[Congressional Record Volume 149, Number 150 (Thursday, October 23, 2003)]
[Senate]
[Pages S13135-S13137]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 1776. A bill to amend title 49, United States Code, relating to 
responsibility for intermodal equipment compliance with commercial 
motor vehicle safety requirements, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. CAMPBELL. Mr. President, today I am introducing the Intermodal 
Equipment Safety and Responsibility Act of 2003. This bill is a 
companion bill to language originally brought to the floor of the House 
of Representatives by my good friend from South Carolina, 
Representative Henry Brown.
  Every day, literally hundreds of unsafe intermodal chassis carrying 
containers leave U.S. ports and travel on our public roads and 
highways, endangering not only the drivers of these vehicles but also 
the general public which shares the road with them. This bill will go a 
long way to ensure that only safe, roadworthy chassis are released for 
use and remove this often deadly threat to highway safety.
  This legislation places responsibility for equipment safety and 
compliance with Federal and State regulations squarely where it 
belongs--with those who own or control the equipment. Under current 
law, the brunt of responsibility for equipment safety and compliance is 
placed on port drivers. The trucking companies and commerical drivers 
that service the ports do not own chassis, but are obligated by 
terminal operators to use the chassis provided to transport intermodal 
containers to and from the ports. This bill would require equipment 
controllers to inspect and repair intermodal equipment to meet all 
safety regulations prior to offering it for interchange, and to certify 
and document that such inspections have been performed. In addition, it 
gives the Federal Motor Carrier Safety Administration the authority to 
enter a port facility to review the inspection process and assure 
compliance.
  This Act also requires that citations issued for violations related 
to the defective condition of an intermodal chassis that is not owned 
by that motor carrier or driver, will not affect the motor carrier's 
overall safety rating or the motor carrier's driving record.
  The objective of this legislation is simple: to ensure that equipment 
controllers perform regular maintenance on intermodal equipment and 
give truckers safe and roadworthy equipment in compliance with current 
USDOT safety regulations. Professional truck drivers are not 
professional mechanics, nor should they be. Unfortunately, too many 
equipment controllers do not perform the required systematic inspection 
and maintenance, and truck drivers are expected to find not only 
visible defects, but also safety defects that are not visible.
  I am joined by the Colorado Motor Carriers Association, the 
International Brotherhood of Teamsters, International Longshoreman's 
Association, the International Longshore and Warehouse Union, the 
American Trucking Association and the Truckload Carriers Association 
who all worked together diligently to reach a consensus of support for 
this legislation.
  The traveling American public deserves to be confident that the roads 
they share with truckers are safe. I urge my colleagues to support this 
bill and ask unanimous consent that the text of this bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1776

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Intermodal Equipment Safety 
     and Responsibility Act of 2003''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Promoting safety on United States highways is a 
     national priority. The Secretary of Transportation has 
     promulgated

[[Page S13136]]

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

     SEC. 3. PURPOSE.

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

     SEC. 4. DEFINITIONS.

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

     SEC. 5. JURISDICTION OVER EQUIPMENT CONTROLLERS.

       Chapter 59 of title 49, United States Code, is amended by 
     adding at the end the following new section:

     ``Sec. 5909. Jurisdiction over equipment controller

       ``The authority of the Secretary of Transportation to 
     prescribe regulations on commercial motor vehicle safety 
     under section 31136 of this title shall apply to controllers 
     of intermodal equipment that is interchanged or to be 
     interchanged.''.

     SEC. 6. EQUIPMENT CONTROLLER RESPONSIBILITY.

       (a) In General.--Chapter 59 of title 49, United States 
     Code, as amended by section 5, is further amended by adding 
     at the end the following new section:

     ``Sec. 5910. Equipment inspection, repair, and maintenance

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

     SEC. 7. SAFETY COMPLIANCE.

       (a) In General.--Chapter 59 of title 49, United States 
     Code, as amended by section 6, is further amended by adding 
     at the end the following new section:

     ``Sec. 5911. Compliance with safety regulations

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

     SEC. 8. AUTHORITY TO INSPECT.

       Chapter 59 of title 49, United States Code, as amended by 
     section 7, is further amended by adding at the end the 
     following new section:

     ``Sec. 5912. Authority to inspect

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

     SEC. 9. PROHIBITION ON RETALIATION.

       Chapter 59 of title 49, United States Code, as amended by 
     section 8, is further amended by adding at the end the 
     following new section:

     ``Sec. 5913. Penalties for retaliation

       ``(a) Retaliation Prohibited.--A controller of intermodal 
     equipment may not take any action to threaten, coerce, 
     discipline, discriminate, or otherwise retaliate against a 
     motor carrier in response to a request made by the motor 
     carrier for maintenance or repair of equipment intended for 
     interchange in order to comply with the applicable safety 
     regulations.

[[Page S13137]]

       ``(b) Failure To Timely Provide Safe Equipment Deemed To Be 
     Retaliation.--Upon receiving a motor carrier's request for 
     maintenance or repair of intermodal equipment to be picked up 
     by the motor carrier in an interchange of equipment, the 
     controller of intermodal equipment shall be considered to 
     have retaliated against the motor carrier for the purposes of 
     this section if the controller of intermodal equipment fails 
     to provide the motor carrier with the equipment in a 
     condition compliant with the applicable safety regulations 
     within 60 minutes after the motor carrier arrives to pick up 
     the equipment at the place where the equipment is to be 
     picked up.
       ``(c) Penalty.--A controller of intermodal equipment that 
     violates subsection (a) shall be liable to the United States 
     Government for a civil penalty of up to $10,000 for each 
     violation.''.

     SEC. 10. DELEGATION OF MAINTENANCE RESPONSIBILITY.

       Chapter 59 of title 49, United States Code, as amended by 
     section 9, is further amended by adding at the end the 
     following new section:

     ``Sec. 5914. Maintenance responsibility

       ``A controller of intermodal equipment may not delegate its 
     responsibility to systematically maintain and repair 
     equipment intended for interchange to a motor carrier or 
     motor carrier agent in an equipment interchange agreement.''.

     SEC. 11. COMPATIBILITY OF STATE LAWS.

       (a) In General.--Chapter 59 of title 49, United States 
     Code, as amended by section 10, is further amended by adding 
     at the end the following new section:

     ``Sec. 5915. Compatibility of State laws

       ``(a) Preemption Generally.--Except as provided in 
     subsection (b) or as otherwise authorized by Federal law, a 
     law, regulation, order, or other requirement of a State or 
     political subdivision of a State, or of a tribal 
     organization, is preempted if compliance with such law, 
     regulation, order, or other requirement would preclude 
     compliance with a requirement imposed under this chapter.
       ``(b) Certain Rules Not Preempted.--A law, regulation, 
     order, or other requirement of a State or political 
     subdivision of a State, or of a tribal organization, shall 
     not be preempted under subsection (a) if such law, 
     regulation, order, or other requirement is more stringent 
     than, but otherwise compatible with, a requirement under this 
     chapter.
       ``(c) Tribal Organization Defined.--In this section, the 
     term `tribal organization' has the meaning given such term in 
     section (4)(l) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b(l)).''.

     SEC. 12. REPEAL OF OBSOLETE PROVISION.

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

     SEC. 13, CLERICAL AMENDMENTS.

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

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

     SEC. 14. IMPLEMENTING REGULATIONS.

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

     SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 16. EFFECTIVE DATE.

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