diem payment in the event 
     the carrier fails to pick up or deliver household goods at 
     the specified time.

     ``Sec. 13705. Requirements for through routes among motor 
       carriers of passengers

       ``(a) Establishment; Reasonableness.--A motor carrier 
     providing transportation of passengers subject to 
     jurisdiction under subchapter I of chapter 135 shall 
     establish through routes with other carriers of the same type 
     and shall establish individual and joint rates applicable to 
     them. Such through route must be reasonable.
       ``(b) Prescribed by Panel.--When the Panel finds it 
     necessary to enforce the requirements of this section, the 
     Panel may prescribe through routes and the conditions under 
     which those routes must be operated for motor carriers 
     providing transportation of passengers subject to 
     jurisdiction under subchapter I of chapter 135.

     ``Sec. 13706. Liability for payment of rates

       ``(a) Liability of Consignee.--Liability for payment of 
     rates for transportation for a shipment of property by a 
     shipper or consignor to a consignee other than the shipper or 
     consignor, is determined under this section when the 
     transportation is provided by motor carrier under this part. 
     When the shipper or consignor instructs the carrier 
     transporting the property to deliver it to a consignee that 
     is an agent only, not having beneficial title to the 
     property, the consignee is liable for rates billed at the 
     time of delivery for which the consignee is otherwise liable, 
     but 

[[Page H 12284]]
     not for additional rates that may be found to be due after delivery if 
     the consignee gives written notice to the delivering carrier 
     before delivery of the property--
       ``(1) of the agency and absence of beneficial title; and
       ``(2) of the name and address of the beneficial owner of 
     the property if it is reconsigned or diverted to a place 
     other than the place specified in the original bill of 
     lading.
       ``(b) Liability of Beneficial Owner.--When the consignee is 
     liable only for rates billed at the time of delivery under 
     subsection (a), the shipper or consignor, or, if the property 
     is reconsigned or diverted, the beneficial owner is liable 
     for those additional rates regardless of the bill of the 
     lading or contract under which the property was transported. 
     The beneficial owner is liable for all rates when the 
     property is reconsigned or diverted by an agent but is 
     refused or abandoned at its ultimate destination if the agent 
     gave the carrier in the reconsignment or diversion order a 
     notice of agency and the name and address of the beneficial 
     owner. A consignee giving the carrier erroneous information 
     about the identity of the beneficial owner of the property is 
     liable for the additional rates.

     ``Sec. 13707. Payment of rates

       ``(a) Transfer of Possession Upon Payment.--Except as 
     provided in subsection (b), a carrier providing 
     transportation or service subject to jurisdiction under this 
     part shall give up possession at the destination of the 
     property transported by it only when payment for the 
     transportation or service is made.
       ``(b) Exceptions.--
       ``(1) Regulations.--Under regulations of the Secretary 
     governing the payment for transportation and service and 
     preventing discrimination, those carriers may give up 
     possession at destination of property transported by them 
     before payment for the transportation or service. The 
     regulations of the Secretary may provide for weekly or 
     monthly payment for transportation provided by motor carriers 
     and for periodic payment for transportation provided by water 
     carriers.
       ``(2) Extensions of credit to governmental entities.--Such 
     a carrier (including a motor carrier being used by a 
     household goods freight forwarder) may extend credit for 
     transporting property for the United States Government, a 
     State, a territory or possession of the United States, or a 
     political subdivision of any of them.

     ``Sec. 13708. Billing and collecting practices

       ``(a) Disclosure.--A motor carrier subject to jurisdiction 
     under subchapter I of chapter 135 shall disclose, when a 
     document is presented or electronically transmitted for 
     payment to the person responsible directly to the motor 
     carrier for payment or agent of such responsible person, the 
     actual rates, charges, or allowances for any transportation 
     service and shall also disclose, at such time, whether and to 
     whom any allowance or reduction in charges is made.
       ``(b) False or Misleading Information.--No person may cause 
     a motor carrier to present false or misleading information on 
     a document about the actual rate, charge, or allowance to any 
     party to the transaction.
       ``(c) Allowances for Services.--When the actual rate, 
     charge, or allowance is dependent upon the performance of a 
     service by a party to the transportation arrangement, such as 
     tendering a volume of freight over a stated period of time, 
     the motor carrier shall indicate in any document presented 
     for payment to the person responsible directly to the motor 
     carrier that a reduction, allowance, or other adjustment may 
     apply.

     ``Sec. 13709. Procedures for resolving claims involving 
       unfiled, negotiated transportation rates

       ``(a) Transportation Provided at Rates Other Than Legal 
     Tariff Rates.--
       ``(1) In general.--When a claim is made by a motor carrier 
     of property (other than a household goods carrier) providing 
     transportation subject to jurisdiction under subchapter II of 
     chapter 105, as in effect on the day before the effective 
     date of this section, by a freight forwarder (other than a 
     household goods freight forwarder), or under subchapter I of 
     chapter 135 or by a party representing such a carrier or 
     freight forwarder regarding the collection of rates or 
     charges for such transportation in addition to those 
     originally billed and collected by the carrier or freight 
     forwarder for such transportation, the person against whom 
     the claim is made may elect to satisfy the claim under the 
     provisions of subsection (b), (c), or (d), upon showing 
     that--
       ``(A) the carrier or freight forwarder is no longer 
     transporting property or is transporting property for the 
     purpose of avoiding the application of this section; and
       ``(B) with respect to the claim--
       ``(i) the person was offered a transportation rate by the 
     carrier or freight forwarder other than that legally on file 
     with the Interstate Commerce Commission or the Panel, as 
     required for the transportation service;
       ``(ii) the person tendered freight to the carrier or 
     freight forwarder in reasonable reliance upon the offered 
     transportation rate;
       ``(iii) the carrier or freight forwarder did not properly 
     or timely file with the Interstate Commerce Commission or the 
     Panel, as required a tariff providing for such transportation 
     rate or failed to enter into an agreement for contract 
     carriage;
       ``(iv) such transportation rate was billed and collected by 
     the carrier or freight forwarder; and
       ``(v) the carrier or freight forwarder demands additional 
     payment of a higher rate filed in a tariff.
       ``(2) Forum for resolution of showings.--If there is a 
     dispute as to the showing under paragraph (1)(A), such 
     dispute shall be resolved by the court in which the claim is 
     brought. If there is a dispute as to the showing under 
     paragraph (1)(B), such dispute shall be resolved by the 
     Panel. Pending the resolution of any such dispute, the person 
     shall not have to pay any additional compensation to the 
     carrier or freight forwarder.
       ``(3) Effect of satisfaction of claims under dispute 
     resolution procedure.--Satisfaction of a claim under 
     subsection (b), (c), or (d) shall be binding on the parties, 
     and the parties shall not be subject to chapter 119, as in 
     effect on the day before the effective date of this section 
     or chapter 149.
       ``(b) Claims Involving Shipments Weighing 10,000 Pounds or 
     Less.--A person from whom the additional legally applicable 
     and effective tariff rate or charges are sought may elect to 
     satisfy the claim, if the shipments each weighed 10,000 
     pounds or less, by payment of 20 percent of the difference 
     between the carrier's applicable and effective tariff rate 
     and the rate originally billed and paid. In the event that a 
     dispute arises as to the rate that was legally applicable to 
     the shipment, such dispute shall be resolved by the Panel .
       ``(c) Claims Involving Shipments Weighing More Than 10,000 
     Pounds.--A person from whom the additional legally applicable 
     and effective tariff rate or charges are sought may elect to 
     satisfy the claim, if the shipments each weighed more than 
     10,000 pounds, by payment of 15 percent of the difference 
     between the carrier's applicable and effective tariff rate 
     and the rate originally billed and paid. In the event that a 
     dispute arises as to the rate that was legally applicable to 
     the shipment, such dispute shall be resolved by the Panel.
       ``(d) Claims Involving Public Warehousemen.--
     Notwithstanding subsections (b) and (c), a person from whom 
     the additional legally applicable and effective tariff rate 
     or charges are sought may elect to satisfy the claim by 
     payment of 5 percent of the difference between the carrier's 
     applicable and effective tariff rate and the rate originally 
     billed and paid if such person is a public warehouseman. In 
     the event that a dispute arises as to the rate that was 
     legally applicable to the shipment, such dispute shall be 
     resolved by the Panel.
       ``(e) Effects of Election.--When a person from whom 
     additional legally applicable freight rates or charges are 
     sought does not elect to use the provisions of subsections 
     (b), (c) or (d), the person may pursue all rights and 
     remedies existing under this part or, for transportation 
     provided before the effective date of this section, all 
     rights and remedies that existed under this title on the day 
     before the effective date of this section.
       ``(f) Stay of Additional Compensation.--When a person 
     proceeds under this section to challenge the reasonableness 
     of the legally applicable freight rate or charges being 
     claimed by a carrier or freight forwarder in addition to 
     those already billed and collected, the person shall not have 
     to pay any additional compensation to the carrier or freight 
     forwarder until the Panel has made a determination as to the 
     reasonableness of the challenged rate as applied to the 
     freight of the person against whom the claim is made.
       ``(g) Notification of Election.--
       ``(1) General rule.--A person must notify the carrier or 
     freight forwarder as to its election to proceed under 
     subsection (b), (c), or (d). Except as provided in paragraphs 
     (2), (3), and (4), such election may be made at any time.
       ``(2) Demands for payment initially made after december 3, 
     1993.--If the carrier or freight forwarder or party 
     representing such carrier or freight forwarder initially 
     demands the payment of additional freight charges after 
     December 3, 1993, and notifies the person from whom 
     additional freight charges are sought of the provisions of 
     subsections (a) through (f) at the time of the making of such 
     initial demand, the election must be made not later than the 
     later of--
       ``(A) the 60th day following the filing of an answer to a 
     suit for the collection of such additional legally applicable 
     freight rate or charges, or
       ``(B) March 5, 1994.
       ``(3) Pending suits for collection made before december 4, 
     1993.--If the carrier or freight forwarder or party 
     representing such carrier or freight forwarder has filed, 
     before December 4, 1993, a suit for the collection of 
     additional freight charges and notifies the person from whom 
     additional freight charges are sought of the provisions of 
     subsections (a) through (f), the election must be made not 
     later than the 90th day following the date on which such 
     notification is received.
       ``(4) Demands for payment made before december 4, 1993.--If 
     the carrier or freight forwarder or party representing such 
     carrier or freight forwarder has demanded the payment of 
     additional freight charges, and has not filed a suit for the 
     collection of such additional freight charges, before 
     December 4, 1993, and notifies the person from whom 
     additional freight charges are sought of the provisions of 
     subsections (a) through (f), the election must be made not 
     later than the later of--
       ``(A) the 60th day following the filing of an answer to a 
     suit for the collection of such additional legally applicable 
     freight rate or charges, or
       ``(B) March 5, 1994.
       ``(h) Claims Involving Small-Business Concerns, Charitable 
     Organizations, and Recyclable Materials.--
       ``(1) In general.--Notwithstanding subsections (b), (c), 
     and (d), a person from whom the additional legally applicable 
     and effective tariff rate or charges are sought shall not be 
     liable for the difference between the carrier's applicable 
     and effective tariff rate and the rate originally billed and 
     paid--
       ``(A) if such person qualifies as a small-business concern 
     under the Small Business Act (15 U.S.C. 631 et seq.),

[[Page H 12285]]

       ``(B) if such person is an organization which is described 
     in section 501(c)(3) of the Internal Revenue Code of 1986 and 
     exempt from tax under section 501(a) of such Code, or
       ``(C) if the cargo involved in the claim is recyclable 
     materials.
       ``(2) Recyclable materials defined.--In this subsection, 
     the term `recyclable materials' means waste products for 
     recycling or reuse in the furtherance of recognized pollution 
     control programs.

     ``Sec. 13710. Additional billing and collecting practices

       ``(a) Miscellaneous Provisions.--
       ``(1) Information relating to basis of rate.--A motor 
     carrier of property (other than a motor carrier providing 
     transportation in noncontiguous domestic trade) shall provide 
     to the shipper, on request of the shipper, a written or 
     electronic copy of the rate, classification, rules, and 
     practices, upon which any rate applicable to its shipment or 
     agreed to between the shipper and carrier may have been 
     based.
       ``(2) Reasonableness of rates; collecting additional 
     charges.--When the applicability or reasonableness of the 
     rates and related provisions billed by a motor carrier is 
     challenged by the person paying the freight charges, the 
     Panel shall determine whether such rates and provisions are 
     reasonable or applicable based on the record before it.
       ``(3) Billing disputes.--
       ``(A) Initiated by motor carriers.--In those cases where a 
     motor carrier (other than a motor carrier providing 
     transportation of household goods or in noncontiguous 
     domestic trade) seeks to collect charges in addition to those 
     billed and collected which are contested by the payor, the 
     carrier may request that the Panel determine whether any 
     additional charges over those billed and collected must be 
     paid. A carrier must issue any bill for charges in addition 
     to those originally billed within 180 days of the receipt of 
     the original bill in order to have the right to collect such 
     charges.
       ``(B) Initiated by shippers.--If a shipper seeks to contest 
     the charges originally billed or additional charges 
     subsequently billed, the shipper may request that the Panel 
     determine whether the charges billed must be paid. A shipper 
     must contest the original bill or subsequent bill within 180 
     days of receipt of the bill in order to have the right to 
     contest such charges.
       ``(4) Voiding of certain tariffs.--Any tariff on file with 
     the Interstate Commerce Commission on August 26, 1994, and 
     not required to be filed after that date is null and void 
     beginning on that date. Any tariff on file with the 
     Interstate Commerce Commission on the effective date of this 
     section and not required to be filed after that date is null 
     and void beginning on that date.
       ``(b) Resolution of Disputes Over Status of Common Carrier 
     or Contract Carrier.--If a motor carrier (other than a motor 
     carrier providing transportation of household goods) that was 
     subject to jurisdiction under subchapter II of chapter 105, 
     as in effect on the day before the effective date of this 
     section, and that had authority to provide transportation as 
     both a motor common carrier and a motor contract carrier and 
     a dispute arises as to whether certain transportation that 
     was provided prior to the effective date of this section was 
     provided in its common carrier or contract carrier capacity 
     and the parties are not able to resolve the dispute 
     consensually, the Panel shall resolve the dispute.

     ``Sec. 13711. Alternative procedure for resolving undercharge 
       disputes

       ``(a) General Rule.--It shall be an unreasonable practice 
     for a motor carrier of property (other than a household goods 
     carrier) providing transportation subject to jurisdiction 
     under subchapter I of chapter 135 or, before the effective 
     date of this section, to have provided transportation that 
     was subject to jurisdiction under subchapter II of chapter 
     105 as in effect on the day before the effective date of this 
     section, a freight forwarder (other than a household goods 
     freight forwarder), or a party representing such a carrier or 
     freight forwarder to attempt to charge or to charge for a 
     transportation service the difference between (1) the 
     applicable rate that was lawfully in effect pursuant to a 
     tariff that was filed in accordance with this chapter or, 
     with respect to transportation provided before the effective 
     date of this section, in accordance with chapter 107 as in 
     effect on the date the transportation was provided by the 
     carrier or freight forwarder applicable to such 
     transportation service and (2) the negotiated rate for such 
     transportation service if the carrier or freight forwarder is 
     no longer transporting property between places described in 
     section 13501(1) or is transporting property between places 
     described in section 13501(1) for the purpose of avoiding 
     application of this section.
       ``(b) Jurisdiction of Panel.--
       ``(1) Determination.--The Panel shall have jurisdiction to 
     make a determination of whether or not attempting to charge 
     or the charging of a rate by a motor carrier or freight 
     forwarder or party representing a motor carrier or freight 
     forwarder is an unreasonable practice under subsection (a). 
     If the Panel determines that attempting to charge or the 
     charging of the rate is an unreasonable practice under 
     subsection (a), the carrier, freight forwarder, or party may 
     not collect the difference described in subsection (a) 
     between the applicable rate and the negotiated rate for the 
     transportation service.
       ``(2) Factors to consider.--In making a determination under 
     paragraph (1), the Panel shall consider--
       ``(A) whether the person was offered a transportation rate 
     by the carrier or freight forwarder or party other than that 
     legally on file with the Interstate Commerce Commission or 
     the Panel, as required at the time of the movement for the 
     transportation service;
       ``(B) whether the person tendered freight to the carrier or 
     freight forwarder in reasonable reliance upon the offered 
     transportation rate;
       ``(C) whether the carrier or freight forwarder did not 
     properly or timely file with the Interstate Commerce 
     Commission or the Panel, as required, a tariff providing for 
     such transportation rate or failed to enter into an agreement 
     for contract carriage;
       ``(D) whether the transportation rate was billed and 
     collected by the carrier or freight forwarder; and
       ``(E) whether the carrier or freight forwarder or party 
     demands additional payment of a higher rate filed in a 
     tariff.
       ``(c) Stay of Additional Compensation.--When a person 
     proceeds under this section to challenge the reasonableness 
     of the practice of a motor carrier, freight forwarder, or 
     party described in subsection (a) to attempt to charge or to 
     charge the difference described in subsection (a) between the 
     applicable rate and the negotiated rate for the 
     transportation service in addition to those charges already 
     billed and collected for the transportation service, the 
     person shall not have to pay any additional compensation to 
     the carrier, freight forwarder, or party until the Panel has 
     made a determination as to the reasonableness of the practice 
     as applied to the freight of the person against whom the 
     claim is made.
       ``(d) Treatment.--Subsection (a) is an exception to the 
     requirements of section 13702 and, for transportation 
     provided before the effective date of this section, to the 
     requirements of sections 10761(a) and 10762, as in effect on 
     the day before such effective date, as such sections relate 
     to a filed tariff rate and other general tariff requirements.
       ``(e) Nonapplicability of Negotiated Rate Dispute 
     Resolution Procedure.--If a person elects to seek enforcement 
     of subsection (a) with respect to a rate for a transportation 
     or service, section 13709 shall not apply to such rate.
       ``(f) Definitions.--In this section, the term ``negotiated 
     rate'' means a rate, charge, classification, or rule agreed 
     upon by a motor carrier or freight forwarder and a shipper 
     through negotiations pursuant to which no tariff was lawfully 
     and timely filed and for which there is written evidence of 
     such agreement.
       ``(g) Applicability to Pending Cases.--This section shall 
     apply to all cases and proceedings pending on the effective 
     date of this section.

     ``Sec. 13711. Government traffic

       ``A carrier providing transportation or service for the 
     United States Government may transport property or 
     individuals for the United States Government without charge 
     or at a rate reduced from the applicable commercial rate. 
     Section 3709 of the Revised Statutes (41 U.S.C. 5) does not 
     apply when transportation for the United States Government 
     can be obtained from a carrier lawfully operating in the area 
     where the transportation would be provided.

     ``Sec. 13712. Food and grocery transportation

       ``(a) Certain Compensation Prohibited.--Notwithstanding any 
     other provision of law, it shall not be unlawful for a seller 
     of food and grocery products using a uniform zone delivered 
     pricing system to compensate a customer who picks up 
     purchased food and grocery products at the shipping point of 
     the seller if such compensation is available to all customers 
     of the seller on a nondiscriminatory basis and does not 
     exceed the actual cost to the seller of delivery to such 
     customer.
       ``(b) Sense of Congress.--It is the sense of the Congress 
     that any savings accruing to a customer by reason of 
     compensation permitted by subsection (a) of this section 
     should be passed on to the ultimate consumer.

                      ``CHAPTER 139--REGISTRATION

``Sec.
``13901. Requirement for registration.
``13902. Registration of motor carriers.
``13903. Registration of freight forwarders.
``13904. Registration of brokers.
``13905. Effective periods of registration.
``13906. Security of motor carriers, brokers, and freight forwarders.
``13907. Household goods agents.
``13908. Registration and other reforms.

     ``Sec. 13901. Requirement for registration

       ``A person may provide transportation or service subject to 
     jurisdiction under subchapter I or III of chapter 135 or be a 
     broker for transportation subject to jurisdiction under 
     subchapter I of that chapter, only if the person is 
     registered under this chapter to provide the transportation 
     or service.

     ``Sec. 13902. Registration of motor carriers

       ``(a) Motor Carrier Generally.--
       ``(1) In general.--Except as provided in this section, the 
     Secretary shall register a person to provide transportation 
     subject to jurisdiction under subchapter I of chapter 135 of 
     this title as a motor carrier if the Secretary finds that the 
     person is willing and able to comply with--
       ``(A) this part and the applicable regulations of the 
     Secretary and the Panel;
       ``(B) any safety regulations imposed by the Secretary and 
     the safety fitness requirements established by the Secretary 
     under section 31144; and
       ``(C) the minimum financial responsibility requirements 
     established by the Secretary pursuant to sections 13906 and 
     31138.
       ``(2) Consideration of evidence; findings.--The Secretary 
     shall consider and, to the extent applicable, make findings 
     on, any evidence demonstrating that the registrant is unable 
     to comply with the requirements of subparagraph (A), (B), or 
     (C) of paragraph (1).
       ``(3) Withholding.--If the Secretary determines that any 
     registrant under this section does not meet the requirements 
     of paragraph (1), the Secretary shall withhold registration.
       ``(4) Limitation on complaints.--The Secretary may hear a 
     complaint from any person 

[[Page H 12286]]
     concerning a registration under this subsection only on the ground that 
     the registrant fails or will fail to comply with this part, 
     the applicable regulations of the Secretary and the Panel, 
     the safety regulations of the Secretary, or the safety 
     fitness or minimum financial responsibility requirements of 
     paragraph (1) of this subsection.
       ``(b) Motor Carriers of Passengers.--
       ``(1) Registration of private recipients of governmental 
     assistance.--The Secretary shall register under subsection 
     (a)(1) a private recipient of governmental assistance to 
     provide special or charter transportation subject to 
     jurisdiction under subchapter I of chapter 135 as a motor 
     carrier of passengers if the Secretary finds that the 
     recipient meets the requirements of subsection (a)(1), unless 
     the Secretary finds, on the basis of evidence presented by 
     any person objecting to the registration, that the 
     transportation to be provided pursuant to the registration is 
     not in the public interest.
       ``(2) Registration of public recipients of governmental 
     assistance.--
       ``(A) Charter transportation.--The Secretary shall register 
     under subsection (a)(1) a public recipient of governmental 
     assistance to provide special or charter transportation 
     subject to jurisdiction under subchapter I of chapter 135 as 
     a motor carrier of passengers if the Secretary finds 
     that--
       ``(i) the recipient meets the requirements of subsection 
     (a)(1); and
       ``(ii)(I) no motor carrier of passengers (other than a 
     motor carrier of passengers which is a public recipient of 
     governmental assistance) is providing, or is willing to 
     provide, the transportation; or
       ``(II) the transportation is to be provided entirely in the 
     area in which the public recipient provides regularly 
     scheduled mass transportation services.
       ``(B) Regular-route transportation.--The Secretary shall 
     register under subsection (a)(1) a public recipient of 
     governmental assistance to provide regular-route 
     transportation subject to jurisdiction under subchapter I of 
     chapter 135 as a motor carrier of passengers if the Secretary 
     finds that the recipient meets the requirements of subsection 
     (a)(1), unless the Secretary finds, on the basis of evidence 
     presented by any person objecting to the registration, that 
     the transportation to be provided pursuant to the 
     registration is not in the public interest.
       ``(C) Treatment of certain public recipients.--Any public 
     recipient of governmental assistance which is providing or 
     seeking to provide transportation of passengers subject to 
     jurisdiction under subchapter I of chapter 135 shall, for 
     purposes of this part, be treated as a person which is 
     providing or seeking to provide transportation of passengers 
     subject to such jurisdiction.
       ``(3) Intrastate transportation.--A motor carrier of 
     passengers that is registered by the Secretary under 
     subsection (a) is authorized to provide regular-route 
     transportation entirely in one State as a motor carrier of 
     passengers if such intrastate transportation is to be 
     provided on a route over which the carrier provides 
     interstate transportation of passengers.
       ``(4) Preemption regarding certain service.--No State or 
     political subdivision thereof and no interstate agency or 
     other political agency of 2 or more States shall enact or 
     enforce any law, rule, regulation, standard or other 
     provision having the force and effect of law relating to the 
     provision of pickup and delivery of express packages, 
     newspapers, or mail in a commercial zone if the shipment has 
     had or will have a prior or subsequent movement by bus in 
     intrastate commerce and, if a city within the commercial 
     zone, is served by a motor carrier of passengers providing 
     regular-route transportation of passengers subject to 
     jurisdiction under subchapter I of chapter 135.
       ``(5) Treatment.--Any intrastate transportation authorized 
     by this subsection shall be treated as transportation subject 
     to jurisdiction under subchapter I of chapter 135 until such 
     time as the carrier takes such action as is necessary to 
     establish under the laws of such State rates, rules, and 
     practices applicable to such transportation, but in no case 
     later than the 30th day following the date on which the motor 
     carrier of passengers first begins providing transportation 
     entirely in one State under this paragraph.
       ``(6) Special operations.--This subsection shall not apply 
     to any regular-route transportation of passengers provided 
     entirely in one State which is in the nature of a special 
     operation.
       ``(7) Suspension or revocation.--Intrastate transportation 
     authorized under this subsection may be suspended or revoked 
     by the Secretary under section 13905 of this title at any 
     time.
       ``(8) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Public recipient of governmental assistance.--The 
     term `public recipient of governmental assistance' means--
       ``(i) any State,
       ``(ii) any municipality or other political subdivision of a 
     State,
       ``(iii) any public agency or instrumentality of one or more 
     States and municipalities and political subdivisions of a 
     State,
       ``(iv) any Indian tribe,
       ``(v) any corporation, board, or other person owned or 
     controlled by any entity described in clause (i), (ii), 
     (iii), or (iv), and

     which before, on, or after the effective date of this 
     subsection received governmental assistance for the purchase 
     or operation of any bus.
       ``(B) Private recipient of government assistance.--The term 
     `private recipient of government assistance' means any person 
     (other than a person described in subparagraph (A)) who 
     before, on, or after the effective date of this paragraph 
     received governmental financial assistance in the form of a 
     subsidy for the purchase, lease, or operation of any bus.
       ``(c) Restrictions on Motor Carriers Domiciled in or Owned 
     or Controlled by Nationals of a Contiguous Foreign Country.--
       ``(1) Prevention of discriminatory practices.--If the 
     President, or the delegate thereof, determines that an act, 
     policy, or practice of a foreign country contiguous to the 
     United States, or any political subdivision or any 
     instrumentality of any such country is unreasonable or 
     discriminatory and burdens or restricts United States 
     transportation companies providing, or seeking to provide, 
     motor carrier transportation to, from, or within such foreign 
     country, the President or such delegate may--
       ``(A) seek elimination of such practices through 
     consultations; or
       ``(B) notwithstanding any other provision of law, suspend, 
     modify, amend, condition, or restrict operations, including 
     geographical restriction of operations, in the United States 
     by motor carriers of property or passengers domiciled in such 
     foreign country or owned or controlled by persons of such 
     foreign country.
       ``(2) Equalization of treatment.--Any action taken under 
     paragraph (1)(A) to eliminate an act, policy, or practice 
     shall be so devised so as to equal to the extent possible the 
     burdens or restrictions imposed by such foreign country on 
     United States transportation companies.
       ``(3) Removal or modification.--The President, or the 
     delegate thereof, may remove or modify in whole or in part 
     any action taken under paragraph (1)(A) if the President or 
     such delegate determines that such removal or modification is 
     consistent with the obligations of the United States under a 
     trade agreement or with United States transportation policy.
       ``(4) Protection of existing operations.--Unless and until 
     the President, or the delegate thereof, makes a determination 
     under paragraph (1) or (3), nothing in this subsection shall 
     affect--
       ``(A) operations of motor carriers of property or 
     passengers domiciled in any contiguous foreign country or 
     owned or controlled by persons of any contiguous foreign 
     country permitted in the commercial zones along the United 
     States-Mexico border as such zones were defined on the day 
     before the effective date of this section; or
       ``(B) any existing restrictions on operations of motor 
     carriers of property or passengers domiciled in any 
     contiguous foreign country or owned or controlled by persons 
     of any contiguous foreign country or any modifications 
     thereof pursuant to section 6 of the Bus Regulatory Reform 
     Act of 1982.
       ``(5) Publication; comment.--Unless the President, or the 
     delegate thereof, determines that expeditious action is 
     required, the President shall publish in the Federal Register 
     any determination under paragraph (1) or (3), together with a 
     description of the facts on which such a determination is 
     based and any proposed action to be taken pursuant to 
     paragraph (1)(B) or (3), and provide an opportunity for 
     public comment.
       ``(6) Delegation to secretary.--The President may delegate 
     any or all authority under this subsection to the Secretary, 
     who shall consult with other agencies as appropriate. In 
     accordance with the directions of the President, the 
     Secretary may issue regulations to enforce this subsection.
       ``(7) Civil actions.--Either the Secretary or the Attorney 
     General may bring a civil action in an appropriate district 
     court of the United States to enforce this subsection or a 
     regulation prescribed or order issued under this subsection. 
     The court may award appropriate relief, including injunctive 
     relief.
       ``(8) Limitation on statutory construction.--This 
     subsection shall not be construed as affecting the 
     requirement for all foreign motor carriers operating in the 
     United States to comply with all applicable laws and 
     regulations pertaining to fitness, safety of operations, 
     financial responsibility, and taxes imposed by section 4481 
     of the Internal Revenue Code of 1986.
       ``(d) Motor Carrier Defined.--In this section and sections 
     13905 and 13906, the term `motor carrier' includes foreign 
     motor carriers and foreign motor private carriers.

     ``Sec. 13903. Registration of freight forwarders

       ``(a) In General.--The Secretary shall register a person to 
     provide service subject to jurisdiction under subchapter III 
     of chapter 135 as a freight forwarder if the Secretary finds 
     that the person is willing and able to provide the service 
     and to comply with this part and applicable regulations of 
     the Secretary and the Panel.
       ``(b) Registration as Carrier Required.--The freight 
     forwarder may provide transportation as the carrier itself 
     only if the freight forwarder also has registered to provide 
     transportation as a carrier under this chapter.

     ``Sec. 13904. Registration of brokers

       ``(a) In General.--The Secretary shall register, subject to 
     section 13906(b), a person to be a broker for transportation 
     of property subject to jurisdiction under subchapter I of 
     chapter 135, if the Secretary finds that the person is 
     willing and able to be a broker for transportation and to 
     comply with this part and applicable regulations of the 
     Secretary .
       ``(b) Limitation.--The broker may provide transportation 
     itself only if the broker also has registered to provide 
     transportation as a carrier under this chapter.
       ``(c) Regulations To Protect Shippers.--Regulations of the 
     Secretary applicable to brokers registered under this section 
     shall provide for the protection of shippers by motor 
     vehicle.
       ``(d) Bond and Insurance.--The Secretary may impose on 
     brokers for motor carriers of passengers such requirements 
     for bonds or insurance or both as the Secretary determines 
     are needed to protect passengers and carriers dealing with 
     such brokers.

[[Page H 12287]]


     ``Sec. 13905. Effective periods of registration

       ``(a) Person Holding ACC Authority.--Any person having 
     authority to provide transportation or service as a motor 
     carrier, freight forwarder, or broker under this title, as in 
     effect on the day before the effective date of this section, 
     shall be deemed, for purposes of this part, to be registered 
     to provide such transportation or service under this part.
       ``(b) In General.--Each registration issued under section 
     13902, 13903, or 13904 shall be effective from the date 
     specified by the Secretary and shall remain in effect, except 
     as otherwise provided in this part.
       ``(c) Suspension, Amendments, and Revocations.--On 
     application of the registrant, the Secretary may amend or 
     revoke a registration. On complaint or on the Secretary's own 
     initiative and after notice and an opportunity for a 
     proceeding, the Secretary may suspend, amend, or revoke any 
     part of the registration of a motor carrier, broker, or 
     freight forwarder for willful failure to comply with this 
     part, an applicable regulation or order of the Secretary or 
     of the Panel, or a condition of its registration.
       ``(d) Procedure.--Except on application of the registrant, 
     the Secretary may revoke a registration of a motor carrier, 
     freight forwarder, or broker, only after--
       ``(1) the Secretary has issued an order to the registrant 
     under section 14701 requiring compliance with this part, a 
     regulation of the Secretary, or a condition of the 
     registration; and
       ``(2) the registrant willfully does not comply with the 
     order for a period of 30 days.
       ``(e) Expedited Procedure.--
       ``(1) Protection of safety.--Without regard to subchapter 
     II of chapter 5 of title 5, the Secretary may suspend the 
     registration of a motor carrier, a freight forwarder, or a 
     broker for failure to comply with safety requirements of the 
     Secretary or the safety fitness requirements pursuant to 
     section 13904(c), 13906, or 31144, of this title, or an order 
     or regulation of the Secretary prescribed under those 
     sections.
       ``(2) Imminent hazard to public health.--Without regard to 
     subchapter II of chapter 5 of title 5, the Secretary may 
     suspend a registration of a motor carrier of passengers if 
     the Secretary finds that such carrier has been conducting 
     unsafe operations which are an imminent hazard to public 
     health or property.
       ``(3) Notice; period of suspension.--The Secretary may 
     suspend under this subsection the registration only after 
     giving notice of the suspension to the registrant. The 
     suspension remains in effect until the registrant complies 
     with those applicable sections or, in the case of a 
     suspension under paragraph (2), until the Secretary revokes 
     such suspension.

     ``Sec. 13906. Security of motor carriers, brokers, and 
       freight forwarders

       ``(a) Motor Carrier Requirements.--
       ``(1) Liability insurance requirement.--The Secretary may 
     register a motor carrier under section 13902 only if the 
     registrant files with the Secretary a bond, insurance policy, 
     or other type of security approved by the Secretary, in an 
     amount not less than such amount as the Secretary prescribes 
     pursuant to, or as is required by, sections 31138 and 31139, 
     and the laws of the State or States in which the registrant 
     is operating, to the extent applicable. The security must be 
     sufficient to pay, not more than the amount of the security, 
     for each final judgment against the registrant for bodily 
     injury to, or death of, an individual resulting from the 
     negligent operation, maintenance, or use of motor vehicles, 
     or for loss or damage to property (except property referred 
     to in paragraph (3) of this subsection), or both. A 
     registration remains in effect only as long as the registrant 
     continues to satisfy the security requirements of this 
     paragraph.
       ``(2) Agency requirement.--A motor carrier shall comply 
     with the requirements of sections 13303 and 13304. To protect 
     the public, the Secretary may require any such motor carrier 
     to file the type of security that a motor carrier is required 
     to file under paragraph (1) of this subsection. This 
     paragraph only applies to a foreign motor private carrier and 
     foreign motor carrier operating in the United States to the 
     extent that such carrier is providing transportation between 
     places in a foreign country or between a place in one foreign 
     country and a place in another foreign country.
       ``(3) Transportation insurance.--The Secretary may require 
     a registered motor carrier to file with the Secretary a type 
     of security sufficient to pay a shipper or consignee for 
     damage to property of the shipper or consignee placed in the 
     possession of the motor carrier as the result of 
     transportation provided under this part. A carrier required 
     by law to pay a shipper or consignee for loss, damage, or 
     default for which a connecting motor carrier is responsible 
     is subrogated, to the extent of the amount paid, to the 
     rights of the shipper or consignee under any such security.
       ``(b) Broker Requirements.--The Secretary may register a 
     person as a broker under section 13904 only if the person 
     files with the Secretary a bond, insurance policy, or other 
     type of security approved by the Secretary to ensure that the 
     transportation for which a broker arranges is provided. The 
     registration remains in effect only as long as the broker 
     continues to satisfy the security requirements of this 
     subsection.
       ``(c) Freight Forwarder Requirements.--
       ``(1) Liability insurance.--The Secretary may register a 
     person as a freight forwarder under section 13903 of this 
     title only if the person files with the Secretary a bond, 
     insurance policy, or other type of security approved by the 
     Secretary. The security must be sufficient to pay, not more 
     than the amount of the security, for each final judgment 
     against the freight forwarder for bodily injury to, or death 
     of, an individual, or loss of, or damage to, property (other 
     than property referred to in paragraph (2) of this 
     subsection), resulting from the negligent operation, 
     maintenance, or use of motor vehicles by or under the 
     direction and control of the freight forwarder when providing 
     transfer, collection, or delivery service under this part.
       ``(2) Freight forwarder insurance.--The Secretary may 
     require a registered freight forwarder to file with the 
     Secretary a bond, insurance policy, or other type of security 
     approved by the Secretary sufficient to pay, not more than 
     the amount of the security, for loss of, or damage to, 
     property for which the freight forwarder provides service.
       ``(3) Effective period.--The freight forwarder's 
     registration remains in effect only as long as the freight 
     forwarder continues to satisfy the security requirements of 
     this subsection.
       ``(d) Type of Insurance.--The Secretary may determine the 
     type and amount of security filed under this section. A motor 
     carrier may submit proof of qualifications as a self-insurer 
     to satisfy the security requirements of this section. The 
     Secretary shall adopt regulations governing the standards for 
     approval as a self-insurer. Motor carriers which have been 
     granted authority to self-insure as of the effective date of 
     this section shall retain that authority unless, for good 
     cause shown and after notice and an opportunity for a 
     hearing, the Secretary finds that the authority must be 
     revoked.
       ``(e) Notice of Cancellation of Insurance.--The Secretary 
     shall issue regulations requiring the submission to the 
     Secretary of notices of insurance cancellation sufficiently 
     in advance of actual cancellation so as to enable the 
     Secretary to promptly revoke the registration of any carrier 
     or broker after the effective date of the cancellation.
       ``(f) Form of Endorsement.--The Secretary shall also 
     prescribe the appropriate form of endorsement to be appended 
     to policies of insurance and surety bonds which will subject 
     the insurance policy or surety bond to the full security 
     limits of the coverage required under this section.

     ``Sec. 13907. Household goods agents

       ``(a) Carriers Responsible for Agents.--Each motor carrier 
     providing transportation of household goods shall be 
     responsible for all acts or omissions of any of its agents 
     which relate to the performance of household goods 
     transportation services (including accessorial or terminal 
     services) and which are within the actual or apparent 
     authority of the agent from the carrier or which are ratified 
     by the carrier.
       ``(b) Standard for Selecting Agents.--Each motor carrier 
     providing transportation of household goods shall use due 
     diligence and reasonable care in selecting and maintaining 
     agents who are sufficiently knowledgeable, fit, willing, and 
     able to provide adequate household goods transportation 
     services (including accessorial and terminal services) and to 
     fulfill the obligations imposed upon them by this part and by 
     such carrier.
       ``(c) Enforcement.--
       ``(1) Complaint.--Whenever the Secretary has reason to 
     believe from a complaint or investigation that an agent 
     providing household goods transportation services (including 
     accessorial and terminal services) under the authority of a 
     motor carrier providing transportation of household goods has 
     violated section 14901(e) or 14912 or is consistently not 
     fit, willing, and able to provide adequate household goods 
     transportation services (including accessorial and terminal 
     services), the Secretary may issue to such agent a complaint 
     stating the charges and containing notice of the time and 
     place of a hearing which shall be held no later than 60 days 
     after service of the complaint to such agent.
       ``(2) Right to defend.--The agent shall have the right to 
     appear at such hearing and rebut the charges contained in the 
     complaint.
       ``(3) Order.--If the agent does not appear at the hearing 
     or if the Secretary finds that the agent has violated section 
     14901(e) or 14912 or is consistently not fit, willing, and 
     able to provide adequate household goods transportation 
     services (including accessorial and terminal services), the 
     Secretary may issue an order to compel compliance with the 
     requirement that the agent be fit, willing, and able. 
     Thereafter, the Secretary may issue an order to limit, 
     condition, or prohibit such agent from any involvement in the 
     transportation or provision of services incidental to the 
     transportation of household goods if, after notice and an 
     opportunity for a hearing, the Secretary finds that such 
     agent, within a reasonable time after the date of issuance of 
     a compliance order under this section, but in no event less 
     than 30 days after such date of issuance, has willfully 
     failed to comply with such order.
       ``(4) Hearing.--Upon filing of a petition with the 
     Secretary by an agent who is the subject of an order issued 
     pursuant to the second sentence of paragraph (3) of this 
     subsection and after notice, a hearing shall be held with an 
     opportunity to be heard. At such hearing, a determination 
     shall be made whether the order issued pursuant to paragraph 
     (3) of this subsection should be rescinded.
       ``(5) Court review.--Any agent adversely affected or 
     aggrieved by an order of the Secretary issued under this 
     subsection may seek relief in the appropriate United States 
     court of appeals as provided by and in the manner prescribed 
     in chapter 158 of title 28, United States Code.
       ``(d) Limitation on Applicability of Antitrust Laws.--
       ``(1) In general.--The antitrust laws, as defined in the 
     first section of the Clayton Act (15 U.S.C. 12), do not apply 
     to discussions or agreements between a motor carrier 
     providing transportation of household goods and its agents 
     (whether or not an agent is also a carrier) related solely 
     to--
       ``(A) rates for the transportation of household goods under 
     the authority of the principal carrier;

[[Page H 12288]]

       ``(B) accessorial, terminal, storage, or other charges for 
     services incidental to the transportation of household goods 
     transported under the authority of the principal carrier;
       ``(C) allowances relating to transportation of household 
     goods under the authority of the principal carrier; and
       ``(D) ownership of a motor carrier providing transportation 
     of household goods by an agent or membership on the board of 
     directors of any such motor carrier by an agent.
       ``(2) Panel review.--The Panel, upon its own initiative or 
     request, shall review any activities undertaken under 
     paragraph (1) and shall modify or terminate the activity if 
     necessary to protect the public interest.
       ``(e) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Household goods.--The term `household goods' has the 
     meaning such term had under section 10102(11) of this title, 
     as in effect on the day before the effective date of this 
     section.
       ``(2) Transportation.--The term `transportation' means 
     transportation that would be subject to the jurisdiction of 
     the Interstate Commerce Commission under subchapter II of 
     chapter 105 of this title, as in effect on the day before 
     such effective date, if such subchapter were still in effect.

     ``Sec. 13908. Registration and other reforms

       ``(a) Regulations Replacing Certain Programs.--The 
     Secretary, in cooperation with the States, and after notice 
     and opportunity for public comment, shall issue regulations 
     to replace the current Department of Transportation 
     identification number system, the single State registration 
     system under section 14504, the registration system contained 
     in this chapter, and the financial responsibility information 
     system under section 13906 with a single, on-line, Federal 
     system. The new system shall serve as a clearinghouse and 
     depository of information on and identification of all 
     foreign and domestic motor carriers, brokers, and freight 
     forwarders, and others required to register with the 
     Department as well as information on safety fitness and 
     compliance with required levels of financial responsibility. 
     In issuing the regulations, the Secretary shall consider 
     whether or not to integrate the requirements of section 13304 
     into the new system and may integrate such requirements into 
     the new system.
       ``(b) Factors To Be Considered.--In conducting the 
     rulemaking under subsection (a), the Secretary shall, at a 
     minimum, consider the following factors:
       ``(1) Funding for State enforcement of motor carrier safety 
     regulations.
       ``(2) Whether the existing single State registration system 
     is duplicative and burdensome.
       ``(3) The justification and need for collecting the 
     statutory fee for such system under section 
     14504(c)(2)(B)(iv).
       ``(4) The public safety.
       ``(5) The efficient delivery of transportation services.
       ``(6) How, and under what conditions, to extend the 
     registration system to motor private carriers and to carriers 
     exempt under sections 13502, 13503, and 13506.
       ``(c) Fee System.--The Secretary may establish, under 
     section 9701 of title 31, a fee system for registration and 
     filing evidence of financial responsibility under the new 
     system under subsection (a). Fees collected under the fee 
     system shall cover the costs of operating and upgrading the 
     registration system, including all personnel costs associated 
     with the system. Fees collected under this subsection may be 
     credited to the Department of Transportation appropriations 
     account for purposes for which such fees are collected, and 
     shall be available for expenditure until expended.
       ``(d) State Registration Programs.--If the Secretary 
     determines that no State should require insurance filings or 
     collect fees for such filings (including filings and fees 
     authorized under section 14504), the Secretary may prevent 
     any State or political subdivision thereof, or any political 
     authority of 2 or more States, from imposing any insurance 
     filing requirements or fees that are for the same purposes as 
     filings or fees the Secretary requires under the new system 
     under subsection (a).
       ``(e) Deadline for Conclusion; Modifications.--Not later 
     than 24 months after the effective date of this section, the 
     Secretary--
       ``(1) shall conclude the rulemaking under this section;
       ``(2) may implement such changes under this section as the 
     Secretary considers appropriate and in the public interest; 
     and
       ``(3) shall transmit to Congress a report on any findings 
     of the rulemaking and the changes being implemented under 
     this section, together with such recommendations for 
     legislative language necessary to conform this part to such 
     changes.

                 ``CHAPTER 141--OPERATIONS OF CARRIERS

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec.
``14101. Providing transportation and service.
``14102. Leased motor vehicles.
``14103. Loading and unloading motor vehicles.
``14104. Household goods carrier operations.

                  ``SUBCHAPTER II--REPORTS AND RECORDS

``14121. Definitions.
``14122. Records: form; inspection; preservation.
``14123. Financial reporting.

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

     ``Sec. 14101. Providing transportation and service

       ``(a) On Reasonable Request.--A carrier providing 
     transportation or service subject to jurisdiction under 
     chapter 135 shall provide the transportation or service on 
     reasonable request. In addition, a motor carrier shall 
     provide safe and adequate service, equipment, and facilities.
       ``(b) Contracts With Shippers.--
       ``(1) In general.--A carrier providing transportation or 
     service subject to jurisdiction under chapter 135 may enter 
     into a contract with a shipper, other than for the movement 
     of household goods described in section 13102(9)(A), to 
     provide specified services under specified rates and 
     conditions. If the shipper, in writing, expressly waives all 
     rights and remedies under this part for the transportation 
     covered by the contract, the transportation provided under 
     the contract shall not be subject to this part and may not be 
     subsequently challenged on the ground that it violates a 
     provision of this part.
       ``(2) Remedy for breach of contract.--The exclusive remedy 
     for any alleged breach of a contract entered into under this 
     subsection shall be an action in an appropriate State court 
     or United States district court, unless the parties otherwise 
     agree.

     ``Sec. 14102. Leased motor vehicles

       ``(a) General Authority of Secretary.--The Secretary may 
     require a motor carrier providing transportation subject to 
     jurisdiction under subchapter I of chapter 135 that uses 
     motor vehicles not owned by it to transport property under an 
     arrangement with another party to--
       ``(1) make the arrangement in writing signed by the parties 
     specifying its duration and the compensation to be paid by 
     the motor carrier;
       ``(2) carry a copy of the arrangement in each motor vehicle 
     to which it applies during the period the arrangement is in 
     effect;
       ``(3) inspect the motor vehicles and obtain liability and 
     cargo insurance on them; and
       ``(4) have control of and be responsible for operating 
     those motor vehicles in compliance with requirements 
     prescribed by the Secretary on safety of operations and 
     equipment, and with other applicable law as if the motor 
     vehicles were owned by the motor carrier.
       ``(b) Responsible Party for Loading and Unloading.--The 
     Secretary shall require, by regulation, that any arrangement, 
     between a motor carrier of property providing transportation 
     subject to jurisdiction under subchapter I of chapter 135 and 
     any other person, under which such other person is to provide 
     any portion of such transportation by a motor vehicle not 
     owned by the carrier shall specify, in writing, who is 
     responsible for loading and unloading the property onto and 
     from the motor vehicle.

     ``Sec. 14103. Loading and unloading motor vehicles

       ``(a) Shipper Responsible for Assisting.--Whenever a 
     shipper or receiver of property requires that any person who 
     owns or operates a motor vehicle transporting property in 
     interstate commerce (whether or not such transportation is 
     subject to jurisdiction under subchapter I of chapter 135) be 
     assisted in the loading or unloading of such vehicle, the 
     shipper or receiver shall be responsible for providing such 
     assistance or shall compensate the owner or operator for all 
     costs associated with securing and compensating the person or 
     persons providing such assistance.
       ``(b) Coercion Prohibited.--It shall be unlawful to coerce 
     or attempt to coerce any person providing transportation of 
     property by motor vehicle for compensation in interstate 
     commerce (whether or not such transportation is subject to 
     jurisdiction under subchapter I of chapter 135) to load or 
     unload any part of such property onto or from such vehicle or 
     to employ or pay one or more persons to load or unload any 
     part of such property onto or from such vehicle; except 
     that this subsection shall not be construed as making 
     unlawful any activity which is not unlawful under the 
     National Labor Relations Act or the Act of March 23, 1932 
     (47 Stat. 70; 29 U.S.C. 101 et seq.), commonly known as 
     the Norris-LaGuardia Act.

     ``Sec. 14104. Household goods carrier operations

       ``(a) General Regulatory Authority.--
       ``(1) Paperwork minimization.--The Secretary may issue 
     regulations, including regulations protecting individual 
     shippers, in order to carry out this part with respect to the 
     transportation of household goods by motor carriers subject 
     to jurisdiction under subchapter I of chapter 135. The 
     regulations and paperwork required of motor carriers 
     providing transportation of household goods shall be 
     minimized to the maximum extent feasible consistent with the 
     protection of individual shippers.
       ``(2) Performance standards.--
       ``(A) In general.--Regulations of the Secretary protecting 
     individual shippers shall include, where appropriate, 
     reasonable performance standards for the transportation of 
     household goods subject to jurisdiction under subchapter I of 
     chapter 135.
       ``(B) Factors to consider.--In establishing performance 
     standards under this paragraph, the Secretary shall take into 
     account at least the following--
       ``(i) the level of performance that can be achieved by a 
     well-managed motor carrier transporting household goods;
       ``(ii) the degree of harm to individual shippers which 
     could result from a violation of the regulation;
       ``(iii) the need to set the level of performance at a level 
     sufficient to deter abuses which result in harm to consumers 
     and violations of regulations;
       ``(iv) service requirements of the carriers;
       ``(v) the cost of compliance in relation to the consumer 
     benefits to be achieved from such compliance; and
       ``(vi) the need to set the level of performance at a level 
     designed to encourage carriers to offer service responsive to 
     shipper needs.
       ``(3) Limitations on statutory construction.--Nothing in 
     this section shall be construed to limit the Secretary's 
     authority to require reports from motor carriers providing 

[[Page H 12289]]
     transportation of household goods or to require such carriers to 
     provide specified information to consumers concerning their 
     past performance.
       ``(b) Estimates.--
       ``(1) Authority to provide without compensation.--Every 
     motor carrier providing transportation of household goods 
     subject to jurisdiction under subchapter I of chapter 135, 
     upon request of a prospective shipper, may provide the 
     shipper with an estimate of charges for transportation of 
     household goods and for the proposed services. The Secretary 
     shall not prohibit any such carrier from charging a 
     prospective shipper for providing a written, binding estimate 
     for the transportation and proposed services.
       ``(2) Applicability of antitrust laws.--Any charge for an 
     estimate of charges provided by a motor carrier to a shipper 
     for transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135 shall be subject to the 
     antitrust laws, as defined in the first section of the 
     Clayton Act (15 U.S.C. 12).
       ``(c) Flexibility in Weighing Shipments.--The Secretary 
     shall issue regulations that provide motor carriers providing 
     transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135 with the maximum possible 
     flexibility in weighing shipments, consistent with assurance 
     to the shipper of accurate weighing practices. The Secretary 
     shall not prohibit such carriers from backweighing shipments 
     or from basing their charges on the reweigh weights if the 
     shipper observes both the tare and gross weighings (or, prior 
     to such weighings, waives in writing the opportunity to 
     observe such weighings) and such weighings are performed on 
     the same scale.

                  ``SUBCHAPTER II--REPORTS AND RECORDS

     ``Sec. 14121. Definitions

       ``In this subchapter, the following definitions apply:
       ``(1) Carrier and broker.--The terms `carrier' and `broker' 
     include a receiver or trustee of a carrier and broker, 
     respectively.
       ``(2) Association.--The term `association' means an 
     organization maintained by or in the interest of a group of 
     carriers or brokers providing transportation or service 
     subject to jurisdiction under chapter 135 that performs a 
     service, or engages in activities, related to transportation 
     under this part.

     ``Sec. 14122. Records: form; inspection; preservation

       ``(a) Form of Records.--The Secretary or the Panel, as 
     applicable, may prescribe the form of records required to be 
     prepared or compiled under this subchapter by carriers and 
     brokers, including records related to movement of traffic and 
     receipts and expenditures of money.
       ``(b) Right of Inspection.--The Secretary or Panel, or an 
     employee designated by the Secretary or Panel, may on demand 
     and display of proper credentials--
       ``(1) inspect and examine the lands, buildings, and 
     equipment of a carrier or broker; and
       ``(2) inspect and copy any record of--
       ``(A) a carrier, broker, or association; and
       ``(B) a person controlling, controlled by, or under common 
     control with a carrier if the Secretary or Panel, as 
     applicable, considers inspection relevant to that person's 
     relation to, or transaction with, that carrier.
       ``(c) Period for Preservation of Records.--The Secretary or 
     Panel, as applicable, may prescribe the time period during 
     which operating, accounting, and financial records must be 
     preserved by carriers and brokers.

     ``Sec. 14123. Financial reporting

       ``(a) In General.--The Secretary shall require Class I 
     motor carriers, and may require Class II motor carriers, to 
     file with the Secretary annual financial and safety reports, 
     the form and substance of which shall be prescribed by the 
     Secretary; except that, at a minimum, such reports shall 
     include balance sheets and income statements.
       ``(b) Matters To Be Covered.--In determining the matters to 
     be covered by any reports to be filed under subsection (a), 
     the Secretary shall consider--
       ``(1) safety needs;
       ``(2) the need to preserve confidential business 
     information and trade secrets and prevent competitive harm;
       ``(3) private sector, academic, and public use of 
     information in the reports; and
       ``(4) the public interest.
       ``(c) Exemption From Public Release.--
       ``(1) In general.--The Secretary shall allow, upon request, 
     a filer of a report under subsection (a) that is not a 
     publicly held corporation or that is not subject to financial 
     reporting requirements of the Securities and Exchange 
     Commission, an exemption from the public release of such 
     report.
       ``(2) Procedure.--After a request under paragraph (1) and 
     notice and opportunity for comment but no event later than 90 
     days after the date of such request, the Secretary shall 
     approve such request if the Secretary finds that the 
     exemption requested is necessary to avoid competitive harm 
     and to avoid the disclosure of information that qualifies as 
     a trade secret or privileged or confidential information 
     under section 552(b)(4) of title 5.
       ``(3) Use of data for internal dot purposes.--If an 
     exemption is granted under this subsection, nothing shall 
     prevent the Secretary from using data from reports filed 
     under this subsection for internal purposes of the Department 
     of Transportation or including such data in aggregate 
     industry statistics released for publication if such 
     inclusion would not render the filer's data readily 
     identifiable.
       ``(4) Period of exemptions.--Exemptions granted under this 
     subsection shall be for 3-year periods.
       ``(5) Pending requests.--The Secretary shall not release 
     publicly the report of a carrier making a request under 
     paragraph (1) while such request is pending.
       ``(d) Streamlining and Simplification.--The Secretary shall 
     streamline and simplify, to the maximum extent practicable, 
     any reporting requirements the Secretary imposes under this 
     section.

                         ``CHAPTER 143--FINANCE

``Sec.
``14301. Security interests in certain motor vehicles.
``14302. Pooling and division of transportation or earnings.
``14303. Consolidation, merger, and acquisition of control of motor 
              carriers of passengers.

     ``Sec. 14301. Security interests in certain motor vehicles

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Motor vehicle.--The term `motor vehicle' means a 
     truck of rated capacity (gross vehicle weight) of at least 
     10,000 pounds, a highway tractor of rated capacity (gross 
     combination weight) of at least 10,000 pounds, a property-
     carrying trailer or semitrailer with at least one load-
     carrying axle of at least 10,000 pounds, or a motor bus with 
     a seating capacity of at least 10 individuals.
       ``(2) Lien creditor.--The term `lien creditor' means a 
     creditor having a lien on a motor vehicle and includes an 
     assignee for benefit of creditors from the date of 
     assignment, a trustee in a case under title 11 from the date 
     of filing of the petition in that case, and a receiver in 
     equity from the date of appointment of the receiver.
       ``(3) Security interest.--The term `security interest' 
     means an interest (including an interest established by a 
     conditional sales contract, mortgage, equipment trust, or 
     other lien or title retention contract, or lease) in a motor 
     vehicle when the interest secures payment or performance of 
     an obligation.
       ``(4) Perfection.--The term `perfection', as related to a 
     security interest, means taking action (including public 
     filing, recording, notation on a certificate of title, and 
     possession of collateral by the secured party), or the 
     existence of facts, required under law to make a security 
     interest enforceable against general creditors and subsequent 
     lien creditors of a debtor, but does not include compliance 
     with requirements related only to the establishment of a 
     valid security interest between the debtor and the secured 
     party.
       ``(b) Requirements for Perfection of Security Interest.--A 
     security interest in a motor vehicle owned by, or in the 
     possession and use of, a carrier registered under section 
     13902 of this title and owing payment or performance of an 
     obligation secured by that security interest is perfected in 
     all jurisdictions against all general, and subsequent lien, 
     creditors of, and all persons taking a motor vehicle by sale 
     (or taking or retaining a security interest in a motor 
     vehicle) from, that carrier when--
       ``(1) a certificate of title is issued for a motor vehicle 
     under a law of a jurisdiction that requires or permits 
     indication, on a certificate or title, of a security interest 
     in the motor vehicle if the security interest is indicated on 
     the certificate;
       ``(2) a certificate of title has not been issued and the 
     law of the State where the principal place of business of 
     that carrier is located requires or permits public filing or 
     recording of, or in relation to, that security interest if 
     there has been such a public filing or recording; and
       ``(3) a certificate of title has not been issued and the 
     security interest cannot be perfected under paragraph (2) of 
     this subsection, if the security interest has been perfected 
     under the law (including the conflict of laws rules) of the 
     State where the principal place of business of that carrier 
     is located.

     ``Sec. 14302. Pooling and division of transportation or 
       earnings

       ``(a) Approval Required.--A carrier providing 
     transportation subject to jurisdiction under subchapter I of 
     chapter 135 may not agree or combine with another such 
     carrier to pool or divide traffic or services or any part of 
     their earnings without the approval of the Panel under this 
     section.
       ``(b) Standards for Approval.--The Panel may approve and 
     authorize an agreement or combination between or among motor 
     carriers of passengers, or between a motor carrier of 
     passengers and a rail carrier of passengers if the carriers 
     involved assent to the pooling or division and the Panel 
     finds that a pooling or division of traffic, services, or 
     earnings--
       ``(1) will be in the interest of better service to the 
     public or of economy of operation; and
       ``(2) will not unreasonably restrain competition.
       ``(c) Procedure.--
       ``(1) Application.--Any motor carrier of property may apply 
     to the Panel for approval of an agreement or combination with 
     another such carrier to pool or divide traffic or any 
     services or any part of their earnings by filing such 
     agreement or combination with the Panel not less than 50 days 
     before its effective date.
       ``(2) Determination of importance and restraint on 
     competition.--Prior to the effective date of the agreement or 
     combination, the Panel shall determine whether the agreement 
     or combination is of major transportation importance and 
     whether there is substantial likelihood that the agreement or 
     combination will unduly restrain competition. If the Panel 
     determines that neither of these 2 factors exists, it shall, 
     prior to such effective date and without a hearing, approve 
     and authorize the agreement or combination, under such rules 
     and regulations as the Panel may issue, and for such 
     consideration between such carriers and upon such terms and 
     conditions as shall be found by the Panel to be just and 
     reasonable.
       ``(3) Hearing.--If the Panel determines either that the 
     agreement or combination is of major 

[[Page H 12290]]
     transportation importance or that there is substantial likelihood that 
     the agreement or combination will unduly restrain 
     competition, the Panel 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 competition and shall 
     suspend operation of such agreement or combination pending 
     such hearing and final decision thereon. After such hearing, 
     the Panel 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 Panel may issue, and for such 
     consideration between such carriers and upon such terms and 
     conditions as shall be found by the Panel to be just and 
     reasonable.
       ``(4) Special rules for household goods carriers.--In the 
     case of an application for Panel approval of an agreement or 
     combination between a motor carrier providing transportation 
     of household goods and its agents to pool or divide traffic 
     or services or any part of their earnings, such agreement or 
     combination shall be presumed to be in the interest of better 
     service to the public and of economy in operation and not to 
     restrain competition unduly if the practices proposed to be 
     carried out under such agreement or combination are the same 
     as or similar to practices carried out under agreements and 
     combinations between motor carriers providing transportation 
     of household goods to pool or divide traffic or service of 
     any part of their earnings approved by the Interstate 
     Commerce Commission before the effective date of this 
     section.
       ``(5) Streamlining and simplifying.--The Panel shall 
     streamline, simplify, and expedite, to the maximum extent 
     practicable, the process (including any paperwork) for 
     submission and approval of applications under this section 
     for agreements and combinations between motor carriers 
     providing transportation of household goods and their agents.
       ``(d) Conditions.--The Panel may impose conditions 
     governing the pooling or division and may approve and 
     authorize payment of a reasonable consideration between the 
     carriers.
       ``(e) Initiation of Proceeding.--The Panel may begin a 
     proceeding under this section on its own initiative or on 
     application.
       ``(f) Effect of Approval.--A carrier may participate in an 
     arrangement approved by or exempted by the Panel under this 
     section without the approval of any other Federal, State, or 
     municipal body. A carrier participating in an approved or 
     exempted arrangement is exempt from the antitrust laws and 
     from all other law, including State and municipal law, as 
     necessary to let that person carry out the arrangement.
       ``(g) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Household goods.--The term `household goods' has the 
     meaning such term had under section 10102(11) of this title, 
     as in effect on the day before the effective date of this 
     section.
       ``(2) Transportation.--The term `transportation' means 
     transportation that would be subject to the jurisdiction of 
     the Interstate Commerce Commission under subchapter II of 
     chapter 105 of this title, as in effect on the day before 
     such effective date, if such subchapter were still in effect.

     ``Sec. 14303. Consolidation, merger, and acquisition of 
       control of motor carriers of passengers

       ``(a) Approval Required.--The following transactions 
     involving motor carriers of passengers subject to 
     jurisdiction under subchapter I of chapter 135 may be carried 
     out only with the approval of the Panel:
       ``(1) Consolidation or merger of the properties or 
     franchises of at least 2 carriers into one operation for the 
     ownership, management, and operation of the previously 
     separately owned properties.
       ``(2) A purchase, lease, or contract to operate property of 
     another carrier by any number of carriers.
       ``(3) Acquisition of control of a carrier by any number of 
     carriers.
       ``(4) Acquisition of control of at least 2 carriers by a 
     person that is not a carrier.
       ``(5) Acquisition of control of a carrier by a person that 
     is not a carrier but that controls any number of carriers.
       ``(b) Standard for Approval.--The Panel shall approve and 
     authorize a transaction under this section when it finds the 
     transaction is consistent with the public interest. The Panel 
     shall consider at least the following:
       ``(1) The effect of the proposed transaction on the 
     adequacy of transportation to the public.
       ``(2) The total fixed charges that result from the proposed 
     transaction.
       ``(3) The interest of carrier employees affected by the 
     proposed transaction.

     The Panel may impose conditions governing the transaction.
       ``(c) Determination of Completeness of Application.--Within 
     30 days after the date on which an application is filed under 
     this section, the Panel shall either publish a notice of the 
     application in the Federal Register or reject the application 
     if it is incomplete.
       ``(d) Comments.--Written comments about an application may 
     be filed with the Panel within 45 days after the date on 
     which notice of the application is published under subsection 
     (c).
       ``(e) Deadlines.--The Panel shall conclude evidentiary 
     proceedings by the 240th day after the date on which notice 
     of the application is published under subsection (c). The 
     Panel shall issue a final decision by the 180th day after the 
     conclusion of the evidentiary proceedings. The Panel may 
     extend a time period under this subsection; except that the 
     total of all such extensions with respect to any application 
     shall not exceed 90 days.
       ``(f) Effect of Approval.--A carrier or corporation 
     participating in or resulting from a transaction approved by 
     the Panel under this section, or exempted by the Panel from 
     the application of this section pursuant to section 13541, 
     may carry out the transaction, own and operate property, and 
     exercise control or franchises acquired through the 
     transaction without the approval of a State authority. A 
     carrier, corporation, or person participating in the approved 
     or exempted transaction is exempt from the antitrust laws and 
     from all other law, including State and municipal law, as 
     necessary to let that person carry out the transaction, hold, 
     maintain, and operate property, and exercise control or 
     franchises acquired through the transaction.
       ``(g) Limitation on Applicability.--This section shall not 
     apply to transactions involving carriers whose aggregate 
     gross operating revenues were not more than $2,000,000 during 
     a period of 12 consecutive months ending not more than 6 
     months before the date of the agreement of the parties.

                 ``CHAPTER 145--FEDERAL-STATE RELATIONS

``Sec.
``14501. Federal authority over intrastate transportation.
``14502. Tax discrimination against motor carrier transportation 
              property.
``14503. Withholding State and local income tax by certain carriers.
``14504. Registration of motor carriers by a State.
``14505. State tax.

     ``Sec. 14501. Federal authority over intrastate 
       transportation

       ``(a) Motor Carriers of Passengers.--No State or political 
     subdivision thereof and no interstate agency or other 
     political agency of 2 or more States shall enact or enforce 
     any law, rule, regulation, standard, or other provision 
     having the force and effect of law relating to scheduling of 
     interstate or intrastate transportation (including 
     discontinuance or reduction in the level of service) provided 
     by motor carrier of passengers subject to jurisdiction under 
     subchapter I of chapter 135 of this title on an interstate 
     route or relating to the implementation of any change in the 
     rates for such transportation or for any charter 
     transportation except to the extent that notice, not in 
     excess of 30 days, of changes in schedules may be required. 
     This subsection shall not apply to intrastate commuter bus 
     operations.
       ``(b) Freight Forwarders and Brokers.--
       ``(1) General rule.--Subject to paragraph (2) of this 
     subsection, no State or political subdivision thereof and no 
     intrastate agency or other political agency of 2 or more 
     States shall enact or enforce any law, rule, regulation, 
     standard, or other provision having the force and effect of 
     law relating to intrastate rates, intrastate routes, or 
     intrastate services of any freight forwarder or broker.
       ``(2) Continuation of hawaii's authority.--Nothing in this 
     subsection and the amendments made by the Surface Freight 
     Forwarder Deregulation Act of 1986 shall be construed to 
     affect the authority of the State of Hawaii to continue to 
     regulate a motor carrier operating within the State of 
     Hawaii.
       ``(c) Motor Carriers of Property.--
       ``(1) General rule.--Except as provided in paragraphs (2) 
     and (3), a State, political subdivision of a State, or 
     political authority of 2 or more States may not enact or 
     enforce a law, regulation, or other provision having the 
     force and effect of law related to a price, route, or 
     service of any motor carrier (other than a carrier 
     affiliated with a direct air carrier covered by section 
     41713(b)(4)) or any motor private carrier, broker, or 
     freight forwarder with respect to the transportation of 
     property.
       ``(2) Matters not covered.--Paragraph (1)--
       ``(A) shall not restrict the safety regulatory authority of 
     a State with respect to motor vehicles, the authority of a 
     State to impose highway route controls or limitations based 
     on the size or weight of the motor vehicle or the hazardous 
     nature of the cargo, or the authority of a State to regulate 
     motor carriers with regard to minimum amounts of financial 
     responsibility relating to insurance requirements and self-
     insurance authorization;
       ``(B) does not apply to the transportation of household 
     goods; and
       ``(C) does not apply to the authority of a State or a 
     political subdivision of a State to enact or enforce a law, 
     regulation, or other provision relating to the price of for-
     hire motor vehicle transportation by a tow truck, if such 
     transportation is performed without the prior consent or 
     authorization of the owner or operator of the motor vehicle.
       ``(3) State standard transportation practices.--
       ``(A) Continuation.--Paragraph (1) shall not affect any 
     authority of a State, political subdivision of a State, or 
     political authority of 2 or more States to enact or enforce a 
     law, regulation, or other provision, with respect to the 
     intrastate transportation of property by motor carriers, 
     related to--
       ``(i) uniform cargo liability rules,
       ``(ii) uniform bills of lading or receipts for property 
     being transported,
       ``(iii) uniform cargo credit rules, or
       ``(iv) antitrust immunity for joint line rates or routes, 
     classifications, and mileage guides,

     if such law, regulation, or provision meets the requirements 
     of subparagraph (B).
       ``(B) Requirements.--A law, regulation, or provision of a 
     State, political subdivision, or political authority meets 
     the requirements of this subparagraph if--
       ``(i) the law, regulation, or provision covers the same 
     subject matter as, and compliance with 

[[Page H 12291]]
     such law, regulation, or provision is no more burdensome than 
     compliance with, a provision of this part or a regulation 
     issued by the Secretary or the Panel under this part; and
       ``(ii) the law, regulation, or provision only applies to a 
     carrier upon request of such carrier.
       ``(C) Election.--Notwithstanding any other provision of 
     law, a carrier affiliated with a direct air carrier through 
     common controlling ownership may elect to be subject to a 
     law, regulation, or provision of a State, political 
     subdivision, or political authority under this paragraph.
       ``(4) This subsection shall not apply with respect to the 
     State of Hawaii until August 22, 1997.

     ``Sec. 14502. Tax discrimination against motor carrier 
       transportation property

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Assessment.--The term `assessment' means valuation 
     for a property tax levied by a taxing district.
       ``(2) Assessment jurisdiction.--The term `assessment 
     jurisdiction' means a geographical area in a State used in 
     determining the assessed value of property for ad valorem 
     taxation.
       ``(3) Motor carrier transportation property.--The term 
     `motor carrier transportation property' means property, as 
     defined by the Secretary, owned or used by a motor carrier 
     providing transportation in interstate commerce whether or 
     not such transportation is subject to jurisdiction under 
     subchapter I of chapter 135.
       ``(4) Commercial and industrial property.--The term 
     `commercial and industrial property' means property, other 
     than transportation property and land used primarily for 
     agricultural purposes or timber growing, devoted to a 
     commercial or industrial use, and subject to a property tax 
     levy.
       ``(b) Acts Burdening Interstate Commerce.--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) Excessive valuation of property.--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) Tax on assessment.--Levy or collect a tax on an 
     assessment that may not be made under paragraph (1).
       ``(3) Ad valorem tax.--Levy or collect an ad valorem 
     property tax on motor carrier transportation property at a 
     tax rate that exceeds the tax rate applicable to commercial 
     and industrial property in the same assessment jurisdiction.
       ``(c) Jurisdiction.--
       ``(1) In general.--Notwithstanding section 1341 of title 28 
     and without regard to the amount in controversy or 
     citizenship of the parties, a district court of the United 
     States has jurisdiction, concurrent with other jurisdiction 
     of courts of the United States and the States, to prevent a 
     violation of subsection (b) of this section.
       ``(2) Limitation in relief.--Relief may be granted under 
     this subsection only if the ratio of assessed value to true 
     market value of motor carrier transportation property 
     exceeds, by at least 5 percent, the ratio of assessed value 
     to true market value of other commercial and industrial 
     property in the same assessment jurisdiction.
       ``(3) Burden of proof.--The burden of proof in determining 
     assessed value and true market value is governed by State 
     law.
       ``(4) Violation.--If the ratio of the assessed value of 
     other commercial and industrial property in the assessment 
     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--
       ``(A) an assessment of the motor carrier transportation 
     property at a value that has a higher ratio to the true 
     market value of the motor carrier transportation property 
     than the assessment value of all other property subject to a 
     property tax levy in the assessment jurisdiction has to the 
     true market value of all such other property; and
       ``(B) the collection of ad valorem property tax on the 
     motor carrier transportation property at a tax rate that 
     exceeds the tax ratio rate applicable to taxable property in 
     the taxing district.

     ``Sec. 14503. Withholding State and local income tax by 
       certain carriers

       ``(a) Single State Tax Withholding.--
       ``(1) In general.--No part of the compensation paid by a 
     motor carrier providing transportation subject to 
     jurisdiction under subchapter I of chapter 135 or by a motor 
     private carrier to an employee who performs regularly 
     assigned duties in 2 or more States as such an employee with 
     respect to a motor vehicle shall be subject to the income tax 
     laws of any State or subdivision of that State, other than 
     the State or subdivision thereof of the employee's residence.
       ``(2) Employee defined.--In this subsection, the term 
     `employee' has the meaning given such term in section 31132.
       ``(b) Special Rules.--
       ``(1) Calculation of earnings.--In this subsection, an 
     employee is deemed to have earned more than 50 percent of pay 
     in a State or subdivision of that State in which the time 
     worked by the employee in the State or subdivision is more 
     than 50 percent of the total time worked by the employee 
     while employed during the calendar year.
       ``(2) Water carriers.--A water carrier providing 
     transportation subject to jurisdiction under subchapter II of 
     chapter 135 shall file income tax information returns and 
     other reports only with--
       ``(A) the State and subdivision of residence of the 
     employee (as shown on the employment records of the carrier); 
     and
       ``(B) the State and subdivision in which the employee 
     earned more than 50 percent of the pay received by the 
     employee from the carrier during the preceding calendar year.
       ``(3) Applicability to sailors.--This subsection applies to 
     pay of a master, officer, or sailor who is a member of the 
     crew on a vessel engaged in foreign, coastwise, intercoastal, 
     or noncontiguous trade or in the fisheries of the United 
     States.
       ``(c) Filing of Information.--A motor and motor private 
     carrier withholding pay from an employee under subsection (a) 
     of this section shall file income tax information returns and 
     other reports only with the State and subdivision of 
     residence of the employee.

     ``Sec. 14504. Registration of motor carriers by a State

       ``(a) Definitions.--In this section, the terms `standards' 
     and `amendments to standards' mean the specification of forms 
     and procedures required by regulations of the Secretary to 
     prove the lawfulness of transportation by motor carrier 
     referred to in section 13501.
       ``(b) General Rule.--The requirement of a State that a 
     motor carrier, providing transportation subject to 
     jurisdiction under subchapter I of chapter 135 and providing 
     transportation in that State, must register with the State is 
     not an unreasonable burden on transportation referred to in 
     section 13501 when the State registration is completed under 
     standards of the Secretary under subsection (c). When a State 
     registration requirement imposes obligations in excess of the 
     standards of the Secretary, the part in excess is an 
     unreasonable burden.
       ``(c) Single State Registration System.--
       ``(1) In general.--The Secretary shall maintain standards 
     for implementing a system under which--
       ``(A) a motor carrier is required to register annually with 
     only one State by providing evidence of its Federal 
     registration under chapter 139;
       ``(B) the State of registration shall fully comply with 
     standards prescribed under this section; and
       ``(C) such single State registration shall be deemed to 
     satisfy the registration requirements of all other States.
       ``(2) Specific requirements.--
       ``(A) Evidence of federal registration; proof of insurance; 
     payment of fees.--Under the standards of the Secretary 
     implementing the single State registration system described 
     in paragraph (1) of this subsection, only a State acting in 
     its capacity as registration State under such single State 
     system may require a motor carrier registered by the 
     Secretary under this part--
       ``(i) to file and maintain evidence of such Federal 
     registration;
       ``(ii) to file satisfactory proof of required insurance or 
     qualification as a self-insurer;
       ``(iii) to pay directly to such State fee amounts in 
     accordance with the fee system established under subparagraph 
     (B)(iv) of this paragraph, subject to allocation of fee 
     revenues among all States in which the carrier operates and 
     which participate in the single State registration system; 
     and
       ``(iv) to file the name of a local agent for service of 
     process.
       ``(B) Receipts; fee system.--The standards of the 
     Secretary--
       ``(i) shall require that the registration State issue a 
     receipt, in a form prescribed under the standards, reflecting 
     that the carrier has filed proof of insurance as provided 
     under subparagraph (A)(ii) of this paragraph and has paid fee 
     amounts in accordance with the fee system established under 
     clause (iv) of this subparagraph;
       ``(ii) shall require that copies of the receipt issued 
     under clause (i) of this subparagraph be kept in each of the 
     carrier's commercial motor vehicles;
       ``(iii) shall not require decals, stamps, cab cards, or any 
     other means of registering or identifying specific vehicles 
     operated by the carrier;
       ``(iv) shall establish a fee system for the filing of proof 
     of insurance as provided under subparagraph (A)(ii) of this 
     paragraph that--

       ``(I) is based on the number of commercial motor vehicles 
     the carrier operates in a State and on the number of States 
     in which the carrier operates;

       ``(II) minimizes the costs of complying with the 
     registration system; and
       ``(III) results in a fee for each participating State that 
     is equal to the fee, not to exceed $10 per vehicle, that such 
     State collected or charged as of November 15, 1991; and

       ``(v) shall not authorize the charging or collection of any 
     fee for filing and maintaining a certificate or permit under 
     subparagraph (A)(i) of this paragraph.
       ``(C) Prohibited fees.--The charging or collection of any 
     fee under this section that is not in accordance with the fee 
     system established under subparagraph (B)(iv) of this 
     paragraph shall be deemed to be a burden on interstate 
     commerce.
       ``(D) Limitation on participation by states.--Only a State 
     which, as of January 1, 1991, charged or collected a fee for 
     a vehicle identification stamp or number under part 1023 of 
     title 49, Code of Federal Regulations, shall be eligible to 
     participate as a registration State under this subsection or 
     to receive any fee revenue under this subsection.

     ``Sec. 14505. State tax

       ``A State or political subdivision thereof may not collect 
     or levy a tax, fee, head charge, or other charge on--

[[Page H 12292]]

       ``(1) a passenger traveling in interstate commerce by motor 
     carrier;
       ``(2) the transportation of a passenger traveling in 
     interstate commerce by motor carrier;
       ``(3) the sale of passenger transportation in interstate 
     commerce by motor carrier; or
       ``(4) the gross receipts derived from such transportation.

      ``CHAPTER 147--ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES

``Sec.
``14701. General authority.
``14702. Enforcement by the regulatory authority.
``14703. Enforcement by the Attorney General.
``14704. Rights and remedies of persons injured by carriers or brokers.
``14705. Limitation on actions by and against carriers.
``14706. Liability of carriers under receipts and bills of lading.
``14707. Private enforcement of registration requirement.
``14708. Dispute settlement program for household goods carriers.
``14709. Tariff reconciliation rules for motor carriers of property.

     ``Sec. 14701. General authority

       ``(a) Investigations.--The Secretary or the Panel, as 
     applicable, may begin an investigation under this part on the 
     Secretary's or the Panel's own initiative or on complaint. If 
     the Secretary or Panel, as applicable, finds that a carrier 
     or broker is violating this part, the Secretary or Panel, as 
     applicable, shall take appropriate action to compel 
     compliance with this part. If the Secretary finds that a 
     foreign motor carrier or foreign motor private carrier is 
     violating chapter 139, the Secretary shall take appropriate 
     action to compel compliance with that chapter. The Secretary 
     or Panel, as applicable, may take action under this 
     subsection only after giving the carrier or broker notice of 
     the investigation and an opportunity for a proceeding.
       ``(b) Complaints.--A person, including a governmental 
     authority, may file with the Secretary or Panel, as 
     applicable, a complaint about a violation of this part by a 
     carrier providing, or broker for, transportation or service 
     subject to jurisdiction under this part or a foreign motor 
     carrier or foreign motor private carrier providing 
     transportation registered under section 13902 of this title. 
     The complaint must state the facts that are the subject of 
     the violation. The Secretary or Panel, as applicable, may 
     dismiss a complaint that it determines does not state 
     reasonable grounds for investigation and action.
       ``(c) Deadline.--A formal investigative proceeding begun by 
     the Secretary or Panel under subsection (a) of this section 
     is dismissed automatically unless it is concluded with 
     administrative finality by the end of the 3d year after the 
     date on which it was begun.
       ``(d) Limitation.--The Secretary and the Panel only have 
     authority under this section with respect to matters within 
     their respective jurisdictions under this part.

     ``Sec. 14702. Enforcement by the regulatory authority

       ``(a) In General.--The Secretary or the Panel, as 
     applicable, may bring a civil action--
       ``(1) to enforce section 14103 of this title; or
       ``(2) to enforce this part, or a regulation or order of the 
     Secretary or Panel, as applicable, when violated by a carrier 
     or broker providing transportation or service subject to 
     jurisdiction under subchapter I or III of chapter 135 of this 
     title or by a foreign motor carrier or foreign motor private 
     carrier providing transportation registered under section 
     13902 of this title.
       ``(b) Venue.--In a civil action under subsection (a)(2) of 
     this section--
       ``(1) trial is in the judicial district in which the 
     carrier, foreign motor carrier, foreign motor private 
     carrier, or broker operates;
       ``(2) process may be served without regard to the 
     territorial limits of the district or of the State in which 
     the action is instituted; and
       ``(3) a person participating with a carrier or broker in a 
     violation may be joined in the civil action without regard to 
     the residence of the person.
       ``(c) Standing.--The Panel may bring or participate in any 
     civil action involving motor carrier undercharges.

     ``Sec. 14703. Enforcement by the Attorney General

       ``The Attorney General may, and on request of either the 
     Secretary or the Panel shall, bring court proceedings--
       ``(1) to enforce this part or a regulation or order of the 
     Secretary or Panel or terms of registration under this part; 
     and
       ``(2) to prosecute a person violating this part or a 
     regulation or order of the Secretary or Panel or term of 
     registration under this part.

     ``Sec. 14704. Rights and remedies of persons injured by 
       carriers or brokers

       (a) In general.--
       ``(1) Enforcement of order.--A person injured because a 
     carrier or broker providing transportation or service subject 
     to jurisdiction under chapter 135 does not obey an order of 
     the Secretary or the Panel, as applicable, under this part, 
     except an order for the payment of money, may bring a civil 
     action to enforce that order under this subsection. A person 
     may bring a civil action for injunctive relief for violations 
     of sections 14102 and 14103.
       ``(2) Damages for violations.--A carrier or broker 
     providing transportation or service subject to jurisdiction 
     under chapter 135 is liable for damages sustained by a person 
     as a result of an act or omission of that carrier or broker 
     in violation of this part.
       ``(b) Liability and Damages For Exceeding Tariff Rate.--A 
     carrier providing transportation or service subject to 
     jurisdiction under chapter 135 is liable to a person for 
     amounts charged that exceed the applicable rate for 
     transportation or service contained in a tariff in effect 
     under section 13702.
       ``(c) Election.--
       ``(1) Complaint to dot or panel; civil action.--A person 
     may file a complaint with the Panel or the Secretary, as 
     applicable, under section 14701(b) or bring a civil action 
     under subsection (b)(1) or (2) of this section to enforce 
     liability against a carrier or broker providing 
     transportation or service subject to jurisdiction under 
     chapter 135.
       ``(2) Order of dot or panel.--
       ``(A) In general.--When the Panel or Secretary, as 
     applicable, makes an award under subsection (b) of this 
     section, the Panel or Secretary, as applicable, shall order 
     the carrier to pay the amount awarded by a specific date. The 
     Panel or Secretary, as applicable, may order a carrier or 
     broker providing transportation or service subject to 
     jurisdiction under chapter 135 to pay damages only when the 
     proceeding is on complaint.
       ``(B) Enforcement by civil action.--The person for whose 
     benefit an order of the Panel or Secretary requiring the 
     payment of money is made may bring a civil action to enforce 
     that order under this paragraph if the carrier or broker does 
     not pay the amount awarded by the date payment was ordered to 
     be made.
       ``(d) Procedure.--
       ``(1) In general.--When a person begins a civil action 
     under subsection (b) of this section to enforce an order of 
     the Panel or Secretary requiring the payment of damages by a 
     carrier or broker providing transportation or service subject 
     to jurisdiction under chapter 135 of this title, the text of 
     the order of the Panel or Secretary must be included in the 
     complaint. In addition to the district courts of the United 
     States, a State court of general jurisdiction having 
     jurisdiction of the parties has jurisdiction to enforce an 
     order under this paragraph. The findings and order of the 
     Panel or Secretary are competent evidence of the facts stated 
     in them. Trial in a civil action brought in a district court 
     of the United States under this paragraph is in the judicial 
     district in which the plaintiff resides or in which the 
     principal operating office of the carrier or broker is 
     located. In a civil action under this paragraph, the 
     plaintiff is liable for only those costs that accrue on an 
     appeal taken by the plaintiff.
       ``(2) Parties.--All parties in whose favor the award was 
     made may be joined as plaintiffs in a civil action brought in 
     a district court of the United States under this subsection 
     and all the carriers that are parties to the order awarding 
     damages may be joined as defendants. Trial in the action is 
     in the judicial district in which any one of the plaintiffs 
     could bring the action against any one of the defendants. 
     Process may be served on a defendant at its principal 
     operating office when that defendant is not in the district 
     in which the action is brought. A judgment ordering recovery 
     may be made in favor of any of those plaintiffs against the 
     defendant found to be liable to that plaintiff.
       ``(e) Attorney's Fees.--The district court shall award a 
     reasonable attorney's fee under this section. The district 
     court shall tax and collect that fee as a part of the costs 
     of the action.

     ``Sec. 14705. Limitation on actions by and against carriers

       ``(a) In General.--A carrier providing transportation or 
     service subject to jurisdiction under chapter 135 must begin 
     a civil action to recover charges for transportation or 
     service provided by the carrier within 18 months after the 
     claim accrues.
       ``(b) Overcharges.--A person must begin a civil action to 
     recover overcharges within 18 months after the claim accrues. 
     If the claim is against a carrier providing transportation 
     subject to jurisdiction under chapter 135 and an election to 
     file a complaint with the Panel or Secretary, as 
     applicable, is made under section 14704(c)(1), the 
     complaint must be filed within 3 years after the claim 
     accrues.
       ``(c) Damages.--A person must file a complaint with the 
     Panel or Secretary, as applicable, to recover damages under 
     section 14704(b)(2) within 2 years after the claim accrues.
       ``(d) Extensions.--The limitation periods under subsection 
     (b) of this section are extended for 6 months from the time 
     written notice is given to the claimant by the carrier of 
     disallowance of any part of the claim specified in the notice 
     if a written claim is given to the carrier within those 
     limitation periods. The limitation periods under subsections 
     (b) and (c) of this section are extended for 90 days from the 
     time the carrier begins a civil action under subsection (a) 
     to recover charges related to the same transportation or 
     service, or collects (without beginning a civil action under 
     that subsection) the charge for that transportation or 
     service if that action is begun or collection is made within 
     the appropriate period.
       ``(e) Payment.--A person must begin a civil action to 
     enforce an order of the Panel or Secretary against a carrier 
     for the payment of money within 1 year after the date the 
     order required the money to be paid.
       ``(f) Government Transportation.--This section applies to 
     transportation for the United States Government. The time 
     limitations under this section are extended, as related to 
     transportation for or on behalf of the United States 
     Government, for 3 years from the later of the date of--
       ``(1) payment of the rate for the transportation or service 
     involved;
       ``(2) subsequent refund for overpayment of that rate; or
       ``(3) deduction made under section 3726 of title 31.
       ``(g) Accrual Date.--A claim related to a shipment of 
     property accrues under this section on delivery or tender of 
     delivery by the carrier.

[[Page H 12293]]


     ``Sec. 14706. Liability of carriers under receipts and bills 
       of lading

       ``(a) General Liability.--
       ``(1) Motor carriers and freight forwarders.--A carrier 
     providing transportation or service subject to jurisdiction 
     under subchapter I or III of chapter 135 shall issue a 
     receipt or bill of lading for property it receives for 
     transportation under this part. That carrier and any other 
     carrier that delivers the property and is providing 
     transportation or service subject to jurisdiction under 
     subchapter I or III of chapter 135 or chapter 105 are liable 
     to the person entitled to recover under the receipt or bill 
     of lading. The liability imposed under this paragraph is for 
     the actual loss or injury to the property caused by (A) the 
     receiving carrier, (B) the delivering carrier, or (C) another 
     carrier over whose line or route the property is transported 
     in the United States or from a place in the United States to 
     a place in an adjacent foreign country when transported under 
     a through bill of lading and, except in the case of a freight 
     forwarder, applies to property reconsigned or diverted under 
     a tariff under section 13702. Failure to issue a receipt or 
     bill of lading does not affect the liability of a carrier. A 
     delivering carrier is deemed to be the carrier performing the 
     line-haul transportation nearest the destination but does not 
     include a carrier providing only a switching service at the 
     destination.
       ``(2) Freight forwarder.--A freight forwarder is both the 
     receiving and delivering carrier. When a freight forwarder 
     provides service and uses a motor carrier providing 
     transportation subject to jurisdiction under subchapter I of 
     chapter 135 to receive property from a consignor, the motor 
     carrier may execute the bill of lading or shipping receipt 
     for the freight forwarder with its consent. With the consent 
     of the freight forwarder, a motor carrier may deliver 
     property for a freight forwarder on the freight forwarder's 
     bill of lading, freight bill, or shipping receipt to the 
     consignee named in it, and receipt for the property may be 
     made on the freight forwarder's delivery receipt.
       ``(b) Apportionment.--The carrier issuing the receipt or 
     bill of lading under subsection (a) of this section or 
     delivering the property for which the receipt or bill of 
     lading was issued is entitled to recover from the carrier 
     over whose line or route the loss or injury occurred the 
     amount required to be paid to the owners of the property, as 
     evidenced by a receipt, judgment, or transcript, and the 
     amount of its expenses reasonably incurred in defending a 
     civil action brought by that person.
       ``(c) Special Rules.--
       ``(1) Limitation of liability.--A carrier may limit 
     liability imposed under subsection (a) by establishing rates 
     for the transportation of property (other than household 
     goods) under which the liability of the carrier for such 
     property (A) is limited to a value established by written or 
     electronic declaration of the shipper or by a mutual written 
     agreement between the carrier and shipper, or (B) is 
     contained in a schedule of rules and rates maintained by the 
     carrier and provided to the shipper upon request. The 
     schedule shall clearly state its dates of applicability.
       ``(2) Water carriers.--If loss or injury to property occurs 
     while it is in the custody of a water carrier, the liability 
     of that carrier is determined by its bill of lading and the 
     law applicable to water transportation. The liability of the 
     initial or delivering carrier is the same as the liability of 
     the water carrier.
       ``(d) Civil Actions.--
       ``(1) Against delivering carrier.--A civil action under 
     this section may be brought against a delivering carrier in a 
     district court of the United States or in a State court. 
     Trial, if the action is brought in a district court of the 
     United States is in a judicial district, and if in a State 
     court, is in a State through which the defendant carrier 
     operates.
       ``(2) Against carrier responsible for loss.--A civil action 
     under this section may be brought against the carrier alleged 
     to have caused the loss or damage, in the judicial district 
     in which such loss or damage is alleged to have occurred.
       ``(3) Jurisdiction of courts.--A civil action under this 
     section may be brought in a United States district court or 
     in a State court.
       ``(4) Judicial district defined.--In this section, 
     `judicial district' means--
       ``(A) in the case of a United States district court, a 
     judicial district of the United States; and
       ``(B) in the case of a State court, the applicable 
     geographic area over which such court exercises jurisdiction.
       ``(e) Minimum Period for Filing Claims.--
       ``(1) In general.--A carrier may not provide by rule, 
     contract, or otherwise, a period of less than 9 months for 
     filing a claim against it under this section and a period of 
     less than 2 years for bringing a civil action against it 
     under this section. The period for bringing a civil action is 
     computed from the date the carrier gives a person written 
     notice that the carrier has disallowed any part of the claim 
     specified in the notice.
       ``(2) Special rules.--For the purposes of this subsection--
       ``(A) 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
       ``(B) communications received from a carrier's insurer 
     shall not constitute a disallowance of any part of the claim 
     unless the insurer, in writing, informs the claimant that 
     such part of the claim is disallowed, provides reason for 
     such disallowance, and informs the claimant that the insurer 
     is acting on behalf of the carrier.
       ``(f) Limiting Liability of Household Goods Carriers to 
     Declared Value.--A carrier or group of carriers subject to 
     jurisdiction under subchapter I or III of chapter 135 may 
     petition the Panel to modify, eliminate, or establish rates 
     for the transportation of household goods under which the 
     liability of the carrier for that property is limited to a 
     value established by written declaration of the shipper or by 
     a written agreement.
       ``(g) Modifications and Reforms.--
       ``(1) Study.--The Secretary shall conduct a study to 
     determine whether any modifications or reforms should be made 
     to the loss and damage provisions of this section.
       ``(2) Factors to consider.--In conducting the study, the 
     Secretary, at a minimum, shall consider--
       ``(A) the efficient delivery of transportation services;
       ``(B) international and intermodal harmony;
       ``(C) the public interest; and
       ``(D) the interest of carriers and shippers.
       ``(3) Report.--Not later than 18 months after the effective 
     date of this section, the Secretary shall submit to Congress 
     a report on the results of the study, together with any 
     recommendations of the Secretary (including legislative 
     recommendations) for implementing modifications or reforms 
     identified by the Secretary as being appropriate.

     ``Sec. 14707. Private enforcement of registration requirement

       ``(a) In General.--If a person provides transportation by 
     motor vehicle or service in clear violation of section 13901-
     13904 or 13906, a person injured by the transportation or 
     service may bring a civil action to enforce any such section. 
     In a civil action under this subsection, trial is in the 
     judicial district in which the person who violated that 
     section operates.
       ``(b) Procedure.--A copy of the complaint in a civil action 
     under subsection (a) shall be served on the Secretary and a 
     certificate of service must appear in the complaint filed 
     with the court. The Secretary may intervene in a civil action 
     under subsection (a). The Secretary may notify the district 
     court in which the action is pending that the Secretary 
     intends to consider the matter that is the subject of the 
     complaint in a proceeding before the Secretary. When that 
     notice is filed, the court shall stay further action pending 
     disposition of the proceeding before the Secretary.
       ``(c) Attorney's Fees.--In a civil action under subsection 
     (a), the court may determine the amount of and award a 
     reasonable attorney's fee to the prevailing party. That fee 
     is in addition to costs allowable under the Federal Rules of 
     Civil Procedure.

     ``Sec. 14708. Dispute settlement program for household goods 
       carriers

       ``(a) Offering Shippers Arbitration.--As a condition of 
     registration under section 13902 or 13903, a carrier 
     providing transportation of household goods subject to 
     jurisdiction under subchapter I or III of chapter 135 must 
     agree to offer in accordance with this section to shippers of 
     household goods arbitration as a means of settling disputes 
     between such carriers and shippers of household goods 
     concerning damage or loss to the household goods transported.
       ``(b) Arbitration Requirements.--
       ``(1) Prevention of special advantage.--The arbitration 
     that is offered must be designed to prevent a carrier from 
     having any special advantage in any case in which the 
     claimant resides or does business at a place distant from the 
     carrier's principal or other place of business.
       ``(2) Notice of arbitration procedure.--The carrier must 
     provide the shipper an adequate notice of the availability of 
     neutral arbitration, including a concise easy-to-read, 
     accurate summary of the arbitration procedure, any applicable 
     fees, and disclosure of the legal effects of election to 
     utilize arbitration. Such notice must be given to persons for 
     whom household goods are to be transported by the carrier 
     before such goods are tendered to the carrier for 
     transportation.
       ``(3) Provision of forms.--Upon request of a shipper, the 
     carrier must promptly provide such forms and other 
     information as are necessary for initiating an action to 
     resolve a dispute under arbitration.
       ``(4) Independence of arbitrator.--Each person authorized 
     to arbitrate or otherwise settle disputes must be independent 
     of the parties to the dispute and must be capable, as 
     determined under such regulations as the Secretary may issue, 
     to resolve such disputes fairly and expeditiously. The 
     carrier must ensure that each person chosen to settle the 
     disputes is authorized and able to obtain from the shipper 
     or carrier any material and relevant information to the 
     extent necessary to carry out a fair and expeditious 
     decision making process.
       ``(5) Limitation on fees.--No fee of more than $25 may be 
     charged a shipper for instituting an arbitration proceeding 
     under this subsection. The arbitrator may determine which 
     party shall pay the cost or a portion of the cost of the 
     arbitration proceeding.
       ``(6) Requests.--The carrier must not require the shipper 
     to agree to utilize arbitration prior to the time that a 
     dispute arises. If the dispute involves a claim for $1,000 or 
     less and the shipper requests arbitration, such arbitration 
     shall be binding on the parties. If the dispute involves a 
     claim for more than $1,000 and the shipper requests 
     arbitration, such arbitration shall be binding on the parties 
     only if the carrier agrees to arbitration.
       ``(7) Oral presentation of evidence.--The arbitrator may 
     provide for an oral presentation of a dispute concerning 
     transportation of household goods by a party to the dispute 
     (or a party's representative), but such oral presentation may 
     be made only if all parties to the dispute expressly agree to 
     such presentation and the date, time, and location of such 
     presentation.
       ``(8) Deadline for decision.--The arbitrator must, as 
     expeditiously as possible but at least 

[[Page H 12294]]
     within 60 days of receipt of written notification of the dispute, 
     render a decision based on the information gathered; except 
     that, in any case in which a party to the dispute fails to 
     provide in a timely manner any information concerning such 
     dispute which the person settling the dispute may reasonably 
     require to resolve the dispute, the arbitrator may extend 
     such 60-day period for a reasonable period of time. A 
     decision resolving a dispute may include any remedies 
     appropriate under the circumstances, including repair, 
     replacement, refund, reimbursement for expenses, and 
     compensation for damages.
       ``(c) Limitation on Use of Materials.--Materials and 
     information obtained in the course of a decision making 
     process to settle a dispute by arbitration under this section 
     may not be used to bring an action under section 14905.
       ``(d) Attorney's Fees to Shippers.--In any court action to 
     resolve a dispute between a shipper of household goods and a 
     carrier providing transportation or service subject to 
     jurisdiction under subchapter I or III of chapter 135 
     concerning the transportation of household goods by such 
     carrier, the shipper shall be awarded reasonable attorney's 
     fees if--
       ``(1) the shipper submits a claim to the carrier within 120 
     days after the date the shipment is delivered or the date the 
     delivery is scheduled, whichever is later;
       ``(2) the shipper prevails in such court action; and
       ``(3)(A) a decision resolving the dispute was not rendered 
     through arbitration under this section within the period 
     provided under subsection (b)(8) of this section or an 
     extension of such period under such subsection; or
       ``(B) the court proceeding is to enforce a decision 
     rendered through arbitration under this section and is 
     instituted after the period for performance under such 
     decision has elapsed.
       ``(e) Attorney's Fees to Carriers.--In any court action to 
     resolve a dispute between a shipper of household goods and a 
     carrier providing transportation, or service subject to 
     jurisdiction under subchapter I or III of chapter 135 
     concerning the transportation of household goods by such 
     carrier, such carrier may be awarded reasonable attorney's 
     fees by the court only if the shipper brought such action in 
     bad faith--
       ``(1) after resolution of such dispute through arbitration 
     under this section; or
       ``(2) after institution of an arbitration proceeding by the 
     shipper to resolve such dispute under this section but 
     before--
       ``(A) the period provided under subsection (b)(8) for 
     resolution of such dispute (including, if applicable, an 
     extension of such period under such subsection) ends; and
       ``(B) a decision resolving such dispute is rendered.
       ``(f) Limitation of Applicability to Collect-on-Delivery 
     Transportation.--The provisions of this section shall apply 
     only in the case of collect-on-delivery transportation of 
     household goods.
       ``(g) Review by Secretary.--Not later than 36 months after 
     the effective date of this section, the secretary shall 
     complete a review of the dispute settlement program 
     established under this section. If, after notice and 
     opportunity for comment, the Secretary determines that 
     changes are necessary to such program to ensure the fair and 
     equitable resolution of disputes under this section, the 
     Secretary shall implement such changes and transmit a report 
     to Congress on such changes.

     ``Sec. 14709. Tariff reconciliation rules for motor carriers 
       of property

       ``Subject to review and approval by the Panel, motor 
     carriers subject to jurisdiction under subchapter I of 
     chapter 135 (other than motor carriers providing 
     transportation of household goods) and shippers may resolve, 
     by mutual consent, overcharge and under-charge claims 
     resulting from incorrect tariff provisions or billing errors 
     arising from the inadvertent failure to properly and timely 
     file and maintain agreed upon rates, rules, or 
     classifications in compliance with section 13702 or, with 
     respect to transportation provided before the effective date 
     of this section, sections 10761 and 10762, as in effect on 
     the day before the effective date of this section. Resolution 
     of such claims among the parties shall not subject any party 
     to the penalties for departing from a tariff.

              ``CHAPTER 149--CIVIL AND CRIMINAL PENALTIES

Sec.
``14901. General civil penalties.
``14902. Civil penalty for accepting rebates from carrier.
``14903. Tariff violations.
``14904. Additional rate violations.
``14905. Penalties for violations of rules relating to loading and 
              unloading motor vehicles.
``14906. Evasion of regulation of carriers and brokers.
``14907. Record keeping and reporting violations.
``14908. Unlawful disclosure of information.
``14909. Disobedience to subpoenas.
``14910. General criminal penalty when specific penalty not provided.
``14911. Punishment of corporation for violations committed by certain 
              individuals.
``14912. Weight-bumping in household goods transportation.
``14913. Conclusiveness of rates in certain prosecutions.

     ``Sec. 14901. General civil penalties

       ``(a) Reporting and Recordkeeping.--A person required to 
     make a report to the Secretary or the Panel, answer a 
     question, or make, prepare, or preserve a record under this 
     part concerning transportation subject to jurisdiction under 
     subchapter I or III of chapter 135 or transportation by a 
     foreign carrier registered under section 13902, or an 
     officer, agent, or employee of that person that--
       ``(1) does not make the report;
       ``(2) does not specifically, completely, and truthfully 
     answer the question;
       ``(3) does not make, prepare, or preserve the record in the 
     form and manner prescribed;
       ``(4) does not comply with section 13901; or
       ``(5) does not comply with section 13902(c);

     is liable to the United States Government for a civil penalty 
     of not less than $500 for each violation and for each 
     additional day the violation continues; except that, in the 
     case of a person who is not registered under this part to 
     provide transportation of passengers, or an officer, agent, 
     or employee of such person, that does not comply with section 
     13901 with respect to providing transportation of passengers, 
     the amount of the civil penalty shall not be less than $2,000 
     for each violation and for each additional day the violation 
     continues.
       ``(b) Transportation of Hazardous Wastes.--A person subject 
     to jurisdiction under subchapter I of chapter 135, or an 
     officer, agent, or employee of that person, and who is 
     required to comply with section 13901 of this title but does 
     not so comply with respect to the transportation of hazardous 
     wastes as defined by the Environmental Protection Agency 
     pursuant to section 3001 of the Solid Waste Disposal Act (but 
     not including any waste the regulation of which under the 
     Solid Waste Disposal Act has been suspended by Congress) 
     shall be liable to the United States for a civil penalty not 
     to exceed $20,000 for each violation.
       ``(c) Factors To Consider in Determining Amount.--In 
     determining and negotiating the amount of a civil penalty 
     under subsection (a) or (d) concerning transportation of 
     household goods, the degree of culpability, any history of 
     prior such conduct, the degree of harm to shipper or 
     shippers, ability to pay, the effect on ability to do 
     business, whether the shipper has been adequately compensated 
     before institution of the proceeding, and such other matters 
     as fairness may require shall be taken into account.
       ``(d) Protection of Household Goods Shippers.--If a carrier 
     providing transportation of household goods subject to 
     jurisdiction under subchapter I or III of chapter 135 or a 
     receiver or trustee of such carrier fails or refuses to 
     comply with any regulation issued by the Secretary or the 
     Panel relating to protection of individual shippers, such 
     carrier, receiver, or trustee is liable to the United States 
     for a civil penalty of not less than $1,000 for each 
     violation and for each additional day during which the 
     violation continues.
       ``(e) Violation Relating to Transportation of Household 
     Goods.--Any person that knowingly engages in or knowingly 
     authorizes an agent or other person--
       ``(1) to falsify documents used in the transportation of 
     household goods subject to jurisdiction under subchapter I or 
     III of chapter 135 which evidence the weight of a shipment; 
     or
       ``(2) to charge for accessorial services which are not 
     performed or for which the carrier is not entitled to be 
     compensated in any case in which such services are not 
     reasonably necessary in the safe and adequate movement of the 
     shipment;

     is liable to the United States for a civil penalty of not 
     less than $2,000 for each violation and of not less than 
     $5,000 for each subsequent violation. Any State may bring a 
     civil action in the United States district courts to compel a 
     person to pay a civil penalty assessed under this subsection.
       ``(f) Venue.--Trial in a civil action under subsections (a) 
     through (e) of this section is in the judicial district in 
     which--
       ``(1) the carrier or broker has its principal office;
       ``(2) the carrier or broker was authorized to provide 
     transportation or service under this part when the violation 
     occurred;
       ``(3) the violation occurred; or
       ``(4) the offender is found.

     Process in the action may be served in the judicial district 
     of which the offender is an inhabitant or in which the 
     offender may be found.

     ``Sec. 14902. Civil penalty for accepting rebates from 
       carrier

       ``A person--
       ``(1) delivering property to a carrier providing 
     transportation or service subject to jurisdiction under 
     chapter 135 for transportation under this part or for whom 
     that carrier will transport the property as consignor or 
     consignee for that person from a State or territory or 
     possession of the United States to another State or 
     possession, territory, or to a foreign country; and
       ``(2) knowingly accepting or receiving by any means a 
     rebate or offset against the rate for transportation for, or 
     service of, that property contained in a tariff required 
     under section 13702;

     is liable to the United States Government for a civil penalty 
     in an amount equal to 3 times the amount of money that person 
     accepted or received as a rebate or offset and 3 times the 
     value of other consideration accepted or received as a rebate 
     or offset. In a civil action under this section, all money or 
     other consideration received by the person during a period of 
     6 years before an action is brought under this section may be 
     included in determining the amount of the penalty, and if 
     that total amount is included, the penalty shall be 3 times 
     that total amount.

     ``Sec. 14903. Tariff violations

       ``(a) Criminal Penalty for Undercharging.--A person that 
     knowingly offers, grants, gives, solicits, accepts, or 
     receives by any means transportation or service provided for 
     property by a carrier subject to jurisdiction under chapter 
     135 at less than the rate in effect under section 13702 shall 
     be fined at least $1,000 but not more than $20,000, 
     imprisoned for not more than 2 years, or both. 

[[Page H 12295]]

       ``(b) General Criminal Penalty.--A carrier providing 
     transportation or service subject to jurisdiction under 
     chapter 135 or an officer, director, receiver, trustee, 
     lessee, agent, or employee of a corporation that is subject 
     to jurisdiction under that chapter, that willfully does not 
     observe its tariffs as required under section 13702, shall be 
     fined at least $1,000 but not more than $20,000, imprisoned 
     for not more than 2 years, or both.
       ``(c) Actions of Agents and Employees.--When acting in the 
     scope of their employment, the actions and omissions of 
     persons acting for or employed by a carrier or shipper that 
     is subject to this section are considered to be the actions 
     and omissions of that carrier or shipper as well as that 
     person.
       ``(d) Venue.--Trial in a criminal action under this section 
     is in the judicial district in which any part of the 
     violation is committed or through which the transportation is 
     conducted.

     ``Sec. 14904. Additional rate violations

       ``(a) Rebates by Agents.--A person, or an officer, 
     employee, or agent of that person, that--
       ``(1) knowingly offers, grants, gives, solicits, accepts, 
     or receives a rebate for concession, in violation of a 
     provision of this part related to motor carrier 
     transportation subject to jurisdiction under subchapter I of 
     chapter 135; or
       (2) by any means knowingly and willfully assists or permits 
     another person to get transportation that is subject to 
     jurisdiction under that subchapter at less than the rate in 
     effect for that transportation under section 13702,

     shall be fined at least $200 for the first violation and at 
     least $250 for a subsequent violation.
       ``(b) Undercharging.--
       ``(1) Freight forwarder.--A freight forwarder providing 
     service subject to jurisdiction under subchapter III of 
     chapter 135, or an officer, agent, or employee of that 
     freight forwarder, that knowingly and willfully assists a 
     person in getting, or willingly permits a person to get, 
     service provided under that subchapter at less than the rate 
     in effect for that service under section 13702, shall be 
     fined not more than $500 for the first violation and not more 
     than $2,000 for a subsequent violation.
       ``(2) Others.--A person that knowingly and willfully by any 
     means gets, or attempts to get, service provided under 
     subchapter III of chapter 135 at less than the rate in effect 
     for that service under section 13702, shall be fined not more 
     than $500 for the first violation and not more than $2,000 
     for a subsequent violation.

     ``Sec. 14905. Penalties for violations of rules relating to 
       loading and unloading motor vehicles

       ``(a) Civil Penalties.--Any person who knowingly 
     authorizes, consents to, or permits a violation of subsection 
     (a) or (b) of section 14103 or who knowingly violates 
     subsection (a) of such section is liable to the United States 
     Government for a civil penalty of not more than $10,000 for 
     each violation.
       ``(b) Criminal Penalties.--Any person who knowingly 
     violates section 14103(b) of this title shall be fined not 
     more than $10,000, imprisoned for not more than 2 years, or 
     both.

     ``Sec. 14906. Evasion of regulation of carriers and brokers

       ``A person, or an officer, employee, or agent of that 
     person, that by any means knowingly and willfully tries to 
     evade regulation provided under this part for carriers or 
     brokers shall be fined at least $200 for the first violation 
     and at least $250 for a subsequent violation.

     ``Sec. 14907. Record keeping and reporting violations

       ``A person required to make a report to the Secretary or 
     the Panel, as applicable, answer a question, or make, 
     prepare, or preserve a record under this part about 
     transportation subject to jurisdiction under subchapter I or 
     III of chapter 135, or an officer, agent, or employee of that 
     person, that--
       ``(1) willfully does not make that report;
       ``(2) willfully does not specifically, completely, and 
     truthfully answer that question in 30 days from the date the 
     Secretary or Panel, as applicable, requires the question to 
     be answered;
       ``(3) willfully does not make, prepare, or preserve that 
     record in the form and manner prescribed;
       ``(4) knowingly and willfully falsifies, destroys, 
     mutilates, or changes that report or record;
       ``(5) knowingly and willfully files a false report or 
     record;
       ``(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 makes, prepares, or preserves 
     a record in violation of an applicable regulation or order of 
     the Secretary or Panel;

     shall be fined not more than $5,000.

     ``Sec. 14908. Unlawful disclosure of information

       ``(a) Disclosure of Shipment and Routing Information.--
       ``(1) Violations.--A carrier or broker providing 
     transportation subject to jurisdiction under subchapter I, 
     II, or III of chapter 135 or an officer, receiver, trustee, 
     lessee, or employee of that carrier or broker, or another 
     person authorized by that carrier or broker to receive 
     information from that carrier or broker may not knowingly 
     disclose to another person, except the shipper or consignee, 
     and another person may not solicit, or knowingly receive, 
     information about the nature, kind, quantity, destination, 
     consignee, or routing of property tendered or delivered to 
     that carrier or broker for transportation provided under this 
     part without the consent of the shipper or consignee if that 
     information may be used to the detriment of the shipper or 
     consignee or may disclose improperly to a competitor the 
     business transactions of the shipper or consignee.
       ``(2) Fine; venue.--A person violating paragraph (1) of 
     this subsection shall be fined not less than $2,000. Trial in 
     a criminal action under this paragraph is in the judicial 
     district in which any part of the violation is committed.
       ``(b) Limitation on Statutory Construction.--This part does 
     not prevent a carrier or broker providing transportation 
     subject to jurisdiction under chapter 135 from giving 
     information--
       ``(1) in response to legal process issued under authority 
     of a court of the United States or a State;
       ``(2) to an officer, employee, or agent of the United 
     States Government, a State, or a territory or possession of 
     the United States; or
       ``(3) to another carrier or its agent to adjust mutual 
     traffic accounts in the ordinary course of business.

     ``Sec. 14909. Disobedience to subpoenas

       ``A person not obeying a subpoena or requirement of the 
     Secretary or the Panel to appear and testify or produce 
     records shall be fined not less than $5,000, imprisoned for 
     not more than 1 year, or both.

     ``Sec. 14910. General criminal penalty when specific penalty 
       not provided

       ``When another criminal penalty is not provided under this 
     chapter, a person that knowingly and willfully violates a 
     provision of this part or a regulation or order prescribed 
     under this part, or a condition of a registration under this 
     part related to transportation that is subject to 
     jurisdiction under subchapter I or III of chapter 135 or a 
     condition of a registration of a foreign motor carrier or 
     foreign motor private carrier under section 13902, shall be 
     fined at least $500 for the first violation and at least $500 
     for a subsequent violation. A separate violation occurs each 
     day the violation continues.

     ``Sec. 14911. Punishment of corporation for violations 
       committed by certain individuals

       ``An act or omission that would be a violation of this part 
     if committed by a director, officer, receiver, trustee, 
     lessee, agent, or employee of a carrier providing 
     transportation or service subject to jurisdiction under 
     chapter 135 that is a corporation is also a violation of this 
     part by that corporation. The penalties of this chapter apply 
     to that violation. When acting in the scope of their 
     employment, the actions and omissions of individuals acting 
     for or employed by that carrier are considered to be the 
     actions and omissions of that carrier as well as that 
     individual.

     ``Sec. 14912. Weight-bumping in household goods 
       transportation

       ``(a) Weight-Bumping Defined.--For the purposes of this 
     section, `weight-bumping' means the knowing and willful 
     making or securing of a fraudulent weight on a shipment of 
     household goods which is subject to jurisdiction under 
     subchapter I or III of chapter 135.
       ``(b) Penalty.--Any individual who has been found to have 
     committed weight-bumping shall, for each offense, be fined at 
     least $1,000 but not more than $10,000, imprisoned for not 
     more than 2 years, or both.

     ``Sec. 14913. Conclusiveness of rates in certain prosecutions

       ``When a carrier publishes or files a particular rate under 
     section 13702 or participates in such a rate, the published 
     or filed rate is conclusive proof against that carrier, its 
     officers, and agents that it is the legal rate for that 
     transportation or service in a proceeding begun under section 
     14902 or 14903. A departure, or offer to depart, from that 
     published or filed rate is a violation of those sections.''.

     SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.

       (a) Multiple Insurers.--Section 31138(c) of title 49, 
     United States Code, is amended by adding at the end thereof 
     the following new paragraph:
       ``(3) A motor carrier may obtain the required amount of 
     financial responsibility from more than one source provided 
     the cumulative amount is equal to the minimum requirements of 
     this section.''.
       (b) Minimum Financial Responsibility Requirements With 
     Respect to Certain Mass Transportation Service.--Section 
     31138(e) is amended--
       (1) by striking ``or'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(4) providing mass transportation service within a 
     transit service area in other than urbanized areas under an 
     agreement with a State or local government funded, in whole 
     or in part, with a grant under section 5310 or 5311, 
     including transportation designed and carried out to meet the 
     special needs of elderly individuals and individuals with 
     disabilities; provided that, in any case in which the transit 
     service area is located in more than 1 State, the minimum 
     level of financial responsibility for such motor vehicle will 
     be at least the highest level required for any of such 
     States.''.
       (c) Transporters of Property.--Section 31139(e) of such 
     title is amended by adding at the end thereof the following:
       ``(3) A motor carrier may obtain the required amount of 
     financial responsibility from more than one source provided 
     the cumulative amount is equal to the minimum requirements of 
     this section.''.
       (d) Commercial Motor Vehicle Defined.--Section 31132(1) of 
     such title is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) is designed or used to transport passengers for 
     compensation, but excluding vehicles providing taxicab 
     service and having a capacity of not more than 6 passengers 
     and not operated on a regular route or between specified 
     places;

[[Page H 12296]]

       ``(C) is designed or used to transport more than 15 
     passengers, including the driver, and is not used to 
     transport passengers for compensation; or''.
       (e) Self-Insurance Rules.--The Secretary of Transportation 
     shall continue to enforce the rules and regulations of the 
     Interstate Commerce Commission, as in effect on July 1, 1995, 
     governing the qualifications for approval of a motor carrier 
     as a self-insurer, until such time as the Secretary finds it 
     in the public interest to revise such rules. The revised 
     rules must provide for--
       (1) continued ability of motor carriers to qualify as self-
     insurers; and
       (2) the continued qualification of all carriers then so 
     qualified under the terms and conditions set by the 
     Interstate Commerce Commission or Secretary at the time of 
     qualification.
       (f) Automobile Transporters Defined.--The Secretary of 
     Transportation shall issue a regulation amending the 
     definition of automobile transporters under part 658 of title 
     23, Code of Federal Regulations, to mean any vehicle 
     combination designed and used specifically for the transport 
     of assembled (capable of being driven) highway vehicles, race 
     car transporters, or specialty trailers designed for the 
     racing industry with a 10-foot 1-inch spread axle setting.


             amendment offered by mr. sam johnson of texas

  Mr. SAM JOHNSON of Texas. Mr. Chairman, I offer an amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Sam Johnson of Texas: Page 207, 
     line 21, before the semicolon insert ``in vehicles with a 
     gross vehicle weight rating of at least 26,001 pounds''.
       Page 208, line 20, strike ``or''.
       Page 208, line 23, after the comma insert ``or''.
       Page 208, after line 23, insert the following:
       ``(vi) consumer protection rules directly related to the 
     transportation of household goods,''.

  Mr. SAM JOHNSON of Texas (during the reading). Mr. Chairman, I ask 
unanimous consent that the amendment be considered as read and printed 
in the Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  There was no objection.
  Mr. SAM JOHNSON of Texas. Mr. Chairman, I would like to conduct a 
colloquy with the chairman of the committee, the gentleman from 
Pennsylvania.
  Mr. Chairman, in September of last year we passed by voice vote an 
expansive deregulation bill that had wide bipartisan support. The 
sponsor believed, as I do, that deregulating the trucking industry 
would be valuable, not only to the trucking industry, but to consumers. 
That has proven true. By deregulating trucking, we created a balanced 
playing field.
  I believe that the gentleman from California [Mr. Mineta], who was a 
prime sponsor of that bill summed up the intent by saying we will have 
accomplished not just agency reduction, but also regulatory reduction.
  Today, Mr. Chairman, this amendment wants to try to expand on the 
positive steps that were taken just one year ago by expanding the 
process and exempting small movers, those under 26,000 pounds, from 
burdensome regulation. They provide a unique service, I think, which 
the large carriers are unable to provide. They cater to families and 
individuals that do not require a large van line. They typically make 
moves within the same city and take only several hours to complete a 
move.
  I think the gentleman from Pennsylvania [Mr. Shuster], the chairman, 
would agree with me that deregulation is really important, and that 
while this does deregulate the States, it contains consumer protection 
rules related to transportation of household goods. I think he has 
indicated he would support those consumer protection rules.
  What I would like to do is ask that you would consider this in any 
conference that might come up with the Senate.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. SAM JOHNSON of Texas. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Mr. Chairman, it is my understanding that while we have 
problems with the way this particular amendment is crafted, it would be 
my intent to work with the gentleman, so that as I understand it, he 
will withdraw the amendment at this point and we will work with him to 
see if we cannot craft one in conference. I would certainly make that 
commitment to the gentleman. That would be my intent.
  Mr. SAM JOHNSON of Texas. Mr. Chairman, I appreciate the gentleman's 
remarks.
  Mr. Chairman, I ask unanimous consent to withdraw my amendment.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  Mr. OBERSTAR. Reserving the right to object, Mr. Chairman, I heard 
the discussion. If I understood it, the chairman intends to work with 
the gentleman from Texas [Mr. Sam Johnson] to further refine his 
language and address his concerns?
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. OBERSTAR. I yield to the gentleman from Pennsylvania.

                              {time}  1645

  Mr. SHUSTER. Mr. Chairman, as I have said, I will be happy to try to 
work with the gentleman so that we can consider it in conference.
  Mr. OBERSTAR. Mr. Chairman, further reserving the right to object, 
the amendment offered by the gentleman from Texas would change a law 
that took effect only 10 months ago. It would jeopardize timely 
enactment of the legislation before us.
  Mr. Chairman, we think on our side that it is an issue without a 
problem. We have had no testimony on the subject matter. So I would 
really appreciate if the gentleman would withdraw the amendment and 
both sides would work together to address the concerns of the 
gentleman.
  Mr. SHUSTER. Mr. Chairman, I thank the gentleman for his comments.
  Mr. OBERSTAR. Mr. Chairman, I withdraw by reservation of objection.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  There was no objection.
  The CHAIRMAN. The amendment is withdrawn.


                    amendment offered by mr. latham

  Mr. LATHAM. Mr. Chairman, I offer an amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Latham: Page 32, after line 6, 
     insert the following new subsection:
       ``(f) The Panel shall implement by regulation 
     administrative complaint remedies substantively equivalent to 
     the provisions of section 10713 of this title, as in effect 
     before the date of the enactment of the ICC Termination Act 
     of 1995, with regard to contracts for the transportation of 
     agricultural commodities. Such regulations shall be adopted 
     no later than 90 days after the date of the enactment of the 
     ICC Termination Act of 1995.

  Mr. LATHAM (during the reading). Mr. Chairman, I ask unanimous 
consent that the amendment be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Iowa?
  There was no objection.
  Mr. LATHAM. Mr. Chairman, I would like to thank the gentleman from 
Pennsylvania [Mr. Shuster], the chairman of the committee, for his 
dedication to working with Members from the agricultural districts to 
clarify language in the ICC Elimination Act of 1995.
  The amendment I am proposing will put in place administrative 
complaint remedies substantially equivalent to the provisions in 
current law. This amendment will ensure that each railroad operates as 
a common carrier and fulfills its obligations to distribute cars its 
equitably among its customers.
  Under current law, railroads must keep at least 60 percent of the 
cars available for regular services. This requirement has helped ensure 
adequate numbers of cars available to meet agricultural seasonal 
demands.
  This amendment will enable the new Transportation Advisory Panel to 
maintain an assurance that sufficient cars and locomotives are made 
available to handle the demands of crops production cycles and market 
needs.
  Mr. Chairman, I urge support of this amendment.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. LATHAM. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Mr. Chairman, I thank the gentleman for yielding. We 
support the amendment of the gentleman from Iowa [Mr. Latham].
  Mr. OBERSTAR. Mr. Chairman, if the gentleman will yield, we have 
looked at this issue, and although it has come up very suddenly, it is 
an issue of longstanding; it has long been a problem of grain shippers 
to get hopper cars and locomotives to serve their 

[[Page H 12297]]
area. We have seen that for many years, and there is provision in the 
existing ICC law that gives the Commission authority to order a carrier 
to provide rates and services, ``substantially similar to the contract 
at issue with such differentials in terms and conditions as are 
justified by the evidence.''
  Mr. Chairman, if I could inquire of the gentleman, the gentleman 
really wants to keep that language in place?
  Mr. LATHAM. Mr. Chairman, if the gentleman will yield, in essence, 
yes, to provide for those protections for the shipper.
  Mr. OBERSTAR. Mr. Chairman, we certainly support that objective, and 
we have no objection to the amendment of the gentleman from Iowa.
  Mr. LATHAM. Mr. Chairman, I yield to the gentleman from Minnesota 
[Mr. Minge].
  Mr. MINGE. Mr. Chairman, I rise in support of the amendment and I 
would like to associate myself with the amendment offered by the 
gentleman from Iowa [Mr. Latham]. I certainly recognize, as he, that 
from time to time agricultural commodities cannot receive adequate 
shipping services, and 1995 turns out to be one of those times.
  Mr. Chairman, we have piles of grain sitting on the ground, some of 
it being exposed to moisture, some of it now heating up, and this is 
going to cause loss for farmers and for elevators. What we need is 
greater shipping resources.
  At the same time, I know that many elevators and farmers are troubled 
because they see rail rates increasing dramatically, and although they 
have not utilized the ICC on numerous occasions, they certainly do not 
want to lose whatever remedial enforcement power the Interstate 
Commerce Commission may have in this context. Therefore, I applaud the 
gentleman from Iowa for offering this amendment to continue the 
protections that exist in the Interstate Commerce Act for the benefit 
of agricultural shippers.
  Mr. LATHAM. Mr. Chairman, if the gentleman will yield, I thank the 
gentleman, and I thank very much the gentleman from Pennsylvania [Mr. 
Shuster] for accepting this amendment, and I would urge the amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Iowa [Mr. Latham].
  The amendment was agreed to.
  The CHAIRMAN. Are there further amendments to title I?


                   amendment offered by mr. whitfield

  Mr. WHITFIELD. Mr. Chairman, I offer an amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Whitfield: Page 37, in the table 
     of sections for chapter 107, amend the item relating to 
     section 10702 to read as follows:

``10702. Short line purchases by Class II and Class III rail carriers.

       Page 38, line 3 and 4, strike ``rail carrier providing 
     transportation subject to the jurisdiction of the Panel under 
     this part'' and insert in lieu thereof ``person''.
       Page 38, lines 8 through 11, amend paragraphs (3) and (4) 
     to read as follows:
       ``(3) provide transportation over, or by means of, an 
     extended or additional railroad line; or
       ``(4) in the case of a person other than a rail carrier, 
     acquire a railroad line or acquire or operate an extended or 
     additional railroad line,
       Page 39, line 2, strike ``or section 10702''.
       Page 39, line 20, through page 40, line 4, strike 
     subsections (e) and (f).
       Page 40, line 5, through page 43, line 7, amend section 
     10702 to read as follows:

     ``Sec. 10702. Short line purchases by Class II and Class III 
       rail carriers

       ``(a) A Class II or Class III rail carrier providing 
     transportation subject to the jurisdiction of the Panel under 
     this part may acquire or operate an extended or additional 
     rail line under this section only if the Panel issues a 
     certificate authorizing such activity under subsection (c).
       ``(b) A proceeding to grant authority under subsection (a) 
     of this section begins when an application is filed. On 
     receiving the application, the Panel shall give reasonable 
     public notice of the beginning of such proceeding.
       ``(c) The Panel shall issue a certificate authorizing 
     activities for which such authority is requested in an 
     application filed under subsection (b) unless the Panel finds 
     that such activities are inconsistent with the public 
     convenience and necessity. Such certificate may approve the 
     application as filed, or with modifications, and may require 
     compliance with conditions the Panel finds necessary in the 
     public interest.
       ``(d) The Panel shall require any Class II rail carrier 
     which receives a certificate under subsection (c) of this 
     section to provide a fair and equitable arrangement for the 
     protection of the interests of employees who may be affected 
     thereby to the same extent as an arrangement established 
     pursuant to section 11126(b) of this title. The Panel 
     shall not require such an arrangement from a Class III 
     rail carrier which receives a certificate under subsection 
     (c) of this section
       ``(e) For purposes of this section, the terms `Class II 
     rail carrier' and `Class III rail carrier' have the meaning 
     given those terms by the Panel.
       Page 46, line 2, insert ``(a)'' after ``under sections 
     11126''.
       Page 68, Line 18, strike ``(a)''.
       Page 69, lines 7 through 11, strike subsection (b).
       Page 74, after line 22, insert the following new 
     subsection:
       ``(e) No transaction described in section 11126(b) may have 
     the effect of avoiding a collective bargaining agreement or 
     shifting work from a rail carrier with a collective 
     bargaining agreement to a rail carrier without a collective 
     bargaining agreement.
       Page 74, line 23, strike ``(e)'' and insert in lieu thereof 
     ``(f)''.
       Page 79, line 12, strike ``When'' and insert in lieu 
     thereof ``(a) Except as otherwise provided in this section, 
     when''.
       Page 80, after line 3, insert the following new 
     subsections:
       ``(b) When approval is sought under sections 11124 and 
     11125 for a transaction involving one Class II and one or 
     more Class III rail carriers, there shall be an arrangement 
     as required under subsection (a) of this section, except that 
     the arrangement shall be limited to one year of severance 
     pay, which shall not exceed the amount of earnings from the 
     railroad employment of that employee during the 12-month 
     period immediately preceding the date on which the 
     application for approval of such transaction is filed with 
     the Panel. The amount of such severance pay shall be reduced 
     by the amount of earnings from railroad employment of that 
     employee with the acquiring carrier during the 12-month 
     period immediately following the effective date of the 
     transaction. The parties may agree to terms other than as 
     provided in this subsection.
       ``(c) When approval is sought under sections 11124 and 
     11125 for a transaction involving only Class III rail 
     carriers, this section shall not apply.
       ``(d) For purposes of this section, the terms `Class II 
     rail carrier' and `Class III rail carrier' have the meaning 
     given those terms by the Panel.

  Mr. WHITFIELD (during the reading). Mr. Chairman, I ask unanimous 
consent that the amendment be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Kentucky?
  There was no objection.
  Mr. WHITFIELD. Mr. Chairman, first of all, I would like to take this 
opportunity to congratulate the Members of the committee for the hard 
work that they did on this very complicated piece of legislation. I 
think that all of us agree that the ICC has outlived its usefulness and 
that the transportation industry will be much better with the 
sunsetting of the ICC and the acquisition of the authority to regulate 
the remaining portions of regulation over at the Department of 
Transportation.
  Mr. Chairman, as my colleagues may know, there are three classes of 
railroads in the United States today. Class 1 carriers have operating 
revenues in excess of $250 million. Class 2 carriers have operating 
revenues between $20 million and $250 million, and class 3 carriers 
have operating revenues of less than $20 million a year.
  The amendment that I am offering provides certainty regarding labor 
protection associated with the sale or merger of short-line railroads. 
It will benefit railway labor and short-line operators.
  Mr. Chairman, I would like to point out that this amendment does not 
in any way affect labor protection in class 1 railroads. I would also 
like to point out that it is not our intention, and we made this very 
clear with legislative counsel, that we would exempt all railway labor 
protection in class 3 carriers. However, we do keep labor protection 
and we specify specifically what it should be for class 2 carriers.
  In addition to that, if a railway carrier would like to establish a 
nonrailway subsidiary and acquire a short-line railroad, they are 
exempt from this bill and they go to the ICC for imposition of labor 
protection, as is the existing law. Mr. Chairman, as my colleagues 
know, the ICC has the authority today on short-line acquisitions and 
mergers to impose up to 6 years labor protection.
  So my amendment is a very simple amendment that provides certainty. 
For example, if a class 3 railway acquires a line from any carrier or 
merges with another class 3 carrier, there is no labor protection. That 
is the same as is in the Chairman's bill.

[[Page H 12298]]

  If a class 2 railway acquires a line from a class 1 or another class 
2, labor protection will be limited to 1 year severance pay. Under 
existing law, the ICC has the authority to require 6 years protection. 
If a class 2 railway merges with a class 3 railway, labor protection 
will be limited to 1 year severance.

  Finally, in my amendment, a class 2 railroad and only a class 2 
railroad would be prohibited from using a merger between a union and a 
nonunion railroad to avoid a collective bargaining agreement.
  Mr. Chairman, I think that labor has come very far in supporting this 
amendment, because under existing law, they have the opportunity to get 
6 years protection. In many instances today, and in the last few years, 
as we have had a lot of acquisitions of short lines, railway labor has 
received zero benefit.
  At the same time, many class 2 carriers, and I know the association 
of class 2 carriers, are opposed to this amendment, but many class 2 
carriers like the certainty of 1-year severance that is clear to them 
without any doubt.
  As as I stated, this amendment removes uncertainty regarding labor 
protection in the case of railway acquisitions and mergers. It is a 
fair and equitable solution for short-line operations and railroad 
employees, and I would like to stress once more, it does not affect 
labor protection for class 1 railroads and it exempts, it is our intent 
to exempt, labor protection for class 3 railways
  Mr. Chairman, I urge support of the amendment.
  Mr. WISE. Mr. Chairman, will the gentleman yield?
  Mr. WHITFIELD. I yield to the gentleman from West Virginia.
  Mr. WISE. Mr. Chairman, I appreciate the gentleman yielding, and I 
have a question.
  If I wanted to come from a very hard labor standpoint, would I not 
see this as being some concessions from, particularly from what 
existing law is?
  I look for instance, at class 3, which are your smallest railroads, 
those under $20 million of operating revenue, and I note that under 
existing law, if there is a merger, they would have 6 years; am I 
correct? Under the gentleman's amendment, they have what?
  Mr. WHITFIELD. Mr. Chairman, reclaiming my time, under my amendment 
they have 1 year, you are right, if it is a carrier by a class 3. If it 
is a carrier acquisition, a class 3 is mandatory for 6 years. They can 
form a nonrail subsidiary and then the ICC has the option of imposing 
whatever labor protection they want up to 6 years, but this is a 
concession on the part of labor.
  Mr. WISE. Mr. Chairman, if the gentleman will continue to yield, what 
about class 3s, because class 3s, it was my understanding, have no 
labor protection at all.
  Mr. WHITFIELD. Mr. Chairman, if I could respond to the gentleman from 
West Virginia, in the bill, they have no labor protection at all.
  Mr. WISE. So with the gentleman's amendment, there is some provisions 
where under existing law there is labor protection; under your 
amendment, there is not. So I would say that in some cases, labor has 
made a concession.
  Mr. WHITFIELD. Mr. Chairman, reclaiming my time, I think they 
certainly have. I think it is a balanced approach to this issue, and I 
think the gentleman is correct.
  Mr. WISE. Knowing the gentleman's experience in the rail industry and 
the time he spent in it, we appreciate very much, I do, the gentleman 
offering this amendment, which seems to be a good, commonsense 
compromise.
  Mr. SHUSTER. Mr. Chairman, I rise in strong opposition to this 
amendment.
  Mr. Chairman, I would say to my colleagues, if we want to see 
wholesale abandonments, particularly in rural America of small railroad 
lines, this is the amendment, if it passes, which will cause that to 
happen. Indeed, while I am sure the gentleman from Kentucky [Mr. 
Whitfield] does not mean to create uncertainty; in fact, he said this 
amendment of his would remove uncertainty, the fact is it will create 
extraordinary uncertainty, and I will attempt to prove that as I 
continue in this opposition.
  First of all, Mr. Chairman, this amendment requires mandatory 1-year 
severance on Class 2s, which could be as small as a railroad with 
revenue of only $21 million a year.
  Second, this amendment gives the panel, the new adjudicatory panel, 
the authority to impose optional labor protection on Class 2 mergers of 
line sales under the guise of public interest. This means that the 
panel could impose 6 years if it chose to do so. So we have no 
guarantee here that it only would be a 1-year labor protection.
  Now, if this is not bad enough, the amendment will allow the panel to 
impose optional labor protection on Class 3 line sales, again, under 
the guise of public interest.
  Mr. Chairman, let me share with my colleagues now what the real 
neutron bomb is in the amendment, something that is silent, but deadly.
  This amendment, and I doubt that the gentleman from Kentucky really 
intends this to be the case, but this amendment wipes out the 
provisions in existing law which makes the panel the exclusive Federal 
authority of proving the merger. Beyond that, it wipes out the 
provisions in existing law that insulate the merger from State laws, so 
State law could be interposed.

                              {time}  1700

  Further, this amendment wipes out the provisions in existing law 
which insulate the merger from Federal antitrust laws. Fourth, this 
amendment wipes out the provisions in existing law which give the panel 
the authority to exempt the merger from any Federal, State, or local 
law necessary to carry out the transaction. In a nutshell, a merger or 
a line sale could never be carried out under this amendment.
  If Members want to see wholesale abandonments across America with the 
smaller railroad lines, if we pass this amendment, that is what we are 
going to see. That is the reason why we so vigorously oppose this 
amendment.
  In closing, I again emphasize, we do not touch labor protection for 
class I, for the big railroads. We leave that in place. But do not 
impose upon these small railroads this kind of labor protection, 
because if Members do, we will simply be inviting them to abandon their 
lines rather than swallow these extraordinary costs.
  Mr. LIPINSKI. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, I rise to express my very, very strong support for the 
amendment offered by the gentleman from Kentucky. This amendment is a 
very reasonable compromise--in fact, as far as I am concerned, it is 
probably far too reasonable--to the contentious issues surrounding 
labor protection for rail employees.
  As reported by the Committee on Transportation and Infrastructure, 
H.R. 2539 contains a provision which wipes out statutory safeguards for 
rail employees who are affected by mergers, acquisitions, and other 
transactions. The provision applies to employees of class 2 railroads, 
that is, railroads with annual revenues up to $250 million. I repeat 
that. These are class 2 railroads that have annual revenues up to $250 
million.
  Instead of completely wiping out the labor protection currently 
afforded these employees, the Whitfield amendment provides 1 year of 
severance for those with years of employment on midsize railroads. This 
1 year of severance is a dramatic reduction from the current 6-year 
requirement.
  Mr. Chairman, many times in the past I have stood in this well and 
advocated maintaining or increasing the good benefits provided for 
union members in this country. I am not doing that today. Instead, I 
propose that we slash the severance benefits given to class 2 railroad 
employees from 6 years to 1 year. I know that is a big cut, but I am 
willing to support it in order to pass this bill and to protect the 
American working man and woman in class 2 railroads.
  After passage of this amendment, this legislation will provide 1 year 
of severance for class 2 railroads and essentially eliminate severance 
for class 3 carriers, those with annual revenues less than $20 million. 
That is because the short line and the regional railroads do not have 
the same financial resources that the big class 2 carriers do. But 
those who oppose this amendment will say that even the limited benefits 
provided in this amendment are too much. They will say that class 2 
railroads simply cannot afford them.

[[Page H 12299]]

  Let me tell Members about one class 2 railroad that runs through my 
congressional district, the Wisconsin Central Railroad, a class 2 
railroad that made BusinessWeek's list of 1,000 largest companies 
in the United States. Wisconsin Central's stock value is $800 million. 
That is higher than J.B. Hunt. I can tell you, Wisconsin Central can 
afford 1 year of severance for its employees.

  The Chicago Tribune recently reported that the middle-class Americans 
are having a tough time getting by, that their money does not go as far 
and they are facing layoffs, they are facing cutbacks in their benefits 
and skyrocketing college tuition for their children. These are the same 
people this bill has targeted, pulling the rug out from under their 
feet.
  I am not suggesting the status quo. I am not advocating 6 years of 
labor protection. I stand in support of the gentleman's amendment 
because it is very, very, very reasonable.
  I expect this amendment to pass today. If it does not, though, I 
expect H.R. 2539 to be defeated. Pass the amendment and then pass the 
bill. It is the right thing to do for all Americans.
  Ms. MOLINARI. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in strong opposition to this amendment. The 
railroad industry is the only one in the United States singled out for 
the original unfunded mandate, labor protection. The word 
``protection'' here is a euphemism, not unlike its use in Chicago 
during prohibition. The protection here is a statutory form of 
extortion, the writing into Federal law of a mandatory wage scheme with 
no Federal funds to offset the costs inflicted by the law.
  In response to some of the prior speeches, let us be clear. There is 
nothing in the change in this law that denies labor and management in 
negotiating a severance package just like every other business has to 
in these United States.
  It is bad enough that such policy has become enshrined in laws 
affecting large railroads but it is truly outrageous to impose these 
debilitating costs on the small railroads who are the salvation of rail 
service in our small towns and rural communities. How many Members are 
willing to face their constituents and say, ``I killed the possibility 
of continued rail service in your community because rail labor demanded 
that I continue a completely unjustified benefit. By doing so, I 
prevented the rescue of rail lines up for abandonment in my district.''
  That is exactly what it is at stake in this amendment. The committee-
reported bill establishes a clear, simple set of ground rules for all 
line sales and merger transactions involving smaller railroads. This 
amendment would eliminate the safe harbor for the so-called class 2's 
by requiring a mandatory severance payment of 1 year. In addition, it 
would allow for unlimited labor protection on class 2 and 3 line sales 
to be imposed at the discretion of the Transportation Adjudicatory 
Panel. If class 2 and 3 carriers are subjected to costs imposed by the 
Whitfield amendment, thousands of miles of rail lines are likely to be 
abandoned. Is this what our small towns and rural communities want?
  One major problem with the Whitfield amendment is the unlimited 
discretionary labor protection on class 2 and 3 line sales, which is in 
addition to the mandatory requirement of 1-year severance. Any time you 
confer this kind of optional or discretionary authority on an agency, 
you are guaranteeing protracted litigation at the agency and probably 
in court for every transaction.

  Let me give one example of why we are so concerned. In 1993, the 
holdover Bush ICC approved a purchase of a 3.7-mile line by the 
Bradford Industrial Railroad with no labor protection. This new company 
has total annual revenues of $250,000. Two years later, the Clinton ICC 
revoked the exemption decision approving the sale and ordering a full 
6-year labor protection, which the Transportation Adjudicatory Panel 
could still do. This labor protection alone will cost this company at 
least $300,000, more than the company's entire annual revenues.
  Another thing the proponents of this amendment do not tell is that 
they have cleverly included in it a complete disruption of the existing 
law concerning the process of implementing a merger once it has been 
approved by the agency. The current law says that other law gives way 
to the extent necessary to carry out the transaction. This amendment 
eliminates this standard, including provisions that exempt rail mergers 
from antitrust laws, and instead gives labor a virtual veto power over 
post-merger matters, such as work reassignments. This is very, very 
dangerous. This amendment also allows for the extension of this veto 
power to line sales.
  Mr. Chairman, it is no secret that many more miles will be abandoned 
in the next several years as the industry continues to restructure 
through merger and otherwise. If Members want to assure that the 
maximum number of these lines are abandoned forever and the maximum 
number of businesses and communities lose their rail service entirely, 
then vote for this amendment. But if Members want to strengthen our 
rail system and keep as much service to as many communities as 
possible, then I strongly urge a ``no'' vote.
  Mr. WISE. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, welcome to the world of rail labor, because there are a 
lot of different situations here. You might think from the preceding 
speaker that we are talking about labor situations that we are used to 
in the private sector where, for instance, you have a company that 
negotiates a collective-bargaining agreement with its union, the 
machinists in a chemical company, for instance, and the regular labor 
that most of us are familiar with. That is not what rail labor is 
about.
  What the gentlewoman has just talked about might be fine in the 
private sector, but there has been an accord reached over many, many 
years in which rail labor gave up certain rights, such as being able to 
walk off the job, such as being able to call a strike without going 
through a long, arduous process, and the rail companies also gave up 
certain things.
  The interesting thing is, it is the rail companies that have asked to 
be considered as a unique industry. It is the short line railroads and 
the class 1's that ask to be treated in a different way, and so that is 
the reason you have this delicate balance.
  In the private sector, if you have a collective bargaining agreement, 
you can have it enforced by the courts. In the rail industry, if you 
have a collective bargaining agreement, you can have it reversed or 
overturned by the ICC. And so these are the issues that are at stake.
  The amendment of the gentleman from Kentucky goes a long way, I 
happen to think, a long way toward changing existing law and indeed in 
some cases undoing existing labor protection. We all understand it is a 
new day, we all understand that we have to make compromises, but I 
think people ought to understand that this is not a regular collective 
bargaining situation.
  I would like to address some of the other points that have been made. 
The specter has been raised of wholesale abandonments. Mr. Chairman, 
there is no one that worries more about abandonments, living in a rural 
area, than I do, and we are dealing with a tough one right now.
  But my concern is that without this kind of legislation, we are going 
to likely see more of that. Incidentally, nobody ever talks about 
abandoning the working people that made that railroad run for many, 
many years, abandoning the community that helped make that railroad 
thrive for many years.
  But let me give some examples of how the Whitfield amendment makes 
the situation far better, particularly, than current law. The Whitfield 
amendment, for instance, if a midsize railroad, a class 2, has a line 
sale, buys from the class 1, the large railroad, the largest, then all 
it gets is 1 year, 1-year labor protection for those workers. Presently 
it can be up to 6 years.
  If a class 3, the smallest railroad, those under $20 million in 
revenues, if they acquire from each other or buy from each other, there 
is no protection, no labor protection whatsoever. If a class 2, the 
midsize railroad, merges with a small railroad, a class 3, they get 1 
year. That is a change from existing law, 6 years.

[[Page H 12300]]

  If a nonrail carrier, a railroad sets up a nonrail subsidiary or a 
nonrail carrier comes in, there is no labor protection in that 
situation. And if a class 3, a small railroad, acquires a piece of a 
class 1, no labor protection. All of this is a change from the existing 
law, when in most of these cases there could be up to 6 years of labor 
protection. So there is a significant retrenchment.
  I am also interested because of the language that some are concerned 
about, that would permit the ICC to look at situations dealing with the 
public interest. Well, I understand the concerns that were raised, 
except as I read the existing bill, the chairman's mark, that language 
is in there as well. ``In the public interest'' is in both versions, in 
the Whitfield amendment and in the existing legislation before us.
  Finally, should the ICC not be able to look at what is in the public 
interest? That has always, it seemed to me, been a fairly important 
criterion in here.
  This is obviously a very complex subject, the situation dealing with 
class 1, class 2, and class 3, but in quickly rehashing, let me just 
run down.
  Class 1, those are your biggest railroads, over $250 million of 
operating revenue. Oh, that we all could be on the board of directors 
of one of these. They maintain the same labor protection. They do not 
have a dog in this fight to speak of. That is why you have not been 
besieged, I do not think, by them opposing this amendment, because they 
are covered regardless.
  Class 2's, those are $20 million to $250 million of operating 
revenue. They have their labor protection provisions cut back 
significantly.
  The CHAIRMAN. The time of the gentleman from West Virginia [Mr. Wise] 
has expired.
  (By unanimous consent, Mr. Wise was allowed to proceed for 2 
additional minutes.)
  Mr. WISE. Mr. Chairman, only in the case of a class 2 merging with a 
class 2 can there be up to 6 years. In most cases it drops back to 1 
year.
  A class 3 that merges or acquires line from another class 3, two 
small railroads, those under $20 million of operating revenue, they 
lose their labor protection. No discretion. They lose it.

                              {time}  1715

  So for these reasons the amendment offered by the gentleman from 
Kentucky significantly does change the labor law, does not endanger 
abandonments, abandonment situations; I think, in fact, only 
facilitates them. It certainly improves existing law and also provides 
some measure of concern for workers, and I might say preserves some of 
this delicate balance.
  I will get back to the point I made on the rule. If you want to do 
away with the collective bargaining procedures, that is fine. Then let 
people be truly in the free market. But what that means is no 
presidential finding boards, no cooling-off periods, none of that. You 
give people the same rights they have got in the private sector.
  Let me just tell a quick story, Mr. Chairman. A few years ago, if you 
remember, rail labor was trying to go out on strike, and I went to a 
Labor Day rally, and one side I saw a group of blue shirts coming from 
an aluminum mill. They were out. They wanted the Government to go to 
work to put them back to work. On the other side came the rail labor 
people who wanted to go out and wanted the Government to stop imposing 
constraints upon them.
  So, what we have here is we have two segments of labor treated 
differently, and we have to remember that very delicate balance that 
has been reached.
  I would urge my colleagues to support the Whitfield amendment.
  Mr. EHLERS. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in strong opposition to this amendment. This 
amendment is not about labor protection. It is not about worker 
protection. It is not about job protection. It is about killing jobs.
  Let me recite some of the experience we have had in the State of 
Michigan. Michigan is in a unique situation because it is an industrial 
State but it is not on the main line between other major industrial 
areas. It is, in a sense, an offshoot going up in a peninsula. We have 
a number of lines that were in financial difficulty, and it was only 
through the good graces of the ICC, in providing that labor protection 
as proposed in this amendment need not be applied, that these lines 
were able to sell off the unprofitable sections, and these small lines 
have proved to be marginally profitable over the years.
  Unfortunately, under the current administration, the ICC is no longer 
giving those waivers against the labor protection, and I believe it is 
very important to remove this amendment from the floor and defeat it, 
simply because if this amendment is adopted, those small lines such as 
we have in Michigan will not be purchased or formed but rather the jobs 
will be lost because the lines will be closed.
  Furthermore, the jobs of the railroad workers are not the only ones 
lost, but there are a number of companies that are dependent upon rail 
transportation, and if the railroads close, these companies are likely 
to close because of increased costs of transportation, using other 
forms of transportation.
  I think we have to address the situation directly, get rid of this 
unfunded mandate which is being imposed on them.
  Why in the world should Federal law govern labor practices--and for a 
company such as this--whereas we do not do it for 120 other companies 
which are larger than many of these railroads and who have successfully 
operated mergers, acquisitions, and in fact have participated fully in 
the expansion of the economy for the past few years?
  I think it is time to get the Federal Government out of the business 
of insuring these long-term labor protection practices and make the 
railroads meet the competition of the marketplace.
  Now, lest I be considered heartless for proposing this, let me tell 
you that there are many success stories in Michigan, but not just in 
Michigan. Here I have an article which appeared in the St. Albans 
Messenger, Vermont's oldest evening newspaper, where the workers tell 
the story of a small railroad which was going bankrupt but was acquired 
by a new firm, and they were able to streamline the operations and, 
through good participation between workers and management, it finally 
turned a profit after many, many years, and it looks as if the railroad 
is going to survive now.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. EHLERS. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. I thank the gentleman for yielding.
  Apropos to that point, since the Reagan-Bush ICC began exempting the 
small railroads from the mandatory labor protection, over 300 new small 
railroads have been formed, preserving 30,000 miles of track and saving 
10,000 jobs that otherwise would have been lost to abandonment.
  Mr. EHLERS. I thank the gentleman for making that point so 
eloquently. That is precisely the point that should be raised here, and 
that is why we should defeat this amendment. If we do not, we will end 
the acquisition and expansion of these lines. We will end the addition 
of jobs. We will see more lines closing marginal sections, and we will 
see more jobs lost both at the railroads and at the factories which use 
these railroads.
  I urge defeat of this amendment.
  Mr. DeFAZIO. Mr. Chairman, I move to strike the requisite number of 
words.
  Earlier I heard some confusing statements from the other side talking 
about the Clinton ICC. You know, two of the three current sitting 
commissioners are Reagan-Bush appointees. They talked about the 
reversal of this decision by the Clinton ICC. Would that it were. Would 
that there were five members, would that, you know, five members 
sitting, that a majority had been appointed by President Clinton and 
confirmed by the Senate. But that is not the case.
  So this precedent which was talked about earlier is not the result of 
the current administration reversing the field here.
  But what I rise to do is speak in support of the Whitfield amendment. 
There is a question of equity here now with the recent Burlington 
Northern-Santa Fe merger. We have the top seven executives at 
Burlington Northern getting golden parachutes worth $35 million.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield on the point be 
made about ICC membership?
  Mr. DeFAZIO. If I could at the end of my remarks.

[[Page H 12301]]

  Mr. SHUSTER. Surely the gentleman would not want to misstate what he 
previously reported. I will be happy to ask for additional time for the 
gentleman if I simply might.
  Mr. DeFAZIO. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Mr. Chairman, I simply want to point out the three 
commissioners, two of them were appointed by Clinton and one was a 
holdover. So the majority of the ICC are in fact Clinton appointees.
  Mr. DeFAZIO. I got my information on this side. It was the reverse of 
that. Perhaps we can straighten that out later. I thank the gentleman.
  The ranking member of the committee tells me that one of the 
appointees was a Republican, but was a Clinton appointee. So I stand 
partially corrected.
  The point here is there is an issue of equity with the recent Santa 
Fe-Burlington Northern merger. The top seven executives of Burlington 
Northern got golden parachutes worth $35 million. That is an average of 
$5 million each. There were a few thousand employees, line employees, 
who worked for the same railroad for a lifetime. They got nothing. They 
did not even get a year's severance.
  So there is a question of equity. This is an industry that enjoys an 
unusual degree of Federal regulation, a degree which actually deprives 
the collective bargaining rights of thousands of Americans who work for 
rail. They are denied the right to use the one most effective tool they 
have to get better wages and working conditions and contracts, 
including provisions in the contracts for severance. That is the right 
to go out and stay out on strike.
  So if that law is to remain, then we must provide some balance and 
some equity, and the Whitfield amendment, despite all of what has been 
said on the floor here, is very modest. With the Whitfield amendment, 
if a small railroad purchases a line, lays off employees, get nothing, 
does not change anything. I think it should go further, and we should 
do something for them. But it does provide a year's severance when a 
midsized railroad purchases a rail line or merges with a smaller 
railroad, not a $35 million golden parachute, not $5 million each like 
the executives at Burlington Northern, but 1 year's severance for 
someone who has dedicated their life to a company and been a productive 
employee. I do not think that is too much to ask for line workers.
  The bill preserves the Interstate Commerce Commission under a new 
name at the Department of Transportation. It preserves a number of the 
essential functions of the ICC. It is essentially a status quo bill. It 
is a modest solution. It really is.
  This agency has the unique authority to break collective bargaining 
agreements. Balance is restored only by telling the agency that at 
least when midsized railroads are involved, they have to provide some 
sort of balance and equity for the restrictions that have been placed 
on those employees over the years, and that is one of severance for the 
employees who lose their jobs.
  I would argue strongly that the Whitfield amendment is modest. It is 
an improvement to the bill. I personally would go much further. But it 
is a modest compromise that is the bare minimum needed to make this a 
bill acceptable, I believe, to a majority of the Members of this House.
  Mr. CAMP. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in opposition to the Whitfield amendment. In the 
1970's and early 1980's, my State of Michigan was hard hit by rail line 
abandonment in our rural areas. This was particularly hard on our grain 
shippers who depend on competitively priced rail service to sell their 
product.
  Fortunately, the ICC of the 1980's understood that if they could get 
rid of the archaic Federal mandate known as labor protection, that 
these light density lines could be sold to new owners instead of 
abandoned. Substantial pieces of rail line were saved in Michigan as a 
result of that policy known as the 10901 exemption process. The 
exemption process recognized it was better to preserve the service and 
save as many jobs as possible by forming a new, lower-cost operator 
than to lose everything to abandonment.
  With Conrail's announcement it is going to shed another 4,000 miles 
of marginal line and with restructuring taking place with the Grand 
Trunk Railroad, Michigan and much of the Midwest is going to be facing 
another round of abandonment or sales.
  I ask the Members to keep two facts in mind: First, the 1995 ICC 
favors the imposition of mandated labor protection payments. Twice in 
the last year they have used their discretion under the 10901 exemption 
process to impose labor protection, an absolute reversal of the 
previous ICC's protection.
  Second, the Whitfield amendment undercuts the current statute in a 
way that makes it statutorily easier to impose labor protection in 
10901 cases and to litigate if labor protection is not opposed.
  The combination of an ICC that does not fully appreciate the value of 
the exemption and a new statute that offers the opportunity for new 
legal challenge to the exemption is a lethal combination.
  I believe the labor protection provisions in H.R. 2539 will preserve 
railroad lines, will preserve service to rural shippers and will 
preserve jobs.
  I encourage my colleague to oppose the Whitfield amendment, which 
would substantially weaken those provisions.
  Ms. BROWN of Florida. Mr. Chairman, I move to strike the requisite 
number of words.
  Mr. Chairman, here we go again, another attack against working 
people.
  Last time, they tried a sneak attack to take away the collective-
bargaining rights of our Nation's transit workers.
  This time, it's to eliminate job protections for railroad workers.
  In its current form, the bill destroys the longstanding rights of 
workers of middle size or small railroads that are merged or sold.
  Supporters claim that the only way to ensure the success of railroad 
deals involving small rail lines is to eliminate employee protections. 
I disagree.
  This bill should not be used to gut major labor protections agreed to 
by labor, management, and the Government more than 50 years ago.
  That's why I support the Whitfield amendment, supported by rail 
workers, which addresses the concerns of the rail industry by exempting 
short line rail deals from any worker protection obligations.
  At the same time, it protects rail workers' collective-bargaining 
rights when middle- or large-size rail carriers are sold or merged and 
ensures that employees' interests are addressed before such 
transactions are completed.
  Just as this House voted to preserve section 13(c) for mass transit 
workers, I urge my colleagues to vote to preserve the employee 
protections for the thousands of hard-working railroad employees 
nationwide.
  Mr. RAHALL. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in support of the amendment offered by the brave 
and courageous gentleman from Kentucky [Mr. Whitfield].
  It is a fact that whenever Congress has taken action to deregulate a 
transportation mode--be it aviation, rail, motor carrier or intercity 
bus--we have incorporated provisions aimed at mitigating the impact of 
deregulation on transportation workers.
  For it is also a fact that transportation workers are the innocent 
victims of deregulation, with many thousands having lost their jobs 
since the late 1970's when Congress first acted to deregulate the 
transportation industry.
  Today, we have before us a bill that among other items would further 
deregulate the railroad industry. It would make sense, then, for this 
legislation to maintain existing rail employee protections. But it does 
not.
  This legislation puts in jeopardy the jobs of those workers who are 
employed by what are known as class 2 and 3 railroads. The short lines, 
the smaller railroads, of this country.
  And it does so for no particularly good reason.
  The Whitfield amendment is a compromise. The smallest of railroads, 
the class 3's, would no longer be subject to existing law labor 
protections.
  But the class 2's, many of them which are not especially that small, 
would be subject to modified labor protections.
  Not the rarely used 6 years of labor protections that opponents of 
labor often mention. And rarely invoked it is.

[[Page H 12302]]

  But rather, a dramatically reduced 1 year of severance pay, when the 
employee is eligible, in the event he or she loses their job as a 
result of a merger or other transaction of that nature.
  Let us not turn our backs on the working men and women of the rail 
industry. Let not greed take precedence over human decency.
  I urge the adoption of the Whitfield amendment.

                              {time}  1730

  Mr. NADLER. Mr. Chairman, will the gentleman yield?
  Mr. RAHALL. I yield to the gentleman from New York.
  Mr. NADLER. Mr. Chairman, I rise today in strong support of the 
amendment offered by the gentleman from Kentucky. This amendment is not 
perfect, in my opinion, but it does maintain some basic rights for 
railroad workers. Without this amendment, the bill would allow for 
collective-bargaining agreements to be abrogated at the whim of the 
newly created Federal panel that will replace the ICC functions, 
without the current balancing provision that provides labor protections 
for workers involved in merger situations. The amendment will maintain 
some of these labor protections. The amendment will leave railroad 
workers with some sense of security by ensuring workers terminated as a 
result of mergers of a year of severance pay.
  This is a reasonable provision, although obviously much less of a 
protection than the requirement in current law of 6 years severance 
pay. Many of the people who work on these railroads have done so for 
decades and have sons and daughters who have followed in their 
footsteps. These are working people just trying to stay above water. 
They are the kinds of people who are the backbone of our economy and 
the kinds of people that have made the United States the great country 
it is today.

  Without this amendment, we are telling these men and women that we do 
not care if their jobs are swept away by a merger, so be it. I believe, 
Mr. Chairman, that we owe this small piece of security to the American 
worker, and I urge my colleagues to support the amendment of the 
gentleman from Kentucky.
  Mr. WILLIAMS. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in support of the amendment of the gentleman 
from Kentucky. My colleagues, you hear that whistle blowing? She is 
coming down the track, the Highball Express, with green lights flashing 
all the way to the horizon.
  We know what that train is carrying. We have seen it go by a time or 
two before. It is carrying abandonments, and restructuring, and 
leveraged buyouts. It is carrying mergers and takeovers. And my 
colleagues, the supporters of this bill, who are opposing this 
amendment, want to keep those green lights flashing, so that what the 
American people have come to believe is financial shenanigans and 
golden parachutes can continue to happen, and happen at the expense of 
workers in this Nation.
  We have to protect agreements that were arrived at between management 
and the workers at the bargaining table. Normally, under current law, 
if a contract is broken, the ICC assures that employees, the workers, 
will have some protection because the ICC can require the railroad to 
protect the employees. This bill allows a contract to be broken, no 
protection from the employees.
  What does the gentleman from Kentucky's amendment do? It flashes a 
yellow light. It throws up a caution signal. It says to that speeding 
Highball, golden parachute, Cannonball Express, ``Slow down. Let's slow 
down and be cautious long enough to provide some small, very small, 
less than today, some small protections from the workers when they 
bargain successfully for those protections with management.''
  There is no one in this Chamber that does not understand why that 
whistle is blowing. We all understand that the leveraged buyouts and 
the mergers are going to keep coming in this country. We should not let 
that train run right over its workers. Let us slow it down. Let us try 
to protect the railroad labor people in this country, and at least 
provide for them a portion of the agreement that they bargained 
collectively with the railroad managers.
  Mr. SANDERS. Mr. Chairman, will the gentleman yield?
  Mr. WILLIAMS. I yield to the gentleman from Vermont.
  Mr. SANDERS. Mr. Chairman, I thank the gentleman for yielding. A few 
moments ago the gentleman from Michigan mentioned St. Albans, VT and 
the takeover there. I know a little bit about that because I was 
intimately involved in that entire struggle.
  The gentleman neglects to tell us how many workers, many of whom were 
employed by that company for decades, were laid off and lost their 
jobs. The gentleman neglects to tell us what the wages are of the new 
workers who came into that job as compared to the other workers. The 
gentleman neglects to say that to the degree we got a halfway decent 
severance package for those workers who were laid off, it is because we 
fought and the union fought over a period of a year and rallied 
community support for decency.
  What this whole discussion is about is a phenomenon taking place all 
over this country called the race to the bottom. How do we pay workers 
lower and lower wages to make them competitive with other low wage 
workers? How do American workers compete with Mexican workers and 
Chinese workers?
  The problem today is not that railroad workers have too strong worker 
protection. The problem is that other workers have too weak worker 
protection. Let us not lower the strong benefits that workers in the 
railroads have now, but let us increase the benefits that other workers 
have.
  Mr. WILLIAMS. Mr. Chairman, reclaiming my time, I thank the gentleman 
from Vermont, and I urge my colleagues to listen to his words, the race 
for the bottom. The decreasing of the standard of living of American 
workers is a new phenomenon in this country, and it is wrong.
  Mr. BACHUS. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in opposition to the Whitfield amendment. Mr. 
Chairman, this year there are 132,000 miles of railroad in America, 
132,000 miles. Last year there were 137,000 miles. We lost 5,000 miles 
of railroad.
  You have to go back to get to 135,000 miles of railroad, what we have 
now, you have to go back to 1885. That was the last year we had 135,000 
miles. So we have got the same mileage that we had in 1885. We have 
come 110 years, and we are back to the same number of railroad miles.
  Mr. Chairman, I would hope that those of us in this Congress could 
agree that if there is not a railroad, there are no railroad jobs; and 
the ultimate way to protect a railroad job is to protect these rails.
  I can remember when they pulled the rails out of the back of the farm 
that my cousin lived on, and he asked my grandfather, who was a 
locomotive engineer, ``When are they going to put the rails back?'' And 
my grandfather, who worked 58 years for the Southern Railroad said 
``Son, when they pull the rails up, they don't put them back.'' And he 
was right. Those rails are still up. They still are not back down.
  Now, just to give you some statistics or facts, in 1960 we had 
220,000 miles of railroad, trains running on those tracks and workers 
working on those railroads; 1970, it dropped to 208,000; 1980, 178,000; 
1990, we lost another 382,000, almost 20 percent of our rails in 10 
years, 146,000; 1995, we have hit 133,000 miles. And presently 
railroads want to abandon another 15,000 miles.
  Eighty percent of that rail, the high bid will be class 2 railroads, 
the railroads that we want to saddle with this additional expense. If 
we want, just to show in one State what has happened, Pennsylvania, 
1950, the chairman's home State, almost 10,000 miles of rails; 1978, 
8,000; 1980, 7,000; by 1990, in 10 years, they lost half their rails.
  But let me tell you what did happen in the last 2 years. Let me tell 
you some good news. We had eight States this last year, eight States, 
that actually put new rail, that increased their rail mileage. Do you 
know how they did that? They did that because class 2 railroads bought 
track that was going to be abandoned.
  Let me say this to those who are advocating for unions. This 
amendment is bad for the unions, because if you look at those railroads 
who have taken 

[[Page H 12303]]
over those tracks, and in Mississippi alone, 700 miles of new class 1, 
the class 1 came in and bought a union carrier, it went from a class 1 
to a class 2, and the class 2 bought it without any labor protection, 
without having to pay any labor protection.
  Now it has gone back to the Kansas City Southern, and union members 
are running trains over those tracks every day.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. BACHUS. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Apropos to that point, Mr. Chairman, when these 
transactions have occurred, the average pay after the small railroad 
survives and takes it over is 75 percent of the class 1, which is, 
therefore, average pay, $34,500 a year. Not bad. Further, the average 
percentage of former employees picked up by the new operator is 85 
percent.
  So do we want to save 85 percent of the jobs? Do you want to have a 
$35,000-a-year job? Defeat the Whitfield amendment.
  Mr. BACHUS. Mr. Chairman, reclaiming my time, there are eight States 
which have added class 1 railroad track this year, which was class 2. 
Class 2 has bought it as opposed to abandoning it. These include 
Alabama, Florida, and Kentucky.
  Mr. Chairman, I would like more time to pursue this, to show some 
other reasons why I think this is going to boomerang on the unions. The 
unions, the last railroads that they have organized, have been class 2 
railroads.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Chairman, I move to strike 
the requisite number of words.
  Mr. Chairman, I rise in support of the Whitfield amendment. I have 
heard much of the debate and I know that change is on the horizon, and 
I am not opposed to change. But I think that as we make the change, we 
ought to consider that we are manipulating the lives of people. This is 
all about people who have worked. This is all about protecting those 
persons who have not sat around and waited for us to give them 
something, but people who have been on jobs, people who are losing 
their proetction within the jobs. We understand change.
  The Whitfield amendment eliminates labor protection for all class 3 
railroad labor transactions, whether it is purchasing another short 
line, or merging several class 3 railroads.
  The new ICC may not provide for labor protection. The amendment 
eliminates 6 years of labor protection when class 2 railroad purchases 
a short line or merges with a small railroad. Employees who lose their 
jobs get a 1 year severance, if they have the seniority to earn it.
  The amendment does not affect H.R. 2539 with respect to large class 1 
railroads.
  Unfortunately, H.R. 2539 is about much more than the sale of short 
lines and the imposition of labor protection. It would allow a Federal 
agency to break privately negotiated collective bargaining agreements 
when two railroads merge, railroads with up to $250 million of annual 
revenue. In return, the employees would have no protection of any kind.
  No Federal agency has this extraordinary power. The amendment would 
counterbalance the power of the Federal agency to break collective 
bargaining agreements with the requirement that employees be treated 
fairly with up to one year severance pay.
  It is simply unfair to allow a Federal agency the authority to break 
private collective bargaining agreements without any protections for 
the workers, the people who have kept it going. The Whitfield amendment 
prohibits the new ICC from using its power over small railroad mergers 
to shift work from a union to a nonunion railroad. The Whitfield 
amendment is a sensible compromise. It is about protecting people, 
people, working people.
  Mr. Chairman, I would ask all of us to support the workers.

                              {time}  1745

  Mr. KNOLLENBERG. Mr. Chairman, I move to strike the requisite number 
of words.
  Mr. Chairman, I rise in opposition to Mr. Whitfield's amendment to 
H.R. 2539, the ICC Termination Act of 1995.
  Every so often people inform me of a law which shocks one's 
conscience and you say to yourself, that cannot be true. Well, today 
there is a law on the books called labor protection which requires 
employers to pay up to 6 years of income and benefits to employees who 
are adversely affected by a railroad transaction. When I heard this, I 
was amazed. So I had to repeat it to myself, Federal law mandates 
employers to pay up to 6 years of wages and benefits to an adversely 
affected employer no matter what their status is.
  In the 1980's the ICC understood that this archaic mandate was the 
thorn in the side of small railroad owners who wanted to buy light 
density lines--they could just not afford paying these wages on top of 
buying the lines.
  Fortunately, under a policy know as 10901 exemption, there was a 
realization that it was better to preserve the service of railroads and 
save jobs than facing line abandonment. In many ways, and I know the 
gentleman from Pennsylvania [Mr. Shuster] alluded to this, it saved 
30,000 miles of track and created 10,000 jobs. In effect, it spawned a 
great deal of new business, small business, and jobs were retained at 
high levels. This has also been confirmed by the chairman.
  However, in 1995 the ICC twice has imposed labor protection. This is 
a complete reversal of previous ICC's position.
  Mr. Chairman, it is not the place of Government to mandate labor 
protection. Let us leave that to the unions and management. 
Unfortunately, the Whitfield amendment keeps the Government's hand in 
railroad transactions.
  I would like to also add that in my home State of Michigan, Conrail 
announced that it is looking to sell approximately 2,500 miles of light 
rail. I want to see these lines in use--not abandoned. So I ask my 
colleagues to vote against the Whitfield amendment and support H.R. 
2539 in its original form.
  Mr. KENNEDY of Massachusetts. Mr. Chairman, I move to strike the 
requisite number of words.
  Mr. Chairman, several years ago the gentleman from Ohio, John Kasich, 
and I got together to try to determine how we might deal with some of 
the budgetary problems that this country faces, and we thought that 
maybe because the two of us strongly advocated and supported the 
balanced budget amendment that we had some responsibility of actually 
trying to find ways of actually cutting back and making significant 
changes in our Federal spending.
  At that time I asked the gentleman to come to a meeting and he came 
with a list of the cuts that he was in favor of and I came with a list 
of cuts that I was in favor of. I found that everything I wanted to 
cut, he wanted to spend more on; and everything he wanted to cut, I 
wanted to spend more on, excepting one thing. And the one thing we both 
could agree on was the ICC.
  Mr. Chairman, here is an agency whose mission has to do with 
regulating the trucking industry, regulating the bussing industry, 
regulating the railroad industry, and all three of which this Congress 
has chosen to deregulate. So we have a regulatory agency that is set up 
gaining millions and millions of dollars worth of Federal support 
regulating industries that no longer need regulation. It seemed 
patently ridiculous. And the two of us got together and put in some 
legislation to call for the ending of the ICC.
  I am proud to see finally this legislation is now receiving support 
on both sides of the aisle. I think this is a very positive 
development. The reason why I am here to speak on behalf of this 
Whitfield amendment is because, once again, we see the Republicans go a 
bridge too far. In what could be, in fact, good bipartisan spirit and 
support for ending a Federal agency that no longer serves a useful 
purpose, they, instead, come up with a mean-spirited way of hurting 
working people.
  Mr. Chairman, people that cite 6-year provisions, in terms of the 
kind of protections, ought to first and foremost recognize that the 
workers' unions that agree to having their future bound up by a 
government regulatory agency do so by giving up their right to strike, 
the most fundamental right of any union in this country. Second, the 
bill itself calls for the elimination of all the protections for our 
unions that work in the railroad industry.
  Mr. Chairman, what the Whitfield amendment does is simply provide 

[[Page H 12304]]
  some base level protections for the working people. Now, what will 
happen once we see all the mergers and acquisitions we have seen 
recently in the railroad industry? What will happen is a lot of 
shareholders and stockholders and owners of these unions and the 
management of these unions are going to stand to make millions and 
millions of dollars and, at the same time, they will do so, in many 
cases, by laying off the working people that work for those unions.

  This bill--and the Whitfield amendment, if it passes--contains some 
reasonable protections for the working people, while recognizing that, 
in fact, we do have to make some changes in our railroad industry. But 
let us not be mean-spirited about it. Let us not take what is good 
bipartisan legislation in the elimination of the ICC and try somehow to 
find a needle to stick into working people whose blood and sweat and 
tears built up the railroads of this country and whose railroads built 
up America.
  Let us, in fact, Mr. Chairman, come up with a way to compromise this 
and to make this legislation that can work, that can make this 
legislation be signed by the President of the United States, make this 
legislation have the kind of broad-spirited support that lead the 
gentleman from Ohio, John Kasich, and I toward offering legislation 
that ended the ICC as we know it today to begin with. That is where we 
should go.
  That is what the challenge is. It is not to find some way of taking 
broad-based support for legislation and using it as a way to once again 
tweak the unions, tweak the working people, and line the pockets of the 
wealthiest and most powerful people in this country.
  Mr. Chairman, let us support the Whitfield amendment. Let us support 
ending the ICC as we know it today, and let us have one bill pass this 
House this week that the President of the United States can sign.
  Mr. GILCHREST. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in reluctant opposition to the good-faith effort 
by the gentleman from Kentucky [Mr. Whitfield], who is offering his 
amendment; but I think what we see here is a very fundamental 
difference in philosophy.
  What is the government's role in the private sector and in the 
economy? In our judgment, I guess we could say the government's role is 
to create an environment that is conductive for economic productivity 
in the private sector. It is not to unduly or unfairly interfere in 
that particular area but to create an environment where jobs can 
prosper.
  Mr. Chairman, this is not a race to the bottom of the ladder. If we 
look at a free market economy we need to do whatever we can to make a 
free market thrive.
  What does a thriving free market do? It encourages hard work. It 
encourages enthusiasm. It encourages the initiative of individuals to 
have a sense of curiosity, to go out and create jobs. It encourages a 
free market economy and encourages cooperation. It encourages 
cooperation between the workers and management.
  In this particular bill, we are creating an environment that will 
create jobs. We are creating an environment that will preserve jobs. We 
are encouraging collective bargaining.
  We are not doing away with collective bargaining. We want laborers' 
rights to continue in collective bargaining. I have heard through phone 
calls into my office that we are eliminating retirement for Class I 
railroads. We are not, but I have heard that kind of discussion.
  Mr. Chairman, in my geographic area of the mid-Atlantic States in 
Maryland, our area is conductive for small rail lines. Many industries 
moved to the State of Maryland, especially to the eastern shore, 
because there are small railroads there that can take their produce to 
the Port of Baltimore or bring it from the Port of Baltimore to other 
areas of Maryland.
  In my area of Maryland, small rail lines bring grain products to 
another area of our agricultural region to farmers that grow livestock. 
So small rail lines are the life's blood of our particular region.
  This is or should be a bipartisan effort, and we should have support 
from both sides of the aisle. There are environmental regulations that 
are still intact. There are safety regulations that are still intact. 
People can continue to bargain in a cooperative, collective fashion.
  Mr. Chairman, how do we ensure protection for workers? We ensure that 
there are jobs for those workers.
  I again rise reluctantly to oppose the gentleman's amendment, and I 
encourage my colleagues to vote down this amendment and vote for the 
bill.
  Mr. TRAFICANT. Mr. Chairman, I move to strike the requisite number of 
words.
  I support the Whitfield amendment; and I will, with the Whitfield 
amendment, support the bill.
  I think we are getting to a point down here, though, where we are 
looking for some trophies. I look at the railroads, for example. There 
are not too many trains crossing under the Central Street Bridge. I 
look at the jobs situation in the country, and even Fruit of the Loom 
just left: 3,200 jobs went to Mexico. We will not even be making 
underwear around here.
  Mr. Chairman, when we look at basic workers' rights, I look at some 
of these issues. We even talk about workers' right to strike, and we 
are afraid to death about workers that go on strike in America. The 
truth of the matter is that when we take away the right to strike, we 
take away the rights of workers. There is a fine line in between here, 
folks.
  Under the ICC, we have a 6-year severance remuneration. In this bill, 
we get a 60-day notice. The Whitfield amendment says we will give a 1-
year severance pay. That seems like some basic fairness. We have 
already gone though so many workers in this industry. And some of the 
deregulation, I might say, has produced some cannibalism in America 
that has produced an awful lot of bankruptcy, that has produced an 
awful lot of individual debt, that has produced an awful lot of 
national debt.
  Mr. Chairman, I would hope Members would look at the Whitfield 
amendment. There has been a lot of philosophy and ideology discussed. 
Look at it as a basic fairness issue. I believe the Whitfield amendment 
makes sense.
  Mr. Chairman, I rise in strong support of the amendment offered by 
the gentleman from Kentucky [Mr. Whitfield].
  I want to first commend Chairman Shuster, the ranking member, Mr. 
Oberstar, the gentlewoman from New York, Ms. Molinari, and my two 
colleagues Bill Lipinski and Bob Wise. They have all worked hard to 
craft a bill that is fair, that reduces unnecessary regulation, and one 
that ensures an orderly transfer of responsibility to a special DOT 
panel. They have put together a solid bill. But the bill does have one 
shortcoming. In its current form the bill is highly unfair to railroad 
employees who lose their jobs in mergers. The bill eliminates 
provisions in existing law providing severance pay for employees of 
class 2 and 3 railroads.
  What is worse, the bill gives the ICC's successor the right to 
terminate severance pay agreements reached through the collective 
bargaining process--agreements made in good faith between a rail 
company and its employees.
  The Whitfield amendment restores fairness to rail employees and 
protects the integrity of the collective bargaining process. 
Significantly, the Whitfield amendment would eliminate mandatory 
severance pay for small transactions in instances where mandatory 
severance pay would discourage a purchaser from acquiring a struggling 
small rail carrier.
  The Whitfield amendment is a sensible and fair compromise, it 
encourages short-line rail service while protecting collective 
bargaining rights of employees. The amendment eliminates federally-
mandated labor protection for all transactions involving small--class 
3--railroads.
  For mid-size, or class 2, railroad transactions, labor protection is 
reduced from the current mandatory 6-year severance payment to a more 
reasonable 1-year severance payment.
  Class 2 railroads have annual revenues of up to $250 million 
annually, and transactions involving such rail lines can impact a 
significant number of rail workers. It is only fair and just that long-
time employees of class 2 railroads receive a modest severance package.
  Under H.R. 2539, labor protection for class 2 employees is doubly 
important because the bill gives the Federal Government the authority 
to break a collective bargaining agreement and eliminate any labor 
protections it might have contained.
  I think all of us agree that completing the deregulation process in 
the transportation industry is long overdue. On balance, this is a good 
bill.

[[Page H 12305]]

  But the bill unnecessarily and unfairly destroys the collective 
bargaining rights of rail employees.
  The Whitfield amendment restores some balance and fairness to the 
bill. I urge all my colleagues to support the amendment.
  Mr. OBERSTAR. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I think that this will conclude debate, certainly for 
our side, and I understand in consultation with the chairman it will 
conclude the other side as well.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. OBERSTAR. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Mr. Chairman, the distinguished whip has appeared on the 
floor, and I understand he will seek recognition. But, as far as I 
know, that will be our final speaker.
  Mr. OBERSTAR. Mr. Chairman, the debate has been a constructive one; a 
positive one. There are some sort of misunderstandings, misstatements, 
perhaps. There was an allusion some time ago, and I do not recall who 
it was that said that, that there had been 10,000 new jobs created over 
the last 10 years in the short lines, but that statement conveniently 
left out the reality that 265,000 jobs have been terminated since the 
Staggers Act, and most of them did not get labor protection.
  We are just talking about a matter of fairness and decency as we move 
this last step in the economic deregulation of the rail industry.

                              {time}  1800

  The Whitfield amendment before us today is a compromise. It is not 
the compromise I would have liked. It is not the protection for labor 
that I would have liked, but I am willing to accept it. It is a 
modicum, the very basic and the least we could do, of fair treatment of 
employees with legitimate concerns of their own against the legitimate 
financial concerns of the medium- and smaller-sized carriers.
  Mr. Chairman, rail labor has given up a great deal in this 
legislative package that we have. If we are to stay with current law, 
there is labor protection for all railroad mergers, for all line sales 
to carriers. The Whitfield amendment continues labor protection only 
for the largest-sized railroads, class 1 railroads, that have annual 
revenues of $250 million and more. For all the others, the amendment we 
are considering now would eliminate or would significantly modify labor 
protection. Under this amendment, no labor protection would be provided 
for the smallest or the class 3 railroads.
  The Whitfield amendment affects the medium-sized railroads, those 
with revenues up to $250 million a year--and some of those are very big 
carriers, as my colleague the gentleman from Illinois has rightly 
pointed out. One of them has a stock value of over $800 million. That 
is not small. That is no small potatoes where I come from. It is only 
fair to employees in that class that they should have at least a year. 
They give up 5 years of potential labor protection to get a maximum of 
1 year.

  Mr. Chairman, I want to remind my colleagues that this is not a gift. 
They do not get a full year's pay and sit on their can and do nothing. 
If they take another job, they get the wages from that job deducted 
from their pay from the railroad. They are on call. They can be called 
back to work at any time. This is not a big deal, giveaway, labor 
protective provision.
  The bill would allow the ICC successor agency to abrogate labor 
protection in collective bargaining agreements. No other agency of 
Government has that power. None other.
  Mr. Chairman, to those who object to any kind of labor protective 
provisions for the railroad workers, I say fine. Then let us throw the 
whole thing out and treat rail labor as we do industrial unions, as we 
do the industrial workplace. Let them collectively bargain. Let them 
strike. Let them shut down the rails of this country if they want to, 
if they have to, if they are pushed to the wall and they have to.
  But because the railroads have been so vital to America's economy, 
they have been treated differently than the building trades, than the 
industrial unions who represent workers in the industrial marketplace 
of this country--the International Association of Machinists, the UAW, 
the rubber- workers, and the steelworkers.
  The CHAIRMAN. The time of the gentleman from Minnesota [Mr. Oberstar] 
has expired.
  (By unanimous consent, Mr. Oberstar was allowed to proceed for 2 
additional minutes.)
  Mr. OBERSTAR. Mr. Chairman, we are talking about a very controlled 
workplace: Railroads. Rail labor.
  They give up the freedom that others have in order that an agency of 
the Federal Government mediate between their employer and themselves.
  Mr. Chairman, I grew up believing that a union contract was a bond 
with your employer. That is what I learned from my father. That is what 
I learned at our dinner table at home in Chisholm, MN, in the heart of 
the iron ore mining country.
  Railroading is different. It is a whole different set of public 
policy interests that come before a labor and management contract; that 
come before the interests of the railroad company.
  In deregulation, we have passed away a lot of those protections. One 
small modicum of protection ought to remain. If in the next round of 
mergers and acquisitions and downsizing of this industry workers lose 
their jobs in those smaller railroads, they ought to have the decency 
of protection, having given their lifetime of work, that they are 
treated fairly and decently with labor protective provisions.
  Mr. Chairman, that is what this amendment will do. If we cannot do 
that, then we ought not to pass this bill. We ought not to hang labor 
on this cross.
  Mr. DeLAY. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in opposition to the Whitfield amendment for 
many reasons. I just ask the Members to listen, because labor issues 
sometimes can be very, very complicated and in some other cases can be 
misrepresented. But, they all have effects on the ability for railroads 
to run effectively and efficiently and provide jobs for railroad 
workers.
  That is what we are talking about here, to provide more jobs for more 
workers. If we put these kinds of labor protection measures on this 
bill, we are going to cost people their jobs, because there will be 
some railroad lines abandoned because they cannot afford these kinds of 
labor protections.
  Our Members particularly need to understand that this is not an easy 
labor vote; that they can just throw labor. This is a very interesting 
application to an age-old problem that we, as part of the new 
revolution, are trying to throw off so that we can have an economy that 
runs efficiently and provides the most number of jobs and not just 
single out one group of people and protect one group of people.
  Mr. Chairman, these kinds of labor protections are more. Members talk 
about fairness to the workers. This is more fairness than any other 
union workers in any other kind of union get to enjoy. When we are 
talking about 6 years of full wages and benefits that have been removed 
by bringing this bill to the floor, and now the gentleman from Kentucky 
[Mr. Whitfield] is trying to offer an amendment to this bill that 
preserves that mandate in whole or in part, depending on the size of 
the transaction, we are talking about restoring a labor protection that 
goes way beyond even the most wide definition of common sense; way 
beyond what is normal in labor protection for other unions and other 
kinds of contracts.
  Let me just address one of perhaps the most egregious 
misrepresentations being made by some of the proponents of the 
Whitfield amendment. That is that the bill somehow abrogates collective 
bargaining agreements. In fact, the bill retains exactly the same 
standard that has been the merger statute for decades: That agency 
approval of a merger displaces any other laws to the extent necessary 
to implement the merger.
  Mr. Chairman, this does not abrogate contracts, but the Whitfield 
amendment does alter this law. It gives labor the power to halt the 
implementation of approved mergers involving the smaller railroads. 
This amendment forbids, forbids work reassignments and shift of work 
from a union workforce. This directly contravenes existing law. So, the 
Whitfield amendment goes way beyond what existing law is.

[[Page H 12306]]

  Mr. Chairman, I just think if we are going to develop an economy that 
is efficient and moves efficiently and creates jobs, we cannot afford 
to pass the Whitfield amendment. This bill eliminates one of the oldest 
and most costly mandates in the books today. And because these 
railroads cannot afford to operate under this provision, they simply 
will go out of business, and both consumers who need rail service and 
labor will lose.
  Since the Reagan-Bush exemption policy was put into place, over 330 
new railroads have purchased 30,000 miles of line that was headed for 
abandonment. Those lines today employ 10,000 people that were headed 
for unemployment. This amendment would result in the abandonment of 
most light-density railroad lines in rural America and everybody loses.
  Mr. Chairman, this is a very, very important amendment that affects 
this bill, and I hope my colleagues, particularly on this side of the 
aisle, will think very seriously before they would vote for this 
amendment. I urge that they vote against the Whitfield amendment and 
vote for the bill.

  Mr. SPRATT. Mr. Chairman, I move to strike the requisite number of 
words.
  (Mr. SPRATT asked and was given permission to revise and extend his 
remarks.)
  Mr. SPRATT. Mr. Chairman, I support the Whitfield amendment, and urge 
others to do the same.
  Mr. Chairman, I support the Whitfield amendment, which protects 
railroad workers when their railroads merge or sell.
  For years, the Interstate Commerce Commission [ICC] has reviewed and 
approved mergers and acquisitions. As part of its role, the ICC has had 
extraordinary authority: it has been able to change collective 
bargaining agreements to help transactions happen when it finds them in 
the public interest.
  In connection with this power, Congress gave the ICC discretion to 
require 6-year severance payments to rail workers displaced by mergers 
or acquisitions. This is a power rarely used, but it has had an 
indirect effect: It has been a disincentive to radical changes and an 
incentive to railroad lines, especially in rural areas.
  The bill before the committee would transfer the ICC's power to amend 
collective bargaining agreements to the newly created Transportation 
Adjudication Panel, but it would not transfer the associated authority 
to grant labor protection to workers on Class 2 and Class 3 railroads.
  The supporters of this bill argue that this change is necessary to 
allow medium and small railroads to survive in a competitive 
environment; and insofar as the smaller, class 3 railroads are 
concerned, the Whitfield amendment agrees. But for the larger, class 2 
railroads, the Whitfield amendment would grant the adjudication panel 
the discretion to grant 1 year's severance pay to workers displaced by 
rail mergers or line acquisitions, in lieu of 6 years, which the law 
now provides.
  Trading from 6 years down to 1 year's severance pay strikes me as 
more than fair for class 2 carriers. This is a good deal for carriers 
and compromise rail workers have agreed to accept. I urge adoption of 
the Whitfield amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Kentucky [Mr. Whitfield].
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.


                             recorded vote

  Mr. SHUSTER. Mr. Chairman, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 241, 
noes 184, not voting 7, as follows:

                             [Roll No. 792]

                               AYES--241

     Abercrombie
     Ackerman
     Andrews
     Baesler
     Baldacci
     Barcia
     Barrett (WI)
     Becerra
     Beilenson
     Bentsen
     Berman
     Bevill
     Bilirakis
     Bishop
     Blute
     Bonior
     Borski
     Boucher
     Brewster
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Brownback
     Bryant (TX)
     Bunn
     Burr
     Cardin
     Chapman
     Clay
     Clayton
     Clement
     Clyburn
     Coleman
     Collins (IL)
     Collins (MI)
     Condit
     Conyers
     Costello
     Coyne
     Cramer
     Cremeans
     Danner
     de la Garza
     DeFazio
     DeLauro
     Dellums
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doyle
     Duncan
     Durbin
     Edwards
     Engel
     English
     Eshoo
     Evans
     Everett
     Farr
     Fattah
     Fazio
     Fields (TX)
     Filner
     Flanagan
     Foglietta
     Forbes
     Ford
     Frank (MA)
     Franks (NJ)
     Frisa
     Frost
     Furse
     Gejdenson
     Gephardt
     Geren
     Gibbons
     Gillmor
     Gilman
     Gonzalez
     Gordon
     Green
     Gutierrez
     Hall (OH)
     Hall (TX)
     Hamilton
     Harman
     Hastings (FL)
     Hayes
     Hefner
     Hilliard
     Hinchey
     Hoke
     Holden
     Horn
     Houghton
     Hoyer
     Jackson-Lee
     Jacobs
     Jefferson
     Johnson (CT)
     Johnson (SD)
     Johnson, E. B.
     Johnston
     Kanjorski
     Kaptur
     Kelly
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     King
     Kleczka
     Klink
     LaFalce
     Lantos
     LaTourette
     Lazio
     Leach
     Levin
     Lewis (GA)
     Lincoln
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney
     Manton
     Markey
     Martinez
     Martini
     Mascara
     Matsui
     McCarthy
     McDade
     McDermott
     McHale
     McHugh
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Metcalf
     Mfume
     Miller (CA)
     Minge
     Moakley
     Mollohan
     Moran
     Murtha
     Nadler
     Neal
     Neumann
     Ney
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Pallone
     Pastor
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (FL)
     Peterson (MN)
     Pickett
     Pomeroy
     Poshard
     Quillen
     Quinn
     Rahall
     Rangel
     Reed
     Regula
     Richardson
     Rivers
     Roemer
     Rogers
     Ros-Lehtinen
     Rose
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sawyer
     Schiff
     Schroeder
     Schumer
     Scott
     Serrano
     Sisisky
     Skaggs
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Solomon
     Spratt
     Stark
     Stenholm
     Stockman
     Stokes
     Studds
     Stupak
     Tanner
     Taylor (NC)
     Tejeda
     Thompson
     Thornton
     Thurman
     Torkildsen
     Torres
     Torricelli
     Towns
     Traficant
     Velazquez
     Vento
     Visclosky
     Walsh
     Wamp
     Ward
     Waters
     Watt (NC)
     Waxman
     Weldon (PA)
     Weller
     Whitfield
     Williams
     Wilson
     Wise
     Woolsey
     Wyden
     Wynn
     Young (AK)

                               NOES--184

     Allard
     Archer
     Armey
     Bachus
     Baker (CA)
     Baker (LA)
     Ballenger
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bilbray
     Bliley
     Boehlert
     Boehner
     Bonilla
     Bono
     Bryant (TN)
     Bunning
     Burton
     Buyer
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Chrysler
     Clinger
     Coble
     Coburn
     Collins (GA)
     Combest
     Cooley
     Cox
     Crane
     Crapo
     Cubin
     Cunningham
     Davis
     Deal
     DeLay
     Dickey
     Doolittle
     Dornan
     Dreier
     Dunn
     Ehlers
     Ehrlich
     Emerson
     Ensign
     Ewing
     Fawell
     Foley
     Fowler
     Fox
     Franks (CT)
     Frelinghuysen
     Funderburk
     Gallegly
     Ganske
     Gekas
     Gilchrest
     Goodlatte
     Goodling
     Goss
     Graham
     Greenwood
     Gunderson
     Gutknecht
     Hancock
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Heineman
     Herger
     Hilleary
     Hobson
     Hoekstra
     Hostettler
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Johnson, Sam
     Jones
     Kasich
     Kim
     Kingston
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     Laughlin
     Lewis (CA)
     Lewis (KY)
     Lightfoot
     Linder
     Livingston
     LoBiondo
     Longley
     Lucas
     Manzullo
     McCollum
     McCrery
     McInnis
     McIntosh
     McKeon
     Meyers
     Mica
     Miller (FL)
     Molinari
     Montgomery
     Moorhead
     Morella
     Myers
     Myrick
     Nethercutt
     Norwood
     Nussle
     Oxley
     Packard
     Parker
     Paxon
     Petri
     Pombo
     Porter
     Portman
     Pryce
     Radanovich
     Ramstad
     Riggs
     Roberts
     Rohrabacher
     Roth
     Roukema
     Royce
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer
     Seastrand
     Sensenbrenner
     Shadegg
     Shaw
     Shays
     Shuster
     Skeen
     Smith (MI)
     Smith (TX)
     Souder
     Spence
     Stearns
     Stump
     Talent
     Tate
     Tauzin
     Taylor (MS)
     Thomas
     Thornberry
     Tiahrt
     Upton
     Vucanovich
     Waldholtz
     Walker
     Watts (OK)
     Weldon (FL)
     White
     Wicker
     Wolf
     Young (FL)
     Zeliff
     Zimmer

                             NOT VOTING--7

     Callahan
     Fields (LA)
     Flake
     Mink
     Tucker
     Volkmer
     Yates

                              {time}  1830

  Mr. BEREUTER and Mr. SMITH of Michigan changed their vote from 
``aye'' to ``no.''
  Messrs. HAYES, WAMP, CONYERS, and STENHOLM changed their vote from 
``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  The CHAIRMAN. Are there further amendments to title I?


                     amendment offered by mr. davis

  Mr. DAVIS. Mr. Chairman, I offer an amendment.
  The Clerk read as follows:


[[Page H 12307]]

       Amendment offered by Mr. Davis: Page 256, after line 17, 
     insert the following new section:

     SEC. 105. CREDITABILITY OF ANNUAL LEAVE FOR PURPOSES OF 
                   MEETING MINIMUM ELIGIBILITY REQUIREMENTS FOR AN 
                   IMMEDIATE ANNUITY.

       (a) In General.--An employee of the Interstate Commerce 
     Commission who is separated from Government service pursuant 
     to the abolition of that agency under section 101 shall, upon 
     appropriate written application, be given credit, for 
     purposes of determining eligibility for and computing the 
     amount of any annuity under subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code, for accrued annual 
     leave standing to such employee's credit at the time of 
     separation.
       (b) Limitation and Other Conditions.--Any regulations 
     necessary to carry out this section shall be prescribed by 
     the Office of Personnel Management. Such regulations shall 
     include provisions--
       (1) defining the types of leave for which credit may be 
     given under this section (such definition to be similar to 
     the corresponding provisions of the regulations under section 
     351.608(c)(2) of title 5 of the Code of Federal Regulations, 
     as in effect on the date of the enactment of this Act);
       (2) limiting the amount of accrued annual leave which may 
     be used for the purposes specified in subsection (a) to the 
     minimum period of time necessary in order to permit such 
     employee to attain first eligibility for an immediate annuity 
     under section 8336, 8412, or 8414 of title 5, United States 
     Code (in a manner similar to the corresponding provisions of 
     the regulations referred to in paragraph (1));
       (3) under which contributions (or arrangements for the 
     making of contributions) shall be made so that--
       (A) employee contributions for any period of leave for 
     which retirement credit may be obtained under this section 
     shall be made by the employee; and
       (B) Government contributions with respect to such period 
     shall similarly be made by the Interstate Commerce Commission 
     or other appropriate officer or entity (out of appropriations 
     otherwise available for such contributions); and
       (4) under which subsection (a) shall not apply with respect 
     to an employee who declines a reasonable offer of employment 
     in another position in the Department of Transportation made 
     under this Act or any amendment made by this Act.
       (c) Extinguishment of Eligibility for Lump-Sum Payment.--A 
     lump-sum payment under section 5551 of title 5, United States 
     Code, shall not be payable with respect to any leave for 
     which retirement credit is obtained under this section.

  Mr. DAVIS (during the reading). Mr. Chairman, I ask unanimous consent 
that the amendment be considered as read and printed in the Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Virginia?
  There was no objection.
  (Mr. DAVIS asked and was given permission to revise and extend his 
remarks.)
  Mr. DAVIS. Mr. Chairman, I rise in support of my short and 
noncontroversial amendment. This amendment simply makes a technical 
addition to the bill to allow a handful of ICC employees who are being 
separated from Federal service as a result of this bill to apply their 
unused annual leave for purposes of qualifying for a Federal annuity. 
This amendment is limited to apply only to Federal workers who are on 
the verge of becoming eligible for an annuity, but who are losing their 
jobs as a result of this bill before qualifying for a pension.
  Mr. Chairman, several constituents have described a predicament that 
no Member of this body would want to allow to go unresolved. Imagine 
working for 24 years and 11 months only to be told that you are 
terminated for no fault of your own and that you may not use the 5 
weeks of annual leave that you have accumulated in order to reach the 
25 year eligibility threshold for an annuity free of the penalties that 
we have in place to discourage early retirement.
  This amendment will only apply to the handful of employees who are: 
First, not being offered employment elsewhere in the Federal 
Government; second, who are within several days or weeks of becoming 
eligible for an immediate annuity; and third, who have accrued enough 
annual leave, in accordance with OPM regulations, to reach the date on 
which an immediate annuity would be owed. Mr. Chairman, approximately 
400 Federal workers are employed at the ICC. Approximately 180 workers 
will remain in the Federal work force carrying out the functions that 
will continue under this bill. Of the 220 workers who may be losing 
their jobs, a few are on the verge of qualifying for an immediate 
retirement annuity. Most of these workers are enrolled in the Civil 
Service Retirement System [CSRS] which means that they do not receive 
Social Security benefits for the years of service they have performed.
  The Davis amendment simply says to those veteran ICC workers who have 
reached the proverbial 26 mile marker in the Federal career marathon, 
that we will allow them to complete the last two-tenths of a mile in 
order to end their Federal career with dignity and adequate financial 
security. I urge my colleagues to unanimously support this good-
government amendment.
  Mr. SHUSTER. Mr. Chairman, will the gentleman yield?
  Mr. DAVIS. I yield to the gentleman from Pennsylvania.
  Mr. SHUSTER. Mr. Chairman, I have examined the gentleman's amendment, 
and we accept it on this side.
  Mr. OBERSTAR. Mr. Chairman, will the gentleman yield?
  Mr. DAVIS. I yield to the gentleman from Minnesota.
  Mr. OBERSTAR. Mr. Chairman, we are prepared to accept the gentleman's 
amendment on this side, too.
  Mr. DAVIS. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Virginia [Mr. Davis].
  The amendment was agreed to.
  Mr. SHUSTER. Mr. Chairman, I move to strike the last word to urge all 
of my colleagues to vote in favor of final passage because it is 
absolutely imperative that this legislation be passed.
  We would not have this bill before the House today without an 
extraordinary effort over several months by a number of staff members.
  Eliminating an agency and revising the entire Interstate Commece Act 
turned out to be a very complicated proposition.
  In particular, I would like to thank Glenn Scammel, Roger Nober, 
Alice Davis, and Debbie Gebhard of the majority staff and Trinita Brown 
and Rosalyn Millman of the minority staff.
  Special thanks go to Henri Rush, general counsel of the ICC, and 
Ellen Hanson of the ICC for the many hours they devoted to this bill, 
and to Tim Brown and David Mendelsohn of the Legislative Counsel's 
Office for their assistance in drafting the bill.
  Mr. OBERSTAR. Mr. Chairman, will the gentleman yield?
  Mr. SHUSTER. I yield to the gentleman from Minnesota.
  Mr. OBERSTAR. Mr. Chairman, I join my colleague, chairman of our 
committee, in urging all Members on both sides of the aisle to support 
this bipartisan legislation.
  Mr. SHUSTER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. Are there further amendments to title I?
  If not, the Clerk will designate title II.
  The text of title II is as follows:
              TITLE II--TRANSPORTATION ADJUDICATION PANEL

     SEC. 201. TITLE 49 AMENDMENT.

       (a) Amendment.--Subtitle I of title 49, United States Code, 
     is amended by adding at the end the following new chapter:

             ``CHAPTER 7--TRANSPORTATION ADJUDICATION PANEL

                     ``SUBCHAPTER I--ESTABLISHMENT

``Sec.
``701. Establishment of Panel.
``702. Functions.
``703. Administrative provisions.
``704. Annual report.
``705. Authorization of appropriations.
``706. Reporting official action.

                    ``SUBCHAPTER II--ADMINISTRATIVE

``721. Powers.
``722. Panel action.
``723. Service of notice in Panel proceedings.
``724. Service of process in court proceedings.
``725. Administrative support.
``726. Definitions.

                     ``SUBCHAPTER I--ESTABLISHMENT

     ``Sec. 701. Establishment of Panel

       ``(a) Establishment.--There is hereby established within 
     the Department of Transportation the Transportation 
     Adjudication Panel.
       ``(b) Membership.--(1) The Panel shall consist of 3 
     members, to be appointed by the President, by and with the 
     advice and consent of the Senate. Not more than 2 members may 
     be appointed from the same political party.
       ``(2) At any given time, at least 2 members of the Panel 
     shall be individuals with professional standing and 
     demonstrated knowledge in the fields of transportation or 
     transportation regulation, and at least one member shall be 
     an individual with professional or business experience in the 
     private sector.
       ``(3) The term of each member of the Panel shall be 5 years 
     and shall begin when the term of the predecessor of that 
     member ends. An individual appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     predecessor of that individual was appointed, shall be 
     appointed for the remainder of that term. When the term of 
     office of a member ends, the member may continue to serve 
     until a successor is appointed and qualified, but for a 
     period not to exceed one year. The President may remove a 
     member for inefficiency, neglect of duty, or malfeasance in 
     office.
       ``(4) On the effective date of this section, the members of 
     the Interstate Commerce Commission then serving unexpired 
     terms shall become members of the Panel, to serve for a 
     period of time 

[[Page H 12308]]
     equal to the remainder of the term for which they were originally 
     appointed to the Interstate Commerce Commission.
       ``(5) No individual may serve as a member of the Panel for 
     more than 2 terms. In the case of an individual who becomes a 
     member of the Panel pursuant to paragraph (4), or an 
     individual appointed to fill a vacancy occurring before the 
     expiration of the term for which the predecessor of that 
     individual was appointed, such individual may not be 
     appointed for more than one additional term.
       ``(6) A member of the Panel may not have a pecuniary 
     interest in, hold an official relation to, or own stock in or 
     bonds of, a carrier providing transportation by any mode and 
     may not engage in another business, vocation, or employment.
       ``(7) A vacancy in the membership of the Panel does not 
     impair the right of the remaining members to exercise all of 
     the powers of the Panel. The Panel may designate a member to 
     act as Director during any period in which there is no 
     Director designated by the President.
       ``(c) Director.--(1) There shall be at the head of the 
     Panel a Director, who shall be designated by the President 
     from among the members of the Panel. The Director shall 
     receive compensation at the rate prescribed for level III of 
     the Executive Schedule under section 5314 of title 5.
       ``(2) Subject to the general policies, decisions, findings, 
     and determinations of the Panel the Director shall be 
     responsible for administering the Panel. The Director may 
     delegate the powers granted under this paragraph to an 
     officer, employee, or office of the Panel. The Director 
     shall--
       ``(A) appoint and supervise, other than regular and full 
     time employees in the immediate offices of another member, 
     the officers and employees of the Panel, including attorneys 
     to provide legal aid and service to the Panel and its 
     members, and to represent the Panel in any case in court;
       ``(B) appoint the heads of offices with the approval of the 
     Panel;
       ``(C) distribute Panel responsibilities among officers and 
     employees and offices of the Panel;
       ``(D) prepare requests for appropriations for the Panel and 
     submit those requests to the President and Congress with the 
     prior approval of the Panel; and
       ``(E) supervise the expenditure of funds allocated by the 
     Panel for major programs and purposes.

     ``Sec. 702. Functions

       ``Except as otherwise provided in the ICC Termination Act 
     of 1995, or the amendments made thereby, the Panel shall 
     perform all functions that, immediately before the effective 
     date of such Act, were functions of the Interstate Commerce 
     Commission or were performed by any officer or employee of 
     the Interstate Commerce Commission in the capacity as such 
     officer or employee.

     ``Sec. 703. Administrative provisions

       ``(a) Executive Reorganization.--Chapter 9 of title 5, 
     United States Code, shall apply to the Panel in the same 
     manner as it does to an independent regulatory agency.
       ``(b) Open Meetings.--For purposes of section 552b of title 
     5, United States Code, the Panel shall be deemed to be an 
     agency.
       ``(c) Independence.--In the performance of their functions, 
     the members, employees, and other personnel of the Panel 
     shall not be responsible to or subject to the supervision or 
     direction of any officer, employee, or agent of any other 
     part of the Department of Transportation.
       ``(d) Representation by Attorneys.--Attorneys designated by 
     the Director of the Panel may appear for, and represent the 
     Panel in, any civil action brought in connection with any 
     function carried out by the Panel pursuant to this chapter or 
     subtitle IV or as otherwise authorized by law.
       ``(e) Admission to Practice.--Subject to section 500 of 
     title 5, the Panel may regulate the admission of individuals 
     to practice before it and may impose a reasonable admission 
     fee.
       ``(f) Budget Requests.--In each annual request for 
     appropriations by the President, the Secretary of 
     Transportation shall identify the portion thereof intended 
     for the support of the Panel and include a statement by the 
     Panel--
       ``(1) showing the amount requested by the Panel in its 
     budgetary presentation to the Secretary and the Office of 
     Management and Budget; and
       ``(2) an assessment of the budgetary needs of the Panel.
       ``(g) Direct Transmittal to Congress.--The Panel shall 
     transmit to Congress copies of budget estimates, requests, 
     and information (including personnel needs), legislative 
     recommendations, prepared testimony for congressional 
     hearings, and comments on legislation at the same time they 
     are sent to the Secretary of Transportation. An officer of an 
     agency may not impose conditions on or impair communications 
     by the Panel with Congress, or a committee or member of 
     Congress, about the information.

     ``Sec. 704. Annual report

       ``The Panel shall annually transmit to the Congress a 
     report on its activities.

     ``Sec. 705. Authorization of appropriations

       ``There are authorized to be appropriated to the Secretary 
     of Transportation for the activities of the Panel--
       ``(1) $8,421,000 for fiscal year 1996;
       ``(2) $12,000,000 for fiscal year 1997; and
       ``(3) $12,000,000 for fiscal year 1998.

     ``Sec. 706. Reporting official action

       ``(a) The Panel shall make a written report of each 
     proceeding conducted on complaint or on its own initiative 
     and furnish a copy to each party to that proceeding. The 
     report shall include the findings, conclusions, and the order 
     of the Panel and, if damages are awarded, the findings of 
     fact supporting the award. The Panel may have its reports 
     published for public use. A published report of the Panel is 
     competent evidence of its contents.
       ``(b)(1) When action of the Panel in a matter related to a 
     rail carrier is taken by the Panel, an individual member of 
     the Panel, or another individual or group of individuals 
     designated to take official action for the Panel, the written 
     statement of that action (including a report, order, decision 
     and order, vote, notice, letter, policy statements, or 
     regulation) shall indicate--
       ``(A) the official designation of the individual or group 
     taking the action;
       ``(B) the name of each individual taking, or participating 
     in taking, the action; and
       ``(C) the vote or position of each participating 
     individual.
       ``(2) If an individual member of a group taking an official 
     action referred to in paragraph (1) of this subsection does 
     not participate in it, the written statement of the action 
     shall indicate that the member did not participate. An 
     individual participating in taking an official action is 
     entitled to express the views of that individual as part of 
     the written statement of the action. In addition to any 
     publication of the written statement, it shall be made 
     available to the public under section 552(a) of title 5.

                    ``SUBCHAPTER II--ADMINISTRATIVE

     ``Sec. 721. Powers

       ``(a) The Panel shall carry out this chapter and subtitle 
     IV. Enumeration of a power of the Panel in this chapter or 
     subtitle IV does not exclude another power the Panel may have 
     in carrying out this chapter or subtitle IV. The Panel may 
     prescribe regulations in carrying out this chapter and 
     subtitle IV.
       ``(b) The Panel may--
       ``(1) inquire into and report on the management of the 
     business of carriers providing, and brokers for, 
     transportation and services subject to subtitle IV;
       ``(2) inquire into and report on the management of the 
     business of a person controlling, controlled by, or under 
     common control with those carriers or brokers to the extent 
     that the business of that person is related to the management 
     of the business of that carrier or broker;
       ``(3) obtain from those carriers, brokers, and persons 
     information the Panel decides is necessary to carry out 
     subtitle IV; and
       ``(4) when necessary to prevent irreparable harm, issue an 
     appropriate order without regard to subchapter II of chapter 
     5 of title 5.
       ``(c)(1) The Panel may subpoena witnesses and records 
     related to a proceeding of the Panel from any place in the 
     United States, to the designated place of the proceeding. If 
     a witness disobeys a subpoena, the Panel, or a party to a 
     proceeding before the Panel, may petition a court of the 
     United States to enforce that subpoena.
       ``(2) The district courts of the United States have 
     jurisdiction to enforce a subpoena issued under this section. 
     Trial is in the district in which the proceeding is 
     conducted. The court may punish a refusal to obey a subpoena 
     as a contempt of court.
       ``(d)(1) In a proceeding, the Panel may take the testimony 
     of a witness by deposition and may order the witness to 
     produce records. A party to a proceeding pending before the 
     Panel may take the testimony of a witness by deposition and 
     may require the witness to produce records at any time after 
     a proceeding is at issue on petition and answer.
       ``(2) If a witness fails to be deposed or to produce 
     records under paragraph (1) of this subsection, the Panel may 
     subpoena the witness to take a deposition, produce the 
     records, or both.
       ``(3) A deposition may be taken before a judge of a court 
     of the United States, a United States magistrate judge, a 
     clerk of a district court, or a chancellor, justice, or judge 
     of a supreme or superior court, mayor or chief magistrate of 
     a city, judge of a county court, or court of common pleas of 
     any State, or a notary public who is not counsel or attorney 
     of a party or interested in the proceeding.
       ``(4) Before taking a deposition, reasonable notice must be 
     given in writing by the party or the attorney of that party 
     proposing to take a deposition to the opposing party or the 
     attorney of record of that party, whoever is nearest. The 
     notice shall state the name of the witness and the time and 
     place of taking the deposition.
       ``(5) The testimony of a person deposed under this 
     subsection shall be taken under oath. The person taking the 
     deposition shall prepare, or cause to be prepared, a 
     transcript of the testimony taken. The transcript shall be 
     subscribed by the deponent.
       ``(6) The testimony of a witness who is in a foreign 
     country may be taken by deposition before an officer or 
     person designated by the Panel or agreed on by the parties by 
     written stipulation filed with the Panel. A deposition 
     shall be filed with the Panel promptly.
       ``(e) Each witness summoned before the Panel or whose 
     deposition is taken under this section and the individual 
     taking the deposition are entitled to the same fees and 
     mileage paid for those services in the courts of the United 
     States.

     ``Sec. 722. Panel action

       ``(a) Unless otherwise provided in subtitle IV, the Panel 
     may determine, within a reasonable time, when its actions, 
     other than an action ordering the payment of money, take 
     effect.
       ``(b) An action of the Panel remains in effect under its 
     own terms or until superseded. The Panel may change, suspend, 
     or set aside any such action on notice. Notice may be given 
     in a manner determined by the Panel. A court of competent 
     jurisdiction may suspend or set aside any such action.
       ``(c) The Panel may, at any time on its own initiative 
     because of material error, new evidence, or substantially 
     changed circumstances--

[[Page H 12309]]

       ``(1) reopen a proceeding;
       ``(2) grant rehearing, reargument, or reconsideration of an 
     action of the Panel; or
       ``(3) change an action of the Panel.

     An interested party may petition to reopen and reconsider an 
     action of the Panel under this subsection under regulations 
     of the Panel.
       ``(d) Notwithstanding subtitle IV, an action of the Panel 
     under this section is final on the date on which it is 
     served, and a civil action to enforce, enjoin, suspend, or 
     set aside the action may be filed after that date.

     ``Sec. 723. Service of notice in Panel proceedings

       ``(a) A carrier providing transportation subject to the 
     jurisdiction of the Panel under subtitle IV shall designate 
     an agent in the District of Columbia, on whom service of 
     notices in a proceeding before, and of actions of, the Panel 
     may be made.
       ``(b) A designation under subsection (a) of this section 
     shall be in writing and filed with the Panel.
       ``(c) Except as otherwise provided, notices of the Panel 
     shall be served on its designated agent at the office or 
     usual place of residence in the District of Columbia of that 
     agent. A notice of action of the Panel shall be served 
     immediately on the agent or in another manner provided by 
     law. If that carrier does not have a designated agent, 
     service may be made by posting the notice in the office of 
     the Panel.
       ``(d) In a proceeding involving the lawfulness of 
     classifications, rates, or practices of a rail carrier that 
     has not designated an agent under this section, service of 
     notice of the Panel on an attorney in fact for the carrier 
     constitutes service of notice on the carrier.

     ``Sec. 724. Service of process in court proceedings

       ``(a) A carrier providing transportation subject to the 
     jurisdiction of the Panel under subtitle IV shall designate 
     an agent in the District of Columbia on whom service of 
     process in an action before a district court may be made. 
     Except as otherwise provided, process in an action before a 
     district court shall be served on the designated agent of 
     that carrier at the office or usual place of residence in the 
     District of Columbia of that agent. If the carrier does not 
     have a designated agent, service may be made by posting the 
     notice in the office of the Panel.
       ``(b) A designation under this section may be changed at 
     any time in the same manner as originally made.

     ``Sec. 725. Administrative support

       ``The Secretary of Transportation shall provide appropriate 
     administrative support for the Panel.

     ``Sec. 726. Definitions

       ``All terms used in this chapter that are defined in 
     subtitle IV shall have the meaning given those terms in that 
     subtitle.''.
       (b) Table of Chapters Amendment.--The table of chapters of 
     subtitle I of title 49, United States Code, is amended by 
     adding at the end the following new item:

TRANSPORTATION ADJUDICATION PANEL................................701''.

     SEC. 202. REORGANIZATION.

       The Director of the Transportation Adjudication Panel (in 
     this Act referred to as the ``Panel'') may allocate or 
     reallocate any function of the Panel, consistent with this 
     title and subchapter I of chapter 7, as amended by section 
     201 of this title, among the members or employees of the 
     Panel, and may establish, consolidate, alter, or discontinue 
     in the Panel any organizational entities that were entities 
     of the Interstate Commerce Commission, as the Director 
     considers necessary or appropriate.

     SEC. 203. TRANSFER OF ASSETS.

       Except as otherwise provided in this Act and the amendments 
     made by this Act, so much of the personnel, property, 
     records, and unexpended balances of appropriations, 
     allocations, and other funds employed, used, held, available, 
     or to be made available in connection with a function 
     transferred to the Panel or the Secretary by this Act shall 
     be available to the Panel or the Secretary at such time and 
     to such extent as the President directs for use in connection 
     with the functions transferred.

     SEC. 204. SAVING PROVISIONS.

       (a) Legal Documents.--All orders, determinations, rules, 
     regulations, permits, grants, loans, contracts, agreements, 
     certificates, licenses, and privileges--
       (1) that have been issued, made, granted, or allowed to 
     become effective by the President, the Interstate Commerce 
     Commission, any officer or employee of the Interstate 
     Commerce Commission, or any other Government official, or by 
     a court of competent jurisdiction, in the performance of any 
     function that is transferred by this Act or the amendments 
     made by this Act; and
       (2) that are in effect on the effective date of such 
     transfer (or become effective after such date pursuant to 
     their terms as in effect on such effective date),

     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, the Panel, any other 
     authorized official, a court of competent jurisdiction, or 
     operation of law. The Panel shall promptly rescind all 
     regulations established by the Interstate Commerce Commission 
     that are based on provisions of law repealed and not 
     substantively reenacted by this Act.
       (b) Proceedings.--(1) Except as provided in paragraph (2), 
     the Panel shall assume responsibility for the continuation of 
     all proceedings pending before the Interstate Commerce 
     Commission, and shall complete such proceedings in accordance 
     with law and regulations as in effect before the date of the 
     enactment of this Act.
       (2) In the case of a proceeding under a provision of law 
     repealed, and not reenacted, by this Act, such proceeding 
     shall be terminated.
       (c) Suits.--(1) This Act shall not affect suits commenced 
     before the date of the enactment of this Act, except that the 
     Panel shall assume the position of the Interstate Commerce 
     Commission, and, except as provided in paragraph (2), in all 
     such suits, proceeding shall be had, appeals taken, and 
     judgments rendered in the same manner and with the same 
     effect as if this Act had not been enacted.
       (2) If the court in a suit described in paragraph (1) 
     remands a case to the Panel, subsequent proceedings related 
     to such case shall proceed in accordance with applicable law 
     and regulations as in effect at the time of such subsequent 
     proceedings.
       (d) Exercise of Authorities.--Except as otherwise provided 
     by law, an officer or employee of the Panel may, for purposes 
     of performing a function transferred by this Act or the 
     amendments made by this Act, exercise all authorities under 
     any other provision of law that were available with respect 
     to the performance of that function to the official 
     responsible for the performance of the function immediately 
     before the effective date of the transfer of the function 
     under this Act or the amendments made by this Act.

     SEC. 205. REFERENCES.

       Any reference to the Interstate Commerce Commission in any 
     other Federal law, Executive order, rule, regulation, or 
     delegation of authority, or any document of or pertaining to 
     the Interstate Commerce Commission or an officer or employee 
     of the Interstate Commerce Commission, is deemed to refer to 
     the Panel or a member or employee of the Panel, as 
     appropriate.

  The CHAIRMAN. Are there any amendments to title II?
  If not, the Clerk will designate title III.
  The text of title III is as follows:
                    TITLE III--CONFORMING AMENDMENTS
              Subtitle A--Amendments to United States Code

     SEC. 301. TITLE 5 AMENDMENTS.

       (a) Compensation for Positions at Level III.--Section 5314 
     of title 5, United States Code, is amended by striking 
     ``Chairman, Interstate Commerce Commission.'' and inserting 
     in lieu thereof ``Director, Transportation Adjudication 
     Panel.''.
       (b) Compensation for Positions at Level IV.--Section 5315 
     of title 5, United States Code, is amended by striking 
     ``Members, Interstate Commerce Commission.'' and inserting in 
     lieu thereof ``Members, Transportation Adjudication Panel.''.

     SEC. 302. TITLE 11 AMENDMENTS.

       Subchapter IV of chapter 11 of title 11, United States 
     Code, is amended--
       (1) by amending section 1162 to read as follows:

     ``Sec. 1162. Definition

       ``In this subchapter, `Panel' means the `Transportation 
     Adjudication Panel'.''; and
       (2) by striking ``Commission'' each place it appears and 
     inserting in lieu thereof ``Panel''.

     SEC. 303. TITLE 18 AMENDMENT.

       Section 6001(1) of title 18, United States Code, is amended 
     by striking ``Interstate Commerce Commission'' and inserting 
     in lieu thereof ``Transportation Adjudication Panel''.

     SEC. 304. INTERNAL REVENUE CODE OF 1986 AMENDMENTS.

       (a) Section 3231.--Section 3231 of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``Interstate Commerce Commission'' in 
     subsection (a) and inserting in lieu thereof ``Transportation 
     Adjudication Panel''; and
       (2) by striking ``an express carrier, sleeping car carrier, 
     or'' in subsection (g) and inserting in lieu thereof ``a''.
       (b) Section 7701.--Section 7701 of the Internal Revenue 
     Code of 1986 is amended--
       (1) in paragraph (33)(B), by striking ``Federal Power 
     Commission'' and inserting in lieu thereof ``Federal Energy 
     Regulatory Commission'';
       (2) in paragraph (33)(C)(i), by striking ``Interstate 
     Commerce Commission'' and inserting in lieu thereof 
     ``Transportation Adjudication Panel'';
       (3) in paragraph (33)(C)(ii), by striking ``Interstate 
     Commerce Commission'' and inserting in lieu thereof ``Federal 
     Energy Regulatory Commission'';
       (4) in paragraph (33)(F), by striking ``Interstate Commerce 
     Commission under subchapter III of chapter 105'' and 
     inserting in lieu thereof ``Transportation Adjudication Panel 
     under subchapter II of chapter 135'';
       (5) in paragraph (33)(G), by striking ``subchapter I of 
     chapter 105'' and inserting in lieu thereof ``part A of 
     subtitle IV''; and
       (6) in paragraph (33)(H), by striking ``subchapter I of 
     chapter 105'' and inserting in lieu thereof ``part A of 
     subtitle IV''.

     SEC. 305. TITLE 28 AMENDMENTS.

       (a) Chapter 157 Amendments.--(1) Chapter 157 of title 28, 
     United States Code, is amended--
       (A) by striking ``INTERSTATE COMMERCE COMMISSION'' in the 
     chapter heading and inserting in lieu thereof 
     ``TRANSPORTATION ADJUDICATION PANEL'';
       (B) by striking ``Commission's'' in the section heading of 
     section 2321 and inserting in lieu thereof ``Panel's'';
       (C) by striking ``Interstate Commerce Commission'' each 
     place it appears and inserting in lieu thereof 
     ``Transportation Adjudication Panel''; and
       (D) by striking ``Commission'' each place it appears and 
     inserting in lieu thereof ``Panel''.
       (2)(A) The item relating to chapter 157 in the table of 
     chapters of title 28, United States Code, is amended by 
     striking ``Interstate Commerce Commission'' and inserting in 
     lieu thereof ``Transportation Adjudication Panel''.

[[Page H 12310]]

       (B) The item relating to section 2321 in the table of 
     sections of chapter 157 of title 28, United States Code, is 
     amended by striking ``Commission's'' and inserting in lieu 
     thereof ``Panel's''.
       (b) Chapter 158 Amendments.--Chapter 158 of title 28, 
     United States Code, is amended--
       (1) by striking ``the Interstate Commerce Commission,'' in 
     section 2341(3)(A);
       (2) by striking ``and'' at the end of section 2341(3)(C);
       (3) by striking the period at the end of section 2341(3)(D) 
     and inserting in lieu thereof ``; and'';
       (4) by inserting at the end of section 2341(3) the 
     following new subparagraph:
       ``(E) the Panel, when the order was entered by the 
     Transportation Adjudication Panel.''; and
       (5) in section 2342, by--
       (A) inserting ``or pursuant to part B of subtitle IV of 
     title 49, United States Code'' before the semicolon at the 
     end of paragraph (3)(A); and
       (B) striking paragraph (5) and inserting the following:
       ``(5) all rules, regulations, or final orders of the 
     Transportation Adjudication Panel made reviewable by section 
     2321 of this title; and''.

     SEC. 306. TITLE 39 AMENDMENTS.

       Title 39, United States Code, is amended--
       (1) in section 5005(a)(4) by striking ``5201(7)'' and 
     inserting ``5201(6)'';
       (2) in section 5005(b)(3), by striking ``Interstate 
     Commerce Commission'' and inserting in lieu thereof 
     ``Transportation Adjudication Panel''; and
       (3) in chapter 52--
       (A) by amending paragraph (1) of section 5201 to read as 
     follows:
       ``(1) `Panel' means the Transportation Adjudication 
     Panel;'';
       (B) in section 5201(2) by striking ``a motor common 
     carrier, or express carrier'' and inserting ``or a motor 
     carrier'';
       (C) in section 5201(4)--
       (i) by striking ``common''; and
       (ii) by striking ``permit'' and inserting ``registration'';
       (D) in section 5201(5)--
       (i) by striking ``common'' each place it appears;
       (ii) by striking ``10102(14)'' and inserting ``13102(11)''; 
     and
       (iii) by striking ``certificate of public convenience and 
     necessity'' and inserting ``registration'';
       (E) by striking paragraph (6);
       (F) by redesignating paragraphs (7) and (8) as paragraphs 
     (6) and (7), respectively;
       (G) in section 5201(6), as so redesignated, by striking 
     ``certificate of public convenience and necessity'' and 
     inserting ``certificate or registration'';
       (C) by striking subsection (f) of section 5203, and 
     redesignating subsection (g) of such section as subsection 
     (f);
       (D) in subsection (f) of section 5203, as so redesignated 
     by subparagraph (H) of this paragraph--
       (i) by striking ``Commission'' and inserting ``Panel''; and
       (ii) by striking ``motor common carrier'' each place it 
     appears and inserting ``motor carrier'';
       (E) by striking ``Interstate Commerce Commission'' in the 
     section heading of section 5207 and inserting in lieu thereof 
     ``Transportation Adjudication Panel'';
       (F) by striking ``Commission's'' in sections 5208(a) and 
     5215(a) and inserting in lieu thereof ``Panel's'';
       (G) by striking ``Commission'' each place it appears and 
     inserting in lieu thereof ``Panel''; and
       (H) in the item relating to section 5207 in the table of 
     sections, by striking ``Interstate Commerce Commission'' and 
     inserting in lieu thereof ``Transportation Adjudication 
     Panel''; and
       (M) in section 5215(a) by striking ``motor common carrier'' 
     and inserting ``motor carrier''.

     SEC. 307. TITLE 49 AMENDMENTS.

       Title 49, United States Code, is amended--
       (1) in section 22106(e)(1) by striking ``an application for 
     abandonment of'' and inserting in lieu thereof ``a notice of 
     intent to abandon''; and
       (2) by repealing subsection (d) of section 24705.
                      Subtitle B--Other Amendments

     SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938 AMENDMENT.

       Section 201 of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1291) is amended--
       (1) by striking ``Interstate Commerce Commission'' each 
     place it appears and inserting in lieu thereof 
     ``Transportation Adjudication Panel'';
       (2) by striking ``Commission'' each place it appears and 
     inserting in lieu thereof ``Panel''; and
       (3) by striking ``Commission's'' in subsection (b) and 
     inserting in lieu thereof ``Panel's''.

     SEC. 312. ANIMAL WELFARE ACT AMENDMENT.

       Section 15(a) of the Animal Welfare Act (7 U.S.C. 2145(a)) 
     is amended by striking ``Interstate Commerce Commission'' and 
     inserting in lieu thereof ``Transportation Adjudication 
     Panel''.

     SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AMENDMENTS.

       Section 401 of the Federal Election Campaign Act of 1971 is 
     amended--
       (1) by striking ``Interstate Commerce Commission shall each 
     promulgate, within ninety days after the date of enactment of 
     this Act'' and inserting in lieu thereof ``Transportation 
     Adjudication Panel shall each maintain''; and
       (2) by inserting ``or Panel'' after ``or such Commission''.

     SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT.

       Section 621(b)(4) of the Fair Credit Reporting Act (15 
     U.S.C. 1681s(b)(4)) is amended by striking ``Interstate 
     Commerce Commission with respect to any common carrier 
     subject to those Acts'' and inserting in lieu thereof 
     ``Secretary of Transportation, with respect to all carriers 
     subject to the jurisdiction of the Transportation 
     Adjudication Panel''.

     SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.

       Section 704(a)(4) of the Equal Credit Opportunity Act (15 
     U.S.C. 1691c(a)(4)) is amended by striking ``Interstate 
     Commerce Commission with respect to any common carrier 
     subject to those Acts'' and inserting in lieu thereof 
     ``Secretary of Transportation, with respect to all carriers 
     subject to the jurisdiction of the Transportation 
     Adjudication Panel''.

     SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMENDMENT.

       Section 814(b)(4) of the Fair Debt Collection Practices Act 
     (15 U.S.C. 1692l(b)(4)) is amended by striking ``Interstate 
     Commerce Commission with respect to any common carrier 
     subject to those Acts'' and inserting in lieu thereof 
     ``Secretary of Transportation, with respect to all carriers 
     subject to the jurisdiction of the Transportation 
     Adjudication Panel''.

     SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.

       The National Trails System Act is amended--
       (1) in section 8(d)--
       (A) by striking ``Chairman of the Interstate Commerce 
     Commission'' and inserting in lieu thereof ``Director of the 
     Transportation Adjudication Panel''; and
       (B) by striking ``Commission'' and inserting in lieu 
     thereof ``Panel''; and
       (2) in section 9(b), by striking ``Interstate Commerce 
     Commission'' and inserting in lieu thereof ``Transportation 
     Adjudication Panel''.

     SEC. 318. CLAYTON ACT AMENDMENTS.

       The Clayton Act is amended--
       (1) in section 7 (15 U.S.C. 18)--
       (A) by striking ``Interstate Commerce Commission'' and 
     inserting in lieu thereof ``Transportation Adjudication 
     Panel''; and
       (B) by inserting ``, Panel,'' after ``vesting such power in 
     such Commission'';
       (2) in section 11(a) (15 U.S.C. 21(a)), by striking 
     ``Interstate Commerce Commission where applicable to common 
     carriers subject to the Interstate Commerce Act, as amended'' 
     and inserting in lieu thereof ``Transportation Adjudication 
     Panel where applicable to common carriers subject to subtitle 
     IV of title 49, United States Code''; and
       (3) in section 16 (15 U.S.C. 22), by striking ``in equity 
     for injunctive relief'' and all that follows through 
     ``Interstate Commerce Commission'' and inserting in lieu 
     thereof ``for injunctive relief against any common carrier 
     subject to the jurisdiction of the Transportation 
     Adjudication Panel under subtitle IV of title 49, United 
     States Code''.

     SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

       Section 8G(a)(2) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by striking ``the Interstate Commerce 
     Commission,''.

     SEC. 320. ENERGY POLICY ACT OF 1992 AMENDMENTS.

       Subsections (a) and (d) of section 1340 of the Energy 
     Policy Act of 1992 (42 U.S.C. 13369(a) and (d)) are amended 
     by striking ``Interstate Commerce Commission'' and inserting 
     in lieu thereof ``Transportation Adjudication Panel''.

     SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS

       The Merchant Marine Act, 1920, is amended--
       (1) in section 8 (46 U.S.C. App. 867)--
       (A) by striking ``Interstate Commerce Commission'' both 
     places it appears and inserting in lieu thereof 
     ``Transportation Adjudication Panel''; and
       (B) by striking ``commission'' and inserting in lieu 
     thereof ``Panel''; and
       (2) in section 28 (46 U.S.C. App. 884)--
       (A) by striking ``Interstate Commerce Commission'' and 
     inserting in lieu thereof ``Transportation Adjudication 
     Panel''; and
       (B) by striking ``commission'' each place it appears and 
     inserting in lieu thereof ``Panel''.

     SEC. 322. RAILWAY LABOR ACT AMENDMENTS.

       Section 1 of the Railway Labor Act (45 U.S.C. 151) is 
     amended--
       (1) by striking ``express company, sleeping-car company, 
     carrier by railroad, subject to the Interstate Commerce Act'' 
     in the first paragraph and inserting in lieu thereof 
     ``railroad subject to the jurisdiction of the Transportation 
     Adjudication Panel'';
       (2) by striking ``Interstate Commerce Commission'' each 
     place it appears in the first and fifth paragraphs and 
     inserting in lieu thereof ``Transportation Adjudication 
     Panel''; and
       (3) by striking ``Commission'' each place it appears in the 
     fifth paragraph and inserting in lieu thereof ``Panel''.

     SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMENDMENTS.

       Section 1 of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231) is amended--
       (1) by amending subsection (a)(1)(i) to read as follows:
       ``(i) any carrier by railroad subject to the jurisdiction 
     of the Transportation Adjudication Panel under part A of 
     subtitle IV of title 49, United States Code;'';
       (2) by striking ``Interstate Commerce Commission is hereby 
     authorized and directed upon request of the Board'' in 
     subsection (a)(2)(ii) and inserting in lieu thereof 
     ``Transportation Adjudication Panel is hereby authorized and 
     directed upon request of the Railroad Retirement Board''; and
       (3) by inserting ``the Transportation Adjudication Panel,'' 
     after ``the Interstate Commerce Commission,'' in subsection 
     (o).

     SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT AMENDMENTS.

       The Railroad Unemployment Insurance Act is amended--
       (1) by striking ``Interstate Commerce Commission is hereby 
     authorized and directed upon request of the Board'' in 
     section 1(a) (45 U.S.C. 

[[Page H 12311]]
     351(a)) and inserting in lieu thereof ``Transportation Adjudication 
     Panel is hereby authorized and directed upon request of the 
     Railroad Retirement Board'';
       (2) by amending paragraph (b) of such section 1 to read as 
     follows:
       ``(b) The term `carrier' means a railroad subject to the 
     jurisdiction of the Transportation Adjudication Panel under 
     part A of subtitle IV of title 49, United States Code.'';
     and
       (3) by striking ``Interstate Commerce Commission, adjusted, 
     as determined by the Board'' in section 2(h)(3) (45 U.S.C. 
     352(h)(3)) and inserting in lieu thereof ``Transportation 
     Adjudication Panel, adjusted, as determined by the Railroad 
     Retirement Board''.

     SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMENDMENTS.

       The Emergency Rail Services Act of 1970 is amended--
       (1) by amending paragraph (2) of section 2 (45 U.S.C. 
     661(2)) to read as follows:
       ``(2) `Panel' means the Transportation Adjudication 
     Panel.'';
       (2) by striking ``Interstate Commerce Commission'' in 
     section 6(a) (45 U.S.C. 665(a)) and inserting in lieu thereof 
     ``Panel''; and
       (3) by striking ``Commission'' each place it appears and 
     inserting in lieu thereof ``Panel''.

     SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982 AMENDMENTS.

       Section 608 of the Alaska Railroad Transfer Act of 1982 (45 
     U.S.C. 1207) is amended--
       (1) by striking ``Interstate Commerce Commission'' each 
     place it appears and inserting in lieu thereof 
     ``Transportation Adjudication Panel''; and
       (2) by striking ``Commission'' in subsection (b) and 
     inserting in lieu thereof ``Panel''.

     SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973 
                   AMENDMENTS.

       The Regional Rail Reorganization Act of 1973 is amended--
       (1) in section 304(d)(3) (45 U.S.C. 744(d)(3))--
       (A) by striking ``this title,'' and all that follows 
     through ``(A) shall take'' and inserting in lieu thereof 
     ``this title, the Commission shall take''; and
       (B) by striking ``this subsection; and'' and all that 
     follows through ``205(d)(6) of this Act'' and inserting in 
     lieu thereof ``this subsection''; and
       (2) in section 707 (45 U.S.C. 797f)--
       (A) by inserting ``(a)'' at the beginning of the text; and
       (B) by adding at the end the following new subsections:
       ``(b) Notwithstanding any other provision of this Act or 
     any agreement or arrangement in effect as of the date of the 
     enactment of this subsection, the Corporation may not sell or 
     transfer ownership or management, in whole or in part, of any 
     facility acquired by the Corporation under this Act that is 
     used for the repair, rehabilitation, or maintenance of cars 
     or locomotives, without first obtaining the expess consent of 
     the authorized representatives of the employees at such 
     facility covered by collective bargaining agreements. Any 
     transaction undertaken in violation of this subsection or 
     subsection (c) shall be considered in violation of section 6 
     of the Railway Labor Act, and shall be actionable as such.
       ``(c) Notwithstanding any other provision of this Act or 
     any agreement or arrangement in effect as of the date of the 
     enactment of this subsection, any transfer by the Corporation 
     of ownership, in whole or in part, other than for scrappage, 
     of a car or locomotive that was repaired, rehabilitated, or 
     maintained, before the date of the enactment of this 
     subsection, at a facility acquired by the Corporation under 
     this Act, without first obtaining the express consent of the 
     authorized representatives of the employees at the 
     Corporation's principal maintenance facility covered by 
     collective bargaining agreements, is prohibited.''.

     SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT AMENDMENT.

       Section 18 of the Milwaukee Railroad Restructuring Act (45 
     U.S.C. 916) is repealed.

     SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EMPLOYEE 
                   ASSISTANCE ACT AMENDMENTS.

       The Rock Island Railroad Transition and Employee Assistance 
     Act is amended--
       (1) in section 104(a) (45 U.S.C. 1003(a)) by striking 
     ``section 11125 of title 49, United States Code, or''; and
       (2) by repealing section 120 (45 U.S.C. 1015).

     SEC. 330. RAILROAD REVITALIZATION AND REGULATORY REFORM ACT 
                   OF 1976 AMENDMENTS.

       The Railroad Revitalization and Regulatory Reform Act of 
     1976 is amended--
       (1) in section 505(a)(3) (45 U.S.C. 825(a)(3))--
       (A) by striking ``A financially responsible person (as 
     defined in section 10910(a)(1) of title 49, United States 
     Code)'' and inserting in lieu thereof ``(A) A financially 
     responsible person''; and
       (B) by inserting at the end the following new subparagraph:
       ``(B) For purposes of this paragraph, the term `financially 
     responsible person' means a person who (i) is capable of 
     paying the constitutional minimum value of the railroad line 
     proposed to be acquired, and (ii) is able to assure that 
     adequate transportation will be provided over such line for a 
     period of not less than 3 years. Such term includes a 
     governmental authority but does not include a class I or 
     class II rail carrier.'';
       (2) in section 509(b) (45 U.S.C. 829(b)) by striking 
     paragraph (2); and
       (3) in section 510 (45 U.S.C. 830) by striking ``the 
     provisions of section 20a of the Interstate Commerce Act (49 
     U.S.C. 20a), nor''.

     SEC. 331. SERVICE CONTRACT ACT OF 1965 AMENDMENT.

       Section 7(3) of the Service Contract Act of 1965 (41 U.S.C. 
     356(3)) is amended by striking ``where published tariff rates 
     are in effect''.

     SEC. 332. FISCAL YEAR 1982 CONTINUING RESOLUTION AMENDMENT.

       Section 115 of the Joint Resolution entitled ``Joint 
     Resolution making further continuing appropriations for the 
     fiscal year 1982, and for other purposes'' (Public Law 97-92; 
     95 Stat. 1196) is repealed.

     SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION 
                   ACT.

       Section 401(b) of the Migrant and Seasonal Agricultural 
     Worker Protection Act (29 U.S.C. 1841(b)) is amended by--
       (1) striking ``part II of the Interstate Commerce Act (49 
     U.S.C. 301 et seq.), or any successor provision of'' in 
     paragraph (2)(C) and inserting ``part B of''; and
       (2) striking ``common carriers of passengers under part II 
     of the Interstate Commerce Act (49 U.S.C. 301 et seq.), and 
     any successor provision of'' in paragraph (3) and inserting 
     ``carriers of passengers under part B of''.

     SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHORIZATION ACT 
                   OF 1994.

       Section 601(d) of the Federal Aviation Administration 
     Authorization Act of 1994 (Public Law 103-305) is amended by 
     striking all after ``subsection (c)'' and inserting ``shall 
     not take effect as long as section 14501(b)(2) of title 49, 
     United States Code, applies to that State.''.

     SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHORITY.

       (a) Repeal of Intercoastal Shipping Act, 1933.--The Act of 
     March 3, 1933 (Chapter 199; 46 App. U.S.C. 843 et seq.), 
     commonly referred to as the Intercoastal Shipping Act, 1933, 
     is repealed effective September 30, 1996.
       (b) Repeal of Provisions of Shipping Act, 1916.--The 
     following provisions of the Shipping Act, 1916, are repealed 
     effective September 30, 1996:
       (1) Section 3 (46 U.S.C. App. 804).
       (2) Section 14 (46 U.S.C. App. 812).
       (3) Section 15 (46 U.S.C. App. 814).
       (4) Section 16 (46 U.S.C. App. 815).
       (5) Section 17 (46 U.S.C. App. 816).
       (6) Section 18 (46 U.S.C. App. 817).
       (7) Section 19 (46 U.S.C. App. 818).
       (8) Section 20 (46 U.S.C. App. 819).
       (9) Section 21 (46 U.S.C. App. 820).
       (10) Section 22 (46 U.S.C. App. 821).
       (11) Section 23 (46 U.S.C. App. 822).
       (12) Section 24 (46 U.S.C. App. 823).
       (13) Section 25 (46 U.S.C. App. 824).
       (14) Section 27 (46 U.S.C. App. 826).
       (15) Section 29 (46 U.S.C. App. 828).
       (16) Section 30 (46 U.S.C. App. 829).
       (17) Section 31 (46 U.S.C. App. 830).
       (18) Section 32 (46 U.S.C. App. 831).
       (19) Section 33 (46 U.S.C. App. 832).
       (20) Section 35 (46 U.S.C. App. 833a).
       (21) Section 43 (46 U.S.C. App. 841a).
       (22) Section 45 (46 U.S.C. App. 841c).

     SEC. 336. DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES 
                   APPROPRIATION ACT, 1982 AMENDMENT.

       Section 402 of the Department of Transportation and Related 
     Agencies Appropriation Act, 1982 (Public Law 97-102; 95 Stat. 
     1465) is repealed.

  The CHAIRMAN. Are there any amendments to title III?
  If not, the question is on the committee amendment in the nature of a 
substitute, as modified, as amended.
  The committee amendment in the nature of a substitute, as modified, 
as amended, was agreed to.
  (Mr. SHUSTER asked and was given permission to revise and extend his 
remarks.)
  The CHAIRMAN. Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Hastings of Washington) having assumed the chair, Mr. Kingston, 
Chairman of the Committee of the Whole House on the State of the Union, 
reported that that Committee, having had under consideration the bill 
(H.R. 2539) to abolish the Interstate Commerce Commission, to amend 
subtitle IV of title 49, United States Code, to reform economic 
regulation of transportation, and for other purposes, pursuant to House 
Resolution 259, he reported the bill back to the House with an 
amendment adopted by the Committee of the Whole.
  The SPEAKER pro tempore (Mr. Hastings of Washington). Under the rule, 
the previous question is ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute adopted by the Committee of the 
Whole? If not, the question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             recorded vote

  Mr. SHUSTER. Mr. Speaker, I demand a recorded vote. 

[[Page H 12312]]

  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 417, 
noes 8, not voting 7, as follows:

                             [Roll No. 793]

                               AYES--417

     Abercrombie
     Ackerman
     Allard
     Andrews
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     Baker (LA)
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Becerra
     Beilenson
     Bentsen
     Bereuter
     Berman
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boucher
     Brewster
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Brownback
     Bryant (TN)
     Bryant (TX)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Cardin
     Castle
     Chabot
     Chambliss
     Chapman
     Chenoweth
     Christensen
     Chrysler
     Clay
     Clayton
     Clement
     Clinger
     Clyburn
     Coble
     Coburn
     Coleman
     Collins (GA)
     Collins (IL)
     Collins (MI)
     Combest
     Condit
     Cooley
     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeFazio
     DeLauro
     DeLay
     Dellums
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doolittle
     Dornan
     Doyle
     Dreier
     Duncan
     Dunn
     Durbin
     Edwards
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Eshoo
     Evans
     Everett
     Ewing
     Farr
     Fattah
     Fawell
     Fazio
     Fields (TX)
     Flake
     Flanagan
     Foglietta
     Foley
     Forbes
     Ford
     Fowler
     Fox
     Frank (MA)
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Frost
     Funderburk
     Furse
     Gallegly
     Ganske
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Greenwood
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hefner
     Heineman
     Herger
     Hilleary
     Hilliard
     Hinchey
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hoyer
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jackson-Lee
     Jacobs
     Jefferson
     Johnson (CT)
     Johnson (SD)
     Johnson, E.B.
     Johnson, Sam
     Johnston
     Jones
     Kanjorski
     Kaptur
     Kasich
     Kelly
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kim
     King
     Kingston
     Kleczka
     Klink
     Klug
     Knollenberg
     Kolbe
     LaFalce
     LaHood
     Lantos
     Largent
     Latham
     LaTourette
     Laughlin
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Lightfoot
     Lincoln
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Longley
     Lowey
     Lucas
     Luther
     Maloney
     Manton
     Manzullo
     Markey
     Martinez
     Martini
     Mascara
     Matsui
     McCarthy
     McCollum
     McCrery
     McDade
     McDermott
     McHale
     McHugh
     McInnis
     McIntosh
     McKeon
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Metcalf
     Meyers
     Mfume
     Mica
     Miller (CA)
     Miller (FL)
     Minge
     Moakley
     Molinari
     Mollohan
     Montgomery
     Moorhead
     Morella
     Murtha
     Myers
     Myrick
     Neal
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Oxley
     Packard
     Pallone
     Parker
     Pastor
     Paxon
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pombo
     Porter
     Portman
     Poshard
     Pryce
     Quillen
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Reed
     Regula
     Richardson
     Riggs
     Rivers
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rose
     Roth
     Roukema
     Roybal-Allard
     Royce
     Rush
     Sabo
     Salmon
     Sanders
     Sanford
     Sawyer
     Saxton
     Scarborough
     Schaefer
     Schiff
     Schroeder
     Schumer
     Scott
     Seastrand
     Sensenbrenner
     Serrano
     Shadegg
     Shaw
     Shays
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Stockman
     Stokes
     Studds
     Stump
     Stupak
     Talent
     Tanner
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thompson
     Thornberry
     Thornton
     Thurman
     Tiahrt
     Torkildsen
     Torres
     Torricelli
     Towns
     Traficant
     Upton
     Velazquez
     Vento
     Visclosky
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Ward
     Waters
     Watt (NC)
     Watts (OK)
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wilson
     Wise
     Wolf
     Woolsey
     Wyden
     Young (AK)
     Young (FL)
     Zeliff
     Zimmer

                                NOES--8

     Engel
     Filner
     Green
     Moran
     Nadler
     Pomeroy
     Williams
     Wynn

                             NOT VOTING--7

     Conyers
     Fields (LA)
     Gunderson
     Mink
     Tucker
     Volkmer
     Yates

                              {time}  1851

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________