[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1010]


[[Page Unknown]]

[Federal Register: January 14, 1994]


=======================================================================
-----------------------------------------------------------------------

INTERSTATE COMMERCE COMMISSION

49 CFR Parts 1051, 1053 and 1312

[Ex Parte No. MC-180 (Sub-No. 3)]

 

Regulations Implementing Section 7 of the ``Negotiated Rates Act 
of 1993''

AGENCY: Interstate Commerce Commission (ICC).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The ``Negotiated Rates Act of 1993'' amends the Interstate 
Commerce Act by adding section 10767. Section 10767 requires that the 
Commission establish regulations to prohibit, except for certain 
services, motor common and contract carriers of property from providing 
a reduction in a tariff rate or contract rate to a person who is a 
nonpayer of freight charges. This proceeding establishes, as set forth 
below, the regulations required by the statute.

EFFECTIVE DATE: February 13, 1994.

FOR FURTHER INFORMATION CONTACT: Charles E. Langyher (202) 927-5160 or 
Ronald A. Hall (202) 927-5595; TDD for hearing impaired: (202) 927-
5721.

SUPPLEMENTARY INFORMATION: By a Notice of Proposed Rulemaking (NPR) in 
Ex Parte No. MC-180 (Sub-No. 2), Rulemaking--Payment of Discounts by 
Motor Carriers of Property to the Nonpayer of Freight Charges (not 
printed) served June 4, 1993 (58 FR 32340, June 9, 1993), the 
Commission instituted a proceeding to determine whether off-bill 
discounting where it does or may result in a misrepresentation of 
shipping charges should be found to be an unreasonable practice or 
otherwise unlawful. However, the ``Negotiated Rates Act of 1993'' (Pub. 
L. 103-180) since has been enacted and amends subchapter IV of chapter 
107 of title 49, United States Code, by adding section 10767, which 
requires that the Commission issue regulations by April 2, 1994, that 
will:
    (1) Prohibit, except as described in (4) below, motor common and 
contract carriers of property from providing a reduction in a tariff or 
contract rate to any party other than the person directly responsible 
to the carrier for payment of the transportation service according to 
the bill of lading, receipt, or contract, or an agent of the person 
paying for the transportation. 49 U.S.C. 10767(a).
    (2) Require a motor common carrier of property to disclose, either 
by a shipping document or an electronic transmission, the actual tariff 
rate, charge, or allowance to the person directly responsible for 
payment for the transportation service. 49 U.S.C. 10767(b).
    (3) Prohibit any person from causing a motor common carrier of 
property to present a document to any party of the transaction, which 
contains false or misleading information about the actual tariff rate, 
charge, or allowance. 49 U.S.C. 10767(b).
    (4) Permit motor common and contract carriers of property to make 
actual tariff or contract payments or allowances to a party to the 
transaction, when such party performs a transportation service that 
would otherwise be performed by the carrier, such as a loading and 
unloading service, provided that the payment or allowance is reasonably 
related to the cost that such party knows or has reason to know would 
otherwise be incurred by the motor carrier if it had performed the 
service. 49 U.S.C. 10767(c).
    Because section 10767 supersedes the NPR, the Ex Parte No. MC-180 
(Sub-No. 2) proceeding is discontinued.
    The Commission does not believe this revision requires notice and 
comment rulemaking under section 553 of the Administrative Procedure 
Act (5 U.S.C. 553) because it establishes regulations mandated by 
Congress.
    This decision will not affect significantly either the quality of 
the human environment or the conservation of energy resources.

List of Subjects

49 CFR Part 1051

    Buses, Freight, Motor carriers, Reporting and recordkeeping 
requirements.

49 CFR Part 1053

    Motor contract carriers.

49 CFR Part 1312

    Motor carriers, Moving of household goods, Pipelines, Tariffs.

    Decided: December 30, 1993.

    By the Commission, Chairman McDonald, Vice Chairman Simmons, 
Commissioners Phillips, and Philbin.
Sidney L. Strickland, Jr.,
Secretary.
    For the reasons set forth in the preamble, the Commission amends 
chapter X of title 49 of the Code of Federal Regulations as follows:

PART 1051--RECEIPTS AND BILLS

    1. The authority citation for part 1051 is revised to read as 
follows:


    Authority: 5 U.S.C. 553; 49 U.S.C. 10321, 10767 and 11144.


    2. In Sec. 1051.2, paragraph (a) introductory text and paragraphs 
(a)(1) through (a)(11) are redesignated as paragraph (a)(1) 
introductory text and paragraphs (a)(1)(i) through (a)(1)(xi), 
respectively, and new paragraphs (a)(2) and (a)(3) are added to read as 
follows:


Sec. 1051.2  Expense bills.

    (a) Property. (1) * * *
    (2) A documents for payment that is presented or transmitted 
electronically by a motor carrier to the person directly responsible to 
the motor carrier for payment, or to an agent of such responsible 
person, must:
    (i) Disclose the actual rates, charges, or allowances for the 
transportation service.
    (ii) Indicate that a reduction, allowance, or other adjustment may 
apply when the actual rate, charge, or allowance is dependent upon the 
performance of a service by a party to the transportation arrangement, 
such as tendering a volume of freight over a stated period of time.
    (3) No person shall cause a motor carrier to present false or 
misleading information on a document for payment about the actual rate, 
charge, or allowance to any party to the transaction.
* * * * *
    3. A new part 1053 is added to read as follows:

PART 1053--LIMITATION ON CONTRACT CARRIER RATE REDUCTIONS

    Sec. 1053.1  Rate reduction limitations.

    Authority: 5 U.S.C. 553; 49 U.S.C. 10321 and 10767.


Sec. 1053.1  Rate reduction limitations.

    (a) Except as provided in paragraph (b) of this section, a motor 
contract carrier of property shall not establish or maintain contracts 
providing a reduction in a rate set forth in its contract to any person 
other than:
    (1) The person directly responsible to the motor carrier for 
payment for the transportation service, according to the bill of 
lading, receipt or contract; or
    (2) An agent of the person directly responsible to the motor 
carrier.
    (b) The provisions of paragraph (a) of this section shall not 
prohibit a motor contract carrier of property from making contractual 
payments or allowances to a party to the transaction for services that 
would otherwise be performed by the motor carrier, e.g. loading or 
unloading service, if the payments or allowances are reasonably related 
to the cost that such party knows or has reason to know would otherwise 
be incurred by the motor carrier.

PART 1312--REGULATIONS FOR THE PUBLICATION, POSTING AND FILING OF 
TARIFFS, SCHEDULES AND RELATED DOCUMENTS

    4. The authority citation for part 1312 is revised to read as 
follows:


    Authority: 5 U.S.C. 553; 49 U.S.C. 10321, 10762 and 10767.

    5. In Sec. 1312.14, a new paragraph (a)(4) is added to read as 
follows:


Sec. 1312.14  Statement of rates and fares.

    (a) * * *
    (4)(i) Except as provided in paragraph (a)(4)(ii) of this section, 
a motor common carrier of property shall not establish or maintain 
tariffs providing a reduction in a rate to any person other than:
    (A) The person directly responsible to the motor carrier for 
payment for the transportation service, according to the bill of lading 
or receipt; or
    (B) An agent of the person directly responsible to the motor 
carrier. See also, Sec. 1051.2(a) of this chapter.
    (ii) The provisions of paragraph (a)(4)(i) of this section shall 
not prohibit a motor carrier from making tariff specified payments or 
allowances to a party to the transaction for services that would 
otherwise be performed by the motor carrier, e.g. as loading or 
unloading service, if the payments or allowances are reasonably related 
to the cost that such party knows or has reason to know would otherwise 
be incurred by the motor carrier. See also, Sec. 1312.28.
* * * * *
[FR Doc. 94-1010 Filed 1-13-94; 8:45 am]
BILLING CODE 7035-01-P