[Senate Report 104-176]
[From the U.S. Government Publishing Office]




   104th Congress 1st            SENATE                 Report
         Session
                                                       104-176
_______________________________________________________________________


 
           INTERSTATE COMMERCE COMMISSION SUNSET ACT OF 1995

                               ----------                              

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                             together with

                            ADDITIONAL VIEWS

                                    on

                                S. 1396




               November 21, 1995.--Ordered to be printed
 Filed, under authority of the order of the Senate of November 20, 1995
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred fourth congress
                             first session

  LARRY PRESSLER, South Dakota, 
             Chairman
ERNEST F. HOLLINGS, South Carolina   TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii             JOHN MCCAIN, Arizona
WENDELL H. FORD, Kentucky            CONRAD BURNS, Montana
J. JAMES EXON, Nebraska              SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana            OLYMPIA SNOWE, Maine
RICHARD H. BRYAN, Nevada             JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota        BILL FRIST, Tennessee
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director

                                  (ii)
                                                       Calendar No. 247
104th Congress                                                   Report
                                 SENATE

 1st Session                                                    104-176
_______________________________________________________________________


           INTERSTATE COMMERCE COMMISSION SUNSET ACT OF 1995

                                _______


               November 21, 1995.--Ordered to be printed

 Filed, under authority of the order of the Senate of November 20, 1995

_______________________________________________________________________


      Mr. Pressler, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1396]

    The Committee on Commerce, Science, and Transportation to 
which was referred the bill (S. 1396) to amend title 49, United 
States Code, to provide for the regulation of surface 
transportation, reports favorably thereon with an amendment in 
the nature of a substitute and recommends that the bill 
joint resolution deg. do pass.

                          Purpose of the Bill

    This legislation is in response to the Fiscal Year (FY) 
1996 Budget Resolution which assumes the elimination of the 
Interstate Commerce Commission (ICC) and the FY 1996 DOT 
Appropriations bill, H.R. 2002, which provides no funding for 
the ICC effective December 31, 1995. Prior to the Committee's 
approval of S. 1396 on November 9, 1995, H.R. 2002 had not been 
signed into law. H.R. 2002 has since been signed by the 
President (P.L. 104-50).
    S. 1396, as reported, would sunset two federal agencies, 
the ICC and the Federal Maritime Commission (FMC). The ICC 
would terminate effective January 1, 1996, and the FMC would 
terminate one year later, January 1, 1997. The bill provides 
that, upon enactment, obsolete or unnecessary ICC regulatory 
functions would be repealed and residual functions would be 
transferred partly to a newly established independent 
Intermodal Surface Transportation Board (Board) within the U.S. 
Department of Transportation (DOT) and partly to the Secretary 
of Transportation (Secretary). When the FMC sunsets, its 
remaining functions would be transferred to the new Board.
    The bill also significantly reduces regulation of surface 
transportation industries in this country. It sorts through the 
panoply of laws currently administered by the ICC and repeals 
or modernizes those that have become outdated. In the process, 
the bill revamps subtitle IV of title 49 of the United States 
Code, commonly known as the Interstate Commerce Act (ICA), by 
dividing it into two parts:
    Part A (comprised of revised chapters 101 through 119 of 
title 49), which contains the provisions applicable to 
transportation by rail or pipeline (other than oil, gas, or 
water pipelines), and
    Part B (new chapters 113 through 149 of title 49), which 
contains the provisions applicable to the trucking, intercity 
bus, domestic water carriage, and transportation intermediary 
(broker and freight forwarder) industries.
    Part A would be administered by the Board. Part B would be 
administered by the Secretary except for those provisions that 
are more adjudicatory in nature, which would be administered by 
the Board.
    As reported, the bill would authorize appropriations of 
$8.4 million for the Board for FY 1996, and $12 million in each 
of FYs 1997 and 1998. The Committee notes the appropriation 
levels for FY 1997 and 1998 were set prior to accepting an 
amendment to sunset the FMC. Therefore, amended authorization 
levels will be needed to ensure the transferred FMC functions 
can be carried out effectively.

                          Background and Needs

    Established by the Act to Regulate Commerce in 1887, the 
ICC is the oldest independent regulatory agency. It originally 
was created to protect shippers from the monopoly power of the 
railroad industry. Between 1840 and 1880, the U.S. railroad 
network grew from 2,800 to 93,000 miles. This boom brought 
indiscriminate construction, market manipulation, rate abuses, 
and discriminatory practices against certain types of freight 
customers and passengers. In some areas, rail monopolies were 
able to direct the fate of communities, shippers, and entire 
industries.
    Farmers and consumers demanded rate controls, and merchants 
and shippers demanded equal treatment with their competitors. 
Congress responded by enacting a ten-page bill. It stipulated 
that all rates be ``reasonable and just'' and prohibited 
certain railroad practices, such as rate discrimination, price 
fixing, and rebating. A five-member Commission was set up to 
administer the Act.
    Various subsequent Acts through 1920 broadened and 
strengthened the ICC's regulatory authority over railroads. The 
ICC's regulatory authority also expanded to other modes, 
including pipeline transportation by the Hepburn Act of 1906. 
Responding to railroad complaints about unfair competition, 
Congress brought the nascent truck and bus industries under the 
ICC's regulatory authority by the Motor Carrier Act of 1935. In 
1940, inland and coastal water carriers were brought under the 
jurisdiction of the ICC, which then consisted of eleven 
members. At one point, the ICC even regulated telegraph, 
telephone, cable and radio communications, as well as standard 
time.
    By the 1960's, the ICC's regulatory structure was viewed as 
unduly burdensome and restrictive and the federal government 
moved to create new agencies to deal with emerging 
transportation problems. In 1967, the DOT was created and 
virtually all of the ICC's safety oversight functions were 
transferred to the new agency. However, economic regulation 
remained at the ICC. By 1970, in spite of the ICC's continued 
broad regulatory powers, six major northeastern railroads and 
one midwestern line were bankrupt. Bankruptcies continued 
throughout the rail industry, including the collapse of more 
Northeastern railroads which ultimately resulted in the 
creation of Conrail. In 1977, citing the ineffectiveness of the 
ICC, President Carter created a task force that was charged 
with streamlining the ICC and reducing regulation.
    Since the mid-1970's, the following laws have been enacted 
which have contributed to the substantial deregulation of 
transportation industries:

                           Railroad Industry

    The first major rail regulation reform legislation, The 
Railroad Revitalization and Regulatory Reform (4-R) Act of 
1976, provided (as a national policy goal) for the earnings of 
``adequate revenues'' by rail carriers as functioning private 
sector companies. This was to be accomplished by providing 
increased flexibility for rail carriers to raise or lower rates 
to conform to market forces.
    The Staggers Rail Act of 1980 provided far-reaching 
comprehensive reform, providing the rail industry with many of 
the same market freedoms available to other competitive 
industries. The Staggers Act provided for increased competition 
by removing antitrust immunity over collective ratemaking, 
reducing rail rate regulation, and easing the way for mergers. 
The Staggers Act is considered the most successful rail 
transportation legislation ever produced, resulting in the 
restoration of financial health to the rail industry.

                         Motor Carrier Industry

    The Motor Carrier Act of 1980 promoted greater rate setting 
flexibility and began to ease entry restrictions in the 
trucking industry. As a result, 25,000 new carriers started up 
between 1982 and 1990.
    The Household Goods Transportation Act of 1980 promoted 
competition by increasing carrier freedom to set prices and 
quality options. Consumers appear to have been well-served by 
increased competition. Since 1980, complaints to the ICC 
concerning household goods carriers have dropped each year.
    The Bus Regulatory Reform Act of 1982 encouraged industry 
entrance and growth, allowed easier abandonment of unprofitable 
routes, and increased flexibility in rate setting. Deregulation 
of the bus industry resulted in an increase in small companies 
in operation. However, public preference for private automobile 
travel, competitive lower cost fares made available by airline 
deregulation, and Amtrak subsidization together have resulted 
in discontinuation of regular-route bus service to many 
communities.
    The Surface Freight Forwarder Deregulation Act of 1986 
further deregulated the non-household goods segment of the 
motor carrier industry. The transportation intermediary sector 
has flourished. By 1991, the ICC had licensed more than 7,000 
brokers, up from the 50 authorized prior to enactment of the 
new law.
    The Negotiated Rates Act of 1993 provided a mechanism to 
resolve the on-going undercharge crisis which arose when 
bankruptcy trustees or receivers demanded payments from 
shippers for the difference between a negotiated rate for 
transportation services which were paid in full by a shipper 
and the higher tariff rate on file at the ICC.
    In further response to the undercharge problem, the 
Trucking Industry Regulatory Reform Act (TIRRA) of 1994 reduced 
tariff filing requirements in the motor carrier industry by 
eliminating filed tariff requirements for independently set 
rates. This reduced paperwork burdens and precluded future 
undercharge claims for that category of traffic. Further, TIRRA 
expanded the ICC's exemption authority to embrace many aspects 
of the trucking industry.
    In view of the deregulation legislation described above and 
the resultant decline in ICC responsibilities, Congress cut the 
number of ICC Commissioners from 11 to 5 in 1985. Since 1980, 
the agency's appropriations have dropped from $80 million to 
$30.3 million in the FY 1995 DOT Appropriations bill. During 
that same period of time, the ICC's staffing has dropped from 
nearly 2,000 employees to approximately 350. Today, 
approximately 300 employees remain at the ICC.
    Even with the considerable deregulation of the surface 
transportation industries, the ICC continues to maintain a 
formidable regulatory presence. The ICC determines policy 
through its rulemaking and adjudicative proceedings to ensure 
the effective administration of the Interstate Commerce Act 
(ICA), related statutes, and regulations. The ICC maintains 
jurisdiction over the rail industry, certain pipelines, barge 
operators, bus lines, freight forwarders, household goods 
movers and approximately 60,000 ``for-hire'' motor carriers.

                          Legislative History

    S. 1396, the Interstate Commerce Commission Sunset Act of 
1995, was introduced by Chairman Pressler and Senator Exon on 
November 3, 1995. As stated earlier, this legislation is in 
direct response to the FY 1996 Budget Resolution which assumes 
the elimination of the ICC and the FY 1996 DOT Appropriations 
bill, H.R. 2002, which provides no funding for the ICC 
effective December 31, 1995. Specifically, the Conference 
Report to H.R. 2002, P.L. 104-50, provides $13,379,000 for the 
first quarter of FY 1996 for salaries and expenses as well as 
severance and closing costs of the ICC and $8,421,000 is 
appropriated to an unspecified successor agency.
    During an open executive session on November 9, 1995, the 
full Committee reported favorably an amendment in the nature of 
a substitute to S. 1396. The bill, as reported, identifies 
which of the ICC's functions should continue to be carried out, 
and by which agency or agencies, within the constraints of the 
funding approved. The Committee also approved two amendments to 
the substitute amendment. One amendment, offered by Senator 
Burns, would allow an individual with a background in 
``agriculture'' to be appointed to the Board. The other 
amendment, offered by Chairman Pressler, and Senators Hollings, 
Lott, Breaux, and Exon, would sunset the FMC effective January 
1, 1997, at which time two members with professional standing 
and demonstrated knowledge in the fields of maritime 
transportation or its regulation would be added to the Board.

                      Summary of Major Provisions

    As reported, the bill continues the deregulation theme of 
the past 15 years by providing further regulatory reductions in 
the surface transportation industries. Overall, the bill is 
designed to repeal unnecessary regulations and authorize the 
transfer of residual functions to DOT. Many broader 
transportation policy proposals viewed by the Committee to be 
re-regulatory were not included in this bill. The Committee 
intentionally limited the bill to matters related to sunsetting 
the ICC and FMC and transferring essential functions to a 
successor.
    The bill as reported includes the following major 
provisions:
    1. Governmental Efficiency and Savings.--The bill would 
reduce the Federal bureaucracy by eliminating two free-standing 
government agencies--the ICC and FMC. Numerous unnecessary or 
obsolete regulations would be repealed and residual functions 
would be redistributed within the DOT. It creates an 
independent ``Intermodal Surface Transportation Board'' (Board) 
to administer regulations retained over rail carriers, certain 
pipeline carriers, and the maritime, and domestic water carrier 
industries. The Board also would maintain limited adjudicatory 
responsibilities over the motor carrier, freight forwarder, 
transportation broker, and intercity bus industries. All non-
adjudicatory functions of these latter industries would be 
transferred to the Secretary.
    The Committee notes the increasing emphasis on 
intermodalism and providing seamless transportation via rail, 
motor, and water modes in the transportation industry. The 
Committee believes the remaining Federal government oversight 
of these transportation modes should be housed within a single 
agency with the expertise and perspective to view the 
transportation industry as increasingly intermodal. The 
Committee believes the consolidation of remaining ICC and FMC 
functions in the Board accomplishes this goal.
    By placing the Board within DOT, it would be relieved of 
separate administrative costs currently borne by both the ICC 
and the FMC. The Committee intends that, given the very limited 
appropriations level for the Board and the numerous 
responsibilities assigned to the Board, the costs of these 
administrative functions would be absorbed by DOT. The Board 
would be instructed to carry out within six months a study to 
determine the authority necessary to assess fees to cover the 
costs incurred to carry out the Board's functions.
    The Committee understands that upon enactment of this bill, 
the transferor agency, the ICC, shall determine which functions 
to be transferred to the Secretary are new functions to DOT and 
which functions are currently performed by DOT. The DOT would 
then have to agree with the ICC as to which functions transfer 
and which do not. Any disagreements would be resolved by the 
Office of Management and Budget. Since the bill makes no change 
to current civil service severance personnel laws, the transfer 
of personnel will occur under existing rules. ICC personnel 
that perform new functions transferred to DOT have transfer 
rights. ICC personnel that perform functions which are not 
transferred to DOT, such as motor carrier dispute resolution, 
have no transfer rights.
    The Committee intends that any personnel and functions 
transferred to DOT outside the Board should be integrated and 
performed within DOT's existing FY 1996 funding allocation. The 
Committee expects that any ICC personnel transferred to DOT 
could be funded from the transfer of existing fees derived from 
transferred ICC functions. The FY 1996 DOT Appropriations Bill, 
P.L. 104-50, permits the Secretary to utilize any fees 
collected to fund ICC personnel transferred to DOT. This bill 
provides the Secretary similar authority.
    The ICC has informed the Committee that, upon preliminary 
review of the motor carrier licensing, insurance, data 
collection and NAFTA enforcement functions transferred to DOT 
in this bill, it expects that approximately 60 ICC personnel 
will be transferred to DOT (separate from the Board). These are 
the employees that would perform functions new to DOT. The ICC 
estimates that these personnel will result in a cost of $3.743 
million for the remainder of FY 1996 (annualized cost of $5 
million). The ICC estimates that continued fees in FY 1996 will 
total $5.27 million.
    2. Rail Transportation.--Beyond weeding out outdated and 
unnecessary provisions, the bill generally does not attempt to 
substantively redesign rail regulation. Rather, it would 
preserve the careful balance put in place by the 4R Act and the 
Staggers Act that led to a dramatic revitalization of the rail 
industry while protecting significant shipper and national 
interests.
    Outdated Regulatory Provisions. The bill would eliminate 
many outdated, unnecessary, and burdensome regulatory 
requirements and restrictions on the rail industry. These 
include, for example, the elimination of all regulation of rail 
passenger transportation, all tariff filings, tariffs for non-
agricultural commodities, special provisions favoring 
recyclable commodities, and restrictions against carriers 
transporting their own commodities.
    The bill would also eliminate Federal certification and 
review procedures for State regulation of intrastate rail 
transportation. However, nothing in this bill should be 
construed to authorize States to regulate railroads in areas 
where Federal regulation has been repealed by this bill. 
Further, the Committee intends that those States regulating 
intrastate rail transportation continue to be required to 
regulate only in a manner consistent with the ICA. The railroad 
system in the United States is a nationwide network. The 
hundreds of rail carriers that comprise the railroad industry 
rely on a nationally uniform system of economic regulation. 
Subjecting rail carriers to regulatory requirements that vary 
among the States would greatly undermine the industry's ability 
to provide the ``seamless'' service that is essential to its 
shippers and would waken the industry's efficiency and 
competitive viability.
    National Rail Network.--The bill would retain those 
provisions needed to preserve an efficient national rail 
network comprised of numerous individual carriers. These 
include Federal regulatory oversight of line constructions, 
line abandonments, line sales, leases, and trackage rights, 
mergers and other consolidations (under a broad public interest 
standard and with ongoing regulatory oversight), car supply and 
interchange, antitrust immunity for certain collective 
activities (including pooling of equipment and services), 
competitive access, financial assistance, feeder line 
development, emergency service orders, and recordation of 
equipment liens.
    Shipper Protections.--In reviewing the ICA, the Committee 
is impressed with the positive effects rail deregulation has 
had on the railroad industry since enactment of the Staggers 
Act and has carefully avoided alteration of the fundamental 
premises of the Staggers Act in this bill. At the same time, 
however, the Committee is aware captive shippers--particularly 
grain shippers whose traffic originates from country 
elevators--continue to need protections under the ICA.
    The bill as reported would retain provisions that are 
necessary to protect rail shippers. These include the common 
carrier obligation, regulatory oversight of the reasonableness 
of rail practices, maximum rate regulation for captive traffic, 
advance notice of rate increases, and rate tariffs for 
agricultural commodities and fertilizer.
    The Committee believes the common carrier obligation is 
particularly critical, especially in light of the needs of 
grain shippers and others who continue to experience 
difficulties in obtaining rail cars and service. According to a 
September 1995 report by the U.S. Department of Agriculture 
entitled ``Assessing the Impact of Railcar Availability on 
Grain Prices,'' rail car shortages lower farm prices and reduce 
the competitiveness of U.S. grain exports.
    Rate Reasonableness.--The bill includes several new 
provisions regarding the handling of challenges to the 
reasonableness of rates charged on captive traffic, to ensure 
that such cases are resolved more expeditiously. The Committee 
is concerned non-coal shippers, particularly grain shippers and 
smaller volume bulk shippers, have been deterred from utilizing 
the rate reasonableness provisions in the ICA in part because 
of the complex nature of the full stand-alone cost presentation 
adopted by the ICC and the resulting expenses associated with 
pursuing that test.
    The bill would require the Board to complete the pending 
Non-Coal Rate Guidelines proceeding, ICC Docket Ex Parte No. 
347 (Sub-No. 2), establishing a simplified method to be used 
where a full stand-alone cost presentation is impractical, 
within one year. Also, the bill instructs the Board to adopt 
procedures that would avoid undue delay in both the discovery 
and evidentiary phases of rate cases and to otherwise expedite 
proceedings. The bill would require the Board to establish 
procedures, within 6 months, for expeditiously processing all 
rate cases. It would require the Board to decide individual 
rate complaints within 6 months after the close of the 
administrative record in cases in which a stand-alone cost 
presentation is made, and within 3 months after the close of 
the record in cases using a simplified evidentiary 
presentation.
    The Committee intends the simplified methodology directed 
to the Board to complete would apply to cases in which the full 
stand-alone cost presentation, which encompasses elaborate 
evidentiary presentations, are impractical. The Committee seeks 
to assure that the rate complaint process is accommodating of 
small cases. However, the Committee does not intend to erode 
the Constrained Market Pricing principles adopted by the ICC 
for full stand-alone cost presentations.
    Market Dominance.--Before the ICC can consider whether a 
rail rate is unreasonably high, the rail carrier must be shown 
to have market dominance over the transportation to which the 
challenged rate applies. The statute defines ``market 
dominance'' as ``an absence of effective competition from other 
carriers or modes of transportation for the transportation to 
which a rate applies.'' The ICC has adopted various rules 
governing market dominance presentations, including rules which 
permit the consideration of intermodal and intramodal 
transportation and product and geographic competition.
    The bill does not preclude the Board from considering 
product and geographic competition and recognizes the 
Commission's policies are based on principles that have been 
upheld by the courts. However, the Committee expects the Board 
to take into account all competitive transportation factors 
that affect the rate at issue, by adding a clarifying provision 
to reflect that the statutory standard could also be 
implemented through the consideration of the availability of 
other economic and practical transportation alternatives.
    Exemption Authority.--The exemption provisions of the ICA 
have directed the ICC to exempt persons, classes of persons, 
transactions, and services from regulation when it determines 
regulations are not necessary to protect shippers from abuse of 
market power. The ICC has used exemption authority aggressively 
over the past 15 years, deregulating the transportation of 
various commodities and types of rail service when competitive 
factors have been found to restrain the economic behavior of 
rail carriers. These exemptions have proven highly beneficial 
to shippers and railroads.
    This bill continues the exemption provision that has 
allowed the ICC to identify and respond to changing 
circumstances and needs more quickly and precisely than the 
legislative process permits, so as to limit the remaining 
regulatory activities to those situations where they are 
necessary to advance the national rail transportation policy. 
The bill would also strengthen that exemption authority, and 
enhance its effectiveness, by modifying it in several respects.
    First, it would clarify that the Board may use the 
exemption authority to change the way in which a provision 
applies (and not simply whether it applies). Second, it would 
place time limits on Board deliberations as to whether to grant 
or revoke an exemption. Third, it would clarify the exemption 
revocation process, by directing the Board to consider ``the 
availability of other economic transportation alternatives, in 
addition to any other factors it deems relevant,'' when 
considering a request that regulation is needed and therefore 
an exemption should be revoked. This is to help focus the 
disposition of revocation requests on practical transportation 
alternatives. Specifically, in considering a revocation 
request, the Board should continue to require demonstrated 
abuse of market power that can be remedied only by reimposition 
of regulation or that regulation is needed to carry out the 
national transportation policy. This would include examination 
by the Board of all competitive transportation factors that 
restrain rail carriers' actions and that affect the market for 
transportation of the particular commodity or type of service. 
In addition, the Board would consider any dilatory railroad 
practices in determining whether damages should be awarded when 
an exemption is revoked.
    Labor protection.--The bill as reported continues statutory 
labor protection arrangements for Class I railroad employees 
adversely affected by mergers, abandonments, and other inter-
carrier transactions such as transfers of trackage rights or 
rail lines. Under the current ICC administrative standards 
(``New York Dock''), this means one year of labor protection 
for each year of service, up to a maximum of six years. While 
some Committee members support fundamental policy changes in 
this area, it was agreed to postpone amendments in this area in 
an effort to lessen controversy over the bill.
    Currently under Section 10901 (line sales and small carrier 
transactions), labor protection is optional on proposals to 
construct and operate new railroad lines by non-carriers, and, 
as interpreted by the ICC, protection has rarely been imposed. 
To encourage transactions conducted under Section 10901--
transactions which result in the continuation of rail service 
to communities that otherwise could lose service--the bill 
establishes a special rule for transactions involving non-Class 
I rail carriers.
    This new rule allows any Class II or Class III freight rail 
carrier or non-carrier that is not owned or controlled by a 
Class I rail carrier (and is not a commuter, switching or 
terminal railroad) to acquire, operate or provide 
transportation over a railroad line pursuant to the provisions 
of Section 10901. Section 11343 et seq. of the Act does not 
apply to such transactions. The rule limits the salary 
protection the Board could impose to a severance amount not to 
exceed one year's salary to employees who are adversely 
affected and who are not offered full time employment. If the 
Board, as under the current standards, believes that 
``exceptional circumstances'' exist, it then has a range from 
notification to one year of salary protection--not six years--
to apply for the protection of displaced rail employees. The 
bill also includes a standard that labor protections may only 
be imposed when to do so is consistent with the public 
interest. It should be clear, however, that the public interest 
standard should not result in the imposition of labor 
protection conditions in circumstances other than were found to 
warrant such protection under the class exemption procedures 
adopted and applied by the ICC after the enactment of the 
Staggers Act.
    In the Committee's view, railroad operations and the jobs 
that go with them must be preserved on light density lines 
wherever possible. The Committee expects the Board to continue 
the existing exemption practice.
    Rail-Shipper Transportation Advisory Council.--The 
Committee recognizes that certain affected groups--most notably 
smaller shippers and smaller railroads--believe that further 
legislative changes are necessary or desirable to more fully 
protect their interests. However, the Committee is concerned 
that such additional measures would necessarily cast an overly 
broad regulatory net and even then might be ineffective to 
solve the underlying concerns (e.g. car supply, market access, 
etc.). The Committee believes that the better approach, at this 
juncture, is to establish a mechanism which would (1) define 
and prioritize the most compelling problems faced by shippers 
and others today, (2) encourage those problems to be addressed 
without resorting to reregulation or some other governmental 
action in an area that might be more effectively addressed in 
the private sector, and (3) in the event those concerns could 
not be addressed in the private sector, develop a systematic 
record demonstrating specific problems along with specific 
recommendations for legislative or regulatory action. In short, 
the Committee decided to turn to practicing small shippers and 
small railroads to further pinpoint not only whether, but what 
kind of, government intervention might be warranted.
    This bill would create a Rail-Shipper Transportation 
Advisory Council (Council) for that purpose. The Council would 
be funded primarily by private sources. It would be composed of 
15 members, appointed by the Board's Chairman, to report to the 
Board, the Secretary, and Congress on rail transportation 
policy issues it deems significant. The Council would be 
directed to consider specific issues including rates, car 
supply (in consultation with the existing Grain Car Council), 
competition, and effective procedures for addressing shipper 
concerns to the greatest extent possible within private sector 
mechanisms.
    3. Motor Carrier Transportation.--
    Open Entry.--The bill would eliminate all vestiges of 
restrictive entry barriers, based either on a gauging of public 
demand or need for the service or on protecting existing 
carriers in a market. However, the bill would retain needed 
safety oversight and insurance requirements, by converting the 
existing ICC licensing program into a DOT-administered 
registration program based solely on a carrier's fitness to 
operate. The bill would retain State involvement in the process 
through the existing single-State registration system, but 
would direct the Secretary to study and report back to Congress 
on the possibility of merging that system into a new 
streamlined Federal system.
    Common carriage.--The bill would eliminate the 
regulatorily-created distinction between common and contract 
motor carriers. Such categorizations have lost their meaning, 
because most carriers now operate in a dual capacity. Under the 
bill, all motor carriers would have a common carrier 
obligation, but would be free to contract for individual 
shipments.
    Tariffs and rate regulation.--The bill would eliminate 
tariffs and rate regulation for general trucking. Such 
regulation, introduced in the 1930's when trucking was a new 
and struggling industry, has outlived all usefulness. The 
trucking industry today is a mature, highly competitive 
industry where competition disciplines rates far better than 
tariff filing and regulatory intervention. Only 2 specialized 
categories of trucking operations would still require tariffs 
and be subject to potential rate regulation. These are 
residential household goods movements (discussed below) and 
certain joint motor-water shipments involving Alaska, Hawaii, 
or U.S. territories (where the water portion of the movement is 
generally not as competitive and where advance notice and 
certainty of rates is particularly needed).
    Operations.--The bill would retain the collective activity 
provisions that allow trucking companies to pool and coordinate 
their services. It would also retain the existing useful 
background commercial rules for the trucking industry, 
involving such matters as owner-operator leasing, lumping, and 
cargo liability. However, it directs the Secretary to conduct a 
study and report to Congress within a year as to whether the 
cargo liability provisions should be updated.
    The Committee also contemplates that, while the Federal 
government would establish the background rules applicable to 
trucking operations, the ICC's traditional function of 
informally resolving disputes in these areas would not be 
continued. The bill enables aggrieved parties to take such 
disputes directly to the courts.
    Undercharges.--The bill would continue, and transfer to the 
Board, the undercharge resolution functions of the ICC. The 
Committee expects this work to taper off within a few years, as 
the rash of undercharge claims that arose in the late-1980's 
and early 1990's are concluded. To further assist in the 
resolution of those undercharge claims, this bill would extend 
the unreasonable practice relief provided in the Negotiated 
Rates Act of 1993 by removing the September 30, 1990 cut-off 
date for qualifying shipments.
    4. Household Goods Transportation.--
    Tariffs and rate regulation.--The bill would retain special 
regulatory provisions for residential household goods movements 
in view of the special consumer impacts associated with them. 
Because the individual householder moves infrequently, usually 
has little market information about such moves, and generally 
lacks bargaining power, the householder has little self-help 
ability in a transaction with a large personal impact. To 
prevent unfair rate advantages and abuses against this least-
sophisticated class of shippers, the bill would retain tariff 
and rate reasonableness requirements for residential household 
goods moves. It would prohibit carriers from circumventing fair 
and uniform rates for residential moves by offering contract 
rates when dealing directly with the householder. The bill 
would retain the highly successful binding-estimate provisions 
applicable to household goods moves.
    Rate oversight would be limited to residential moves, which 
is where the special consumer considerations apply with most 
force. Office and trade show moves would be treated no 
differently than general freight.
    Mandatory arbitration.--Because the ICC's informal dispute 
resolution services would no longer be available, the bill 
would require household goods carriers to offer impartial 
arbitration of disputes arising out of individual residential 
moves. This would provide an inexpensive and effective means of 
dealing with the typical household goods loss or damage claim, 
which is often so small that any litigation requirement becomes 
unduly expensive and burdensome.
    5. Intercity Bus Transportation.--The bill would remove 
most remaining regulatory requirements and restrictions from 
the intercity bus industry. The safety-oriented carrier 
registration and insurance requirements would be applied to the 
bus industry, and certain limited restrictions against 
subsidized carriers competing with unsubsidized carriers would 
be retained. Also, the bill would retain the special public-
interest merger standards and advance approval procedures for 
the intercity bus industry.
    6. Transportation Intermediaries.--(Brokers and Freight 
Forwarders). The bill would continue the licensing 
(registration) and bond requirements for transportation 
brokers, which are needed to protect the public from 
unscrupulous brokers. The bill would also apply the same 
requirements to all freight forwarders. Currently freight 
forwarders of shipments other than household goods are not 
required to obtain a license from the ICC, but they are 
required to maintain a minimum level of cargo liability 
insurance. The insurance requirement has been difficult to 
monitor and enforce without a Federal licensing requirement. By 
extending the registration requirement to all freight 
forwarders, the bill would fill an inappropriate regulatory 
gap.
    7. Pipeline Transportation.--The bill would retain 
regulation of pipeline transportation insofar as it involves 
commodities other than oil and gas (which are regulated by the 
Federal Energy Regulatory Commission) or water (which is not 
now regulated). Because the pipeline industry has the same 
monopolistic characteristics as the rail industry, such 
regulatory oversight must be retained to protect against 
abuses.
    8. Domestic Water Carriage.--The bill would effectively 
deregulate domestic water carriage in the contiguous-States 
markets, where there is ample competition to render such 
regulation unnecessary. However, the bill would retain residual 
authority over such water carriage for preemptive purposes, to 
prevent this transportation from being subjected to regulation 
under other laws.
    The extent of maritime regulation that would be transferred 
to the Board is as yet undetermined. The Committee expects 
there will be intervening legislation within the next year 
paring back the FMC's functions before they are transferred to 
the Board. The bill requires the Chairman of the Board to meet 
with the Chairman of the FMC to develop a plan for the orderly 
transition of FMC functions to the Board. The Chairman of the 
Board would then submit the plan to the Director of the Office 
of Management and Budget, the Senate Committee on Commerce, 
Science, and Transportation, and the House of Representatives 
Committee on Transportation and Infrastructure not later than 
six months after enactment of this bill. The Committee expects 
this plan would address any changes in FMC functions that may 
be legislated after enactment of this bill, the effect of this 
transfer on Board funding requirements, personnel matters, and 
other matters relevant to the transfer of remaining FMC 
functions on January 1, 1997.
    9. Tow-Truck Operations.--This bill would correct a serious 
problem that has been an unintended consequence of legislation 
last year preempting State and local motor carrier regulation. 
Specifically, the bill would enable State and local governments 
to regulate the price and related conditions of non-consensual 
tows by tow-truck operators, so as to preclude exorbitant 
prices and unreasonable conditions from being imposed on 
unwilling parties.
    10. Intermodal Transportation.--This bill would remove all 
existing restrictions that specifically limit or preclude 
intermodal ownership and intermodal operations. Moreover, by 
combining the remaining functions of the existing 
transportation regulatory bodies, the bill should further 
foster intermodalism.
    11. Transportation of Foreign Carriers Under NAFTA.--The 
bill would retain the registration and insurance requirements 
for foreign motor carriers operating in the United States 
pursuant to the North American Free Trade Agreement. The bill 
would transfer the ICC's existing oversight and enforcement 
responsibilities in this area to DOT.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 17, 1995.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1396, the Interstate 
Commerce Commission Sunset Act of 1995.
    Enacting S. 1396 would affect both direct spending and 
receipts; therefore, pay-as-you-go procedures would apply.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                          Paul Van de Water
                                   (For June E. O'Neill, Director).
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: S. 1396.
    2. Bill title: Interstate Commerce Commission Sunset Act of 
1995.
    3. Bill status: As ordered reported by the Senate Committee 
on Commerce, Science, and Transportation on November 9, 1995.
    4. Bill purpose: The bill would terminate the Interstate 
Commerce Commission (ICC) by:
          Eliminating various functions of the commission;
          transferring the remaining functions to a newly 
        created Intermodal Surface Transportation Board (the 
        board) within the Department of Transportation (DOT) 
        and to the Federal Highway Administration (FHWA);
          authorizing appropriations of $13.4 million for 
        fiscal year 1996 to close down the ICC and $8.4 million 
        for fiscal year 1996 and $12 million for each of fiscal 
        years 1997 and 1998 for the board;
          updating railroad and motor carrier regulations to 
        reflect the termination of the ICC and other revisions; 
        and
          requiring registration by motor carriers every five 
        years rather than only once.
    In addition, the bill would create a Rail-Shipper 
Transportation Advisory Council and require the Secretary of 
Transportation to study the possibility of consolidating the 
federal and state motor carrier registration systems into one 
system.
    Finally, the bill would terminate the Federal Maritime 
Commission on January 1, 1997, and transfer is remaining 
functions to the Intermodal Surface Transportation Board.
    5. Estimated cost to the Federal Government: The bill would 
authorize the appropriation of about $13 million to shut down 
the ICC and $32 million for the board over the next three 
fiscal years. In addition, S. 1396 would change the amount of 
civil and criminal penalties collected by the federal 
government, and thus would affect spending from the Crime 
Victims Fund; however, CBO expects any change in revenues and 
direct spending would be insignificant.

                                                                                                                
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                                   1995    1996    1997    1998    1999    2000 
----------------------------------------------------------------------------------------------------------------
                                                                                                                
             Additional Revenues and Direct Spending                                                            
                                                                                                                
Revenues: Estimated revenues....................................  ......   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)
Direct spending:                                                                                                
    Estimated budget authority..................................  ......  ......   (\1\)   (\1\)   (\1\)   (\1\)
    Estimated outlays...........................................  ......  ......   (\1\)   (\1\)   (\1\)   (\1\)
                                                                                                                
               Spending Subject to Appropriations                                                               
                                                                                                                
Spending under current law:                                                                                     
    Budget authority \2\........................................      33      22  ......  ......  ......  ......
    Outlays.....................................................      38      23       2  ......  ......  ......
Proposed changes:                                                                                               
    Authorization changes.......................................  ......  ......      12      12  ......  ......
    Estimated outlays...........................................  ......  ......      11      12       1  ......
Spending under S. 1396:                                                                                         
    Authorization level.........................................      33      22      12      12  ......  ......
    Estimated outlays...........................................      38      23      13      12       1  ......
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.                                                                                         
\2\ The 1996 appropriations bill for the Department of Transportation and related agencies, which was recently  
  enacted (Public Law 104-50), provides $8.4 million for the board and $13.4 million to shut down the ICC--     
  amounts equal to the authorization levels in S. 1396.                                                         

    The costs of this bill fall within budget function 400.
    In addition to the amounts shown in the table, the bill 
would allow FHWA and the board to continue collecting 
registration and other fees currently collected by the ICC; 
spending of these fees is subject to appropriations action. The 
deregulatory provisions of S. 1396 would reduce annual fee 
collections and spending from such collections from about $8 
million to about $5 million. However, by requiring motor 
carrier registration every five years rather than only once, 
the bill would cause fee collections and registration costs to 
rise over time as current registrations expire. Because CBO 
expects fee collections and spending from the fees to be equal, 
the changes in the amount of fees collected should have no 
impact on the budget.
    6. Basis of estimate: Revenues and direct spending.--If S. 
1396 is enacted into law, the amount of civil and criminal 
penalties collected by the federal government would change. The 
bill would deregulate some of the activities for which the 
federal government currently collects civil penalties but also 
would increase the fines for some of the remaining activities. 
The ICC currently collects about $500,000 annually in both 
civil and criminal penalties, and we estimate that the net 
change in such penalties would be significantly less than 
$500,000 a year.
    Criminal penalties are deposited in the Crime Victims Fund 
and are spent the following year. Because the amount of 
criminal penalties collected would change, spending from the 
Crime Victims Fund would also change. The amounts involved, 
however, would be insignificant.
    Spending Subject to Appropriations.--This estimate assumes 
that the full amounts authorized to be appropriated for the ICC 
and the board would be appropriated for each fiscal year. (As 
shown in the table, the amounts authorized for 1996 have been 
appropriated in Public Law 104-50.) The outlay estimates are 
based on the historical spending rate for the ICC.
    The ICC and DOT have not determined how many people would 
be transferred if this bill is enacted into law. According to 
federal regulations, if a function is transferred from one 
agency to another, the people performing that function are 
automatically transferred. CBO assumes that 160 to 190 people 
would be transferred to DOT--100 to 130 people to the board and 
about 60 people to FHWA. If fewer than 160 people are 
transferred from the ICC to DOT, the ICC might need more than 
$13 million to shut down the agency (because of higher 
severance payments). If significantly more than 190 people are 
transferred, the board and FHWA might need more funding than 
authorized in S. 1396 to handle the additional personnel. If 
additional funds are not provided, the board and FHWA would 
have to cut back on spending and possibly lay off some 
personnel. S. 1396 would allow the board to use any unobligated 
ICC funds for severance costs.
    Fees.--The bill does not authorize any additional funds to 
be appropriated to FHWA for the functions and personnel 
transferred to the agency. Such funding would come from the 
fees currently collected by the ICC. The ICC collections about 
$8 million of fees annually for both rail and motor carrier 
activities, but the collection would initially drop if this 
bill is enacted because some of the functions that generate 
fees would be eliminated. However, fee collections would later 
increase as motor carriers would have to register every five 
years rather than once. Fees assessed to railroads by the board 
would total less than $1 million a year.
    FHWA would need to collect at least $5 million a year from 
motor carrier activities to pay the 60 people that would likely 
be transferred and to carry out its new functions. FHWA has 
doubts about its ability to collect sufficient funds initially 
to cover these costs under the ICC's fee structure. If the fees 
are not increased, additional funds would have to be 
appropriated or FHWA would have to cut back in other areas.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
S. 1396 would change the amount of civil and criminal penalties 
collected by the federal government and spending from the Crime 
Victims Fund. Therefore, pay-as-you-go procedures would apply 
to the bill. However, the changes in both receipts and outlays 
would be less than $500,000 a year.

------------------------------------------------------------------------
                                                      1996   1997   1998
------------------------------------------------------------------------
Change in outlays..................................      0      0      0
Change in receipts.................................      0      0      0
------------------------------------------------------------------------

    8. Estimated cost to State and local governments: S. 1396 
contains a number of provisions that would affect state and 
local governments. One provision would result in direct costs 
to such governments, primarily in the form of lost future 
revenues. Other sections would expand the ICC's regulatory 
scope to include several types of vehicles previously exempt 
and attach penalties to certain existing regulations. The bill 
also has elements that would ease requirements and regulatory 
burdens on state and local transportation agencies. While there 
is some uncertainty over the impact of the bill's deregulatory 
measures at the state and local level, CBO estimates that the 
bill would likely result in a net cost to state and local 
governments. This cost, however, would be insignificant. 
Provisions with the most direct effect on state and local 
governments are discussed below.
    Potential Costs.--S. 1396 would preempt a state's ability 
to collect taxes or fees on interstate bus travel. The state of 
Oklahoma is currently the only state with such a tax in place. 
The Oklahoma Tax Commission estimates that the tax generates 
approximately $400,000 a year in revenue for the state. The 
state of Utah recently approved a tax on interstate bus service 
that is scheduled to go into effect January 1, 1996. The Utah 
Tax Commission estimates the tax would raise about $150,000 in 
revenue annually.
    S. 1396 would place certain types of vehicles currently 
exempt from motor carrier regulation by the ICC under the 
regulation of the replacement Intermodal Surface Transportation 
Board. To the extent that state or local governments operate 
vehicles over state lines that carry school children or 
teachers, transport less than 16 commuters to and from work, 
provide transportation entirely within a municipality or 
contiguous municipalities, or are performing emergency towing 
functions, these governments could be subject to new safety and 
insurance requirements. Two factors, however, would mitigate 
the cost such governments might incur. First, some of these 
vehicles are already subject to safety regulation under 
subtitle VI of title 49. Second, the bill would authorize the 
Secretary to grant exemptions from the registration and 
insurance requirements where appropriate.
    The bill would require states to cooperate in the 
enforcement of certain registration and insurance requirements. 
While current law requires state participation in these 
efforts, it does not include a penalty for non-compliance. S. 
1396 would make a state's annual grant allocation for 
commercial vehicle safety programs conditional on its pledge of 
cooperation in enforcing these registration and financial 
responsibility requirements. The amount available for these 
grant programs in fiscal year 1996 is $77.2 million.
    Potential savings.--S. 1396 contains at least two 
provisions that would directly benefit state governments. The 
bill would exempt interstate transportation services funded 
with federal mass transportation block grants or grants for 
rural, elderly, or disabled populations from federal 
requirements governing minimum financial responsibility as long 
as they meet state standards. According to state transit 
officials and interest groups contacted, this provision would 
make running these services substantially easier and cheaper 
for state and local governments. While the exemption would 
confer measurable benefit to individual agencies and 
operations, its overall impact would be limited because of the 
small size and number of carriers (roughly 200 nationwide) 
affected.
    The bill would also eliminate the federal certification 
procedures for states seeking to regulate intrastate rail 
transportation. Twenty-two are currently certified by the ICC. 
These states would no longer be required to seek approval to 
amend their practices or need to reapply for certification 
every five years. The resulting savings would be small.
    9. Estimate comparison: None.
    10. Previous CBO estimate: On November 6, 1995, CBO 
transmitted a cost estimate for H.R. 2539, the ICC Termination 
Act of 1995, as ordered reported by the House Committee on 
Transportation and Infrastructure on November 1, 1995. S. 1396 
and H.R. 2539 are quite similar, and CBO's federal estimates 
for the two bills are essentially identical.
    The primary difference between the state and local 
estimates is that S. 1396 directs the Secretary to study the 
desirability of creating a single, federal on-line motor 
carrier registration and information system. In contrast, H.R. 
2539 requires that the Secretary actually establish one. A 
consolidated system would move the current Single State 
Registration System functions to the federal level and close 
off about $89 million annually in fees to states.
    11. Estimate prepared by: Federal cost estimate: John 
Patterson, and Stephanie Weiner. State and local government 
cost estimate: Karen McVey.
    12. Estimate approved by: Robert A. Sunshine for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.

                       NUMBER OF PERSONS COVERED

    A wide variety of businesses and consumers would be covered 
and potentially impacted by this bill. They include rail 
carriers, certain pipeline carriers (those transporting 
commodities other than oil, gas, or water), trucking companies, 
intercity bus companies, water carriers, freight forwarders, 
and transportation brokers, and their various customers. 
Government employees who work for the ICC and FMC would also be 
affected by this bill.

                            ECONOMIC IMPACT

    This bill would significantly reduce regulation of surface 
transportation industries and concomitantly reduce regulatory 
costs; for that reason, the overall economic impact of the bill 
should be beneficial. Some limited regulation would be retained 
to assure a safe and adequate transportation network and to 
protect transportation customers who do not have competitive 
alternatives available to them. Accordingly, the bill would 
have either a neutral or beneficial economic impact on 
transportation customers and the public at large. There would 
be an adverse economic impact on employees of the ICC and FMC, 
many of whom would lose their employment.

                                PRIVACY

    This bill would have no adverse impact on the personal 
privacy of individuals.

                               PAPERWORK

    With one exception, no new regulation and no additional 
paperwork requirements would be created by this bill. To the 
contrary, the bill would substantially reduce paperwork 
requirements by eliminating tariffs for most surface 
transportation. The exception is that freight forwarders of 
commodities other than household goods would be reregulated to 
fill an inappropriate regulatory gap. The primary impact on 
those carriers would be the requirement to register with the 
Secretary.

                      Section-by-Section Analysis

Section 1. Short title

    The short title of this bill is the ``Interstate Commerce 
Commission Sunset Act of 1995.''

Sec. 2. Amendment of title 49

    This section provides that, unless otherwise stated, the 
amendments or repeals in this bill are to title 49 of the 
United States Code.

Sec. 3. Table of sections

    This section contains a table of sections for the bill. 
This bill is organized into the following seven titles:
    Title I would terminate the ICC and FMC and repeal those 
provisions of the Interstate Commerce Act (ICA) that would not 
be retained in Part A of subtitle IV, title 49, United States 
Code.
    Title II would establish the Intermodal Surface 
Transportation Board (Board).
    Title III would amend those provisions of the ICA that 
would remain in Part A to further modernize and streamline rail 
regulation.
    Title IV would enact Part B of subtitle IV, title 49, 
United States Code, containing the reduced and modernized 
oversight provisions applicable to transportation by motor 
carriers, water carriers, brokers, and freight forwarders.
    Title V would make conforming amendments to other laws to 
reflect the termination of the ICC and the transfer of 
functions to the Board and the Secretary.
    Title VI would authorize appropriations for the new Board.
    Title VII would set the effective date for this bill.

 Title I--Termination of the Interstate Commerce Commission; Repeal of 
               Obsolete and Unnedessary Provisions of Law

                 SUBTITLE A--TERMINATION OF COMMISSION

Section 101. Agency terminations

    This section would terminate the ICC upon the transfer of 
its remaining functions to the Board and the Secretary, on 
January 1, 1996. It would terminate the FMC one year later, on 
January 1, 1997.

Sec. 102. Savings provisions

    Subsection (a) would preserve all orders, determinations, 
rules, regulations, licenses, and privileges currently in 
effect until changed by the Board or the Secretary, within 
their respective jurisdictions. Subsection (b) would preserve 
proceedings pending before the ICC, insofar as they relate to 
functions that are retained, and would provide for their 
transfer to the Board or the Secretary. Subsection (c) would 
preserve pending suits and subsection (d) would preserve 
actions by or against the ICC or its officials. Subsection (e) 
would substitute the Board or the Secretary, as applicable, for 
the ICC in suits involving a transferred function.

Sec. 103. References to the ICC in other laws

    This section would treat references to the ICC in other 
Federal laws as references to the Board or Secretary, as 
applicable, and would treat references to the ICC as a 
governmental agency as references to the Board.

Sec. 104. Transfer of functions

    This section would transfer ICC personnel and property to 
the Board or Secretary, as applicable, and unexpended ICC funds 
to the Board. The Committee intends that the functions are 
assumed in accordance with Congressional intent.

Sec. 105. References to the FMC in other laws

    This section provides that, effective January 1, 1997, 
references to the FMC in other Federal laws would be deemed to 
refer to the Board.

            SUBTITLE B--REPEAL OF OBSOLETE, ETC. PROVISIONS

Sec. 121. Repeal of provisions

    This section would repeal those portions of the ICA that 
are not retained in Part A of Subtitle IV. These repeals 
includes numerous rail provisions that would be removed from 
the statute; those motor and water provisions that would be 
amended and reenacted in Part B; those motor and water 
provisions that would be removed from the statute; and various 
administrative provisions relating to the ICC that would be 
removed from the statute. The repeals from Part A include the 
following provisions:
          (1) Section 10101--which contains the national 
        transportation policy (applicable to transportation 
        other than rail)--would be moved to Part B as section 
        13101.
          (2) Section 10322--which contains various procedural 
        provisions for nonrail proceedings--would be removed, 
        allowing the Board and the Secretary to fashion 
        appropriate procedures for future handling of the 
        transferred functions.
          (3) Section 10326--which contains time limits for 
        rail rulemaking proceedings--would be removed as 
        unnecessary.
          (4) Section 10327--which contains procedural 
        provisions for rail adjudicatory proceedings--would be 
        removed, allowing the Board to fashion appropriate 
        procedures for the future.
          (5) Section 10328--which governs intervention in ICC 
        proceedings--would be removed from Part A, allowing the 
        Board to determine intervention in its proceedings. A 
        portion would be moved to Part B, as section 13302, to 
        provide for public participation in proceedings 
        involving functions transferred to the Secretary.
          (6) Subchapter III of chapter 103 (sections 10341-
        10344)--which provides for joint boards with State 
        regulatory bodies--would be removed as outdated.
          (7) Subchapter IV of chapter 103 (sections 10361-
        10364)--which authorizes the now-defunct Rail Services 
        Planning Office--would be removed. It is outdated and 
        could not be accommodated within the budgetary 
        constraints of the Board. A conforming amendment would 
        be made to 49 U.S.C. 24505(b).
          (8) Subchapter V of chapter 103 (sections 10381-
        10388)--which authorizes the Office of Rail Public 
        Counsel--would be removed. That function could not be 
        continued given the budgetary constraints of the Board.
          (9) Section 10502--which relates to rail express 
        carriers--would be removed as outdated. There are no 
        rail express carriers today.
          (10) Section 10504--which provides a partial 
        exemption for rail mass transportation--would be 
        removed. It would no longer be needed because this bill 
        would remove federal regulation of rail passenger 
        transportation.
          (11) Subchapters II, III and IV of chapter 105 
        (sections 10521-10531, 10541-10544, and 10561)--which 
        establish jurisdiction over transportation and services 
        of motor carrier and brokers, domestic water carriers, 
        and freight forwarders, respectively--would be moved, 
        in large part, to Part B as subchapter I, II, and III, 
        respectively, of chapter 135.
          Some of the provisions would be removed, however, as 
        unnecessary and inappropriate. This includes many of 
        the exemption provisions of subchapter II, which would 
        no longer be needed because the only Part B 
        requirements applicable to such transportation would be 
        those addressed to safety and insurance. Placing such 
        requirements on this transportation may not be unduly 
        burdensome; indeed, this transportation is already 
        subject to safety regulation under subtitle VI of title 
        49 where vehicle size requirements are met. In any 
        event, the Secretary would be authorized under section 
        13505(e) to relieve such previously exempt 
        transportation from the registration and insurance 
        requirements, where appropriate, and the Committee 
        expects that the Secretary would promptly do so where 
        appropriate. Accordingly, sections 10526 (miscellaneous 
        motor carrier transportation exemptions) and 10528 
        (mixed loads of regulated and unregulated property) 
        would be removed from the ICA, as well as all of 
        section 10525 (transportation entirely in one state) 
        except for subsection (e). (The discretionary exemption 
        authority contained in section 10525(a)-(d) would be 
        subsumed into the broad exemption power of section 
        13505. The finding contained in former section 
        10525(f), to the extent not mooted by the repeal of 
        section 10525(a)-(d), is implicit in the Hawaiian 
        exemption retained in section 13505.)
          Other provisions of subchapter II that would be 
        removed include section 10524 (which exempts motor 
        carriage furthering a primary business other than 
        transportation); section 10527 (which requires written 
        contracts pertaining to certain interstate agricultural 
        truck movements); section 10529 (which provides for 
        close regulatory oversight over the trucking operations 
        of otherwise-exempted agricultural cooperative 
        associations); and section 10531 (a discretionary 
        individual exemption procedure for mass transit 
        operators).
          The exemption provisions of subchapter III of chapter 
        105 would also be removed, because the jurisdiction 
        over domestic water carriage would be residual and 
        preemptive and would not entail active regulation. 
        Accordingly, sections 10542 (exempt bulk 
        transportation), 10543 (exempt incidental water 
        transportation), and 10544 (miscellaneous water carrier 
        transportation exemptions) would be removed from the 
        ICA.
          (12) Section 10705a--which governs rail joint-rate 
        surcharges and cancellation--would be removed. This 
        section has already achieved its purpose (to provide 
        carriers an avenue of relief from unremunerative joint 
        rates) and would not be needed with the elimination of 
        most rail tariffs.
          (13) Section 10710--which directs the elimination of 
        rate (or other forms of) discrimination against 
        transportation of recyclable materials--would be 
        removed. Future concerns can be brought to the Board 
        under the general provisions regarding discrimination.
          (14) Section 10711--which merely confirms the 
        independent effect of various provisions of the ICA--
        would be removed as unnecessary.
          (15) Section 10712--which provides a mechanism for 
        inflation-based rate increases--would be removed. It 
        has not been used and similar provisions would remain 
        available under section 10707a.
          (16) Most of subchapter II of chapter 107 (sections 
        10722-10726, 10278, 10731, and 10733-10734)--which 
        contain various special rate provisions--would be 
        removed. Sections 10722-10724--which allow free or 
        reduced rates for certain categories of passengers, for 
        charitable purposes, for emergency situations, and for 
        carrier employees--would not be needed with the 
        elimination of tariffs dictating uniform rates. Section 
        10725--which allows special rates for assembling and 
        distribution services--would be removed for the same 
        reason. Section 10726--which prohibits higher rates for 
        shorter movements over the same route as a longer 
        movement at a lower rate--is counter to the highly 
        individualized pricing appropriate to the rail industry 
        today. Section 10728--which expressly permits separate 
        pricing for distinct rail services--is similarly 
        unnecessary.
          Section 10731--which establishes special rate caps 
        for recyclable or recycled materials--would be removed 
        so as not to require rail shippers generally to cross-
        subsidize such traffic. Section 10733--which deals with 
        motor carrier rates for transporting recyclable 
        materials--would be removed for the same reason. 
        Section 10734--which allows tariffs to contain premium 
        charges for special services--would be unnecessary with 
        the elimination of most tariffs in part A.
          Several provisions of subchapter II of chapter 107 
        would not be removed from the ICA. Section 10721--
        relating to government traffic--would be retained in 
        Part A and also replicated in Part B as section 13711. 
        Section 10730--relating to cargo liability--would be 
        retained in Part A. Section 10732--allowing sellers of 
        food and grocery products to use a uniform zone 
        delivered pricing system--would be moved to Part B as 
        section 13712. Similarly, section 10735--relating to 
        estimates and service guarantees for household goods 
        movements--would be moved to Part B as section 13704.
          (17) Section 10743--which governs the extension of 
        credit by carriers--would be removed as undue 
        regulation.
          (18) Section 10746--which prohibits a rail carrier 
        from transporting freight that it produces or owns--
        would be removed. Such restrictions are not warranted 
        and have been easily circumvented.
          (19) Section 10748--which imposes requirements 
        related to rail transportation of livestock--would be 
        removed as unnecessary.
          (20) Section 10749--which addresses (a) mutual 
        arrangements between carriers and communications 
        companies and (b) the types of carriers that can be 
        used by a household goods freight forwarder--would be 
        removed as undue regulation.
          (21) Section 10751--which addresses carrier business 
        entertainment expenses--would be removed as 
        unnecessary.
          (22) Section 10764--which requires the filing of 
        certain intercarrier arrangements--would be removed as 
        undue regulation.
          (23) Section 10765--which imposes regulatory 
        requirements upon certain domestic water carrier 
        transportation, including domestic shipments moving 
        through another country--would be removed as undue 
        regulation.
          (24) Section 10766--which governs certain freight 
        forwarder traffic agreements--would be removed as undue 
        regulation.
          (25) Section 19767--which governs certain motor 
        carrier billing and collecting practices--would be 
        moved to Part B as section 13707.
          (26) Subchapter V of chapter 107 (sections 10781-
        10786)-- which provides for government valuation of 
        railroad property (a regulatory function that has not 
        been performed in many years)--would be removed as 
        unnecessary. Property values contained in carriers' 
        annual reports are sufficient for most purposes and any 
        valuation issues that arise in individual cases may be 
        adequately addressed in the context of such cases.
          (27) Section 10908--which governs discontinuing or 
        changing interstate passenger train and ferry services 
        by carriers other than Amtrak--would be removed as 
        unnecessary. In a conforming change, 49 U.S.C. 24705(d) 
        would also be repealed.
          (28) Section 10909--which governs discontinuing or 
        changing intrastate passenger train and ferry services 
        by carriers other than Amtrak--would be removed as 
        unnecessary.
          (29) All of subchapter II of chapter 109 (sections 
        10921-10936)--which contains licensing provisions for 
        motor carrier, domestic water carrier, broker, and 
        freight forwarder operations--would be removed from 
        Part A. Portions would be moved to Part B and portions 
        removed from the statute altogether. More specifically, 
        sections 10921-10925 (licensing provisions), 10927 
        (insurance requirements), and 10934 (household goods 
        agents) would be moved to Part B as sections 13901-
        13905 (with safety-oriented registration substituted 
        for economic-based restrictive licensing), 13906, and 
        13907, respectively. Because the licensing requirement 
        as applied to domestic water carriers does not include 
        safety oversight, it would not be included in the new 
        registration requirements.
          Sections 10926 (transfer of licenses) would be 
        removed as inconsistent with the carrier-specific 
        nature of the safety-focused registration. Sections 
        10928-10929 (temporary licensing of motor and domestic 
        water carriers) and 10932 (various grandfather 
        provisions) would be removed as unnecessary under the 
        new registration system. Sections 10930 (intermodal 
        restrictions), 10933 (discontinuing household goods 
        freight forwarder service), and 10935 (discontinuing 
        intrastate bus service) would be removed as undue 
        regulation. Sections 10931 (licensing of intrastate 
        transportation) and 10936 (preemption of state 
        regulation of intrastate bus fares on interstate 
        routes) would be removed as unnecessary given the broad 
        preemptions contained in section 14501 of Part B.
          (30) Section 11102--which expressly authorizes the 
        ICC to specify classifications for different nonrail 
        carriers--would be removed as unnecessary.
          (31) Section 11105--which governs rail carrier 
        arrangements for refrigeration or heat services to 
        protect freight--would be removed as undue regulation.
          (32) Section 11106--which authorizes the use of 
        regulatory identification plates on motor vehicles--
        would be removed as undue.
          (33) Section 11107--which governs leasing 
        arrangements between motor carriers and owner-
        operators--would be moved to Part B as section 14102.
          (34) Section 11108--which addresses discrimination 
        against domestic water carriers--would be removed as 
        unneeded in today's competitive domestic water carrier 
        industry.
          (35) Section 11109--which addresses what is commonly 
        known as ``lumping practices'' involving the loading 
        and unloading of motor vehicles--would be moved to Part 
        B as section 14103.
          (36) Section 11110--which provides for performance 
        standards of household goods carriers--would be moved 
        to Part B as section 14104.
          (37) Section 11111--which governs the use of citizen-
        band radios on buses--would be removed as undue 
        regulation.
          (38) Section 11126--which addresses the distribution 
        of rail coal cars--would be removed. The more general 
        car-supply provisions of the statute are adequate to 
        cover this subject.
          (39) Section 11127--which contains certain emergency 
        authority over freight forwarder operations--would be 
        removed as unnecessary.
          (40) Section 11142--which provides for prescribing a 
        uniform accounting system of nonrail carriers--would be 
        removed as unnecessary.
          (41) Section 11161--which established the now-defunct 
        Railroad Accounting Principles Board (RAPB)--would be 
        removed. The RAPB has completed its work and been 
        disbanded.
          (42) Section 11162--which directed the RAPB to 
        establish cost accounting principles for railroads--
        would be removed. That work has been completed.
          (43) Section 11163--which directed the ICC to 
        implement the RAPB rail cost accounting principles--
        would be removed. That objective also has been met. The 
        Committee intends that the new Board generally adhere 
        to the RAPB's principles and recommendations as set 
        forth in the RAPB's Railroad Accounting Principles--
        Final Report (dated September 1, 1987), as did the ICC.
          (44) Section 11164--which requires advance 
        certification by the ICC of individual railroads' 
        accounting systems--would be removed as an undue 
        regulatory procedure.
          (45) Section 11167--which required the RAPB to issue 
        a report on its work--would be removed. That report has 
        been issued.
          (46) Section 11168--which authorized appropriations 
        for the RAPB for the years 1981-1983--would be removed.
          (47) Section 11304--which governs the recording of 
        security interests in trucks and buses--would be moved 
        to Part B as section 14301.
          (48) Section 11321--which restricts intermodal 
        ownership of water carriers by rail carriers--would be 
        removed in order to break down barriers between modes 
        and promote intermodal transportation.
          (49) Section 11323--which restricts ownership of 
        other carriers by a household goods freight 
        forwarders--would be removed as unduly restrictive.
          (50) Section 11345a--which governs consolidations by 
        nonrail carriers--would be moved to Part B as section 
        14303 and limited in its application to intercity bus 
        companies.
          (51) Section 11346--an expedited rail merger 
        provision that has expired--would be removed.
          (52) Section 11349--which provides for temporary 
        authorization of nonrail mergers--would be removed as 
        unnecessary.
          (53) Section 11350--another expired rail merger 
        provision--would be removed.
          (54) Subchapter IV of chapter 113 (sections 11361-
        11367)--which governs changes in a railroad's financial 
        structure--would be removed as undue regulation.
          (55) Section 11502--which addresses conferences and 
        joint hearings with state authorities--would be removed 
        as no longer needed.
          (56) Section 11503a--which governs state and local 
        tax discrimination against motor carrier property--
        would be moved to Part B as section 14502.
          (57) Section 11505--which authorizes States to bring 
        certain injunctive actions--would be removed. As it 
        relates to unlawful rail line abandonments or 
        construction projects, it is unnecessary and 
        duplicative of federal enforcement authority. As it 
        relates to the cessation of service by a household 
        goods freight forwarder, it would become outdated 
        because the underlying restrictions would be removed.
          (58) Section 11506--which establishes a single-state 
        registration system for motor carriers--would be moved 
        to Part B as section 14506. (It should be noted, 
        however, that in section 13908, the Secretary would be 
        directed to conduct a study of whether, and to what 
        extent, this system should be merged into the federal 
        carrier registration and insurance filing systems.)
          (59) Section 11507--which addresses the status of 
        prison-made property--would be removed as unneeded.
          (60) Section 11704--which provides a private right of 
        action for unlawful cessation of household goods 
        freight forwarder service--would be removed because the 
        underlying restrictions would be removed.
          (61) Section 11708--which provides a private right of 
        action for unlicensed motor carrier and household goods 
        freight forwarder operations--would be moved to Part B 
        as section 14707.
          (62) Section 11709--which contains specific liability 
        provisions for unauthorized railroad security 
        issuances--would be removed as unnecessary.
          (63) Section 11711--which provides a dispute 
        resolution program for household goods carriers--would 
        be moved to Part B as section 14708.
          (64) Section 11712--which contains tariff 
        reconciliation rules designed to avoid undercharge 
        claims where possible--would be moved to Part B as 
        section 14709.
          (65) Section 11902a--which sets specific penalties 
        for ``lumping'' violations--would be moved to Part B as 
        section 14905.
          (66) Section 11905--which sets penalties for carrying 
        passengers without charge--would be removed because the 
        underlying restrictions would also be removed.
          (67) Section 11906--which contains specific penalties 
        for evading regulation of motor carriers or brokers--
        would also be removed. The general penalties are 
        adequate.
          (68) Section 11908--which sets penalties for 
        unauthorized cessation of service by a household goods 
        freight forwarder--would be removed because the 
        underlying restrictions would also be removed.
          (69) Section 11911--which sets specific penalties for 
        unauthorized rail securities issuances--would be 
        removed. The general penalties are adequate.
          (70) Section 11913a--which sets penalties for a 
        railroad's failure to obtain the certification of its 
        cost accounting system--would be removed because the 
        underlying certification requirement would also be 
        removed.
          (71) Section 11917--which contains specific penalties 
        for ``weight-bumping'' by household goods carriers--
        would be moved to Part B as section 14912.

Sec. 122. Coverage of certain entities under other, unrelated acts not 
        affected.

    This section provides that this bill would not affect the 
status of employers for purposes of the Railroad Retirement 
Act, the Railroad Unemployment Insurance Act, or the Railroad 
Retirement Tax Act.

           Title II--Intermodal Surface Transportation Board

                        subtitle a--organization

Section 201. Amendment to subchapter I

    This section would replace subchapter I of chapter 103 (49 
U.S.C. 10301-10311), which contains the organizational 
provisions for the ICC, with those needed for the Board. 
Amended 49 U.S.C. 10301 (Establishment of Board) would 
establish the Intermodal Surface Board. The Board would be 
placed within the Department of Transportation, for 
administrative support.
    The Board would start out as a 3-member body, but would 
increase to a 5-member body in 1997, when it inherits the 
remaining FMC functions. The Board would be bipartisan, with 
members appointed by the President, confirmed by the Senate, 
and removable by the President only for neglect of duty or 
malfeasance in office. At least 2 members would be required to 
have a background in rail or motor transportation, 
transportation regulation, or agriculture. At least 1 member 
would be required to have private-sector professional or 
business experience. Starting in 1997, at least 2 members would 
be required to have professional standing and demonstrated 
knowledge in the fields of maritime transportation or its 
regulation. Board members could not have an interest in, or 
official relation with, any carrier, and could not engage in 
any outside business.
    Seats on the Board would be for 5-year fixed terms. A 
member would not be allowed to serve more than two terms, nor 
remain in office for more than one year after the term expires. 
Board seats would initially be filled by the current sitting 
ICC Commissioners. On January 1, 1997, the 2 new seats would be 
filled by 2 sitting FMC Commissioners of different political 
parties, in order of the length of term remaining.
    The President could appoint one of the Board members as the 
Chairman, with the administrative and supervisory powers for 
managing the Board. Significantly, the Board would retain the 
ICC's longstanding independent litigating authority and the 
Board could submit appropriations requests to Congress 
independently.
    Under amended 49 U.S.C. 10302 (Functions), the Board could 
perform all the functions of the ICC, except those repealed or 
transferred to the Secretary by this Act, and to perform the 
transferred functions of the FMC as of January 1, 1997. Amended 
49 U.S.C. 10303 (Administrative provisions) would make the 
Board an independent agency, free from supervision or direction 
by DOT. The open meeting requirements of the Sunshine Act would 
apply to the Board. The Board would be authorized to appear in 
its own right, and be represented by its own attorneys, in any 
civil suits related to a function vested in the Board. It could 
regulate the admission of individuals to practice before it. 
Its budget request would be sent to Congress, and the Board 
could communicate with Congress and make legislative requests 
without interference.
    Amended 49 U.S.C. 10304 (Annual report) would require the 
Board to submit an annual report to Congress on the Board's 
activities.

Sec. 202. Administrative support.

    This section directs the Secretary to provide 
administrative support to the Board. While the Board is 
authorized to receive a separate appropriation and the Board's 
Chairman has discretion as to how those resources are 
allocated, the Committee intends that the goal of minimizing 
administrative bureaucracy should be advanced. For example, 
once established within DOT, the Board should not be required 
to maintain separate payroll, facilities and supplies, or equal 
employment opportunity offices. The Committee expects the 
administrative functions assumed by the Secretary to be covered 
by DOT's current funding authorization.

Sec. 203. Reorganization

    This section authorizes the Board's Chairman to change the 
organizational structure of the Board from that of the ICC or 
the FMC.

Sec. 204. Transition plan for Federal Maritime Commission functions.

    This section provides for the Board's Chairman to meet with 
the Chairman of the FMC to develop a plan, within 6 months, for 
the orderly transition of functions from the FMC to the Board. 
The Chairman would then submit the plan to the Director of the 
Office of Management and Budget, the Senate Committee on 
Commerce, Science, and Transportation, and the House of 
Representatives Committee on Transportation and Infrastructure 
not later than six months after enactment of this Act. The 
Committee expects this plan would address any changes in FMC 
functions that may be legislated after enactment of this Act, 
the effect of this transfer on Board funding requirements, 
personnel matters, and other matters relevant to the transfer 
of remaining FMC functions on January 1, 1997.

                       SUBTITLE B--ADMINISTRATIVE

Sec. 211. Powers

    This section would amend 49 U.S.C. 10321--enumerating the 
ICC's powers--in order to apply to the Board, to condense the 
language, and to remove references to entities and matters not 
regulated under Part A.

Sec. 212. Commission Action

    This section would amend 49 U.S.C. 10324--governing the 
ICC's adjudicatory actions--to apply to the Board. Section 
10324(c) (making ICC actions enforceable unless stayed or 
postponed) would be replaced with the reopening and final 
agency action provisions from 49 U.S.C. 10327(g)-(h).

Sec. 213. Service of notice in commission proceedings

    This section would amend 49 U.S.C. 10329--governing service 
of notice in ICC proceedings--to apply to the Board, to remove 
provisions regarding entities not regulated under Part A, and 
to make other conforming changes.

Sec. 214. Service of process in court proceedings

    This section would amend 49 U.S.C. 10330--governing service 
of process on regulated carriers in court proceedings--to apply 
to the Board, to remove provisions regarding entities not 
regulated under Part A, and to make other conforming changes.

Sec. 215. Study on the authority to collect charges

    This section would direct the Board to conduct a study, 
within 6 months, on the authority needed to assess and collect 
fees (other than user fees) and annual charges that would be 
sufficient to make the Board self-funding.

Sec. 216. Federal Highway Administration rulemaking

    This section would direct the Federal Highway 
Administration to conduct a rulemaking dealing with issues 
related to truck driver fatigue, and imposes time limits for 
that rulemaking.

              Title III--Rail and Pipeline Transportation

Sec. 301. General changes in references to commission, etc.

    This section would make certain generic changes to those 
provisions of subtitle IV that are retained in part A. It would 
replace all mention of the ICC and ICC Commissioners with the 
Board and Board members, respectively, and all mention of 
subtitle IV with part A. It also would supply a heading and 
index of chapters for Part A.

Sec. 302. Rail transportation policy

    This section would amend 49 U.S.C. 10101a--which states the 
rail transportation policy underlying Part A--to add an 
additional national policy of providing expeditious remedies 
for traffic and facilities lacking effective transportation 
competition. The Committee recognizes that where competition 
exists, statutory remedies are not necessary. However, when 
competition does not exist, timely remedies are needed to 
protect captive shippers against market abuse. The Committee 
intends the Board to handle all matters brought before it in a 
timely manner.

Sec. 303. Definitions

    This section would amend 49 U.S.C. 10102--which defines 
terms used in Part A--to remove terms that are not pertinent to 
Part A, to update and clarify the term ``rail carrier'', and to 
remove references to passenger transportation.

Sec. 304. General jurisdiction.

    This section would amend 49 U.S.C. 10501--which establishes 
jurisdiction over rail and pipeline transportation and 
intermodal rail-water or pipeline-water transportation--in 
several respects. The exclusive nature of the Board's 
regulatory authority under Part A would be clarified (paragraph 
1). The Board's rail jurisdiction would be limited to freight 
transportation (paragraph 2 and 4), because rail passenger 
transportation today (other than service by Amtrak, which is 
not regulated under the ICA) is now purely local or regional in 
nature and should be regulated (if at all) at that level.
    Outdated references to express and sleeping car carriers, 
which no longer exist, would be removed (paragraph 3). 
References to the regulation of intrastate rail transportation 
would be updated (paragraph 5 and 6).

Sec. 305. Railroad and water transportation connections and rates

    This section would amend 49 U.S.C. 10503--which provides 
for rail-water connections--to remove references to passenger 
transportation.

Sec. 306. Authority to exempt rail carrier and motor carrier 
        transportation

    This section would amend 49 U.S.C. 10505--which authorizes 
discretionary exemptions from the application of the provisions 
of Part A--to comport with the scope of Part A, by excluding 
entities and matters not regulated under Part A (paragraph 1, 
2, 4, and 5) and by embracing pipeline carriage (paragraph 1). 
The exemption authority would be further modified to afford the 
Board flexibility to change the way in which a provision 
applies (and not simply whether it applies) through exemption 
(paragraph 1).
    A 180-day time limit would be imposed for decisions to 
grant (paragraph 2) or revoke (paragraph 3) an exemption in 
response to concerns that both exemption applications and 
revocation applications have not been processed with sufficient 
expedition. The revocation provision would also be clarified 
(paragraph 3), by directing the Board to revoke an exemption to 
the extent that regulation is needed and by directing the Board 
to consider the availability of other economic transportation 
alternatives, among other factors. In considering monetary 
damages upon revocation of an exemption, the Board would be 
directed to take into account any dilatory railroad practices. 
Outdated restrictions against intermodal ownership would be 
removed (paragraph 5).

Sec. 307. Standards for rates, classifications, etc.

    This section would amend 49 U.S.C. 10701--which requires 
that a carrier's classifications, rules, practices, through 
routes, and divisions of joint rates be reasonable, that 
pipeline rates also be reasonable, and that rates (of both rail 
and pipeline carriers) not unreasonably discriminate against 
connecting carriers--to remove provisions addressed to entities 
not regulated under Part A.

Sec. 308. Standards for rates for rail carriers

    This section would amend 49 U.S.C. 10701a--which requires 
that rail rates be reasonable if the carrier has market 
dominance over the transportation involved--to impose time 
limits on the Board's handling of rate reasonableness cases 
(and to make other changes of a conforming nature). It would 
require the Board to complete the pending Non-Coal Rate 
Guidelines proceeding to establish, within 1 year, a simplified 
method to be used where a full stand-alone cost presentation is 
impractical. Within 6 months, the Board would be required to 
establish procedures for expeditiously processing rate cases. 
It would be required to decide individual rate complaints 
within 6 months after the close of the administrative record in 
cases in which a stand-alone cost presentation is made, and 
within 3 months after the close of the record in cases using 
the simplified methodology the bill directs the Board to adopt.

Sec. 309. Authority for carriers to establish rates, classifications, 
        etc.

    This section would amend 49 U.S.C. 10702--which states a 
carrier's right to establish its own rates, classifications, 
rules, and practices--to remove unnecessary language and 
provisions regarding entities not regulated under Part A.

Sec. 310. Authority for carriers to establish through routes

    This section would amend 49 U.S.C. 10703--which directs 
rail and pipeline carriers to establish through routes with 
other such carriers, and also directs rail carriers to 
establish through routes with water common carriers--to remove 
provisions regarding entities not regulated under Part A and to 
make other conforming changes.

Sec. 311. Authority and criteria for prescribed rates, classifications, 
        etc.

    This section would amend 49 U.S.C. 10704--under which 
rates, classifications, rules, and practices can be prescribed 
to correct violations of Part A--in various respects. Most 
significantly, the Board's authority to review the 
reasonableness of a rate, classification, rule, or practice 
would be limited to instances where it receives a complaint 
(paragraph 8). An unnecessary restatement of requirements for a 
complaint would be removed (paragraph 9). A provision to 
protect existing rate relationships between commodities, ports, 
or geographic areas would also be removed (paragraph 6).
    A long-past initial deadline for establishing railroad 
revenue adequacy standards and an unnecessary statement of the 
Board's authority to revisit that standard would be removed 
(paragraph 4). A similar initial deadline for annually 
determining which rail carriers are earning adequate revenues 
would also be removed (paragraph 5). Finally, provisions 
regarding entities not regulated under part A (paragraph 6 and 
7), and other unnecessary language (paragraph 1 and 3) would be 
removed, and conforming changes would also be made (paragraph 1 
and 2).

Sec. 312. Authority for prescribed through routes, joint 
        classifications, etc.

    This section would amend 49 U.S.C. 10705--under which 
through routes (and the conditions under which they must be 
operated) and joint rates (and the division of the joint rate 
received by each participating carrier) can be prescribed--in 
several respects. A reference to tariffs would be replaced with 
a reference to proposed rate changes (paragraph 5), given that 
tariff requirements would be eliminated for most 
transportation.
    Provisions regarding carriers not regulated under part A 
would be removed (paragraph 3, 4, 6 and 9), as would 
unnecessary language (paragraph 1). Other conforming changes 
would reflect the removal of authority to investigate a 
proposed rate on the agency's own initiative (paragraph 7, 8) 
and the removal of federal regulatory authority over rail 
passenger transportation (paragraph 2).

Sec. 313. Antitrust exemption for rate agreements

    This section would amend 49 U.S.C. 10706--which allows 
discretionary approval of certain collective activity by 
carriers and confers antitrust immunity on such approved 
activity. It would remove as unnecessary a requirement for 
periodic review of approvals granted for collective activities 
(paragraph 9). This change would not affect the Board's 
authority to reconsider an approval at any time as the need 
arises. Similarly, it would remove a requirement for the 
Federal Trade Commission, in consultation with the Antitrust 
Division of the Department of Justice, to periodically assess 
(and report to the Board on) collective activity authorized by 
the Board (paragraph 9). Such assessments and reports may be 
made at any time.
    Other changes would remove expired provisions (paragraph 1-
2), remove provisions regarding entities not regulated under 
Part A (paragraph 6-8), correct a typographical error 
(paragraph 3), supply an actual date (paragraph 5), and make 
conforming changes (paragraph 4).

Sec. 314. Investigation and suspension of new rail carrier rates, etc.

    This section would amend 49 U.S.C. 10707--under which new 
rail rates, classifications, rules, and practices may be 
investigated and suspended--to reflect the elimination of the 
tariff requirement for most transportation under Part A and the 
removal of authority for a Board-initiated investigation of a 
proposed rate (paragraph 1). The amendments would also remove 
regulatory oversight over rate decreases (paragraph 2-3). 
Finally, the amendments would remove unnecessary regulatory 
procedural requirements (paragraph 4).

Sec. 315. Zone of rail carrier rate flexibility

    This section would amend 49 U.S.C. 10707a--which 
establishes a zone of rate flexibility (ZORF) that gives 
carriers limited freedom to increase rates with immunity from 
suspension or ICC-instituted investigations. The ZORF itself 
would be removed (paragraph 3 and 6), because it has outlived 
its usefulness. However, the so-called Long-Cannon Factors to 
be considered when evaluating the reasonableness of rates would 
be retained (paragraph 6), along with criteria for 
investigating a proposed rate increase (paragraph 7). In 
addition, language would be clarified (paragraph 2 and 4), a 
date that has already been complied with would be removed 
(paragraph 1), and reference to a repealed provision would be 
removed (paragraph 5).

Sec. 316. Investigation and suspension of new pipeline carrier rates

    This section would amend 49 U.S.C. 10708--under which new 
nonrail rates, classifications, rules, and practices may be 
investigated and suspended--to remove authority for Board-
initiated investigations (paragraph 1), to remove provisions 
regarding carriers not regulated under Part A (paragraph 3), to 
reflect the elimination of tariff requirements for most 
transportation (paragraph 1), and to make other conforming 
changes (paragraph 2).

Sec. 317. Determination of market dominance.

    This section would amend 49 U.S.C. 10709--which governs the 
determination of whether a carrier has market dominance over 
traffic and thus whether the rates for that traffic are subject 
to the maximum rate regulation--in several respects. To clarify 
Congressional intent regarding market dominance, the Board 
would be directed to consider the availability of other 
economic transportation alternatives (paragraph 1). The cost-
recovery percentage, which was meant to serve as an adjustable 
jurisdictional floor, would be removed (paragraph 3) because as 
a practical matter it has not been capable of calculation due 
to data limitations. In addition, the phase-in of the revenue-
variable cost percentage floor for market dominance would be 
deleted (paragraph 3); the phase-in has already served its 
purpose of dampening the precipitousness of rate increases 
prompted by the Staggers Rail Act of 1980. Finally, conforming 
changes would be made (paragraph 2).

Sec. 318. Contracts

    This section would amend 49 U.S.C. 10713--which authorizes 
rail carriers to enter into contracts for transportation that 
is thereby removed from regulation--to retain the filing 
requirements for, and regulatory restrictions upon, rail 
transportation contracts only for agricultural products 
(paragraph 2, 5-8, and 12). Except as to those commodities, the 
contract limitations represent unneeded and unduly burdensome 
regulation, particularly given the elimination of tariffs for 
other traffic. Any egregious equipment and discrimination 
concerns could be brought to the Board under other remaining 
statutory provisions.
    In the case of agricultural commodity contracts, only a 
contract summary, and not the contract itself, will be filed. 
In other respects, jurisdiction over agricultural commodity 
contracts remain as under the Staggers Act. The purpose for 
retaining this jurisdiction is primarily due to concerns 
brought before the Committee about enforcement of the common 
carrier obligation.
    The amendments would also clarify that, in the absence of 
tariffs, a rate would be immune from regulation only if the 
shipper had expressly waived its regulatory rights and remedies 
(paragraph 10). The Railroad Contract Rate Advisory Service 
would be removed in light of the Board's budgetary constraints 
(paragraph 4 and 11). Unnecessary language would be eliminated 
(paragraph 9 and 11) and conforming language changes would be 
made (paragraph 1 and 3).

Sec. 319. Government traffic

    This section would amend 49 U.S.C. 10721--which provides 
special treatment for rates paid by the United States 
government--to reduce the language to what would be needed in 
the absence of tariff rates.

Sec. 320. Rates and liability based on value

    This section would amend 49 U.S.C. 10730--which authorizes 
carriers to charge rates under which cargo liability is limited 
to an amount specified in advance by the shipper--to remove 
redundancies and provisions regarding carriers not regulated 
under Part A (paragraph 1 and 2) and for conforming changes 
(paragraph 3 and 4).

Sec. 321. Prohibitions against discrimination by common carriers

    This section would amend 49 U.S.C. 10741--which prohibits 
kickbacks and unreasonable discrimination--only for conforming 
changes, thus retaining the present standards governing 
discrimination by common carriers.

Sec. 322. Facilities for interchange of traffic

    This section would amend 49 U.S.C. 10742--which requires a 
carrier to provide reasonable facilities for interchange of 
traffic--only for conforming changes.

Sec. 323. Liability for payment of rates

    This section would amend 49 U.S.C. 10744--which governs 
liability for payment as between the shipper and the consignor 
or consignee--to remove provisions regarding carriers not 
regulated under Part A and to make conforming changes.

Sec. 324. Continuous carriage of freight

    This section would amend 49 U.S.C. 10745--which prohibits 
carrier combinations or arrangements that prevent the 
continuous movement of freight--only for conforming changes.

Sec. 325. Transportation services of facilities furnished by shipper

    This section would amend 49 U.S.C. 10747--under which 
carrier allowances for shipper-furnished services and equipment 
or facilities may be prescribed--to reflect the elimination of 
most tariffs (paragraph 1) and to limit the Board's authority 
to instances in which a complaint is filed (subsection 2) .

Sec. 326. Demurrage charges

    This section would amend 49 U.S.C. 10750--which directs 
carriers to set demurrage charges and demurrage rules so as to 
fulfill the nation's needs with respect to freight car supply, 
use, and distribution--only for conforming changes. The bill 
retains jurisdiction over rail demurrage in recognition of the 
fact that consignees require regulatory recourse to ensure 
against the imposition of unwarranted demurrage charges.

Sec. 327. Transportation prohibited without a tariff

    This section would amend 49 U.S.C. 10761--which prohibits 
(non-contract) rail transportation without a tariff--to limit 
the tariff requirement to the transportation of agricultural 
products and fertilizer, and to remove the tariff requirement 
for all other transportation. Because the transportation costs 
are a substantial component of the market price of agricultural 
products, the advance publication and certainty of rates that 
is provided by public tariffs is particularly important in 
determining the value of those commodities. Shippers of other 
commodities, however, generally do not rely on tariff 
information. Their transportation rate concerns are adequately 
met by either a competitive transportation market or the other 
rate protections that are retained in the statute.

Sec. 328. General elimination of tariff filing requirements

    This section would similarly amend 49 U.S.C. 10762--which 
governs rail tariffs--to apply only to the transportation of 
agricultural products and fertilizer, and to remove the 
requirement of filing those tariffs with the Board. It would 
direct the Board to establish, within 180 days, appropriate 
rules for publishing, keeping open, furnishing to the public, 
and retaining for public inspection such tariffs.

Sec. 329. Designation of certain routes.

    This section would amend 49 U.S.C. 10763--which governs 
shipper routing of rail shipments--only for conforming changes.

Sec. 330. Authorizing construction and operation of railroad lines

    This section would amend 49 U.S.C. 10901--under which the 
construction of new rail lines and the operations of new rail 
carriers must be authorized--to reduce the level of employee 
protection that may be imposed by the Board on smaller carriers 
and noncarriers. While employee protective conditions have not 
often been required for such new operations, the minimum level 
of protection available, if protection was imposed, was 
inordinately high (up to 6 years of salary protection). As 
amended, the maximum level of protection that could be imposed 
on smaller carriers and noncarrier entities is reduced to a 
more realistic level: advance notice (the same requirement 
imposed on other industries) and up to one year's salary 
protection, unless the parties voluntarily agree otherwise. In 
addition, labor protection arrangements could only be imposed 
when consistent with the public interest.

Sec. 331. Authorizing action to provide facilities

    This section would amend 49 U.S.C. 10902--which requires 
carriers to provide adequate, efficient, and safe facilities to 
meet their service obligations--only for conforming changes.

Sec. 332. Authorizing abandonment and discontinuance

    This section would amend 49 U.S.C. 10903--under which 
carriers must receive advance authorization to abandon a rail 
line--only for conforming changes.

Sec. 333. Filing and procedure for applications to abandon or 
        discontinue

    This section would amend 49 U.S.C. 10904--which contains 
the procedural requirements for applications to abandon a rail 
line--to remove outdated provisions for rail restructuring 
plans sponsored by the Secretary and to make conforming 
changes.

Sec. 334. Exceptions

    This section would amend 49 U.S.C. 10907--which exempts 
spur, industrial, team, switching, and side tracks from the 
approval requirement for constructions and abandonments--only 
for conforming changes.

Sec. 335. Railroad development

    This section would amend 49 U.S.C. 10910--containing the 
feeder line development forced-sale provisions--to remove 
expired and executed provisions and to supply a date.

Sec. 336. Providing transportation, service, and rates

    This section would amend 49 U.S.C. 11101--which sets forth 
a carrier's obligation to provide service on reasonable 
request--to require that a rail carrier establish common 
carriage rates and other service terms (of the type requested 
for specified service between specified points) within 30 days 
of a reasonable request. A carrier may not refuse to provide a 
common carriage rate on grounds that there is a transportation 
contract covering the traffic. The amended section also 
requires a carrier to provide 20 days' advance notice of rate 
increases.

Sec. 337. Use of terminal facilities

    This section would amend 49 U.S.C. 11103--under which a 
carrier may be compelled to provide competitive access to 
terminal facilities or switching arrangements--only for 
conforming changes.

Sec. 338. Switch connections and tracks

    This section would amend 49 U.S.C. 11104--which requires 
rail carriers to maintain switch connections with other 
carriers--only for conforming changes.

Sec. 339. Criteria

    This section would amend 49 U.S.C. 11121--which provides 
regulatory oversight over rail car service--to reflect the 
elimination of most tariffs (paragraph 2), and to provide for 
the Board to consult with the National Grain Car Council as 
necessary (paragraph 4). The National Grain Car Council is an 
advisory group formed by the ICC in 1994, composed of 
representatives of railroads of varying size, shippers, 
manufacturers, and government officials. Conforming changes are 
also made.

Sec. 340. Rerouting traffic on failure of rail carrier to serve public

    This section would amend 49 U.S.C. 11124--under which 
traffic can be ordered to be rerouted when a carrier cannot 
provide service--only for conforming changes.

Sec. 341. Directed rail transportation

    This section would amend 49 U.S.C. 11125--under which a 
carrier can be directed to operate the lines of an 
incapacitated carrier--only for conforming changes.

Sec. 342. War emergencies; embargoes

    This section would amend 49 U.S.C. 11128--under which 
preferences and priorities in traffic can be directed in 
wartime--only for conforming changes.

Sec. 343. Definitions for subchapter III

    This section would amend 49 U.S.C. 11141--which provides 
definitions for subchapter III of chapter 111, title 49 
(covering carrier reports and records)--to limit coverage to 
entities regulated under Part A.

Sec. 344. Depreciation charges

    This section would amend 49 U.S.C. 11143--under which 
appropriate depreciation charges are prescribed--to remove a 
reference to entities not regulated under Part A and to make 
other conforming changes.

Sec. 345. Records, etc.

    This section would amend 49 U.S.C. 11144--which provides 
for prescribing and inspecting carrier records--to remove 
references to entities not regulated under Part A, to reflect 
an earlier repeal (paragraph 6), and to make other conforming 
changes.

Sec. 346. Reports by carriers, lessors, and associations

    This section would amend 49 U.S.C. 11145--which addresses 
carrier reports--to remove provisions regarding entities not 
regulated under part A and to make conforming changes.

Sec. 347. Accounting and cost reporting

    This section would amend 49 U.S.C. 11166--under which rail 
carrier expense and revenue accounting and reporting 
requirements may be prescribed--to remove a reference to a 
repealed provision, make other conforming changes, and condense 
the language.

Sec. 348. Securities, obligations, and liabilities

    This section would amend 49 U.S.C. 11301--which requires 
advance approval for certain railroad securities issuances and 
financial obligations--only for conforming changes. Because the 
ICC has exempted such transactions as a class, this is residual 
authority only.

Sec. 349. Equipment trusts

    This section would amend 49 U.S.C. 11303--which provides 
for centralized recordation of liens on railroad cars, 
locomotives, and other rolling stock--to require continuation 
of the ICC's current railway equipment register and to give 
equal effect to foreign registration of such equipment.

Sec. 350. Restrictions on officers and directors

    This section would amend 49 U.S.C. 11322--which contains 
restrictions on officers and directors holding positions with 
multiple carriers--to import a referenced definition from a 
repealed provision (paragraph 2) and to make conforming 
changes.

Sec. 351. Limitation on pooling and division of transportation or 
        earnings

    This section would amend 49 U.S.C. 11342--under which 
carrier arrangements to pool traffic, services, or earnings can 
be authorized and immunized from other laws--to remove 
provisions regarding entities not regulated under Part A and to 
make conforming changes.

Sec. 352. Consolidation, merger, and acquisition of control

    This section would amend 49 U.S.C. 11343--under which 
advance approval is required for certain intercarrier mergers, 
control acquisitions, or other forms of consolidations--to 
remove provisions regarding entities not regulated under part 
A.

Sec. 353. General procedure and conditions of approval for 
        consolidation, etc.

    This section would amend 49 U.S.C. 11344--which contains 
the administrative procedures, decisional criteria, and 
conditioning authority for carrier consolidation proposals--to 
remove unnecessary and inappropriate limitations on railroad 
acquisitions of motor carriers (paragraph 4) and on a 
railroad's ability to provide motor carrier transportation 
prior or subsequent to rail transportation (paragraph 7). It 
would also remove outdated provisions regarding restructurings 
that are sponsored by the Secretary (paragraph 6) or that 
involve only passenger carriers (paragraph 3 and 6). In 
addition, motor carrier provisions would be removed (paragraph 
1 and 3) and other conforming changes would be made (paragraph 
2 and 5).

Sec. 354. Rail carrier procedure for consolidation, etc.

    This section would amend 49 U.S.C. 11345--which further 
specifies administrative procedures for handling rail carrier 
consolidation proposals--to provide for receiving the comments 
of the Secretary and the Attorney General at the same time as 
other parties and to make conforming changes.

Sec. 355. Employee protective arrangements

    This section would amend 49 U.S.C. 11347--which provides 
employee protection for approved rail consolidations--only for 
conforming changes.

Sec. 356. Authority over noncarrier acquirers

    This section would amend 49 U.S.C. 11348--which covers 
noncarriers that acquire control of carriers--for conforming 
changes only.

Sec. 357. Authority over intrastate transportation

    This section would amend 49 U.S.C. 11501--which contains 
preemptive authority over intrastate transportation--to remove 
unnecessary Federal certification procedures for States seeking 
to regulate intrastate rail transportation (paragraph 2-3), to 
remove provisions regarding entities not regulated under Part A 
(paragraph 1 and 7), and to make conforming changes.

Sec. 358. Tax discrimination against rail transportation property

    This section would amend 49 U.S.C. 11503--which prohibits 
state or local tax discrimination against rail transportation 
property--only for conforming changes.

Sec. 359. Withholding state and local income tax by certain carriers

    This section would amend 49 U.S.C. 11504--which governs 
withholding of state and local income taxes for carrier 
employees--to remove provisions regarding entities not 
regulated under Part A and to make conforming changes.

Sec. 360. General authority for enforcement, investigations, etc.

    This section would amend 49 U.S.C. 11701--which contains 
general authority to conduct administrative investigations and 
hear complaints--to remove language and provisions regarding 
entities not regulated under Part A and to make conforming 
changes.

Sec. 361. Enforcement

    This section would amend 49 U.S.C. 11702--which authorizes 
civil enforcement actions by the regulatory agency--to remove 
provisions regarded entities and matters not regulated under 
Part A and to make conforming changes.

Sec. 362. Attorney General enforcement

    This section would amend 49 U.S.C. 11703--which authorizes 
civil and criminal enforcement actions by the Attorney 
General--to remove language unrelated to Part A.

Sec. 363. Rights and remedies

    This section would amend 49 U.S.C. 11705--which specifies 
the rights and remedies of persons injured by carrier actions--
to remove language regarding entities not regulated under Part 
A and to make conforming changes.

Sec. 364. Limitation on actions

    This section would amend 49 U.S.C. 11706--which contains 
time limits for bringing actions by and against carriers--to 
remove provisions related to carriers not regulated under Part 
A.

Sec. 365. Liability of common carriers under receipts and bills of 
        lading

    This section would amend 49 U.S.C. 11707 (commonly referred 
to as the Carmack Amendment)--governing cargo liability--to 
remove provisions regarding entities not regulated under Part A 
(paragraph 1-6 and 8-12), to reflect the elimination of tariffs 
for most traffic (paragraph 7), and to remove provisions 
regarding passenger transportation (paragraph 10).

Sec. 366. Liability when property is delivered in violation of routing 
        instructions

    This section would amend 49 U.S.C. 11710--which makes rail 
carriers liable for violating shipper routing instructions--
only for conforming changes.

Sec. 367. General civil penalties

    This section would amend 49 U.S.C. 11901--which contains 
general civil penalties for violating Part A--to remove 
penalties related to provisions that are repealed from Part A 
and to make conforming changes.

Sec. 368. Civil penalties for accepting rebates from common carrier

    This section would amend 49 U.S.C. 11902--which contains 
civil penalties for accepting rebates--to reflect the 
elimination of tariff requirements for most transportation.

Sec. 369. Rate, discrimination, and tariff violations

    This section would amend 49 U.S.C. 11903--which contains 
penalties for rate violations--to reflect the elimination of 
tariffs for most transportation.

Sec. 370. Additional rate and discrimination violations

    This section would amend 49 U.S.C. 11904--which contains 
additional penalties for rate and discrimination violations--to 
reflect the elimination of tariffs for most transportation 
(paragraph 6), to remove provisions regarding entities not 
regulated under Part A (paragraph 1-4), and to make conforming 
changes.

Sec. 371. Interference with railroad car supply

    This section would amend 49 U.S.C. 11907--which contains 
penalties for interference with railroad car supply--only for 
conforming changes.

Sec. 372. Record keeping and reporting violations

    This section would amend 49 U.S.C. 11909--which contains 
penalties for record keeping and reporting violations--to 
remove provisions regarding entities not regulated under Part A 
and to make conforming changes.

Sec. 373. Unlawful disclosure of information

    This section would amend 49 U.S.C. 11910--which contains 
penalties for unlawful carrier disclosure of confidential 
shipper information--to remove provisions regarding entities 
not regulated under Part A and to make conforming changes.

Sec. 374. Consolidation, merger, and acquisition of control

    This section would amend 49 U.S.C. 11912--which contains 
penalties for violating the carrier consolidation provisions of 
the statute--to remove a reference to a repealed provision.

Sec. 375. General criminal penalty

    This section would amend 49 U.S.C. 11914--which contains 
general criminal penalties when specific penalties are not 
provided--to remove provisions regarding entities not regulated 
under part A and to make conforming changes.

Sec. 376. Financial assistance for State projects

    This section would amend 49 U.S.C. 22101--which requires 
authorization of abandonment or discontinuance as a 
prerequisite for federal financial assistance for State 
projects to continue rail service--only for conforming changes.

Sec. 377. Status of Amtrak and applicable laws

    This section would amend 49 U.S.C. 24301--containing 
certain limited regulatory authority over Amtrak--only for 
conforming changes.

Sec. 378. Rail-Shipper Transportation Advisory Council

    This section would establish a Rail-Shipper Transportation 
Advisory Council, in 49 U.S.C. 10391, to advise the government 
on significant rail transportation policy issues of concern to 
small shippers and small railroads, including car supply, 
rates, competition, and effective procedures for addressing 
legitimate shipper and other claims. The Council would be 
directed to prevent or address obstacles to effective and 
efficient transportation through private-sector mechanisms, 
where possible, and, where unsuccessful, to suggest appropriate 
regulatory or legislative relief.
    The Council would be composed of 15 members outside of the 
federal government, to be appointed by the Board's Chairman 
within 60 days. The 9 voting members would include at least 4 
representatives of small shippers and at least 4 
representatives of small (Class II or III) railroads. The 6 
nonvoting members would include 3 from Class I railroads and 3 
from large shipper organizations. In addition, the Secretary 
and the Board members would serve as ex officio members. The 
Council would meet at least semi-annually and would be required 
to prepare an annual report of its activities.

                Title IV--Motor Carrier, Water Carrier,

              Broker, and Freight Forwarder Transportation

                     SUBTITLE A--ADDITION OF PART B

Section 401. Enactment of part B of subtitle IV, title 49, United 
        States Code

    This section would amend Subtitle IV of title 49 by 
inserting after chapter 119 a new Part B relating to motor 
carriers, water carriers, brokers, and freight forwarders. Part 
B would be administered by the Secretary, except for those 
provisions specifically assigned to the Board.
    New chapter 131 (General provisions) would import pertinent 
provisions from existing chapter 101. Specifically, new 49 
U.S.C. 13101 (Transportation policy) would set out the national 
transportation policy from existing 49 U.S.C. 10101. New 49 
U.S.C. 13102 (Definitions) would import those definitions from 
existing 49 U.S.C. 10102 that would be applicable to Part B. 
However, no distinction between contract and common carriers 
would be retained in light of the elimination of restrictive 
licensing and tariff filing requirements for most 
transportation. Because all motor carriers could freely 
contract, separate categories of carriers would not be needed. 
The definitions of foreign motor carriers and foreign motor 
private carriers, which are needed for enforcement of the 
provisions of the North American Free Trade Agreement (NAFTA), 
would be imported from existing 49 U.S.C. 10530. The definition 
of residential household goods would be subdivided between 
those transported for the individual householder (for which 
contract rates would be precluded) and those transported under 
an arrangement with a third party (which would not be so 
restricted). New 49 U.S.C. 13103 (Remedies are cumulative) 
would import the existing provisions of 49 U.S.C. 10103, so as 
to preserve the current relationship between those remedies 
provided for in the ICA and other remedies that may be 
available.
    New chapter 133 (Administrative provisions) would import 
those administrative provisions of existing subchapter II of 
chapter 103 that would be needed for the regulatory and 
oversight functions placed in Part B, but with greater leeway 
for the Secretary and Board to fashion appropriate 
administrative procedures. More specifically, new 49 U.S.C. 
13301 (Powers) would give the Secretary the general powers that 
the ICC has under existing 49 U.S.C. 10321 and, in subsection 
(f), would provide the Board with the same powers when 
exercising functions assigned to it in Part B.
    New 49 U.S.C. 13302 (Intervention) would incorporate from 
existing 49 U.S.C. 10328 the notice requirement and opportunity 
for public participation. New 49 U.S.C. 13303 (Service of 
notice in proceedings under this part) would import from 
existing 49 U.S.C. 10329 the provisions requiring regulated 
entities to designate agents on whom notice of administrative 
proceedings can be served. New 49 U.S.C. 13304 (Service of 
process in court proceedings) would import from existing 49 
U.S.C. 10330 the provisions requiring carriers and brokers to 
designate an agent on whom notice of court proceedings can be 
served.
    New chapter 135 (Jurisdiction) would import from existing 
chapter 105 the jurisdictional provisions applicable to 
transportation other than by rail and pipeline. The 
jurisdiction over motor carriers and brokers, from existing 
Subchapter II of chapter 105, would be set forth in subchapter 
I (Motor carrier transportation) of chapter 135. New 49 U.S.C. 
13501 (General jurisdiction) would import the basic 
jurisdictional statement from existing 49 U.S.C. 10521(a), 
except for the (unnecessary) introductory clause and the 
savings provisions of 49 U.S.C. 10521(b). Existing 49 U.S.C. 
10521(b)(1)-(3) has been mooted by a more recent broad 
preemption of intrastate regulation. Existing 49 U.S.C. 
10521(b)(4) would be needless surplusage given the 
unquestionable right of states to tax motor carriers and the 
retention of the provisions of 49 U.S.C. 11503(a) and 11504(b) 
in Part B.
    New 49 U.S.C. 13502 (Exempt transportation between Alaska 
and other States) would preserve the existing exclusion, in 49 
U.S.C. 10522, for the portion of interstate transportation 
conducted in a foreign country. New 49 U.S.C. 13503 (Exempt 
motor vehicle transportation in terminal areas) would preserve 
the jurisdictional allocations in existing 49 U.S.C. 10523 for 
terminal area operations. New 49 U.S.C. 13504 (Exempt motor 
carrier transportation entirely in one State) would preserve 
the exemption of existing 49 U.S.C. 10525(e) for transportation 
(other than of household goods) within Hawaii.
    Residual jurisdiction over domestic water carriage, from 
Subchapter III of chapter 105, would be set forth in subchapter 
II of chapter 135. This bill does not provide for active 
regulation of domestic water carriage (other than for joint 
rates in noncontiguous domestic trade), in view of the highly 
competitive nature of that industry and the already limited 
nature of regulation of domestic water carriage. The bill 
retains residual jurisdiction over such transportation, 
however, to ensure that this transportation would not be 
subjected to similar regulation under other laws. For that 
purpose, new 49 U.S.C. 13521 (General jurisdiction) would 
import the basic jurisdictional statement of existing 49 U.S.C. 
10541(a) (except for the introductory clause that allowed 
regulation through other laws).
    Jurisdiction over freight forwarder service, imported from 
Subchapter IV of chapter 105, would be placed in subchapter III 
of chapter 135. Specifically, new 49 U.S.C. 13531 (General 
jurisdiction) would incorporate the provisions of existing 49 
U.S.C. 10561, but would expand that jurisdiction to include all 
freight forwarders (not just those providing service for 
shipments of household goods), in order to fill an 
inappropriate regulatory gap. Because freight forwarders act as 
carriers in the assembling and delivery of shipments, they 
should be subject to the registration requirements to ensure 
that they are fit to operate and are insured. Freight 
forwarders of commodities other than household goods would not 
be subjected to any further regulation of their activities 
beyond the registration requirement.
    Subchapter IV of chapter 135 would contain new 49 U.S.C. 
13461 (Authority to exempt transportation or service), which 
would give broad exemption authority, comparable to that of the 
Board under 49 U.S.C. 10505, to both the Secretary and the 
Board, for each to apply to the portions of Part B that it is 
charged with administering. This exemption authority could not 
be used to relieve an entity from the cargo liability, 
insurance, or safety fitness requirements of Part B, however, 
unless that entity would have been eligible for a statutory 
exemption available prior to this bill.
    New chapter 137 (Rates) would import certain provisions of 
existing chapter 107 that relate to the rates and interline 
arrangements of entities that would be covered by Part B. New 
49 U.S.C. 13701 (Requirements for rates, classifications, 
through routes, rules, and practices for certain 
transportation) would retain rate regulation for only two 
categories of traffic under Part B: (1) residential household 
goods movements and (2) joint-rate water-motor movements in 
non-contiguous domestic trade. Other types of traffic that are 
handled by the motor carrier and freight forwarder industries 
today are sufficiently competitive that those shippers can 
adequately protect their interests without such regulation. For 
the two categories of traffic for which rates would be 
regulated, new 49 U.S.C. 13701(a) would import the basic rate 
reasonableness requirement from existing 49 U.S.C. 10701, while 
new 49 U.S.C. 13701(b) would import from existing 49 U.S.C. 
10704 and 10705 the regulatory authority to prescribe a rate 
when the carrier's rate is unreasonable. The responsibility for 
administering these provisions would be placed with the Board.
    New 49 U.S.C. 13702 (Tariff requirement for certain 
transportation) would retain a tariff requirement only for the 
same two limited categories of traffic: (1) joint rates for 
motor-water movements in non-contiguous domestic trade and (2) 
residential movements of household goods. New 49 U.S.C. 
13702(a) would import from existing 49 U.S.C. 10761 the 
requirement for a tariff and the prohibition against charging 
an amount different from that contained in the tariff. New 49 
U.S.C. 13702(b)-(e) would import the applicable tariff filing 
requirements of existing 49 U.S.C. 10762 for joint-rate 
movements in the non-contiguous domestic trade. The tariffs for 
such movements would be filed with the Board.
    New 49 U.S.C. 13702(f) would require household goods 
carriers to maintain tariffs applicable to those residential 
moves, but would not require that those tariffs be filed with 
the Board. Rather, those tariffs would be required to be 
published and kept open and available for inspection. The 
carrier would be bound by the terms of its tariffs, and would 
be prohibited from transporting residential household goods 
movements for individual householders without a tariff. The 
Board would be charged with administering and enforcing these 
requirements.
    New 49 U.S.C. 13703 (Certain collective activities: 
exemption from antitrust laws), imported from existing 49 
U.S.C. 10706, would provide for Board approval of, and 
concomitant antitrust immunity for, certain motor carrier 
collective activities. It would add several new features, 
however. New 49 U.S.C. 13703(d) would make Board approval 
effective only for a 3-year period; an approval would expire at 
the end of the 3-year period if not reapproved at the request 
of the carriers. New 49 U.S.C. 13703(e) would contain a 
``grandfather'' provision allowing existing approved agreements 
to continue in effect (unless earlier withdrawn or revoked) for 
an initial 3 years (at the end of which the renewal requirement 
would apply). New 49 U.S.C. 13703(f) would preclude the 
approval of collective activity from providing a basis for an 
undercharge claim and it would provide, more particularly, that 
an undercharge claim could not be based solely on a commodity 
classification established pursuant to that section. New 49 
U.S.C. 13703(g) would codify the existing ICC requirement, 
upheld by the courts, that a carrier must participate in a 
mileage guide established under an approved collective-action 
agreement in order to enforce mileage rates using such a guide.
    New 49 U.S.C. 13704 (Household goods rates--estimates; 
guarantees of service) would import the special provisions of 
existing 49 U.S.C. 10735, allowing household goods carriers to 
use binding estimates and guaranteed pick-up and delivery 
times. New 49 U.S.C. 13705 (Requirements for through routes 
among motor carriers of passengers) would preserve the 
requirement from existing 49 U.S.C. 10703(a)(3) that intercity 
bus companies establish through routes with each other, and the 
requirement from existing 49 U.S.C. 10701 that those through 
routes be reasonable. Drawing from existing 49 U.S.C. 10705, it 
would authorize the Board to prescribe through routes and the 
conditions under which they are operated, when necessary to 
enforce the requirement of reasonable through routes.
    New 49 U.S.C. 13706 (Liability for payment of rates) would 
import the useful provisions of 49 U.S.C. 10744 regarding 
liability, as between a consignor or consignee, for payment for 
transportation. New 49 U.S.C. 13707 (Billing and collecting 
practices) would preserve the beneficial truth-in-billing 
requirement of existing 49 U.S.C. 10767(b), enacted for motor 
carriers in the Negotiated Rates Act of 1993. It would also 
retain the prohibition against rate reductions to someone other 
than the person ultimately responsible for paying the 
transportation charges.
    New 49 U.S.C. 13708 (Procedures for resolving claims 
involving unfiled, negotiated transportation rates) would 
import, and place under the Board's administration, the 
undercharge resolution provisions of existing 49 U.S.C. 
10701(f), as enacted in the Negotiated Rates Act of 1993, 
except for the now-moot tariff adherence provision of 49 U.S.C. 
10701(f)(7). New 49 U.S.C. 13709 (Additional motor carrier 
undercharge provisions) would import, and place under the 
Board's administration, the further billing and undercharge 
procedures of existing 49 U.S.C. 10762(a)(3)-(5), enacted in 
the Transportation Regulatory Reform Act of 1994 (TIRRA). New 
Section 13710 (Alternative procedure for resolving undercharge 
disputes) would codify the undercharge relief provided in 
section 2(e) of the Negotiated Rates Act of 1993 (NRA). It 
would expand that unreasonable practice relief by removing the 
September 30, 1990, cut-off date.
    New 49 U.S.C. 13711 (Government traffic) would contain 
appropriate provisions specific to government traffic under 
Part B, in place of existing 49 U.S.C. 10721. New 49 U.S.C. 
13712 (Food and grocery transportation) would retain the 
provisions of existing 49 U.S.C. 10732 enabling sellers of food 
and groceries to provide for compensated customer pick-ups in 
conjunction with a uniform zone delivered pricing system.
    New chapter 139 (Registration) would revise and incorporate 
certain provisions of subchapter II of chapter 109 governing 
the authorization needed for entities to engage in 
transportation and services covered by Part B. It would convert 
the required authorization from a licensing process to a 
registration process. All vestiges of restrictive licensing, 
based either on a gauging of public demand or need for the 
service or on protecting existing carriers in a market, would 
be removed. The registration process would be based solely on 
an entity's fitness to operate. The fitness determination would 
consist of three elements: safety record (for carriers and 
freight forwarders operating trucks), insurance coverage, and 
willingness to comply with applicable laws and regulations.
    New 49 U.S.C. 13901 (Requirement for registration), drawn 
from existing 49 U.S.C. 10921, would make clear that a person 
could operate as a motor carrier, broker, or freight forwarder 
only if registered with the Secretary under new chapter 139. 
New 49 U.S.C. 13902 (Registration of motor carriers), distilled 
from existing 49 U.S.C. 10922, would contain the registration 
provisions for motor carriers (in subsection (a)). With respect 
to intercity bus operations, it would retain the current 
restrictions on subsidized operations to prevent them for 
competing unfairly with unsubsidized operations (in subsections 
(b)(1)-(2), (8)). It would retain the current provisions 
authorizing intrastate service to be provided in conjunction 
with interstate bus operations (in subsections (b)(3)-(6)). It 
would retain the existing preemption for intercity bus 
operators providing pickup and delivery of express packages, 
newspapers or mail (in subsection (b)(7)). Finally, it would 
contain special registration provisions for foreign carriers, 
drawn from existing 49 U.S.C. 10530 and 10922(m), to reflect 
the special foreign policy implications in that area (in 
subsection (c)).
    New 49 U.S.C. 13903 (Registration of freight forwarders), 
drawn from existing 49 U.S.C. 10923(a), would contain the 
registration provisions for freight forwarders. As explained 
above, the registration requirement would be extended to all 
freight forwarders (not just those handling household goods), 
so as to fill an inappropriate regulatory gap. Because freight 
forwarders act as carriers in the assembling and delivery of 
shipments, they should be subject to the registration 
requirements to ensure that they are fit to operate and 
maintain the required insurance coverage. Freight forwarders of 
commodities other than household goods are not subjected to any 
further regulation of their activities beyond the registration 
requirement, however. It would continue the current requirement 
that, when a freight forwarder acts in the capacity of a 
carrier for the entire move, it must be registered as a carrier 
as well. New 49 U.S.C. 13904 (Registration of motor carrier 
brokers), drawn from existing 49 U.S.C. 10924, would contain 
the registration provisions for brokers.
    New 49 U.S.C. 13905 (Effective periods of registration), 
drawn from existing 49 U.S.C. 10925, would provide for a 
registration generally to remain in effect for five years so 
long as the registrant maintains its insurance coverage 
(subsection a). However, the Secretary could amend or revoke a 
registration on request of the holder (subsection (b)), or 
suspend or revoke a registration on complaint or on the 
Secretary's own initiative for cause (subsections (b)-(d)). 
Cause for suspension or revocation could be unsafe operations, 
lack of the required insurance coverage, or failure to comply 
with regulatory requirements. The new section would eliminate 
any advance notice requirement for the Secretary to address 
imminent safety hazards, given the nature of the hazards in 
such situations.
    New 49 U.S.C. 13906 (Security of motor carriers, brokers, 
and freight forwarders), drawn from existing 49 U.S.C. 10927, 
would contain the minimum insurance or bonding requirements 
needed for a motor carrier, broker, or freight forwarder to 
obtain and keep a registration to operate. It would specify 
that a registration would remain in effect only as long as the 
registrant continues to satisfy these security requirements. 
The Secretary would determine the type and amount of security 
required, and under what circumstances a carrier could self-
insure. It would maintain the ICC's current requirements that 
insurance carriers provide advance notice of any cancellation 
of insurance, and that full (``first-dollar'') coverage be 
provided.
    New 49 U.S.C. 13907 (Household goods agents), incorporating 
existing 49 U.S.C. 10934, would retain a household goods 
carrier's responsibility for its agents and their actions. It 
would also retain federal regulatory oversight over the agents 
used by such carriers, and continue the antitrust immunity for 
discussions and agreements between such carriers and their 
agents.
    New 49 U.S.C. 13908 (Registration and other reforms) would 
direct the Secretary to conduct a study of whether, and to what 
extent, the various existing overlapping motor carrier 
registration provisions should be modified or replaced with a 
single, on-line federal system. The existing systems to be 
studied would include the DOT identification number system, the 
single-State registration system under new 49 U.S.C. 14505, the 
system for administering the registration requirements of new 
49 U.S.C. 13901-13905, and the system for administering the 
insurance provisions of new 49 U.S.C. 13906. New 49 U.S.C. 
13908 would enumerate some of the factors to be considered by 
the Secretary. It would also permit the Secretary to impose 
user fees that cover the full costs of maintaining these 
systems. Finally, it would direct the Secretary to conclude the 
study within 18 months and report to Congress on the findings 
and any appropriate legislative changes needed.
    New chapter 141 (Operations of carriers) would incorporate 
certain provisions of existing chapter 111 for entities covered 
by Part B. Subchapter I (General requirements) would contain 
operational provisions. New 49 U.S.C. 14101 (Providing 
transportation and service), taken from existing 49 U.S.C. 
11101, would continue the basic common carrier obligation to 
provide transportation or service on reasonable request and to 
provide safe and adequate service, equipment, and facilities. 
It would expressly allow carriers to enter contracts for 
specific shipments (other than for residential household goods 
movements arranged and paid for directly by the householder) 
under which both parties may waive their ICA rights and 
remedies.
    New 49 U.S.C. 14102 (Leased motor vehicles) would preserve 
the provisions of existing 49 U.S.C. 11107, enabling the 
Secretary to regulate the relationship between registered 
carriers and the owner-operators engaged by them to provide the 
transportation. New 49 U.S.C. 14103 (Loading and unloading 
motor vehicles) would preserve the provisions of existing 49 
U.S.C. 11109, which govern ``lumping'' (the utilization of 
other persons to load or unload freight from a truck) in the 
trucking industry, whether or not the carriers involved are 
regulated under Part B. New 49 U.S.C. 14104 (Household goods 
carrier operations) would preserve the provisions of existing 
49 U.S.C. 11110, governing the performance of household goods 
carriers.
    Subchapter II (Reports and records) of new chapter 141 
would provide for data collection by the Secretary and the 
Board, as needed to carry out their respective functions. New 
49 U.S.C. 14121 (Definitions), taken from existing 49 U.S.C. 
11141, would provide that the data requirements extend to 
receivers, trustees, and associations. New 49 U.S.C. 14122 
(Records: form; inspection; preservation), imported from 
existing 49 U.S.C. 11144, would allow the Secretary and the 
Board, as appropriate, to prescribe the form of records to be 
kept by carriers and brokers, to inspect those records, and to 
set how long those records must be retained by the carrier. New 
49 U.S.C. 14123 (Reports by carriers, brokers, and 
associations), drawn from existing 49 U.S.C. 11145, would 
require carriers to file annual reports with the Secretary, but 
would allow the Secretary to waive that requirement for 
individual carriers where necessary to avoid competitive harm 
and preserve confidential business information that is not 
otherwise publicly available.
    New Chapter 143 (Finance) would incorporate two provisions 
of existing chapter 113. New 49 U.S.C. 14301 (Security 
interests in certain motor vehicles), imported from existing 49 
U.S.C. 11304, would govern the recordation of security 
interests in trucks, tractors, and trailers. New 49 U.S.C. 
14302 (Pooling and division of transportation or earnings), 
drawn from existing 49 U.S.C. 11342, would provide for Board 
supervision of pooling arrangements among motor carriers. It 
would retain the immunity from antitrust and other laws 
currently in 49 U.S.C. 11341. It would also include a 
grandfather provision for existing approved arrangements. New 
49 U.S.C. 14303 (Consolidation, merger, and acquisition of 
control of motor carriers of passengers), drawn from existing 
provisions in 49 U.S.C. 11341, 11343, 11344 and 11345a, would 
require Board review of mergers or other consolidations of 
intercity bus carriers having combined annual gross operating 
revenues greater than $2 million. It would confer antitrust 
immunity on Board-approved consolidations.
    New chapter 145 (Federal-State relations) would preserve 
the broad preemptions of intrastate regulation for carriers 
regulated under Part B. New 49 U.S.C. 14501 (Federal authority 
over intrastate transportation) would incorporate existing 
prohibitions against intrastate regulation. Subsection (a), 
imported from 49 U.S.C. 11501(e), would cover intercity bus 
rates, scheduling, and discontinuances or reductions in 
service. Subsection (b), imported from 49 U.S.C. 11501(g), 
would cover the rates, routes, or services of freight 
forwarders and transportation brokers. Subsection (c), imported 
from 49 U.S.C. 11501(h), would cover trucking prices, routes, 
and services. The preemption would be narrowed, however, to 
allow State and local governments to regulate the price and 
related conditions of non-consensual tows by tow-truck 
operators, so as to preclude exorbitant prices and unreasonable 
conditions from being imposed on unwilling parties in such 
situations.
    New 49 U.S.C. 14502 (Tax discrimination against motor 
carrier transportation property) would incorporate the 
restrictions of existing 49 U.S.C. 11503a on State and local 
authority to tax property used to provide interstate trucking 
service. New 49 U.S.C. 14503 (Withholding State and local 
income tax by certain carriers) would preserve the restrictions 
of existing 49 U.S.C. 11504 on State and local authority to tax 
the earnings of employees of motor carriers and water carriers.
    New 49 U.S.C. 14504 (State tax) is a new provision that 
would prohibit State and local governments from imposing a tax 
on the sale of intercity bus tickets. This provision is 
intended to override a recent court decision permitting such a 
tax. New 49 U.S.C. 14505 (Registration of motor carriers by a 
State) would import, from 49 U.S.C. 11506, the existing single-
State registration system for evidencing motor carrier 
insurance coverage. That system would remain intact for the 
time being, but would be impacted by the system reform called 
for by new 49 U.S.C. 13908.
    New chapter 147 (Enforcement; investigations; rights; 
remedies) would incorporate into Part B the appropriate 
provisions of existing chapter 117. New 49 U.S.C. 14701 
(General authority) would give the Secretary and the Board the 
same general authority to conduct investigations and hear 
complaints, with respect to the functions assigned to each, as 
the ICC has had under 49 U.S.C. 11701. New 49 U.S.C. 14702 
(Enforcement by the regulatory authority) would preserve for 
the Secretary and the Board, as to those functions transferred 
to each under Part B, the ICC's longstanding authority in 49 
U.S.C. 11702 to bring civil enforcement actions in court. New 
49 U.S.C. 14703 (Enforcement by the Attorney General) would 
preserve the Attorney General's authority under 49 U.S.C. 11703 
to bring civil or criminal enforcement actions relating to Part 
B, including orders or regulations of the Secretary or the 
Board.
    New 49 U.S.C. 14704 (Rights and remedies of persons injured 
by carriers or brokers) would incorporate from 49 U.S.C. 11705 
the right of an injured person to bring a civil action to 
enforce an order of the Secretary or the Board under Part B. It 
would remove any requirement that an injured person bring the 
complaint to the agency first. New 49 U.S.C. 14705 (Limitation 
on actions by and against carriers) would incorporate from 49 
U.S.C. 11706 relevant time limits for bringing court suits by 
or against carriers and makes those time limits uniform for all 
types of traffic under Part B.
    New 49 U.S.C. 14706 (Liability of carriers under receipts 
and bills of lading) would preserve in Part B the ``Carmack 
Amendment'' contained in 49 U.S.C. 11707, which makes carriers 
and freight forwarders fully liable for loss or damage except 
to the extent the parties agreed in advance to limit the 
carrier's liability. New 49 U.S.C. 14707 (Private enforcement 
of registration requirement), imported from 49 U.S.C. 11708, 
would authorize private enforcement of the registration 
requirement by persons injured by unregistered transportation 
or service. New 49 U.S.C. 14708 (Dispute settlement program for 
household goods carriers) would modify the existing arbitration 
provisions of 49 U.S.C. 11711, by requiring all household goods 
carriers to offer shippers the option of neutral arbitration as 
a means of settling disputes over household goods 
transportation. New 49 U.S.C. 14709 (Tariff reconciliation 
rules for motor carriers of property) would preserve the 
undercharge relief contained in 49 U.S.C. 11712(a), enabling 
the Board to authorize departures by mutual consent from the 
tariff rate for past shipments so as to avoid or resolve both 
undercharge and overcharge claims.
    New chapter 149 (Civil and criminal penalties) would 
preserve the provisions of existing chapter 119 that are 
applicable to Part B, but would update the level of fines. New 
49 U.S.C. 14901 (General civil penalties), imported from 
existing 49 U.S.C. 11901, would contain civil penalties for 
violating reporting and registration requirements, household 
goods consumer-protection requirements, and the prohibitions 
against rate reductions to third parties.
    Several provisions from chapter 149 would be applicable 
only to the narrow set of transportation for which tariffs 
would still be required under Part B. Specifically, new 49 
U.S.C. 14902 (Civil penalty for accepting rebates from 
carriers), 14903 (Tariff violations), 14904 (Additional rate 
violations), and 14913 (Conclusiveness of rates in certain 
prosecutions) would import the tariff observance provisions of 
existing 49 U.S.C. 11902, 11903, 11904, and 11916, 
respectively.
    New 49 U.S.C. 14905 (Penalties for violations of rules 
relating to loading and unloading motor vehicles), imported 
from existing 49 U.S.C. 11902a, would contain specific civil 
and criminal penalties for violating the lumping provisions of 
new 49 U.S.C. 14103. New 49 U.S.C. 14906 (Evasion of regulation 
of motor carriers and brokers), imported from existing 49 
U.S.C. 11906, would contain penalties for evading regulation 
under Part B. New 49 U.S.C. 14907 (Record keeping and reporting 
violations), imported from existing 49 U.S.C. 11909, would 
contain specific penalties for withholding or falsifying 
records or reports that the Secretary or Board requires. New 49 
U.S.C. 14908 (Unlawful disclosure of information) would 
preserve those provisions of existing 49 U.S.C. 11910 
prohibiting entities that would be covered by Part B (or anyone 
receiving information from entities covered by Part B) from 
disclosing confidential shipper information.
    New 49 U.S.C. 14909 (Disobedience to subpoenas), imported 
from existing 49 U.S.C. 11913, would contain penalties for 
disobeying a subpoena issued by the Secretary or the Board 
under Part B. New 49 U.S.C. 14910 (General criminal penalty 
when specific penalty not provided), imported from existing 49 
U.S.C. 11914, would contain general criminal penalties when 
specific penalties are not provided for violations under Part 
B. New 49 U.S.C. 14911 (Punishment for violations committed by 
certain individuals), imported from existing 49 U.S.C. 11915, 
would extend the penalties of new chapter 149 to corporate 
officials, agents, and successors in interest. New 49 U.S.C. 
14912 (Weight-bumping in household goods transportation) would 
preserve the penalties for weight-bumping now contained in 49 
U.S.C. 11917.

   SUBTITLE B--MOTOR CARRIER REGISTRATION AND INSURANCE REQUIREMENTS

Sec. 451. Amendment of Section 31102

    This section would amend 49 U.S.C. 31102(b)(1) to provide 
that States receiving Federal grants under the Commercial Motor 
Vehicle Safety program cooperate in the enforcement of the 
registration and insurance requirements of 49 U.S.C. 31140 and 
31146.

Sec. 452. Amendment of section 31138

    This section would amend 49 U.S.C. 31138 to incorporate the 
existing ICC practice of allowing carriers to use multiple 
sources for satisfying the required level of insurance 
coverage, and to exclude from the Federal minimum insurance 
requirements certain subsidized mass transportation services, 
including specialized transportation for the elderly and 
disabled.
    This section continues the current exemption from Federal 
insurance requirements for transit operators who operate in 
cities or metropolitan areas that are divided by a state line 
(49 U.S.C. 10526 (b)). The bill requires these transit 
operators, when they cross a state line, meet the insurance 
requirements of the higher of the states in which they provide 
transit service. With the relief provided, transit operators, 
particularly in smaller communities, will now be better able to 
provide cross-State transportation service to nearby medical or 
other facilities. The Federally imposed insurance requirements, 
which are designed for commercial interstate carriers, have 
been financially burdensome for operators providing this needed 
service.

Sec. 453. Self-insurance rules

    This section would direct the Secretary to continue the 
existing ICC practice of allowing carriers to meet the 
insurance requirements through self-insurance where 
appropriate.

Sec. 454. Safety fitness of owners and operators

    This section would amend 49 U.S.C. 31144 for conforming 
changes.

                   Title V--Amendments to Other Laws

Section 501. Federal Election Campaign Act of 1971

    This section would amend 2 U.S.C. 451--under which the ICC 
regulates credit extended to candidates for carriers' 
services--to substitute the Board for the ICC and to eliminate 
a long-past date for issuing regulations.

Sec. 502. Agricultural Adjustment Act of 1938

    This section would amend 7 U.S.C. 1291--which authorizes 
the Secretary of Agriculture to bring to the ICC a complaint of 
an unreasonable rate or practice relating to transportation of 
farm products--to substitute the Board for the ICC.

Sec. 503. Agricultural Marketing Act of 1946

    This section would amend 7 U.S.C. 1622(j)--which authorizes 
the Secretary of Agriculture to bring petitions or complaints 
before the ICC regarding transportation rates, practices, and 
services--to substitute the Board for the ICC.

Sec. 504. Animal Welfare Act

    This section would amend 7 U.S.C. 2145(a)--which directs 
the ICC to take appropriate action to implement regulations of 
the Secretary of Agriculture governing the handling of animals 
in transportation--to substitute the Board for the ICC.

Sec. 505. Title 11, United States Code

    This section would amend the Bankruptcy Code in several 
places to substitute the Board for the ICC. The affected 
sections are 11 U.S.C. 1164 (authorizing the ICC to be heard in 
railroad bankruptcy reorganization proceedings), 1170 
(requiring ICC action before a bankruptcy court may authorize 
the abandonment of a line), and 1172 (requiring ICC approval 
for transfer of a bankrupt railroad's line).

Sec. 506. Clayton Act

    This section would amend 3 provisions of the Clayton Act to 
substitute the Board for the ICC. The affected sections are 15 
U.S.C. 18 (which exempts ICC-approved mergers and acquisitions 
from the antitrust laws), 21 (which authorizes the ICC to 
enforce provisions of the Clayton Act), and 26 (which precludes 
private enforcement of the antitrust laws against regulated 
carriers).

Sec. 507. Consumer Credit Protection Act

    This section would amend several administrative enforcement 
provisions of the Consumer Credit Protection Act to substitute 
the Board and the Secretary (for carriers subject to their 
respective jurisdictions) for the ICC and to otherwise conform 
to the changes made by this Act. The affected provisions are in 
15 U.S.C. 1681s (fair credit reporting requirements), 1691c 
(equal credit opportunity requirements), and 1692l (fair debt 
collection practice requirements).

Sec. 508. National Trails System Act

    This section would amend two provisions of the National 
Trails System Act to substitute the Board for the ICC. The 
affected sections are 16 U.S.C. 1247(d) (which directs the ICC 
to provide for interim use of railroad rights-of-way as trails) 
and 1248(d) (which directs the ICC to cooperate with the 
Secretary of Interior and Secretary of Agriculture to ensure 
that properties suitable for trails are made available for such 
use).

Sec. 509. Title 18, United States Code

    This section would amend 18 U.S.C. 6001--which provides 
immunity from prosecution for testimony before certain 
agencies--by substituting the Board for the ICC.

Sec. 510. Internal Revenue Code of 1986

    This section would amend various provisions of the Internal 
Revenue Code to conform the language to changes made by this 
Act and others. Notwithstanding these changes, this bill is not 
intended to affect the status of employers for purposes of the 
Railroad Retirement Act, the Railroad Unemployment Insurance 
Act, or the Railroad Retirement Tax Act, as section 122 of this 
bill clarifies.
    Subsection (a) would amend two railroad retirement tax 
provisions. First, it would amend 26 U.S.C. 3231(a)--which 
directs the ICC to determine whether a line operated by 
electric power comes under the tax--to substitute the Board for 
the ICC. Second, it would amend 26 U.S.C. 3231(g) to conform 
the language defining a carrier to reflect this bill.
    Subsection (b) would amend the definition of ``regulated 
public utility'' in 26 U.S.C. 7701(a). More specifically, it 
would amend 26 U.S.C. 7701(a)(33)(B) (dealing with gas pipeline 
carriers) to reflect that the duties of the Federal Power 
Commission have been transferred to the Federal Energy 
Regulatory Commission (FERC). It would amend 26 U.S.C. 
7701(a)(33)(C)(i) (dealing with railroads) to substitute the 
Board for the ICC. It would amend 26 U.S.C. 7701(a)(33)(C)(ii) 
(dealing with oil pipelines) to substitute FERC (which now has 
jurisdiction over such pipelines) for the ICC. It would amend 
26 U.S.C. 7701(a)(33)(F) (dealing with water carriers) to 
substitute the Secretary for the ICC. It would amend 26 U.S.C. 
7701(a)(33)(G) & (H) (dealing with railroad lessors and parent 
corporations, respectively) to conform references to the ICA to 
changes made by this bill.

Sec. 511. Title 28, United States Code

    This section would amend title 28 of the United States Code 
to substitute the Board for the ICC and to conform references 
to the ICA to changes made by this bill. Subsection (a) would 
change the heading for chapter 157, which governs review and 
enforcement of ICC orders. Subsection (b) would amend 28 U.S.C. 
2321, which provides for review of ICC decisions in Federal 
courts of appeals and enforcement of ICC orders (other than 
orders for the payment of money) in Federal district court. 
Subsection (c) would amend 28 U.S.C. 2323, which provides for 
the ICC to appear and be represented by its counsel in a court 
action involving the validity of its order, and provides for 
interested persons to intervene. Subsection (d) would amend 28 
U.S.C. 2341, which lists the federal agencies covered by the 
judicial review provisions of the Hobbs Act. Subsection (e) 
would amend 28 U.S.C. 2342, which assigns to the Federal courts 
of appeals exclusive jurisdiction to review the rules, 
regulations, or final orders of agencies covered by the Hobbs 
Act.

Sec. 512. Migrant and Seasonal Agricultural Worker Protection Act

    This section would amend 29 U.S.C. 1841(b)--dealing with 
motor vehicle safety in the transportation of migrant and 
seasonal agricultural workers--to reflect the structural 
changes made to subtitle IV of title 49 by this bill.

Sec. 513. Title 39, United States Code

    This section would amend various postal provisions of title 
39. Subsection (a) would amend 39 U.S.C. 5005--providing for 
public availability of Postal Service contracts for the 
transportation of mail--to substitute the Board for the ICC. 
Subsection (b) would amend 39 U.S.C. 5203--governing the Postal 
Service's use of regulated carriers--to remove subsection (f) 
(a provision for an ICC finding that providing mail 
transportation would be detrimental to a motor carrier or that 
the carrier would not be suitable for providing such 
transportation) and to revise subsection (g) to reflect the 
transfer to the Board of the ICC's oversight responsibilities 
for mail transportation under 39 U.S.C. 5207-5208. Subsection 
(c) amends 39 U.S.C. 5207--which authorizes the ICC to 
determine reasonable rates for mail transportation--to 
substitute the Board for the ICC. Subsection (d) would amend 39 
U.S.C. 5208--which provides procedures for reconsideration of 
ICC determines under 49 U.S.C. 5207--to substitute the Board 
for the ICC. Subsection (e) would make a conforming amendment 
to the index for Chapter 52 of Title 39.

Sec. 514. Energy Policy Act of 1992

    This section would amend 42 U.S.C. 13369--which directs the 
Secretary of Energy to obtain data from, and consult with, the 
ICC in establishing a data base on rates for transportation of 
coal, oil, and gas--to substitute the Board for the ICC.

Sec. 515. Railway Labor Act

    This section would amend 45 U.S.C. 151--which defines terms 
used in the Railway Labor Act--to conform the definition of 
``carrier'' to changes made by this bill and to substitute the 
Board for the ICC in various references.

Sec. 516. Railroad Retirement Act of 1974

    This section would amend 45 U.S.C. 231--which defines terms 
used in the Railroad Retirement Act of 1974--to conform the 
definition of ``carrier'' to comport with changes made in this 
bill and to substitute the Board for the ICC in various 
references. Notwithstanding these changes, this bill is not 
intended to affect the status of employers for purposes of the 
Railroad Retirement Act, as section 122 of the bill clarifies.

Sec. 517. Railroad Unemployment Insurance Act

    Subsection (a) would amend 45 U.S.C. 351 to conform the 
definition of ``carrier'' to comport with changes made in this 
bill and to substitute the Board for the ICC in references. 
Subsection (b) would amend 45 U.S.C. 352(h)(3) to substitute 
the Board for the ICC in one place and to clarify that the 
Board referred to next in that sentence is the Railroad 
Retirement Board. Notwithstanding these changes, this bill is 
not intended to affect the status of employers for purposes of 
the Railroad Unemployment Insurance Act, as section 122 of the 
bill clarifies.

Sec. 518. Emergency Rail Services Act of 1970

    This section would amend 45 U.S.C. 662--which requires ICC 
approval of the terms of purchase or lease when the Secretary 
procures track of a railroad in reorganization--to substitute 
the Board for the ICC.

Sec. 519. Regional Rail Reorganization Act of 1973

    This section would amend 45 U.S.C. 744--which requires ICC 
approval for changes in rail service in the Northeast by 
carriers other than Consolidated Rail Corporation (Conrail)--to 
substitute the Board for the ICC.

Sec. 520. Railroad Revitalization and Regulatory Reform Act of 1976

    This section would amend 45 U.S.C. 830--which involves 
government railroad loan programs--to update a reference to the 
railroad security issuance provisions of the ICA.

Sec. 521. Alaska Railroad Transfer Act of 1982

    This section would amend 45 U.S.C. 1207--which brings the 
Alaska Railroad under the ICC's jurisdiction--to substitute the 
Board for the ICC.

Sec. 522. Merchant Marine Act, 1920

    Subsection (a) would amend section 8 of the Merchant Marine 
Act, 1920 (46 U.S.C. App. 867)--under which the Secretary is to 
report to the ICC regarding detrimental effects on ports of 
rail rates and practices--to substitute the Board for the ICC. 
Subsection (b) would amend section 28 of the same Act (46 
U.S.C. App. 884)--under which the ICC is charged with enforcing 
a requirement that railroads may not prefer foreign flag water 
carriers by charging them a lower rate than American flag water 
carriers--to substitute the Board for the ICC.

Sec. 523. Service Contract Act of 1965

    This section would amend 41 U.S.C. 356(3)--which exempts 
motor carriers from the Davis-Bacon Act--to reflect the 
elimination of tariffs for most motor carriage under this bill.

Sec. 524. Federal Aviation Administration Authorization Act of 1994

    This section would amend section 601(d) of Pub. L. 301-305 
to continue Hawaii's regulation of motor carriers in that 
state.

                        Title VI--Authorization

Section 601. Authorization of appropriations

    This section would authorize funding for (1) the closedown 
of the ICC and severance costs for its personnel, (2) the Board 
for fiscal year 1996, and (3) the Board for fiscal years 1997 
and 1998 for the functions transferred from the ICC.

                       Title VII--Effective Date

Section 701. Effective date.

    This section would make this bill effective on January 1, 
1996.
                  ADDITIONAL VIEWS OF SENATOR PRESSLER

    I do not believe there should be federally-mandated labor 
protection provisions in any railroad transaction. My initial 
plan was to propose that all labor protection requirements be 
dropped to the six month standard as proposed in the Amtrak 
legislation and to ensure no labor protection on Class II or 
Class III railroad transactions.
    In deference to my Democratic colleagues and in the hopes 
of moving this legislation forward, I have agreed to include in 
S.1396 a labor protection standard. While this provision makes 
a modest step forward, it does not go nearly far enough. I 
believe that all federally-mandated labor protection should be 
eliminated for short line and regional railroads.
    I do want to acknowledge, however, that our Committee-
passed bill does include positive features. It promotes the 
line sale process and limits the discretion of the Board to 
impose labor protection. While we have not eliminated the 
option to impose labor protection on these transactions. 
However, we have lowered the ceiling on labor protection. If 
the Commission, as under the current standards, believes that 
``exceptional circumstances'' exist, they then have a range 
from notification to one year severance payments--not six 
years. I expect the Board to continue the existing exemption 
practice.
    The bill allows Class II and Class III freight railroads to 
directly acquire, construct, operate or provide transportation 
over rail line with the one year cap on labor protection. This 
will eliminate the need to set up ``new companies'' every time 
a line is acquired. Further, this will supersede section 11343 
requirements for these transactions which currently require the 
imposition of 6 year labor protection. For the first time it 
will be possible for a regional railroad to directly buy a line 
and operate it as a part of the system.
    If there is any question of a trade-off between federally-
mandated protection payments and service preservation, the 
dollars must go to service preservation. Only the most 
exceptional line sale cases should even present a question of 
whether labor protection should be imposed. This bill is 
intended to all but eliminate challenges so that the current 
exemption process can continue with few interruptions.
    Finally, in terms of labor protection, it is my view that 
an adversely affected employee is one who has lost his job 
because he is not hired by the acquiring carrier or retained by 
the selling carrier. We want the motivation to be to keep 
employees and their skills in the railroad industry, not to 
provide a pay off to leave it.

                                                    Larry Pressler.
                  ADDITIONAL VIEWS OF SENATOR ASHCROFT

    One issue which I feel needs to be examined further is that 
of remedies. Specifically, Congress must determine whether or 
not the Federal law for remedies should be exclusive and 
preempt remedies based on statutory or common law. The 
prevailing case law, as developed by courts across the country, 
has long interpreted the Interstate Commerce Act to prohibit 
remedies based on statutory or common law. However, recent 
court decisions have allowed action against carriers to proceed 
under other laws. I believe that Congress should be concerned 
about these decisions because they have the potential of 
undermining uniform federal policy. In fact, the Department of 
Transportation's ``Report on the Future of the Interstate 
Commerce Commission'' published in July of 1995 stated 
specifically that ``repeals or cutbacks in ICC's current 
regulatory authority should not revive common law or state 
jurisdiction.''
    Exclusive preemption of other remedies would prevent a 
confusing situation where legal actions are instituted under a 
variety of laws. This could result in similar claims being 
treated differently from one state to another and would likely 
encourage forum shopping. In order to avoid this, exclusive 
remedies are needed to provide a consistent method of resolving 
disputes and prevent needless litigation.
    I believe the Committee should continue to examine this 
issue before S.1396 is brought to the floor of the Senate. I 
believe it has been, and continues to be, the intent of 
Congress to establish a uniform federal standard for the 
benefit of interstate commerce and this nation's economy.
                                                     John Ashcroft.
                        Changes in Existing Law

    In the opinion of the Committee, it is necessary in order 
to expedite the business of the Senate to dispense with the 
requirement of paragraph 12 of rule XVI of the Standing Rules 
of the Senate (relating to the showing of changes in existing 
law made by the bill reported by the Committee).

                                
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