[104th Congress Public Law 88]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ88.104]
[[Page 109 STAT. 803]]
Public Law 104-88
104th Congress
An Act
To abolish the Interstate Commerce Commission, to amend subtitle IV of
title 49, United States Code, to reform economic regulation of
transportation, and for other purposes. <<NOTE: Dec. 29, 1995 - [H.R.
2539]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: ICC Termination
Act of 1995. Government organization.>>
SECTION 1. <<NOTE: 49 USC 101 note.>> SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``ICC Termination Act
of 1995''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
TITLE I--ABOLITION OF INTERSTATE COMMERCE COMMISSION
Sec. 101. Abolition.
Sec. 102. Rail provisions.
Sec. 103. Motor carrier, water carrier, and freight forwarder
provisions.
Sec. 104. Miscellaneous motor carrier provisions.
Sec. 105. Creditability of annual leave for purposes of meeting minimum
eligibility requirements for an immediate annuity.
Sec. 106. Pipeline carrier provisions.
TITLE II--SURFACE TRANSPORTATION BOARD
Sec. 201. Title 49 amendment.
Sec. 202. Reorganization.
Sec. 203. Transfer of assets and personnel.
Sec. 204. Saving provisions.
Sec. 205. References.
TITLE III--CONFORMING AMENDMENTS
Subtitle A--Amendments to United States Code
Sec. 301. Title 5 amendments.
Sec. 302. Title 11 amendments.
Sec. 303. Title 18 amendments.
Sec. 304. Internal Revenue Code of 1986 amendments.
Sec. 305. Title 28 amendments.
Sec. 306. Title 31 amendments.
Sec. 307. Title 39 amendments.
Sec. 308. Title 49 amendments.
Subtitle B--Other Amendments
Sec. 311. Agricultural Adjustment Act of 1938 amendments.
Sec. 312. Animal Welfare Act amendment.
Sec. 313. Federal Election Campaign Act of 1971 amendments.
Sec. 314. Fair Credit Reporting Act amendment.
Sec. 315. Equal Credit Opportunity Act amendment.
Sec. 316. Fair Debt Collection Practices Act amendment.
Sec. 317. National Trails System Act amendments.
Sec. 318. Clayton Act amendments.
Sec. 319. Inspector General Act of 1978 amendment.
Sec. 320. Energy Policy Act of 1992 amendments.
[[Page 109 STAT. 804]]
Sec. 321. Merchant Marine Act, 1920, amendments.
Sec. 322. Railway Labor Act amendments.
Sec. 323. Railroad Retirement Act of 1974 amendments.
Sec. 324. Railroad Unemployment Insurance Act amendments.
Sec. 325. Emergency Rail Services Act of 1970 amendments.
Sec. 326. Alaska Railroad Transfer Act of 1982 amendments.
Sec. 327. Regional Rail Reorganization Act of 1973 amendments.
Sec. 328. Milwaukee Railroad Restructuring Act amendment.
Sec. 329. Rock Island Railroad Transition and Employee Assistance Act
amendments.
Sec. 330. Railroad Revitalization and Regulatory Reform Act of 1976
amendments.
Sec. 331. Northeast Rail Service Act of 1981 amendments.
Sec. 332. Conrail Privatization Act amendment.
Sec. 333. Migrant and Seasonal Agricultural Worker Protection Act
amendments.
Sec. 334. Federal Aviation Administration Authorization Act of 1994.
Sec. 335. Termination of certain maritime authority.
Sec. 336. Armored Car Industry Reciprocity Act of 1993 amendments.
Sec. 337. Labor Management Relations Act, 1947 amendment.
Sec. 338. Inlands Waterway Revenue Act of 1978 amendment.
Sec. 339. Noise Control Act of 1972 amendment.
Sec. 340. Fair Labor Standards Act of 1938 amendment.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Certain commercial space launch activities.
Sec. 402. Destruction of motor vehicles or motor vehicle facilities;
wrecking trains.
Sec. 403. Violation of grade-crossing laws and regulations.
Sec. 404. Miscellaneous title 23 amendments.
Sec. 405. Technical amendments.
Sec. 406. Fiber drum packaging.
Sec. 407. Noncontiguous domestic trade study.
Sec. 408. Federal Highway Administration rulemaking.
SEC. 2. <<NOTE: 49 USC 701 note.>> EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act shall take effect
on January 1, 1996.
TITLE I--ABOLITION OF INTERSTATE COMMERCE COMMISSION
SEC. 101. <<NOTE: 49 USC 701 note.>> ABOLITION.
The Interstate Commerce Commission is abolished.
SEC. 102. RAIL PROVISIONS.
(a) Amendment.--Subtitle IV of title 49, United States Code, is
amended to read as follows:
``SUBTITLE IV--INTERSTATE TRANSPORTATION
``PART A--RAIL
``Chapter Sec.......................................
GENERAL PROVISIONS 10101
JURISDICTION 10501
RATES. 10701
LICENSING 10901
OPERATIONS 11101
FINANCE 11301
FEDERAL-STATE RELATIONS 11501
ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES 11701
CIVIL AND CRIMINAL PENALTIES 11901
``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT
FORWARDERS
``Chapter Sec.......................................
GENERAL PROVISIONS 13101
[[Page 109 STAT. 805]]
ADMINISTRATIVE PROVISIONS 13301
JURISDICTION 13501
RATES AND THROUGH ROUTES 13701
REGISTRATION 13901
OPERATIONS OF CARRIERS 14101
FINANCE 14301
FEDERAL-STATE RELATIONS 14501
ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES 14701
CIVIL AND CRIMINAL PENALTIES 14901
``PART C--PIPELINE CARRIERS
``Chapter Sec.......................................
GENERAL PROVISIONS 15101
JURISDICTION 15301
RATES AND TARIFFS 15501
OPERATIONS OF CARRIERS 15701
ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES 15901
CIVIL AND CRIMINAL PENALTIES 16101
``PART A--RAIL
``CHAPTER 101--GENERAL PROVISIONS
``Sec.
``10101. Rail transportation policy.
``10102. Definitions.
``Sec. 10101. Rail transportation policy
``In regulating the railroad industry, it is the policy of the
United States Government--
``(1) to allow, to the maximum extent possible, competition
and the demand for services to establish reasonable rates for
transportation by rail;
``(2) to minimize the need for Federal regulatory control
over the rail transportation system and to require fair and
expeditious regulatory decisions when regulation is required;
``(3) to promote a safe and efficient rail transportation
system by allowing rail carriers to earn adequate revenues, as
determined by the Board;
``(4) to ensure the development and continuation of a sound
rail transportation system with effective competition among rail
carriers and with other modes, to meet the needs of the public
and the national defense;
``(5) to foster sound economic conditions in transportation
and to ensure effective competition and coordination between
rail carriers and other modes;
``(6) to maintain reasonable rates where there is an absence
of effective competition and where rail rates provide revenues
which exceed the amount necessary to maintain the rail system
and to attract capital;
``(7) to reduce regulatory barriers to entry into and exit
from the industry;
``(8) to operate transportation facilities and equipment
without detriment to the public health and safety;
``(9) to encourage honest and efficient management of
railroads;
``(10) to require rail carriers, to the maximum extent
practicable, to rely on individual rate increases, and to limit
the use of increases of general applicability;
``(11) to encourage fair wages and safe and suitable working
conditions in the railroad industry;
[[Page 109 STAT. 806]]
``(12) to prohibit predatory pricing and practices, to avoid
undue concentrations of market power, and to prohibit unlawful
discrimination;
``(13) to ensure the availability of accurate cost
information in regulatory proceedings, while minimizing the
burden on rail carriers of developing and maintaining the
capability of providing such information;
``(14) to encourage and promote energy conservation; and
``(15) to provide for the expeditious handling and
resolution of all proceedings required or permitted to be
brought under this part.
``Sec. 10102. Definitions
``In this part--
``(1) `Board' means the Surface Transportation Board;
``(2) `car service' includes (A) the use, control, supply,
movement, distribution, exchange, interchange, and return of
locomotives, cars, other vehicles, and special types of
equipment used in the transportation of property by a rail
carrier, and (B) the supply of trains by a rail carrier;
``(3) `control', when referring to a relationship between
persons, includes actual control, legal control, and the power
to exercise control, through or by (A) common directors,
officers, stockholders, a voting trust, or a holding or
investment company, or (B) any other means;
``(4) `person', in addition to its meaning under section 1
of title 1, includes a trustee, receiver, assignee, or personal
representative of a person;
``(5) `rail carrier' means a person providing common carrier
railroad transportation for compensation, but does not include
street, suburban, or interurban electric railways not operated
as part of the general system of rail transportation;
``(6) `railroad' includes--
``(A) a bridge, car float, lighter, ferry, and
intermodal equipment used by or in connection with a
railroad;
``(B) the road used by a rail carrier and owned by
it or operated under an agreement; and
``(C) a switch, spur, track, terminal, terminal
facility, and a freight depot, yard, and ground, used or
necessary for transportation;
``(7) `rate' means a rate or charge for transportation;
``(8) `State' means a State of the United States and the
District of Columbia;
``(9) `transportation' includes--
``(A) a locomotive, car, vehicle, vessel, warehouse,
wharf, pier, dock, yard, property, facility,
instrumentality, or equipment of any kind related to the
movement of passengers or property, or both, by rail,
regardless of ownership or an agreement concerning use;
and
``(B) services related to that movement, including
receipt, delivery, elevation, transfer in transit,
refrigeration, icing, ventilation, storage, handling,
and interchange of passengers and property; and
``(10) `United States' means the States of the United States
and the District of Columbia.
[[Page 109 STAT. 807]]
``CHAPTER 105--JURISDICTION
``Sec.
``10501. General jurisdiction.
``10502. Authority to exempt rail carrier transportation.
``Sec. 10501. General jurisdiction
``(a)(1) Subject to this chapter, the Board has jurisdiction over
transportation by rail carrier that is--
``(A) only by railroad; or
``(B) by railroad and water, when the transportation is
under common control, management, or arrangement for a
continuous carriage or shipment.
``(2) Jurisdiction under paragraph (1) applies only to
transportation in the United States between a place in--
``(A) a State and a place in the same or another State as
part of the interstate rail network;
``(B) a State and a place in a territory or possession of
the United States;
``(C) a territory or possession of the United States and a
place in another such territory or possession;
``(D) a territory or possession of the United States and
another place in the same territory or possession;
``(E) the United States and another place in the United
States through a foreign country; or
``(F) the United States and a place in a foreign country.
``(b) The jurisdiction of the Board over--
``(1) transportation by rail carriers, and the remedies
provided in this part with respect to rates, classifications,
rules (including car service, interchange, and other operating
rules), practices, routes, services, and facilities of such
carriers; and
``(2) the construction, acquisition, operation, abandonment,
or discontinuance of spur, industrial, team, switching, or side
tracks, or facilities, even if the tracks are located, or
intended to be located, entirely in one State,
is exclusive. Except as otherwise provided in this part, the remedies
provided under this part with respect to regulation of rail
transportation are exclusive and preempt the remedies provided under
Federal or State law.
``(c)(1) In this subsection--
``(A) the term `local governmental authority'--
``(i) has the same meaning given that term by
section 5302(a) of this title; and
``(ii) includes a person or entity that contracts
with the local governmental authority to provide
transportation services; and
``(B) the term `mass transportation' means transportation
services described in section 5302(a) of this title that are
provided by rail.
``(2) Except as provided in paragraph (3), the Board does not have
jurisdiction under this part over mass transportation provided by a
local governmental authority.
``(3)(A) Notwithstanding paragraph (2) of this subsection, a local
governmental authority, described in paragraph (2), is subject to
applicable laws of the United States related to--
``(i) safety;
``(ii) the representation of employees for collective
bargaining; and
[[Page 109 STAT. 808]]
``(iii) employment, retirement, annuity, and unemployment
systems or other provisions related to dealings between
employees and employers.
``(B) The Board has jurisdiction under sections 11102 and 11103 of
this title over transportation provided by a local governmental
authority only if the Board finds that such governmental authority meets
all of the standards and requirements for being a rail carrier providing
transportation subject to the jurisdiction of the Interstate Commerce
Commission that were in effect immediately before the effective date of
the ICC Termination Act of 1995. The enactment of the ICC Termination
Act of 1995 shall neither expand nor contract coverage of employees and
employers by the Railway Labor Act, the Railroad Retirement Act of 1974,
the Railroad Retirement Tax Act, and the Railroad Unemployment Insurance
Act.
``Sec. 10502. Authority to exempt rail carrier transportation
``(a) In a matter related to a rail carrier providing transportation
subject to the jurisdiction of the Board under this part, the Board, to
the maximum extent consistent with this part, shall exempt a person,
class of persons, or a transaction or service whenever the Board finds
that the application in whole or in part of a provision of this part--
``(1) is not necessary to carry out the transportation
policy of section 10101 of this title; and
``(2) either--
``(A) the transaction or service is of limited
scope; or
``(B) the application in whole or in part of the
provision is not needed to protect shippers from the
abuse of market power.
``(b) The Board may, where appropriate, begin a proceeding under
this section on its own initiative or on application by the Secretary of
Transportation or an interested party. The Board shall, within 90 days
after receipt of any such application, determine whether to begin an
appropriate proceeding. <<NOTE: Federal Register, publication.>> If the
Board decides not to begin a class exemption proceeding, the reasons for
the decision shall be published in the Federal Register. Any proceeding
begun as a result of an application under this subsection shall be
completed within 9 months after it is begun.
``(c) The Board may specify the period of time during which an
exemption granted under this section is effective.
``(d) The Board may revoke an exemption, to the extent it specifies,
when it finds that application in whole or in part of a provision of
this part to the person, class, or transportation is necessary to carry
out the transportation policy of section 10101 of this title. The Board
shall, within 90 days after receipt of a request for revocation under
this subsection, determine whether to begin an appropriate
proceeding. <<NOTE: Federal Register, publication.>> If the Board
decides not to begin a proceeding to revoke a class exemption, the
reasons for the decision shall be published in the Federal Register. Any
proceeding begun as a result of a request under this subsection shall be
completed within 9 months after it is begun.
``(e) No exemption order issued pursuant to this section shall
operate to relieve any rail carrier from an obligation to provide
contractual terms for liability and claims which are consistent with the
provisions of section 11706 of this title. Nothing in this subsection or
section 11706 of this title shall prevent rail carriers from offering
alternative terms nor give the Board the authority
[[Page 109 STAT. 809]]
to require any specific level of rates or services based upon the
provisions of section 11706 of this title.
``(f) The Board may exercise its authority under this section to
exempt transportation that is provided by a rail carrier as part of a
continuous intermodal movement.
``(g) The Board may not exercise its authority under this section to
relieve a rail carrier of its obligation to protect the interests of
employees as required by this part.
``CHAPTER 107--RATES
``SUBCHAPTER I--GENERAL AUTHORITY
``Sec.
``10701. Standards for rates, classifications, through routes, rules,
and practices.
``10702. Authority for rail carriers to establish rates,
classifications, rules, and practices.
``10703. Authority for rail carriers to establish through routes.
``10704. Authority and criteria: rates, classifications, rules, and
practices prescribed by Board.
``10705. Authority: through routes, joint classifications, rates, and
divisions prescribed by Board.
``10706. Rate agreements: exemption from antitrust laws.
``10707. Determination of market dominance in rail rate proceedings.
``10708. Rail cost adjustment factor.
``10709. Contracts.
``SUBCHAPTER II--SPECIAL CIRCUMSTANCES
``10721. Government traffic.
``10722. Car utilization.
``SUBCHAPTER III--LIMITATIONS
``10741. Prohibitions against discrimination by rail carriers.
``10742. Facilities for interchange of traffic.
``10743. Liability for payment of rates.
``10744. Continuous carriage of freight.
``10745. Transportation services or facilities furnished by shipper.
``10746. Demurrage charges.
``10747. Designation of certain routes by shippers.
``SUBCHAPTER I--GENERAL AUTHORITY
``Sec. 10701. Standards for rates, classifications, through
routes, rules, and practices
``(a) A through route established by a rail carrier must be
reasonable. Divisions of joint rates by rail carriers must be made
without unreasonable discrimination against a participating carrier and
must be reasonable.
``(b) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part may not discriminate in its
rates against a connecting line of another rail carrier providing
transportation subject to the jurisdiction of the Board under this part
or unreasonably discriminate against that line in the distribution of
traffic that is not routed specifically by the shipper.
``(c) Except as provided in subsection (d) of this section and
unless a rate is prohibited by a provision of this part, a rail carrier
providing transportation subject to the jurisdiction of the Board under
this part may establish any rate for transportation or other service
provided by the rail carrier.
``(d)(1) If the Board determines, under section 10707 of this title,
that a rail carrier has market dominance over the transportation to
which a particular rate applies, the rate established by such carrier
for such transportation must be reasonable.
[[Page 109 STAT. 810]]
``(2) In determining whether a rate established by a rail carrier is
reasonable for purposes of this section, the Board shall give due
consideration to--
``(A) the amount of traffic which is transported at revenues
which do not contribute to going concern value and the efforts
made to minimize such traffic;
``(B) the amount of traffic which contributes only
marginally to fixed costs and the extent to which, if any, rates
on such traffic can be changed to maximize the revenues from
such traffic; and
``(C) the carrier's mix of rail traffic to determine whether
one commodity is paying an unreasonable share of the carrier's
overall revenues,
recognizing the policy of this part that rail carriers shall earn
adequate revenues, as established by the Board under section 10704(a)(2)
of this title.
``(3) The Board shall, within one year after the effective date of
this paragraph, complete the pending Interstate Commerce Commission non-
coal rate guidelines proceeding to establish a simplified and expedited
method for determining the reasonableness of challenged rail rates in
those cases in which a full stand-alone cost presentation is too costly,
given the value of the case.
``Sec. 10702. Authority for rail carriers to establish rates,
classifications, rules, and practices
``A rail carrier providing transportation or service subject to the
jurisdiction of the Board under this part shall establish reasonable--
``(1) rates, to the extent required by section 10707,
divisions of joint rates, and classifications for transportation
and service it may provide under this part; and
``(2) rules and practices on matters related to that
transportation or service.
``Sec. 10703. Authority for rail carriers to establish through
routes
``Rail carriers providing transportation subject to the jurisdiction
of the Board under this part shall establish through routes (including
physical connections) with each other and with water carriers providing
transportation subject to chapter 137, shall establish rates and
classifications applicable to those routes, and shall establish rules
for their operation and provide--
``(1) reasonable facilities for operating the through route;
and
``(2) reasonable compensation to persons entitled to
compensation for services related to the through route.
``Sec. 10704. Authority and criteria: rates, classifications,
rules, and practices prescribed by Board
``(a)(1) When the Board, after a full hearing, decides that a rate
charged or collected by a rail carrier for transportation subject to the
jurisdiction of the Board under this part, or that a classification,
rule, or practice of that carrier, does or will violate this part, the
Board may prescribe the maximum rate, classification, rule, or practice
to be followed. The Board may order the carrier to stop the violation.
When a rate, classification, rule, or practice is prescribed under this
subsection, the affected carrier may not
[[Page 109 STAT. 811]]
publish, charge, or collect a different rate and shall adopt the
classification and observe the rule or practice prescribed by the Board.
``(2) The Board shall maintain and revise as necessary standards and
procedures for establishing revenue levels for rail carriers providing
transportation subject to its jurisdiction under this part that are
adequate, under honest, economical, and efficient management, to cover
total operating expenses, including depreciation and obsolescence, plus
a reasonable and economic profit or return (or both) on capital employed
in the business. The Board shall make an adequate and continuing effort
to assist those carriers in attaining revenue levels prescribed under
this paragraph. Revenue levels established under this paragraph should--
``(A) provide a flow of net income plus depreciation
adequate to support prudent capital outlays, assure the
repayment of a reasonable level of debt, permit the raising of
needed equity capital, and cover the effects of inflation; and
``(B) attract and retain capital in amounts adequate to
provide a sound transportation system in the United States.
``(3) On the basis of the standards and procedures described in
paragraph (2), the Board shall annually determine which rail carriers
are earning adequate revenues.
``(b) The Board may begin a proceeding under this section only on
complaint. A complaint under subsection (a) of this section must be made
under section 11701 of this title, but the proceeding may also be in
extension of a complaint pending before the Board.
``(c) In a proceeding to challenge the reasonableness of a rate, the
Board shall make its determination as to the reasonableness of the
challenged rate--
``(1) within 9 months after the close of the administrative
record if the determination is based upon a stand-alone cost
presentation; or
``(2) within 6 months after the close of the administrative
record if the determination is based upon the methodology
adopted by the Board pursuant to section 10701(d)(3).
``(d) Within 9 months after the effective date of the ICC
Termination Act of 1995, the Board shall establish procedures to ensure
expeditious handling of challenges to the reasonableness of railroad
rates. The procedures shall include appropriate measures for avoiding
delay in the discovery and evidentiary phases of such proceedings and
exemption or revocation proceedings, including appropriate sanctions for
such delay, and for ensuring prompt disposition of motions and
interlocutory administrative appeals.
``Sec. 10705. Authority: through routes, joint classifications,
rates, and divisions prescribed by Board
``(a)(1) The Board may, and shall when it considers it desirable in
the public interest, prescribe through routes, joint classifications,
joint rates, the division of joint rates, and the conditions under which
those routes must be operated, for a rail carrier providing
transportation subject to the jurisdiction of the Board under this part.
``(2) The Board may require a rail carrier to include in a through
route substantially less than the entire length of its railroad and any
intermediate railroad operated with it under common management or
control if that intermediate railroad lies between the terminals of the
through route only when--
[[Page 109 STAT. 812]]
``(A) required under section 10741, 10742, or 11102 of this
title;
``(B) inclusion of those lines would make the through route
unreasonably long when compared with a practicable alternative
through route that could be established; or
``(C) the Board decides that the proposed through route is
needed to provide adequate, and more efficient or economic,
transportation.
The Board shall give reasonable preference, subject to this subsection,
to the rail carrier originating the traffic when prescribing through
routes.
``(b) The Board shall prescribe the division of joint rates to be
received by a rail carrier providing transportation subject to its
jurisdiction under this part when it decides that a division of joint
rates established by the participating carriers under section 10703 of
this title, or under a decision of the Board under subsection (a) of
this section, does or will violate section 10701 of this title.
``(c) If a division of a joint rate prescribed under a decision of
the Board is later found to violate section 10701 of this title, the
Board may decide what division would have been reasonable and order
adjustment to be made retroactive to the date the complaint was filed,
the date the order for an investigation was made, or a later date that
the Board decides is justified. The Board may make a decision under this
subsection effective as part of its original decision.
``Sec. 10706. Rate agreements: exemption from antitrust laws
``(a)(1) In this subsection--
``(A) the term `affiliate' means a person controlling,
controlled by, or under common control or ownership with another
person and `ownership' refers to equity holdings in a business
entity of at least 5 percent;
``(B) the term `single-line rate' refers to a rate or
allowance proposed by a single rail carrier that is applicable
only over its line and for which the transportation (exclusive
of terminal services by switching, drayage or other terminal
carriers or agencies) can be provided by that carrier; and
``(C) the term `practicably participates in the movement'
shall have such meaning as the Board shall by regulation
prescribe.
``(2)(A) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part that is a party to an
agreement of at least 2 rail carriers that relates to rates (including
charges between rail carriers and compensation paid or received for the
use of facilities and equipment), classifications, divisions, or rules
related to them, or procedures for joint consideration, initiation,
publication, or establishment of them, shall apply to the Board for
approval of that agreement under this subsection. The Board shall
approve the agreement only when it finds that the making and carrying
out of the agreement will further the transportation policy of section
10101 of this title and may require compliance with conditions necessary
to make the agreement further that policy as a condition of its
approval. If the Board approves the agreement, it may be made and
carried out under its terms and under the conditions required by the
Board, and the Sherman Act (15 U.S.C. 1, et seq.), the Clayton Act (15
U.S.C. 12, et seq.), the Federal Trade Commission Act (15 U.S.C. 41, et
seq.), sections
[[Page 109 STAT. 813]]
73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) do not apply to parties and
other persons with respect to making or carrying out the agreement.
However, the Board may not approve or continue approval of an agreement
when the conditions required by it are not met or if it does not receive
a verified statement under subparagraph (B) of this paragraph.
``(B) The Board may approve an agreement under subparagraph (A) of
this paragraph only when the rail carriers applying for approval file a
verified statement with the Board. Each statement must specify for each
rail carrier that is a party to the agreement--
``(i) the name of the carrier;
``(ii) the mailing address and telephone number of its
headquarter's office; and
``(iii) the names of each of its affiliates and the names,
addresses, and affiliates of each of its officers and directors
and of each person, together with an affiliate, owning or
controlling any debt, equity, or security interest in it having
a value of at least $1,000,000.
``(3)(A) An organization established or continued under an agreement
approved under this subsection shall make a final disposition of a rule
or rate docketed with it by the 120th day after the proposal is
docketed. Such an organization may not--
``(i) permit a rail carrier to discuss, to participate in
agreements related to, or to vote on single-line rates proposed
by another rail carrier, except that for purposes of general
rate increases and broad changes in rates, classifications,
rules, and practices only, if the Board finds at any time that
the implementation of this clause is not feasible, it may delay
or suspend such implementation in whole or in part;
``(ii) permit a rail carrier to discuss, to participate in
agreements related to, or to vote on rates related to a
particular interline movement unless that rail carrier
practicably participates in the movement; or
``(iii) if there are interline movements over two or more
routes between the same end points, permit a carrier to discuss,
to participate in agreements related to, or to vote on rates
except with a carrier which forms part of a particular single
route. If the Board finds at any time that the implementation of
this clause is not feasible, it may delay or suspend such
implementation in whole or in part.
``(B)(i) In any proceeding in which a party alleges that a rail
carrier voted or agreed on a rate or allowance in violation of this
subsection, that party has the burden of showing that the vote or
agreement occurred. A showing of parallel behavior does not satisfy that
burden by itself.
``(ii) In any proceeding in which it is alleged that a carrier was a
party to an agreement, conspiracy, or combination in violation of a
Federal law cited in subsection (a)(2)(A) of this section or of any
similar State law, proof of an agreement, conspiracy, or combination may
not be inferred from evidence that two or more rail carriers acted
together with respect to an interline rate or related matter and that a
party to such action took similar action with respect to a rate or
related matter on another route or traffic. In any proceeding in which
such a violation is alleged, evidence of a discussion or agreement
between or among such rail carrier and one or more other rail carriers,
or of any rate or other action
[[Page 109 STAT. 814]]
resulting from such discussion or agreement, shall not be admissible if
the discussion or agreement--
``(I) was in accordance with an agreement approved under
paragraph (2) of this subsection; or
``(II) concerned an interline movement of the rail carrier,
and the discussion or agreement would not, considered by itself,
violate the laws referred to in the first sentence of this
clause.
In any proceeding before a jury, the court shall determine whether the
requirements of subclause (I) or (II) are satisfied before allowing the
introduction of any such evidence.
``(C) <<NOTE: Records. Confidentiality.>> An organization described
in subparagraph (A) of this paragraph shall provide that transcripts or
sound recordings be made of all meetings, that records of votes be made,
and that such transcripts or recordings and voting records be submitted
to the Board and made available to other Federal agencies in connection
with their statutory responsibilities over rate bureaus, except that
such material shall be kept confidential and shall not be subject to
disclosure under section 552 of title 5, United States Code.
``(4) Notwithstanding any other provision of this subsection, one or
more rail carriers may enter into an agreement, without obtaining prior
Board approval, that provides solely for compilation, publication, and
other distribution of rates in effect or to become effective. The
Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12 et
seq.), the Federal Trade Commission Act (15 U.S.C. 41 et seq.), sections
73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) shall not apply to parties
and other persons with respect to making or carrying out such agreement.
However, the Board may, upon application or on its own initiative,
investigate whether the parties to such an agreement have exceeded its
scope, and upon a finding that they have, the Board may issue such
orders as are necessary, including an order dissolving the agreement, to
ensure that actions taken pursuant to the agreement are limited as
provided in this paragraph.
``(5)(A) Whenever two or more shippers enter into an agreement to
discuss among themselves that relates to the amount of compensation such
shippers propose to be paid by rail carriers providing transportation
subject to the jurisdiction of the Board under this part, for use by
such rail carriers of rolling stock owned or leased by such shippers,
the shippers shall apply to the Board for approval of that agreement
under this paragraph. The Board shall approve the agreement only when it
finds that the making and carrying out of the agreement will further the
transportation policy set forth in section 10101 of this title and may
require compliance with conditions necessary to make the agreement
further that policy as a condition of approval. If the Board approves
the agreement, it may be made and carried out under its terms and under
the terms required by the Board, and the antitrust laws set forth in
paragraph (2) of this subsection do not apply to parties and other
persons with respect to making or carrying out the agreement. The Board
shall approve or disapprove an agreement under this paragraph within one
year after the date application for approval of such agreement is made.
``(B) If the Board approves an agreement described in subparagraph
(A) of this paragraph and the shippers entering into such agreement and
the rail carriers proposing to use rolling stock owned
[[Page 109 STAT. 815]]
or leased by such shippers, under payment by such carriers or under a
published allowance, are unable to agree upon the amount of compensation
to be paid for the use of such rolling stock, any party directly
involved in the negotiations may require that the matter be settled by
submitting the issues in dispute to the Board. The Board shall render a
binding decision, based upon a standard of reasonableness and after
taking into consideration any past precedents on the subject matter of
the negotiations, no later than 90 days after the date of the submission
of the dispute to the Board.
``(C) Nothing in this paragraph shall be construed to change the law
in effect prior to the effective date of the Staggers Rail Act of 1980
with respect to the obligation of rail carriers to utilize rolling stock
owned or leased by shippers.
``(b) The Board may require an organization established or continued
under an agreement approved under this section to maintain records and
submit reports. The Board may inspect a record maintained under this
section.
``(c) The Board may review an agreement approved under subsection
(a) of this section and shall change the conditions of approval or
terminate it when necessary to comply with the public interest and
subsection (a). The Board shall postpone the effective date of a change
of an agreement under this subsection for whatever period it determines
to be reasonably necessary to avoid unreasonable hardship.
``(d) The Board may begin a proceeding under this section on its own
initiative or on application. Action of the Board under this section--
``(1) approving an agreement;
``(2) denying, ending, or changing approval;
``(3) prescribing the conditions on which approval is
granted; or
``(4) changing those conditions,
has effect only as related to application of the antitrust laws referred
to in subsection (a) of this section.
``(e)(1) <<NOTE: Reports.>> The Federal Trade Commission, in
consultation with the Antitrust Division of the Department of Justice,
shall prepare periodically an assessment of, and shall report to the
Board on--
``(A) possible anticompetitive features of--
``(i) agreements approved or submitted for approval
under subsection (a) of this section; and
``(ii) an organization operating under those
agreements; and
``(B) possible ways to alleviate or end an anticompetitive
feature, effect, or aspect in a manner that will further the
goals of this part and of the transportation policy of section
10101 of this title.
``(2) Reports received by the Board under this subsection shall be
published and made available to the public under section 552(a) of title
5.
``Sec. 10707. Determination of market dominance in rail rate
proceedings
``(a) In this section, `market dominance' means an absence of
effective competition from other rail carriers or modes of
transportation for the transportation to which a rate applies.
[[Page 109 STAT. 816]]
``(b) When a rate for transportation by a rail carrier providing
transportation subject to the jurisdiction of the Board under this part
is challenged as being unreasonably high, the Board shall determine
whether the rail carrier proposing the rate has market dominance over
the transportation to which the rate applies. The Board may make that
determination on its own initiative or on complaint. A finding by the
Board that the rail carrier does not have market dominance is
determinative in a proceeding under this part related to that rate or
transportation unless changed or set aside by the Board or set aside by
a court of competent jurisdiction.
``(c) When the Board finds in any proceeding that a rail carrier
proposing or defending a rate for transportation has market dominance
over the transportation to which the rate applies, it may then determine
that rate to be unreasonable if it exceeds a reasonable maximum for that
transportation. However, a finding of market dominance does not
establish a presumption that the proposed rate exceeds a reasonable
maximum.
``(d)(1)(A) In making a determination under this section, the Board
shall find that the rail carrier establishing the challenged rate does
not have market dominance over the transportation to which the rate
applies if such rail carrier proves that the rate charged results in a
revenue-variable cost percentage for such transportation that is less
than 180 percent.
``(B) For purposes of this section, variable costs for a rail
carrier shall be determined only by using such carrier's unadjusted
costs, calculated using the Uniform Rail Costing System cost finding
methodology (or an alternative methodology adopted by the Board in lieu
thereof) and indexed quarterly to account for current wage and price
levels in the region in which the carrier operates, with adjustments
specified by the Board. A rail carrier may meet its burden of proof
under this subsection by establishing its variable costs in accordance
with this paragraph, but a shipper may rebut that showing by evidence of
such type, and in accordance with such burden of proof, as the Board
shall prescribe.
``(2) A finding by the Board that a rate charged by a rail carrier
results in a revenue-variable cost percentage for the transportation to
which the rate applies that is equal to or greater than 180 percent does
not establish a presumption that--
``(A) such rail carrier has or does not have market
dominance over such transportation; or
``(B) the proposed rate exceeds or does not exceed a
reasonable maximum.
``Sec. 10708. <<NOTE: Publication.>> Rail cost adjustment factor
``(a) The Board shall, as often as practicable, but in no event less
often than quarterly, publish a rail cost adjustment factor which shall
be a fraction, the numerator of which is the latest published Index of
Railroad Costs (which index shall be compiled or verified by the Board,
with appropriate adjustments to reflect the change in composition of
railroad costs, including the quality and mix of material and labor) and
the denominator of which is the same index for the fourth quarter of
every fifth year, beginning with the fourth quarter of 1992.
``(b) The rail cost adjustment factor published by the Board under
subsection (a) of this section shall take into account changes in
railroad productivity. The Board shall also publish a similar
[[Page 109 STAT. 817]]
index that does not take into account changes in railroad productivity.
``Sec. 10709. Contracts
``(a) One or more rail carriers providing transportation subject to
the jurisdiction of the Board under this part may enter into a contract
with one or more purchasers of rail services to provide specified
services under specified rates and conditions.
``(b) A party to a contract entered into under this section shall
have no duty in connection with services provided under such contract
other than those duties specified by the terms of the contract.
``(c)(1) A contract that is authorized by this section, and
transportation under such contract, shall not be subject to this part,
and may not be subsequently challenged before the Board or in any court
on the grounds that such contract violates a provision of this part.
``(2) The exclusive remedy for any alleged breach of a contract
entered into under this section shall be an action in an appropriate
State court or United States district court, unless the parties
otherwise agree. This section does not confer original jurisdiction on
the district courts of the United States based on section 1331 or 1337
of title 28, United States Code.
``(d)(1) A summary of each contract for the transportation of
agricultural products (including grain, as defined in section 3 of the
United States Grain Standards Act (7 U.S.C. 75) and products thereof)
entered into under this section shall be filed with the Board,
containing such nonconfidential information as the Board
prescribes. <<NOTE: Publication. Public information. Rules.>> The Board
shall publish special rules for such contracts in order to ensure that
the essential terms of the contract are available to the general public.
``(2) Documents, papers, and records (and any copies thereof)
relating to a contract described in subsection (a) shall not be subject
to the mandatory disclosure requirements of section 552 of title 5.
``(e) Any lawful contract between a rail carrier and one or more
purchasers of rail service that was in effect on the effective date of
the Staggers Rail Act of 1980 shall be considered a contract authorized
by this section.
``(f) A rail carrier that enters into a contract as authorized by
this section remains subject to the common
carrier obligation set forth in section 11101, with respect to rail
transportation not provided under such a contract.
``(g)(1) No later than 30 days after the date of filing of a summary
of a contract under this section, the Board may, on complaint, begin a
proceeding to review such contract on the grounds described in this
subsection.
``(2)(A) A complaint may be filed under this subsection--
``(i) by a shipper on the grounds that such shipper
individually will be harmed because the proposed contract unduly
impairs the ability of the contracting rail carrier or carriers
to meet their common carrier obligations to the complainant
under section 11101 of this title; or
``(ii) by a port only on the grounds that such port
individually will be harmed because the proposed contract will
result in unreasonable discrimination against such port.
[[Page 109 STAT. 818]]
``(B) In addition to the grounds for a complaint described in
subparagraph (A) of this paragraph, a complaint may be filed by a
shipper of agricultural commodities on the grounds that such shipper
individually will be harmed because--
``(i) the rail carrier has unreasonably discriminated by
refusing to enter into a contract with such shipper for rates
and services for the transportation of the same type of
commodity under similar conditions to the contract at issue, and
that shipper was ready, willing, and able to enter into such a
contract at a time essentially contemporaneous with the period
during which the contract at issue was offered; or
``(ii) the proposed contract constitutes a destructive
competitive practice under this part.
In making a determination under clause (ii) of this subparagraph, the
Board shall consider the difference between contract rates and published
single car rates.
``(C) For purposes of this paragraph, the term `unreasonable
discrimination' has the same meaning as such term has under section
10741 of this title.
``(3)(A) Within 30 days after the date a proceeding is commenced
under paragraph (1) of this subsection, or within such shorter time
period after such date as the Board may establish, the Board shall
determine whether the contract that is the subject of such proceeding is
in violation of this section.
``(B) If the Board determines, on the basis of a complaint filed
under paragraph (2)(B)(i) of this subsection, that the grounds for a
complaint described in such paragraph have been established with respect
to a rail carrier, the Board shall, subject to the provisions of this
section, order such rail carrier to provide rates and service
substantially similar to the contract at issue with such differentials
in terms and conditions as are justified by the evidence.
``(h)(1) Any rail carrier may, in accordance with the terms of this
section, enter into contracts for the transportation of agricultural
commodities (including forest products, but not including wood pulp,
wood chips, pulpwood or paper) involving the utilization of carrier
owned or leased equipment not in excess of 40 percent of the capacity of
such carrier's owned or leased equipment by major car type (plain
boxcars, covered hopper cars, gondolas and open top hoppers, coal cars,
bulkhead flatcars, pulpwood rackcars, and flatbed equipment, including
TOFC/COFC).
``(2) The Board may, on request of a rail carrier or other party or
on its own initiative, grant such relief from the limitations of
paragraph (1) of this subsection as the Board considers appropriate, if
it appears that additional equipment may be made available without
impairing the rail carrier's ability to meet its common carrier
obligations under section 11101 of this title.
``(3)(A) <<NOTE: Termination date.>> This subsection shall cease to
be effective after September 30, 1998.
``(B) Before October 1, 1997, the National Grain Car Council and the
Railroad-Shipper Transportation Advisory Council shall make
recommendations to Congress on whether to extend the effectiveness of or
otherwise modify this subsection.
[[Page 109 STAT. 819]]
``SUBCHAPTER II--SPECIAL CIRCUMSTANCES
``Sec. 10721. Government traffic
``A rail carrier providing transportation or service for the United
States Government may transport property or individuals for the United
States Government without charge or at a rate reduced from the
applicable commercial rate. Section 3709 of the Revised Statutes (41
U.S.C. 5) does not apply when transportation for the United States
Government can be obtained from a rail carrier lawfully operating in the
area where the transportation would be provided.
``Sec. 10722. Car utilization
``In order to encourage more efficient use of freight cars,
notwithstanding any other provision of this part, rail carriers shall be
permitted to establish premium charges for special services or special
levels of services not otherwise applicable to the movement. The Board
shall facilitate development of such charges so as to increase the
utilization of equipment.
``SUBCHAPTER III--LIMITATIONS
``Sec. 10741. Prohibitions against discrimination by rail carriers
``(a)(1) A rail carrier providing transportation or service subject
to the jurisdiction of the Board under this part may not subject a
person, place, port, or type of traffic to unreasonable discrimination.
``(2) For purposes of this section, a rail carrier engages in
unreasonable discrimination when it charges or receives from a person a
different compensation for a service rendered, or to be rendered, in
transportation the rail carrier may perform under this part than it
charges or receives from another person for performing a like and
contemporaneous service in the transportation of a like kind of traffic
under substantially similar circumstances.
``(b) This section shall not apply to--
``(1) contracts described in section 10709 of this title;
``(2) rail rates applicable to different routes; or
``(3) discrimination against the traffic of another carrier
providing transportation by any mode.
``(c) Differences between rates, classifications, rules, and
practices of rail carriers do not constitute a violation of this section
if such differences result from different services provided by rail
carriers.
``Sec. 10742. Facilities for interchange of traffic
``A rail carrier providing transportation subject to the
jurisdiction of the Board under this part shall provide reasonable,
proper, and equal facilities that are within its power to provide for
the interchange of traffic between, and for the receiving, forwarding,
and delivering of passengers and property to and from, its respective
line and a connecting line of another rail carrier or of a water carrier
providing transportation subject to chapter 137.
``Sec. 10743. Liability for payment of rates
``(a)(1) Liability for payment of rates for transportation for a
shipment of property by a shipper or consignor to a consignee
[[Page 109 STAT. 820]]
other than the shipper or consignor, is determined under this subsection
when the transportation is provided by a rail carrier under this part.
When the shipper or consignor instructs the rail carrier transporting
the property to deliver it to a consignee that is an agent only, not
having beneficial title to the property, the consignee is liable for
rates billed at the time of delivery for which the consignee is
otherwise liable, but not for additional rates that may be found to be
due after delivery if the consignee gives written notice to the
delivering carrier before delivery of the property--
``(A) of the agency and absence of beneficial title; and
``(B) of the name and address of the beneficial owner of the
property if it is reconsigned or diverted to a place other than
the place specified in the original bill of lading.
``(2) When the consignee is liable only for rates billed at the time
of delivery under paragraph (1) of this subsection, the shipper or
consignor, or, if the property is reconsigned or diverted, the
beneficial owner, is liable for those additional rates regardless of the
bill of lading or contract under which the property was transported. The
beneficial owner is liable for all rates when the property is
reconsigned or diverted by an agent but is refused or abandoned at its
ultimate destination if the agent gave the rail carrier in the
reconsignment or diversion order a notice of agency and the name and
address of the beneficial owner. A consignee giving the rail carrier,
and a reconsignor or diverter giving a rail carrier, erroneous
information about the identity of the beneficial owner of the property
is liable for the additional rates.
``(b) Liability for payment of rates for transportation for a
shipment of property by a shipper or consignor, named in the bill of
lading as consignee, is determined under this subsection when the
transportation is provided by a rail carrier under this part. When the
shipper or consignor gives written notice, before delivery of the
property, to the line-haul rail carrier that is to make ultimate
delivery--
``(1) to deliver the property to another party identified by
the shipper or consignor as the beneficial owner of the
property; and
``(2) that delivery is to be made to that party on payment
of all applicable transportation rates;
that party is liable for the rates billed at the time of delivery and
for additional rates that may be found to be due after delivery if that
party does not pay the rates required to be paid under paragraph (2) of
this subsection on delivery. However, if the party gives written notice
to the delivering rail carrier before delivery that the party is not the
beneficial owner of the property and gives the rail carrier the name and
address of the beneficial owner, then the party is not liable for those
additional rates. A shipper, consignor, or party to whom delivery is
made that gives the delivering rail carrier erroneous information about
the identity of the beneficial owner, is liable for the additional rates
regardless of the bill of lading or contract under which the property
was transported. This subsection does not apply to a prepaid shipment of
property.
``(c)(1) A rail carrier may bring an action to enforce liability
under subsection (a) of this section. That rail carrier must bring the
action during the period provided in section 11705(a) of this title or
by the end of the 6th month after final judgment against
[[Page 109 STAT. 821]]
it in an action against the consignee, or the beneficial owner named by
the consignee or agent, under that section.
``(2) A rail carrier may bring an action to enforce liability under
subsection (b) of this section. That carrier must bring the action
during the period provided in section 11705(a) of this title or by the
end of the 6th month after final judgment against it in an action
against the shipper, consignor, or other party under that section.
``Sec. 10744. Continuous carriage of freight
``A rail carrier providing transportation or service subject to the
jurisdiction of the Board under this part may not enter a combination or
arrangement to prevent the carriage of freight from being continuous
from the place of shipment to the place of destination whether by change
of time schedule, carriage in different cars, or by other means. The
carriage of freight by those rail carriers is considered to be a
continuous carriage from the place of shipment to the place of
destination when a break of bulk, stoppage, or interruption is not made
in good faith for a necessary purpose, and with the intent of avoiding
or unnecessarily interrupting the continuous carriage or of evading this
part.
``Sec. 10745. Transportation services or facilities furnished by shipper
``A rail carrier providing transportation or service subject to the
jurisdiction of the Board under this part may establish a charge or
allowance for transportation or service for property when the owner of
the property, directly or indirectly, furnishes a service related to or
an instrumentality used in the transportation or service. The Board may
prescribe the maximum reasonable charge or allowance a rail carrier
subject to its jurisdiction may pay for a service or instrumentality
furnished under this section. The Board may begin a proceeding under
this section on its own initiative or on application.
``Sec. 10746. Demurrage charges
``A rail carrier providing transportation subject to the
jurisdiction of the Board under this part shall compute demurrage
charges, and establish rules related to those charges, in a way that
fulfills the national needs related to--
``(1) freight car use and distribution; and
``(2) maintenance of an adequate supply of freight cars to
be available for transportation of property.
``Sec. 10747. Designation of certain routes by shippers
``(a)(1) When a person delivers property to a rail carrier for
transportation subject to the jurisdiction of the Board under this part,
the person may direct the rail carrier to transport the property over an
established through route. When competing rail lines constitute a part
of the route, the person shipping the property may designate the lines
over which the property will be transported. The designation must be in
writing. A rail carrier may be directed to transport property over a
particular through route when--
``(A) there are at least 2 through routes over which the
property could be transported;
``(B) a through rate has been established for transportation
over each of those through routes; and
[[Page 109 STAT. 822]]
``(C) the rail carrier is a party to those routes and rates.
``(2) A rail carrier directed to route property transported under
paragraph (1) of this subsection must issue a through bill of lading
containing the routing instructions and transport the property according
to the instructions. When the property is delivered to a connecting rail
carrier, that rail carrier must also receive and transport it according
to the routing instructions and deliver it to the next succeeding rail
carrier or consignee according to the instructions.
``(b) The Board may prescribe exceptions to the authority of a
person to direct the movement of traffic under subsection (a) of this
section.
``CHAPTER 109--LICENSING
``Sec.
``10901. Authorizing construction and operation of railroad lines.
``10902. Short line purchases by Class II and Class III rail carriers.
``10903. Filing and procedure for application to abandon or discontinue.
``10904. Offers of financial assistance to avoid abandonment and
discontinuance.
``10905. Offering abandoned rail properties for sale for public
purposes.
``10906. Exception.
``10907. Railroad development.
``Sec. 10901. Authorizing construction and operation of railroad
lines
``(a) A person may--
``(1) construct an extension to any of its railroad lines;
``(2) construct an additional railroad line;
``(3) provide transportation over, or by means of, an
extended or additional railroad line; or
``(4) in the case of a person other than a rail carrier,
acquire a railroad line or acquire or operate an extended or
additional railroad line,
only if the Board issues a certificate authorizing such activity under
subsection (c).
``(b) A proceeding to grant authority under subsection (a) of this
section begins when an application is filed. <<NOTE: Notice.>> On
receiving the application, the Board shall give reasonable public
notice, including notice to the Governor of any affected State, of the
beginning of such proceeding.
``(c) <<NOTE: Certificate.>> The Board shall issue a certificate
authorizing activities for which such authority is requested in an
application filed under subsection (b) unless the Board finds that such
activities are inconsistent with the public convenience and necessity.
Such certificate may approve the application as filed, or with
modifications, and may require compliance with conditions (other than
labor protection conditions) the Board finds necessary in the public
interest.
``(d)(1) When a certificate has been issued by the Board under this
section authorizing the construction or extension of a railroad line, no
other rail carrier may block any construction or extension authorized by
such certificate by refusing to permit the carrier to cross its property
if--
``(A) the construction does not unreasonably interfere with
the operation of the crossed line;
``(B) the operation does not materially interfere with the
operation of the crossed line; and
[[Page 109 STAT. 823]]
``(C) the owner of the crossing line compensates the owner
of the crossed line.
``(2) If the parties are unable to agree on the terms of operation
or the amount of payment for purposes of
paragraph (1) of this subsection, either party may submit the matters in
dispute to the Board for determination. The Board shall make a
determination under this paragraph within 120 days after the dispute is
submitted for determination.
``Sec. 10902. Short line purchases by Class II and Class III rail
carriers
``(a) A Class II or Class III rail carrier providing transportation
subject to the jurisdiction of the Board under this part may acquire or
operate an extended or additional rail line under this section only if
the Board issues a certificate authorizing such activity under
subsection (c).
``(b) A proceeding to grant authority under subsection (a) of this
section begins when an application is filed. <<NOTE: Notice.>> On
receiving the application, the Board shall give reasonable public notice
of the beginning of such proceeding.
``(c) <<NOTE: Certificate.>> The Board shall issue a certificate
authorizing activities for which such authority is requested in an
application filed under subsection (b) unless the Board finds that such
activities are inconsistent with the public convenience and necessity.
Such certificate may approve the application as filed, or with
modifications, and may require compliance with conditions (other than
labor protection conditions) the Board finds necessary in the public
interest.
``(d) The Board shall require any Class II rail carrier which
receives a certificate under subsection (c) of this section to provide a
fair and equitable arrangement for the protection of the interests of
employees who may be affected thereby. The arrangement shall consist
exclusively of one year of severance pay, which shall not exceed the
amount of earnings from railroad employment of the employee during the
12-month period immediately preceding the date on which the application
for such certificate is filed with the Board. The amount of such
severance pay shall be reduced by the amount of earnings from railroad
employment of the employee with the acquiring carrier during the 12-
month period immediately following the effective date of the transaction
to which the certificate applies. The parties may agree to terms other
than as provided in this subsection. The Board shall not require such an
arrangement from a Class III rail carrier which receives a certificate
under subsection (c) of this section.
``Sec. 10903. Filing and procedure for application to abandon or
discontinue
``(a)(1) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part who intends to--
``(A) abandon any part of its railroad lines; or
``(B) discontinue the operation of all rail transportation
over any part of its railroad lines,
must file an application relating thereto with the Board. An abandonment
or discontinuance may be carried out only as authorized under this
chapter.
[[Page 109 STAT. 824]]
``(2) When a rail carrier providing transportation subject to the
jurisdiction of the Board under this part files an application, the
application shall include--
``(A) an accurate and understandable summary of the rail
carrier's reasons for the proposed abandonment or
discontinuance;
``(B) a statement indicating that each interested person is
entitled to make recommendations to the Board on the future of
the rail line; and
``(C)(i) a statement that the line is available for subsidy
or sale in accordance with section 10904 of this title, (ii) a
statement that the rail carrier will promptly provide to each
interested party an estimate of the annual subsidy and minimum
purchase price, calculated in accordance with section 10904 of
this title, and (iii) the name and business address of the
person who is authorized to discuss the subsidy or sale terms
for the rail carrier.
``(3) <<NOTE: Notice.>> The rail carrier shall--
``(A) send by certified mail notice of the application to
the chief executive officer of each State that would be directly
affected by the proposed abandonment or discontinuance;
``(B) post a copy of the notice in each terminal and station
on each portion of a railroad line proposed to be abandoned or
over which all transportation is to be discontinued;
``(C) <<NOTE: Publication. Newspapers.>> publish a copy of
the notice for 3 consecutive weeks in a newspaper of general
circulation in each county in which each such portion is
located;
``(D) mail a copy of the notice, to the extent practicable,
to all shippers that have made significant use (as designated by
the Board) of the railroad line during the 12 months preceding
the filing of the application; and
``(E) <<NOTE: Certification.>> attach to the application
filed with the Board an affidavit certifying the manner in which
subparagraphs (A) through (D) of this paragraph have been
satisfied, and certifying that subparagraphs (A) through (D)
have been satisfied within the most recent 30 days prior to the
date the application is filed.
``(b)(1) Except as provided in subsection (d), abandonment and
discontinuance may occur as provided in section 10904.
``(2) The Board shall require as a condition of any abandonment or
discontinuance under this section provisions to protect the interests of
employees. The provisions shall be at least as beneficial to those
interests as the provisions established under sections 11326(a) and
24706(c) of this title.
``(c)(1) In this subsection, the term `potentially subject to
abandonment' has the meaning given the term in regulations of the Board.
The regulations may include standards that vary by region of the United
States and by railroad or group of railroads.
``(2) Each rail carrier shall maintain a complete diagram of the
transportation system operated, directly or indirectly, by the rail
carrier. <<NOTE: Publication.>> The rail carrier shall submit to the
Board and publish amendments to its diagram that are necessary to
maintain the accuracy of the diagram. The diagram shall--
``(A) include a detailed description of each of its railroad
lines potentially subject to abandonment; and
[[Page 109 STAT. 825]]
``(B) identify each railroad line for which the rail carrier
plans to file an application to abandon or discontinue under
subsection (a) of this section.
``(d) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part may--
``(1) abandon any part of its railroad lines; or
``(2) discontinue the operation of all rail transportation
over any part of its railroad lines;
only if the Board finds that the present or future public convenience
and necessity require or permit the abandonment or discontinuance. In
making the finding, the Board shall consider whether the abandonment or
discontinuance will have a serious, adverse impact on rural and
community development.
``(e) Subject to this section and sections 10904 and 10905 of this
title, if the Board--
``(1) finds public convenience and necessity, it shall--
``(A) approve the application as filed; or
``(B) approve the application with modifications and
require compliance with conditions that the Board finds
are required by public convenience and necessity; or
``(2) fails to find public convenience and necessity, it
shall deny the application.
``Sec. 10904. Offers of financial assistance to avoid abandonment
and discontinuance
``(a) In this section--
``(1) the term `avoidable cost' means all expenses that
would be incurred by a rail carrier in providing transportation
that would not be incurred if the railroad line over which the
transportation was provided were abandoned or if the
transportation were discontinued. Expenses include cash inflows
foregone and cash outflows incurred by the rail carrier as a
result of not abandoning or discontinuing the transportation.
Cash inflows foregone and cash outflows incurred include--
``(A) working capital and required capital
expenditure;
``(B) expenditures to eliminate deferred
maintenance;
``(C) the current cost of freight cars, locomotives,
and other equipment; and
``(D) the foregone tax benefits from not retiring
properties from rail service and other effects of
applicable Federal and State income taxes; and
``(2) the term `reasonable return' means--
``(A) if a rail carrier is not in reorganization,
the cost of capital to the rail carrier, as determined
by the Board; and
``(B) if a rail carrier is in reorganization, the
mean cost of capital of rail carriers not in
reorganization, as determined by the Board.
``(b) Any rail carrier which has filed an application for
abandonment or discontinuance shall provide promptly to a party
considering an offer of financial assistance and shall provide
concurrently to the Board--
``(1) an estimate of the annual subsidy and minimum purchase
price required to keep the line or a portion of the line in
operation;
[[Page 109 STAT. 826]]
``(2) its most recent reports on the physical condition of
that part of the railroad line involved in the proposed
abandonment or discontinuance;
``(3) traffic, revenue, and other data necessary to
determine the amount of annual financial assistance which would
be required to continue rail transportation over that part of
the railroad line; and
``(4) any other information that the Board considers
necessary to allow a potential offeror to calculate an adequate
subsidy or purchase offer.
``(c) Within 4 months after an application is filed under section
10903, any person may offer to subsidize or purchase the railroad line
that is the subject of such application. Such offer shall be filed
concurrently with the Board. If the offer to subsidize or purchase is
less than the carrier's estimate stated pursuant to subsection (b)(1),
the offer shall explain the basis of the disparity, and the manner in
which the offer is calculated.
``(d)(1) Unless the Board, within 15 days after the expiration of
the 4-month period described in subsection (c), finds that one or more
financially responsible persons (including a governmental authority)
have offered financial assistance regarding that part of the railroad
line to be abandoned or over which all rail transportation is to be
discontinued, abandonment or discontinuance may be carried out in
accordance with section 10903.
``(2) If the Board finds that such an offer or offers of financial
assistance has been made within such period, abandonment or
discontinuance shall be postponed until--
``(A) the carrier and a financially responsible person have
reached agreement on a transaction for subsidy or sale of the
line; or
``(B) the conditions and amount of compensation are
established under subsection (f).
``(e) Except as provided in subsection (f)(3), if the rail carrier
and a financially responsible person (including a governmental
authority) fail to agree on the amount or terms of the subsidy or
purchase, either party may, within 30 days after the offer is made,
request that the Board establish the conditions and amount of
compensation.
``(f)(1) Whenever the Board is requested to establish the conditions
and amount of compensation under this section--
``(A) the Board shall render its decision within 30 days;
``(B) for proposed sales, the Board shall determine the
price and other terms of sale, except that in no case shall the
Board set a price which is below the fair market value of the
line (including, unless otherwise mutually agreed, all
facilities on the line or portion necessary to provide effective
transportation services); and
``(C) for proposed subsidies, the Board shall establish the
compensation as the difference between the revenues attributable
to that part of the railroad line and the avoidable cost of
providing rail freight transportation on the line, plus a
reasonable return on the value of the line.
``(2) The decision of the Board shall be binding on both parties,
except that the person who has offered to subsidize or purchase the line
may withdraw his offer within 10 days of the Board's decision. In such a
case, the abandonment or discontinuance may
[[Page 109 STAT. 827]]
be carried out immediately, unless other offers are being considered
pursuant to paragraph (3) of this subsection.
``(3) If a rail carrier receives more than one offer to subsidize or
purchase, it shall select the offeror with whom it wishes to transact
business, and complete the subsidy or sale agreement, or request that
the Board establish the conditions and amount of compensation before the
40th day after the expiration of the 4-month period described in
subsection (c). If no agreement on subsidy or sale is reached within
such 40-day period and the Board has not been requested to establish the
conditions and amount of compensation, any other offeror whose offer was
made within the 4-month period described in subsection (c) may request
that the Board establish the conditions and amount of compensation. If
the Board has established the conditions and amount of compensation, and
the original offer has been withdrawn, any other offeror whose offer was
made within the 4-month period described in subsection (c) may accept
the Board's decision within 20 days after such decision, and the Board
shall require the carrier to enter into a subsidy or sale agreement with
such offeror, if such subsidy or sale agreement incorporates the Board's
decision.
``(4)(A) No purchaser of a line or portion of line sold under this
section may transfer or discontinue service on such line prior to the
end of the second year after consummation of the sale, nor may such
purchaser transfer such line, except to the rail carrier from whom it
was purchased, prior to the end of the fifth year after consummation of
the sale.
``(B) No subsidy arrangement approved under this section shall
remain in effect for more than one year, unless otherwise mutually
agreed by the parties.
``(g) Upon abandonment of a railroad line under this chapter, the
obligation of the rail carrier abandoning the line to provide
transportation on that line, as required by section 11101(a), is
extinguished.
``Sec. 10905. Offering abandoned rail properties for sale for
public purposes
``When the Board approves an application to abandon or discontinue
under section 10903, the Board shall find whether the rail properties
that are involved in the proposed abandonment or discontinuance are
appropriate for use for public purposes, including highways, other forms
of mass transportation, conservation, energy production or transmission,
or recreation. If the Board finds that the rail properties proposed to
be abandoned are appropriate for public purposes and not required for
continued rail operations, the properties may be sold, leased,
exchanged, or otherwise disposed of only under conditions provided in
the order of the Board. The conditions may include a prohibition on any
such disposal for a period of not more than 180 days after the effective
date of the order, unless the properties have first been offered, on
reasonable terms, for sale for public purposes.
``Sec. 10906. Exception
``Notwithstanding section 10901 and subchapter II of chapter 113 of
this title, and without the approval of the Board, a rail carrier
providing transportation subject to the jurisdiction of the Board under
this part may enter into arrangements for the joint ownership or joint
use of spur, industrial, team, switching, or side
[[Page 109 STAT. 828]]
tracks. The Board does not have authority under this chapter over
construction, acquisition, operation, abandonment, or discontinuance of
spur, industrial, team, switching, or side tracks.
``Sec. 10907. Railroad development
``(a) In this section, the term `financially responsible person'
means a person who--
``(1) is capable of paying the constitutional minimum value
of the railroad line proposed to be acquired; and
``(2) is able to assure that adequate transportation will be
provided over such line for a period of not less than 3 years.
Such term includes a governmental authority but does not include a Class
I or Class II rail carrier.
``(b)(1) When the Board finds that--
``(A)(i) the public convenience and necessity require or
permit the sale of a particular railroad line under this
section; or
``(ii) a railroad line is on a system diagram map as
required under section 10903 of this title, but the rail carrier
owning such line has not filed an application to abandon such
line under section 10903 of this title before an application to
purchase such line, or any required preliminary filing with
respect to such application, is filed under this section; and
``(B) an application to purchase such line has been filed by
a financially responsible person,
the Board shall require the rail carrier owning the railroad line to
sell such line to such financially responsible person at a price not
less than the constitutional minimum value.
``(2) For purposes of this subsection, the constitutional minimum
value of a particular railroad line shall be presumed to be not less
than the net liquidation value of such line or the going concern value
of such line, whichever is greater.
``(c)(1) For purposes of this section, the Board may determine that
the public convenience and necessity require or permit the sale of a
railroad line if the Board determines, after a hearing on the record,
that--
``(A) the rail carrier operating such line refuses within a
reasonable time to make the necessary efforts to provide
adequate service to shippers who transport traffic over such
line;
``(B) the transportation over such line is inadequate for
the majority of shippers who transport traffic over such line;
``(C) the sale of such line will not have a significantly
adverse financial effect on the rail carrier operating such
line;
``(D) the sale of such line will not have an adverse effect
on the overall operational performance of the rail carrier
operating such line; and
``(E) the sale of such line will be likely to result in
improved railroad transportation for shippers that transport
traffic over such line.
``(2) In a proceeding under this subsection, the burden of proving
that the public convenience and necessity require or permit the sale of
a particular railroad line is on the person filing the application to
acquire such line. <<NOTE: Notification. Federal Register,
publication.>> If the Board finds under this subsection that the public
convenience and necessity require or permit the sale of a particular
railroad line, the Board shall concurrently
[[Page 109 STAT. 829]]
notify the parties of such finding and publish such finding in the
Federal Register.
``(d) In the case of any railroad line subject to sale under
subsection (a) of this section, the Board shall, upon the request of the
acquiring carrier, require the selling carrier to provide to the
acquiring carrier trackage rights to allow a reasonable interchange with
the selling carrier or to move power equipment or empty rolling stock
between noncontiguous feeder lines operated by the acquiring carrier.
The Board shall require the acquiring carrier to provide the selling
carrier reasonable compensation for any such trackage rights.
``(e) The Board shall require, to the maximum extent practicable,
the use of the employees who would normally have performed work in
connection with a railroad line subject to a sale under this section.
``(f) In the case of a railroad line which carried less than
3,000,000 gross ton miles of traffic per mile in the preceding calendar
year, whenever a purchasing carrier under this section petitions the
Board for joint rates applicable to traffic moving over through routes
in which the purchasing carrier may practicably participate, the Board
shall, within 30 days after the date such petition is filed and pursuant
to section 10705(a) of this title, require the establishment of
reasonable joint rates and divisions over such route.
``(g)(1) Any person operating a railroad line acquired under this
section may elect to be exempt from any of the provisions of this part,
except that such a person may not be exempt from the provisions of
chapter 107 of this title with respect to transportation under a joint
rate.
``(2) <<NOTE: Applicability.>> The provisions of paragraph (1) of
this subsection shall apply to any line of railroad which was abandoned
during the 18-month period immediately prior to October 1, 1980, and was
subsequently purchased by a financially responsible person.
``(h) If a purchasing carrier under this section proposes to sell or
abandon all or any portion of a purchased railroad line, such purchasing
carrier shall offer the right of first refusal with respect to such line
or portion thereof to the carrier which sold such line under this
section. Such offer shall be made at a price equal to the sum of the
price paid by such purchasing carrier to such selling carrier for such
line or portion thereof and the fair market value (less deterioration)
of any improvements made, as adjusted to reflect inflation.
``(i) Any person operating a railroad line acquired under this
section may determine preconditions, such as payment of a subsidy, which
must be met by shippers in order to obtain service over such lines, but
such operator must notify the shippers on the line of its intention to
impose such preconditions.
``CHAPTER 111--OPERATIONS
``SUBCHAPTER I--GENERAL REQUIREMENTS
``Sec.
``11101. Common carrier transportation, service, and rates.
``11102. Use of terminal facilities.
``11103. Switch connections and tracks.
``SUBCHAPTER II--CAR SERVICE
``11121. Criteria.
[[Page 109 STAT. 830]]
``11122. Compensation and practice.
``11123. Situations requiring immediate action to serve the public.
``11124. War emergencies; embargoes imposed by carriers.
``SUBCHAPTER III--REPORTS AND RECORDS
``11141. Definitions.
``11142. Uniform accounting system.
``11143. Depreciation charges.
``11144. Records: form; inspection; preservation.
``11145. Reports by rail carriers, lessors, and associations.
``SUBCHAPTER IV--RAILROAD COST ACCOUNTING
``11161. Implementation of cost accounting principles.
``11162. Rail carrier cost accounting system.
``11163. Cost availability.
``11164. Accounting and cost reporting.
``SUBCHAPTER I--GENERAL REQUIREMENTS
``Sec. 11101. Common carrier transportation, service, and rates
``(a) A rail carrier providing transportation or service subject to
the jurisdiction of the Board under this part shall provide the
transportation or service on reasonable request. A rail carrier shall
not be found to have violated this section because it fulfills its
reasonable commitments under contracts authorized under section 10709 of
this title before responding to reasonable requests for service.
Commitments which deprive a carrier of its ability to respond to
reasonable requests for common carrier service are not reasonable.
``(b) A rail carrier shall also provide to any person, on request,
the carrier's rates and other service terms. The response by a rail
carrier to a request for the carrier's rates and other service terms
shall be--
``(1) in writing and forwarded to the requesting person
promptly after receipt of the request; or
``(2) promptly made available in electronic form.
``(c) A rail carrier may not increase any common carrier rates or
change any common carrier service terms unless 20 days have expired
after written or electronic notice is provided to any person who, within
the previous 12 months--
``(1) has requested such rates or terms under subsection
(b); or
``(2) has made arrangements with the carrier for a shipment
that would be subject to such increased rates or changed terms.
``(d) <<NOTE: Publication. Public information.>> With respect to
transportation of agricultural products, in addition to the requirements
of subsections (a), (b), and (c), a rail carrier shall publish, make
available, and retain for public inspection its common carrier rates,
schedules of rates, and other service terms, and any proposed and actual
changes to such rates and service terms. For purposes of this
subsection, agricultural products shall include grain as defined in
section 3 of the United States Grain Standards Act (7 U.S.C. 75) and all
products thereof, and fertilizer.
``(e) A rail carrier shall provide transportation or service in
accordance with the rates and service terms, and any changes thereto, as
published or otherwise made available under subsection (b), (c), or (d).
``(f) <<NOTE: Regulations.>> The Board shall, by regulation,
establish rules to implement this section. The regulations shall provide
for immediate disclosure and dissemination of rates and service terms,
including classifica
[[Page 109 STAT. 831]]
tions, rules, and practices, and their effective dates. Final
regulations shall be adopted by the Board not later than 180 days after
the effective date of the ICC Termination Act of 1995.
``Sec. 11102. Use of terminal facilities
``(a) The Board may require terminal facilities, including main-line
tracks for a reasonable distance outside of a terminal, owned by a rail
carrier providing transportation subject to the jurisdiction of the
Board under this part, to be used by another rail carrier if the Board
finds that use to be practicable and in the public interest without
substantially impairing the ability of the rail carrier owning the
facilities or entitled to use the facilities to handle its own business.
The rail carriers are responsible for establishing the conditions and
compensation for use of the facilities. However, if the rail carriers
cannot agree, the Board may establish conditions and compensation for
use of the facilities under the principle controlling compensation in
condemnation proceedings. The compensation shall be paid or adequately
secured before a rail carrier may begin to use the facilities of another
rail carrier under this section.
``(b) A rail carrier whose terminal facilities are required to be
used by another rail carrier under this section is entitled to recover
damages from the other rail carrier for injuries sustained as the result
of compliance with the requirement or for compensation for the use, or
both as appropriate, in a civil action, if it is not satisfied with the
conditions for use of the facilities or if the amount of the
compensation is not paid promptly.
``(c)(1) The Board may require rail carriers to enter into
reciprocal switching agreements, where it finds such agreements to be
practicable and in the public interest, or where such agreements are
necessary to provide competitive rail service. The rail carriers
entering into such an agreement shall establish the conditions and
compensation applicable to such agreement, but, if the rail carriers
cannot agree upon such conditions and compensation within a reasonable
period of time, the Board may establish such conditions and
compensation.
``(2) The Board may require reciprocal switching agreements entered
into by rail carriers pursuant to this subsection to contain provisions
for the protection of the interests of employees affected thereby.
``(d) The Board shall complete any proceeding under subsection (a)
or (b) within 180 days after the filing of the request for relief.
``Sec. 11103. Switch connections and tracks
``(a) On application of the owner of a lateral branch line of
railroad, or of a shipper tendering interstate traffic for
transportation, a rail carrier providing transportation subject to the
jurisdiction of the Board under this part shall construct, maintain, and
operate, on reasonable conditions, a switch connection to connect that
branch line or private side track with its railroad and shall furnish
cars to move that traffic to the best of its ability without
discrimination in favor of or against the shipper when the connection--
``(1) is reasonably practicable;
``(2) can be made safely; and
``(3) will furnish sufficient business to justify its
construction and maintenance.
[[Page 109 STAT. 832]]
``(b) If a rail carrier fails to install and operate a switch
connection after application is made under subsection (a) of this
section, the owner of the lateral branch line of railroad or the shipper
may file a complaint with the Board under section 11701 of this title.
The Board shall investigate the complaint and decide the safety,
practicability, justification, and compensation to be paid for the
connection. The Board may direct the rail carrier to comply with
subsection (a) of this section only after a full hearing.
``SUBCHAPTER II--CAR SERVICE
``Sec. 11121. Criteria
``(a)(1) <<NOTE: Safety.>> A rail carrier providing transportation
subject to the jurisdiction of the Board under this part shall furnish
safe and adequate car service and establish, observe, and enforce
reasonable rules and practices on car service. The Board may require a
rail carrier to provide facilities and equipment that are reasonably
necessary to furnish safe and adequate car service if the Board decides
that the rail carrier has materially failed to furnish that service. The
Board may begin a proceeding under this paragraph when an interested
person files an application with it. The Board may act only after a
hearing on the record and an affirmative finding, based on the evidence
presented, that--
``(A) providing the facilities or equipment will not
materially and adversely affect the ability of the rail carrier
to provide safe and adequate transportation;
``(B) the amount spent for the facilities or equipment,
including a return equal to the rail carrier's current cost of
capital, will be recovered; and
``(C) providing the facilities or equipment will not impair
the ability of the rail carrier to attract adequate capital.
``(2) The Board may require a rail carrier to file its car service
rules with the Board.
``(b) The Board may designate and appoint agents and agencies to
make and carry out its directions related to car service and matters
under sections 11123 and 11124(a)(1) of this title.
``(c) The Board shall consult, as it considers necessary, with the
National Grain Car Council on matters within the charter of that body.
``Sec. 11122. Compensation and practice
``(a) The regulations of the Board on car service shall encourage
the purchase, acquisition, and efficient use of freight cars. The
regulations may include--
``(1) the compensation to be paid for the use of a
locomotive, freight car, or other vehicle;
``(2) the other terms of any arrangement for the use by a
rail carrier of a locomotive, freight car, or other vehicle not
owned by the rail carrier using the locomotive, freight car, or
other vehicle, whether or not owned by another carrier, shipper,
or third person; and
``(3) sanctions for nonobservance.
``(b) The rate of compensation to be paid for each type of freight
car shall be determined by the expense of owning and maintaining that
type of freight car, including a fair return on its cost giving
consideration to current costs of capital, repairs, materials, parts,
and labor. In determining the rate of compensa
[[Page 109 STAT. 833]]
tion, the Board shall consider the transportation use of each type of
freight car, the national level of ownership of each type of freight
car, and other factors that affect the adequacy of the national freight
car supply.
``Sec. 11123. Situations requiring immediate action to serve the
public
``(a) When the Board determines that shortage of equipment,
congestion of traffic, unauthorized cessation of operations, or other
failure of traffic movement exists which creates an emergency situation
of such magnitude as to have substantial adverse effects on shippers, or
on rail service in a region of the United States, or that a rail carrier
providing transportation subject to the jurisdiction of the Board under
this part cannot transport the traffic offered to it in a manner that
properly serves the public, the Board may, to promote commerce and
service to the public, for a period not to exceed 30 days--
``(1) direct the handling, routing, and movement of the
traffic of a rail carrier and its distribution over its own or
other railroad lines;
``(2) require joint or common use of railroad facilities;
``(3) prescribe temporary through routes; or
``(4) give directions for--
``(A) preference or priority in transportation;
``(B) embargoes; or
``(C) movement of traffic under permits.
``(b)(1) Except with respect to proceedings under paragraph (2) of
this subsection, the Board may act under this section on its own
initiative or on application without regard to subchapter II of chapter
5 of title 5.
``(2) Rail carriers may establish between themselves the terms of
compensation for operations, and use of facilities and equipment,
required under this section. When rail carriers do not agree on the
terms of compensation under this section, the Board may establish the
terms for them. The Board may act under subsection (a) before conducting
a proceeding under this paragraph.
``(3) When a rail carrier is directed under this section to operate
the lines of another rail carrier due to that carrier's cessation of
operations, compensation for the directed operations shall derive only
from revenues generated by the directed operations.
``(c)(1) The Board may extend any action taken under subsection (a)
of this section beyond 30 days if the Board finds that a transportation
emergency described in subsection (a) continues to exist. Action by the
Board under subsection (a) of this section may not remain in effect for
more than 240 days beyond the initial 30-day period.
``(2) The Board may not take action under this section that would--
``(A) cause a rail carrier to operate in violation of this
part; or
``(B) impair substantially the ability of a rail carrier to
serve its own customers adequately, or to fulfill its common
carrier obligations.
``(3) A rail carrier directed by the Board to take action under this
section is not responsible, as a result of that action, for debts of any
other rail carrier.
[[Page 109 STAT. 834]]
``(d) In carrying out this section, the Board shall require, to the
maximum extent practicable, the use of employees who would normally have
performed work in connection with the traffic subject to the action of
the Board.
``Sec. 11124. War emergencies; embargoes imposed by carriers
``(a)(1) When the President, during time of war or threatened war,
notifies the Board that it is essential to the defense and security of
the United States to give preference or priority to the movement of
certain traffic, the Board shall direct that preference or priority be
given to that traffic.
``(2) When the President, during time of war or threatened war,
demands that preference and precedence be given to the transportation of
troops and material of war over all other traffic, all rail carriers
providing transportation subject to the jurisdiction of the Board under
this part shall adopt every means within their control to facilitate and
expedite the military traffic.
``(b) An embargo imposed by any such rail carrier does not apply to
shipments consigned to agents of the United States Government for its
use. The rail carrier shall deliver those shipments as promptly as
possible.
``SUBCHAPTER III--REPORTS AND RECORDS
``Sec. 11141. Definitions
``In this subchapter--
``(1) the terms `rail carrier' and `lessor' include a
receiver or trustee of a rail carrier and lessor, respectively;
``(2) the term `lessor' means a person owning a railroad
that is leased to and operated by a carrier providing
transportation subject to the jurisdiction of the Board under
this part; and
``(3) the term `association' means an organization
maintained by or in the interest of a group of rail carriers
providing transportation or service subject to the jurisdiction
of the Board under this part that performs a service, or engages
in activities, related to transportation under this part.
``Sec. 11142. Uniform accounting system
``The Board may prescribe a uniform accounting system for classes of
rail carriers providing transportation subject to the jurisdiction of
the Board under this part. To the maximum extent practicable, the Board
shall conform such system to generally accepted accounting principles,
and shall administer this subchapter in accordance with such principles.
``Sec. 11143. Depreciation charges
``The Board shall, for a class of rail carriers providing
transportation subject to its jurisdiction under this part, prescribe,
and change when necessary, those classes of property for which
depreciation charges may be included under operating expenses and a rate
of depreciation that may be charged to a class of property. The Board
may classify those rail carriers for purposes of this section. A rail
carrier for whom depreciation charges and rates of depreciation are in
effect under this section for any class of property may not--
[[Page 109 STAT. 835]]
``(1) charge to operating expenses a depreciation charge on
a class of property other than that prescribed by the Board;
``(2) charge another rate of depreciation; or
``(3) include other depreciation charges in operating
expenses.
``Sec. 11144. Records: form; inspection; preservation
``(a) The Board may prescribe the form of records required to be
prepared or compiled under this subchapter--
``(1) by rail carriers and lessors, including records
related to movement of traffic and receipts and expenditures of
money; and
``(2) by persons furnishing cars to or for a rail carrier
providing transportation subject to the jurisdiction of the
Board under this part to the extent related to those cars or
that service.
``(b) The Board, or an employee designated by the Board, may on
demand and display of proper credentials--
``(1) inspect and examine the lands, buildings, and
equipment of a rail carrier or lessor; and
``(2) inspect and copy any record of--
``(A) a rail carrier, lessor, or association;
``(B) a person controlling, controlled by, or under
common control with a rail carrier if the Board
considers inspection relevant to that person's relation
to, or transaction with, that rail carrier; and
``(C) a person furnishing cars to or for a rail
carrier if the Board prescribed the form of that record.
``(c) The Board may prescribe the time period during which
operating, accounting, and financial records must be preserved by rail
carriers, lessors, and persons furnishing cars.
``Sec. 11145. Reports by rail carriers, lessors, and associations
``(a) The Board may require--
``(1) rail carriers, lessors, and associations, or classes
of them as the Board may prescribe, to file annual, periodic,
and special reports with the Board containing answers to
questions asked by it; and
``(2) a person furnishing cars to a rail carrier to file
reports with the Board containing answers to questions about
those cars.
``(b)(1) An annual report shall contain an account, in as much
detail as the Board may require, of the affairs of the rail carrier,
lessor, or association for the 12-month period ending on December 31 of
each year.
``(2) An annual report shall be filed with the Board by the end of
the third month after the end of the year for which the report is made
unless the Board extends the filing date or changes the period covered
by the report. The annual report and, if the Board requires, any other
report made under this section, shall be made under oath.
``SUBCHAPTER IV--RAILROAD COST ACCOUNTING
``Sec. 11161. Implementation of cost accounting principles
``The Board shall periodically review its cost accounting rules and
shall make such changes in those rules as are required to
[[Page 109 STAT. 836]]
achieve the regulatory purposes of this part. The Board shall insure
that the rules promulgated under this section are the most efficient and
least burdensome means by which the required information may be
developed for regulatory purposes. To the maximum extent practicable,
the Board shall conform such rules to generally accepted accounting
principles.
``Sec. 11162. Rail carrier cost accounting system
``(a) Each rail carrier shall have and maintain a cost accounting
system that is in compliance with the rules promulgated by the Board
under section 11161 of this title. A rail carrier may, after notifying
the Board, make modifications in such system unless, within 60 days
after the date of notification, the Board finds such modifications to be
inconsistent with the rules promulgated by the Board under section 11161
of this title.
``(b) For purposes of determining whether the cost accounting system
of a rail carrier is in compliance with the rules promulgated by the
Board, the Board shall have the right to examine and make copies of any
documents, papers, or records of such rail carrier relating to
compliance with such rules. Such documents, papers, and records (and any
copies thereof) shall not be subject to the mandatory disclosure
requirements of section 552 of title 5.
``Sec. 11163. Cost availability
``As required by the rules of the Board governing discovery in Board
proceedings, rail carriers shall make relevant cost data available to
shippers, States, ports, communities, and other interested parties that
are a party to a Board proceeding in which such data are required.
``Sec. 11164. Accounting and cost reporting
``To obtain expense and revenue information for regulatory purposes,
the Board may promulgate reasonable rules for rail carriers providing
transportation subject to the jurisdiction of the Board under this part,
prescribing expense and revenue accounting and reporting requirements
consistent with generally accepted accounting principles uniformly
applied to such carriers. Such requirements shall be cost effective and
compatible with and not duplicative of the managerial and responsibility
accounting requirements of those carriers.
``CHAPTER 113--FINANCE
``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS
``Sec.
``11301. Equipment trusts: recordation; evidence of indebtedness.
``SUBCHAPTER II--COMBINATIONS
``11321. Scope of authority.
``11322. Limitation on pooling and division of transportation or
earnings.
``11323. Consolidation, merger, and acquisition of control.
``11324. Consolidation, merger, and acquisition of control: conditions
of approval.
``11325. Consolidation, merger, and acquisition of control: procedure.
``11326. Employee protective arrangements in transactions involving rail
carriers.
``11327. Supplemental orders.
``11328. Restrictions on officers and directors.
[[Page 109 STAT. 837]]
``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS
``Sec. 11301. Equipment trusts: recordation; evidence of
indebtedness
``(a) A mortgage (other than a mortgage under chapter 313 of title
46), lease, equipment trust agreement, conditional sales agreement, or
other instrument evidencing the mortgage, lease, conditional sale, or
bailment of or security interest in vessels, railroad cars, locomotives,
or other rolling stock, or accessories used on such railroad cars,
locomotives, or other rolling stock (including superstructures and
racks), intended for a use related to interstate commerce shall be filed
with the Board in order to perfect the security interest that is the
subject of such instrument. An assignment of a right or interest under
one of those instruments and an amendment to that instrument or
assignment including a release, discharge, or satisfaction of any part
of it shall also be filed with the Board. The instrument, assignment, or
amendment must be in writing, executed by the parties to it, and
acknowledged or verified under Board regulations. When filed under this
section, that document is notice to, and enforceable against, all
persons. A document filed under this section does not have to be filed,
deposited, registered, or recorded under another law of the United
States, a State (or its political subdivisions), or territory or
possession of the United States, related to filing, deposit,
registration, or recordation of those documents. This section does not
change chapter 313 of title 46.
``(b) The Board shall maintain a system for recording each document
filed under subsection (a) of this section and mark each of them with a
consecutive number and the date and hour of their
recordation. <<NOTE: Public information.>> The Board shall maintain and
keep open for public inspection an index of documents filed under that
subsection. That index shall include the name and address of the
principal debtors, trustees, guarantors, and other parties to those
documents and may include other facts that will assist in determining
the rights of the parties to those transactions.
``(c) The Board may to the greatest extent practicable perform its
functions under this section through contracts with private sector
entities.
``(d) A mortgage, lease, equipment trust agreement, conditional
sales agreement, or other instrument evidencing the mortgage, lease,
conditional sale, or bailment of or security interest in vessels,
railroad cars, locomotives, or other rolling stock, or accessories used
on such railroad cars, locomotives, or other rolling stock (including
superstructures and racks), or any assignment thereof, which--
``(1) is duly constituted under the laws of a country other
than the United States; and
``(2) relates to property that bears the reporting marks and
identification numbers of any person domiciled in or corporation
organized under the laws of such country,
shall be recognized with the same effect as having been filed under this
section.
``(e) Interests with respect to which documents are filed or
recognized under this section are deemed perfected in all jurisdictions,
and shall be governed by applicable State or foreign law in all matters
not specifically governed by this section.
[[Page 109 STAT. 838]]
``(f) <<NOTE: Public information.>> The Board shall collect,
maintain, and keep open for public inspection a railway equipment
register consistent with the manner and format maintained by the
Interstate Commerce Commission as of the effective date of the ICC
Termination Act of 1995.
``SUBCHAPTER II--COMBINATIONS
``Sec. 11321. Scope of authority
``(a) The authority of the Board under this subchapter is exclusive.
A rail carrier or corporation participating in or resulting from a
transaction approved by or exempted by the Board under this subchapter
may carry out the transaction, own and operate property, and exercise
control or franchises acquired through the transaction without the
approval of a State authority. A rail carrier, corporation, or person
participating in that approved or exempted transaction is exempt from
the antitrust laws and from all other law, including State and municipal
law, as necessary to let that rail carrier, corporation, or person carry
out the transaction, hold, maintain, and operate property, and exercise
control or franchises acquired through the transaction. However, if a
purchase and sale, a lease, or a corporate consolidation or merger is
involved in the transaction, the carrier or corporation may carry out
the transaction only with the assent of a majority, or the number
required under applicable State law, of the votes of the holders of the
capital stock of that corporation entitled to vote. The vote must occur
at a regular meeting, or special meeting called for that purpose, of
those stockholders and the notice of the meeting must indicate its
purpose.
``(b) A power granted under this subchapter to a carrier or
corporation is in addition to and changes its powers under its corporate
charter and under State law. Action under this subchapter does not
establish or provide for establishing a corporation under the laws of
the United States.
``Sec. 11322. Limitation on pooling and division of transportation
or earnings
``(a) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part may not agree or combine with
another of those rail carriers to pool or divide traffic or services or
any part of their earnings without the approval of the Board under this
section or section 11123 of this title. The Board may approve and
authorize the agreement or combination if the rail carriers involved
assent to the pooling or division and the Board finds that a pooling or
division of traffic, services, or earnings--
``(1) will be in the interest of better service to the
public or of economy of operation; and
``(2) will not unreasonably restrain competition.
``(b) The Board may impose conditions governing the pooling or
division and may approve and authorize payment of a reasonable
consideration between the rail carriers.
``(c) The Board may begin a proceeding under this section on its own
initiative or on application.
``Sec. 11323. Consolidation, merger, and acquisition of control
``(a) The following transactions involving rail carriers providing
transportation subject to the jurisdiction of the Board under this
[[Page 109 STAT. 839]]
part may be carried out only with the approval and authorization of the
Board:
``(1) Consolidation or merger of the properties or
franchises of at least 2 rail carriers into one corporation for
the ownership, management, and operation of the previously
separately owned properties.
``(2) A purchase, lease, or contract to operate property of
another rail carrier by any number of rail carriers.
``(3) Acquisition of control of a rail carrier by any number
of rail carriers.
``(4) Acquisition of control of at least 2 rail carriers by
a person that is not a rail carrier.
``(5) Acquisition of control of a rail carrier by a person
that is not a rail carrier but that controls any number of rail
carriers.
``(6) Acquisition by a rail carrier of trackage rights over,
or joint ownership in or joint use of, a railroad line (and
terminals incidental to it) owned or operated by another rail
carrier.
``(b) A person may carry out a transaction referred to in subsection
(a) of this section or participate in achieving the control or
management, including the power to exercise control or management, in a
common interest of more than one of those rail carriers, regardless of
how that result is reached, only with the approval and authorization of
the Board under this subchapter. In addition to other transactions, each
of the following transactions are considered achievements of control or
management:
``(1) A transaction by a rail carrier that has the effect of
putting that rail carrier and person affiliated with it, taken
together, in control of another rail carrier.
``(2) A transaction by a person affiliated with a rail
carrier that has the effect of putting that rail carrier and
persons affiliated with it, taken together, in control of
another rail carrier.
``(3) A transaction by at least 2 persons acting together
(one of whom is a rail carrier or is affiliated with a rail
carrier) that has the effect of putting those persons and rail
carriers and persons affiliated with any of them, or with any of
those affiliated rail carriers, taken together, in control of
another rail carrier.
``(c) A person is affiliated with a rail carrier under this
subchapter if, because of the relationship between that person and a
rail carrier, it is reasonable to believe that the affairs of another
rail carrier, control of which may be acquired by that person, will be
managed in the interest of the other rail carrier.
``Sec. 11324. Consolidation, merger, and acquisition of control:
conditions of approval
``(a) The Board may begin a proceeding to approve and authorize a
transaction referred to in section 11323 of this title on application of
the person seeking that authority. <<NOTE: Notification.>> When an
application is filed with the Board, the Board shall notify the chief
executive officer of each State in which property of the rail carriers
involved in the proposed transaction is located and shall notify those
rail carriers. The Board shall hold a public hearing unless the Board
determines that a public hearing is not necessary in the public
interest.
[[Page 109 STAT. 840]]
``(b) In a proceeding under this section which involves the merger
or control of at least two Class I railroads, as defined by the Board,
the Board shall consider at least--
``(1) the effect of the proposed transaction on the adequacy
of transportation to the public;
``(2) the effect on the public interest of including, or
failing to include, other rail carriers in the area involved in
the proposed transaction;
``(3) the total fixed charges that result from the proposed
transaction;
``(4) the interest of rail carrier employees affected by the
proposed transaction; and
``(5) whether the proposed transaction would have an adverse
effect on competition among rail carriers in the affected region
or in the national rail system.
``(c) The Board shall approve and authorize a transaction under this
section when it finds the transaction is consistent with the public
interest. The Board may impose conditions governing the transaction,
including the divestiture of parallel tracks or requiring the granting
of trackage rights and access to other facilities. Any trackage rights
and related conditions imposed to alleviate anticompetitive effects of
the transaction shall provide for operating terms and compensation
levels to ensure that such effects are alleviated. When the transaction
contemplates a guaranty or assumption of payment of dividends or of
fixed charges or will result in an increase of total fixed charges, the
Board may approve and authorize the transaction only if it finds that
the guaranty, assumption, or increase is consistent with the public
interest. The Board may require inclusion of other rail carriers located
in the area involved in the transaction if they apply for inclusion and
the Board finds their inclusion to be consistent with the public
interest.
``(d) In a proceeding under this section which does not involve the
merger or control of at least two Class I railroads, as defined by the
Board, the Board shall approve such an application unless it finds
that--
``(1) as a result of the transaction, there is likely to be
substantial lessening of competition, creation of a monopoly, or
restraint of trade in freight surface transportation in any
region of the United States; and
``(2) the anticompetitive effects of the transaction
outweigh the public interest in meeting significant
transportation needs.
In making such findings, the Board shall, with respect to any
application that is part of a plan or proposal developed under section
333(a)-(d) of this title, accord substantial weight to any
recommendations of the Attorney General.
``(e) No transaction described in section 11326(b) may have the
effect of avoiding a collective bargaining agreement or shifting work
from a rail carrier with a collective bargaining agreement to a rail
carrier without a collective bargaining agreement.
``(f)(1) To the extent provided in this subsection, a proceeding
under this subchapter relating to a transaction involving at least one
Class I rail carrier shall not be considered an adjudication required by
statute to be determined on the record after opportunity for an agency
hearing, for the purposes of subchapter II of chapter 5 of title 5,
United States Code.
[[Page 109 STAT. 841]]
``(2) Ex parte communications, as defined in section 551(14) of
title 5, United States Code, shall be permitted in proceedings described
in paragraph (1) of this subsection, subject to the requirements of
paragraph (3) of this subsection.
``(3)(A) Any member or employee of the Board who makes or receives a
written ex parte communication concerning the merits of a proceeding
described in paragraph (1) shall promptly place the communication in the
public docket of the proceeding.
``(B) Any member or employee of the Board who makes or receives an
oral ex parte communication concerning the merits of a proceeding
described in paragraph (1) shall promptly place a written summary of the
oral communication in the public docket of the proceeding.
``(4) Nothing in this subsection shall be construed to require the
Board or any of its members or employees to engage in any ex parte
communication with any person. Nothing in this subsection or any other
law shall be construed to limit the authority of the members or
employees of the Board, in their discretion, to note in the docket or
otherwise publicly the occurrence and substance of an ex parte
communication.
``Sec. 11325. Consolidation, merger, and acquisition of control:
procedure
``(a) <<NOTE: Federal Register, publication.>> The Board shall
publish notice of the application under section 11324 in the Federal
Register by the end of the 30th day after the application is filed with
the Board. However, if the application is incomplete, the Board shall
reject it by the end of that period. The order of rejection is a final
action of the Board. The published notice shall indicate whether the
application involves--
``(1) the merger or control of at least two Class I
railroads, as defined by the Board, to be decided within the
time limits specified in subsection (b) of this section;
``(2) transactions of regional or national transportation
significance, to be decided within the time limits specified in
subsection (c) of this section; or
``(3) any other transaction covered by this section, to be
decided within the time limits specified in subsection (d) of
this section.
``(b) If the application involves the merger or control of two or
more Class I railroads, as defined by the Board, the following
conditions apply:
``(1) Written comments about an application may be filed
with the Board within 45 days after notice of the application is
published under subsection (a) of this section. Copies of such
comments shall be served on the Attorney General and the
Secretary of Transportation, who may decide to intervene as a
party to the proceeding. That decision must be made by the 15th
day after the date of receipt of the written comments, and if
the decision is to intervene, preliminary comments about the
application must be sent to the Board by the end of the 15th day
after the date of receipt of the written comments.
``(2) The Board shall require that applications inconsistent
with an application, notice of which was published under
subsection (a) of this section, and applications for inclusion
in
[[Page 109 STAT. 842]]
the transaction, be filed with it by the 90th day after
publication of notice under that subsection.
``(3) The Board must conclude evidentiary proceedings by the
end of 1 year after the date of publication of notice under
subsection (a) of this section. The Board must issue a final
decision by the 90th day after the date on which it concludes
the evidentiary proceedings.
``(c) If the application involves a transaction other than the
merger or control of at least two Class I railroads, as defined by the
Board, which the Board has determined to be of regional or national
transportation significance, the following conditions apply:
``(1) Written comments about an application, including
comments of the Attorney General and the Secretary of
Transportation, may be filed with the Board within 30 days after
notice of the application is published under subsection (a) of
this section.
``(2) The Board shall require that applications inconsistent
with an application, notice of which was published under
subsection (a) of this section, and applications for inclusion
in the transaction, be filed with it by the 60th day after
publication of notice under that subsection.
``(3) The Board must conclude any evidentiary proceedings by
the 180th day after the date of publication of notice under
subsection (a) of this section. The Board must issue a final
decision by the 90th day after the date on which it concludes
the evidentiary proceedings.
``(d) For all applications under this section other than those
specified in subsections (b) and (c) of this section, the following
conditions apply:
``(1) Written comments about an application, including
comments of the Attorney General and the Secretary of
Transportation, may be filed with the Board within 30 days after
notice of the application is published under subsection (a) of
this section.
``(2) The Board must conclude any evidentiary proceedings by
the 105th day after the date of publication of notice under
subsection (a) of this section. The Board must issue a final
decision by the 45th day after the date on which it concludes
the evidentiary proceedings.
``Sec. 11326. Employee protective arrangements in transactions
involving rail carriers
``(a) Except as otherwise provided in this section, when approval is
sought for a transaction under sections 11324 and 11325 of this title,
the Board shall require the rail carrier to provide a fair arrangement
at least as protective of the interests of employees who are affected by
the transaction as the terms imposed under section 5(2)(f)
of the Interstate Commerce Act before February 5, 1976, and the terms
established under section 24706(c) of this title. Notwithstanding this
part, the arrangement may be made by the rail carrier and the authorized
representative of its employees. The arrangement and the order approving
the transaction must require that the employees of the affected rail
carrier will not be in a worse position related to their employment as a
result of the transaction during the 4 years following the effective
date of the final action of the Board (or if an employee was employed
[[Page 109 STAT. 843]]
for a lesser period of time by the rail carrier before the action became
effective, for that lesser period).
``(b) <<NOTE: Severance pay.>> When approval is sought under
sections 11324 and 11325 for a transaction involving one Class II and
one or more Class III rail carriers, there shall be an arrangement as
required under subsection (a) of this section, except that such
arrangement shall be limited to one year of severance pay, which shall
not exceed the amount of earnings from the railroad employment of that
employee during the 12-month period immediately preceding the date on
which the application for approval of such transaction is filed with the
Board. The amount of such severance pay shall be reduced by the amount
of earnings from railroad employment of that employee with the acquiring
carrier during the 12-month period immediately following the effective
date of the transaction. The parties may agree to terms other than as
provided in this subsection.
``(c) When approval is sought under sections 11324 and 11325 for a
transaction involving only Class III rail carriers, this section shall
not apply.
``Sec. 11327. Supplemental orders
``When cause exists, the Board may make appropriate orders
supplemental to an order made in a proceeding under sections 11322
through 11326 of this title.
``Sec. 11328. Restrictions on officers and directors
``(a) A person may hold the position of officer or director of more
than one rail carrier only when authorized by the Board. The Board may
authorize a person to hold the position of officer or director of more
than one of those carriers when public or private interests will not be
adversely affected.
``(b) This section shall not apply to an individual holding the
position of officer or director only of Class III rail carriers.
``CHAPTER 115--FEDERAL-STATE RELATIONS
``Sec.
``11501. Tax discrimination against rail transportation property.
``11502. Withholding State and local income tax by rail carriers.
``Sec. 11501. Tax discrimination against rail transportation
property
``(a) In this section--
``(1) the term `assessment' means valuation for a property
tax levied by a taxing district;
``(2) the term `assessment jurisdiction' means a
geographical area in a State used in determining the assessed
value of property for ad valorem taxation;
``(3) the term `rail transportation property' means
property, as defined by the Board, owned or used by a rail
carrier providing transportation subject to the jurisdiction of
the Board under this part; and
``(4) the term `commercial and industrial property' means
property, other than transportation property and land used
primarily for agricultural purposes or timber growing, devoted
to a commercial or industrial use and subject to a property tax
levy.
[[Page 109 STAT. 844]]
``(b) The following acts unreasonably burden and discriminate
against interstate commerce, and a State, subdivision of a State, or
authority acting for a State or subdivision of a State may not do any of
them:
``(1) Assess rail transportation property at a value that
has a higher ratio to the true market value of the rail
transportation property than the ratio that the assessed value
of other commercial and industrial property in the same
assessment jurisdiction has to the true market value of the
other commercial and industrial property.
``(2) Levy or collect a tax on an assessment that may not be
made under paragraph (1) of this subsection.
``(3) Levy or collect an ad valorem property tax on rail
transportation property at a tax rate that exceeds the tax rate
applicable to commercial and industrial property in the same
assessment jurisdiction.
``(4) Impose another tax that discriminates against a rail
carrier providing transportation subject to the jurisdiction of
the Board under this part.
``(c) Notwithstanding section 1341 of title 28 and without regard to
the amount in controversy or citizenship of the parties, a district
court of the United States has jurisdiction, concurrent with other
jurisdiction of courts of the United States and the States, to prevent a
violation of subsection (b) of this section. Relief may be granted under
this subsection only if the ratio of assessed value to true market value
of rail transportation property exceeds by at least 5 percent the ratio
of assessed value to true market value of other commercial and
industrial property in the same assessment jurisdiction. The burden
of proof in determining assessed value and true market value is governed
by State law. If the ratio of the assessed value of other commercial and
industrial property in the assessment jurisdiction to the true market
value of all other commercial and industrial property cannot be
determined to the satisfaction of the district court through the random-
sampling method known as a sales assessment ratio study (to be carried
out under statistical principles applicable to such a study), the court
shall find, as a violation of this section--
``(1) an assessment of the rail transportation property at a
value that has a higher ratio to the true market value of the
rail transportation property than the assessed value of all
other property subject to a property tax levy in the assessment
jurisdiction has to the true market value of all other
commercial and industrial property; and
``(2) the collection of an ad valorem property tax on the
rail transportation property at a tax rate that exceeds the tax
ratio rate applicable to taxable property in the taxing
district.
``Sec. 11502. Withholding State and local income tax by rail
carriers
``(a) No part of the compensation paid by a rail carrier providing
transportation subject to the jurisdiction of the Board under this part
to an employee who performs regularly assigned duties as such an
employee on a railroad in more than one State shall be subject to the
income tax laws of any State or subdivision of that State, other than
the State or subdivision thereof of the employee's residence.
[[Page 109 STAT. 845]]
``(b) <<NOTE: Reports.>> A rail carrier withholding pay from an
employee under subsection (a) of this section shall file income tax
information returns and other reports only with the State and
subdivision of residence of the employee.
``CHAPTER 117--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES
``Sec.
``11701. General authority.
``11702. Enforcement by the Board.
``11703. Enforcement by the Attorney General.
``11704. Rights and remedies of persons injured by rail carriers.
``11705. Limitation on actions by and against rail carriers.
``11706. Liability of rail carriers under receipts and bills of lading.
``11707. Liability when property is delivered in violation of routing
instructions.
``Sec. 11701. General authority
``(a) Except as otherwise provided in this part, the Board may begin
an investigation under this part only on complaint. If the Board finds
that a rail carrier is violating this part, the Board shall take
appropriate action to compel compliance with this part.
``(b) A person, including a governmental authority, may file with
the Board a complaint about a violation of this part by a rail carrier
providing transportation or service subject to the jurisdiction of the
Board under this part. The complaint must state the facts that are the
subject of the violation. The Board may dismiss a complaint it
determines does not state reasonable grounds for investigation and
action. However, the Board may not dismiss a complaint made against a
rail carrier providing transportation subject to the jurisdiction of the
Board under this part because of the absence of direct damage to the
complainant.
``(c) A formal investigative proceeding begun by the Board under
subsection (a) of this section is dismissed automatically unless it is
concluded by the Board with administrative finality by the end of the
third year after the date on which it was begun.
``Sec. 11702. Enforcement by the Board
``The Board may bring a civil action--
``(1) to enjoin a rail carrier from violating sections 10901
through 10906 of this title, or a regulation prescribed or order
or certificate issued under any of those sections;
``(2) to enforce subchapter II of chapter 113 of this title
and to compel compliance with an order of the Board under that
subchapter; and
``(3) to enforce an order of the Board, except a civil
action to enforce an order for the payment of money, when it is
violated by a rail carrier providing transportation subject to
the jurisdiction of the Board under this part.
``Sec. 11703. Enforcement by the Attorney General
``(a) The Attorney General may, and on request of the Board shall,
bring court proceedings to enforce this part, or a regulation or order
of the Board or certificate issued under this part, and to prosecute a
person violating this part or a regulation or order of the Board or
certificate issued under this part.
``(b) The United States Government may bring a civil action on
behalf of a person to compel a rail carrier providing transportation
subject to the jurisdiction of the Board under this part
[[Page 109 STAT. 846]]
to provide that transportation to that person in compliance with this
part at the same rate charged, or on conditions as favorable as those
given by the rail carrier, for like traffic under similar conditions to
another person.
``Sec. 11704. Rights and remedies of persons injured by rail
carriers
``(a) A person injured because a rail carrier providing
transportation or service subject to the jurisdiction of the Board under
this part does not obey an order of the Board, except an order for the
payment of money, may
bring a civil action in a United States District Court to enforce that
order under this subsection.
``(b) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part is liable for damages
sustained by a person as a result of an act or omission of that carrier
in violation of this part. A rail carrier providing transportation
subject to the jurisdiction of the Board under this part is liable to a
person for amounts charged that exceed the applicable rate for the
transportation.
``(c)(1) A person may file a complaint with the Board under section
11701(b) of this title or bring a civil action under subsection (b) of
this section to enforce liability against a rail carrier providing
transportation subject to the jurisdiction of the Board under this part.
``(2) When the Board makes an award under subsection (b) of this
section, the Board shall order the rail carrier to pay the amount
awarded by a specific date. The Board may order a rail carrier providing
transportation subject to the jurisdiction of the Board under this part
to pay damages only when the proceeding is on complaint. The person for
whose benefit an order of the Board requiring the payment of money is
made may bring a civil action to enforce that order under this paragraph
if the rail carrier does not pay the amount awarded by the date payment
was ordered to be made.
``(d)(1) When a person begins a civil action under subsection (b) of
this section to enforce an order of the Board requiring the payment of
damages by a rail carrier providing transportation subject to the
jurisdiction of the Board under this part, the text of the order of the
Board must be included in the complaint. In addition to the district
courts of the United States, a State court of general jurisdiction
having jurisdiction of the parties has jurisdiction to enforce an order
under this paragraph. The findings and order of the Board are competent
evidence of the facts stated in them. Trial in a civil action brought in
a district court of the United States under this paragraph is in the
judicial district--
``(A) in which the plaintiff resides;
``(B) in which the principal operating office of the rail
carrier is located; or
``(C) through which the railroad line of that carrier runs.
In a civil action under this paragraph, the plaintiff is liable for only
those costs that accrue on an appeal taken by the plaintiff.
``(2) All parties in whose favor the award was made may be joined as
plaintiffs in a civil action brought in a district court of the United
States under this subsection and all the rail carriers that are parties
to the order awarding damages may be joined as defendants. Trial in the
action is in the judicial district in which any one of the plaintiffs
could bring the action against
[[Page 109 STAT. 847]]
any one of the defendants. Process may be served on a defendant at its
principal operating office when that defendant is not in the district in
which the action is brought. A judgment ordering recovery may be made in
favor of any of those plaintiffs against the defendant found to be
liable to that plaintiff.
``(3) <<NOTE: Courts.>> The district court shall award a reasonable
attorney's fee as a part of the damages for which a rail carrier is
found liable under this subsection. The district court shall tax and
collect that fee as a part of the costs of the action.
``Sec. 11705. Limitation on actions by and against rail carriers
``(a) A rail carrier providing transportation or service subject to
the jurisdiction of the Board under this part must begin a civil action
to recover charges for transportation or service provided by the carrier
within 3 years after the claim accrues.
``(b) A person must begin a civil action to recover overcharges
under section 11704(b) of this title within 3 years after the claim
accrues, whether or not a complaint is filed under section 11704(c)(1).
``(c) A person must file a complaint with the Board to recover
damages under section 11704(b) of this title within 2 years after the
claim accrues.
``(d) The limitation period under subsection (b) of this section is
extended for 6 months from the time written notice is given to the
claimant by the rail carrier of disallowance of any part of the claim
specified in the notice if a written claim is given to the rail carrier
within that limitation period. The limitation periods under subsections
(b) and (c) of this section are extended for 90 days from the time the
rail carrier begins a civil action under subsection (a) of this section
to recover charges related to the same transportation or service, or
collects (without beginning a civil action under that subsection) the
charge for that transportation or service if that action is begun or
collection is made within the appropriate period.
``(e) A person must begin a civil action to enforce an order of the
Board against a rail carrier for the payment of money within one year
after the date the order required the money to be paid.
``(f) This section applies to transportation for the United States
Government. The time limitations under this section are extended, as
related to transportation for or on behalf of the United States
Government, for 3 years from the date of--
``(1) payment of the rate for the transportation or service
involved;
``(2) subsequent refund for overpayment of that rate; or
``(3) deduction made under section 3726 of title 31,
whichever is later.
``(g) A claim related to a shipment of property accrues under this
section on delivery or tender of delivery by the rail carrier.
``Sec. 11706. Liability of rail carriers under receipts and bills
of lading
``(a) A rail carrier providing transportation or service subject to
the jurisdiction of the Board under this part shall issue a receipt or
bill of lading for property it receives for transportation under this
part. That rail carrier and any other carrier that delivers the property
and is providing transportation or service subject
[[Page 109 STAT. 848]]
to the jurisdiction of the Board under this part are liable to the
person entitled to recover under the receipt or bill of lading. The
liability imposed under this subsection is for the actual loss or injury
to the property caused by--
``(1) the receiving rail carrier;
``(2) the delivering rail carrier; or
``(3) another rail carrier over whose line or route the
property is transported in the United States or from a place in
the United States to a place in an adjacent foreign country when
transported under a through bill of lading.
Failure to issue a receipt or bill of lading does not affect the
liability of a rail carrier. A delivering rail carrier is deemed to be
the rail carrier performing the line-haul transportation nearest the
destination but does not include a rail carrier providing only a
switching service at the destination.
``(b) The rail carrier issuing the receipt or bill of lading under
subsection (a) of this section or delivering the property for which the
receipt or bill of lading was issued is entitled to recover from the
rail carrier over whose line or route the loss or injury occurred the
amount required to be paid to the owners of the property, as evidenced
by a receipt, judgment, or transcript, and the amount of its expenses
reasonably incurred in defending a civil action brought by that person.
``(c)(1) A rail carrier may not limit or be exempt from liability
imposed under subsection (a) of this section except as provided in this
subsection. A limitation of liability or of the amount of recovery or
representation or agreement in a receipt, bill of lading, contract, or
rule in violation of this section is void.
``(2) A rail carrier of passengers may limit its liability under its
passenger rate for loss or injury of baggage carried on trains carrying
passengers.
``(3) A rail carrier providing transportation or service subject to
the jurisdiction of the Board under this part may establish rates for
transportation of property under which--
``(A) the liability of the rail carrier for such property is
limited to a value established by written declaration of the
shipper or by a written agreement between the shipper and the
carrier; or
``(B) specified amounts are deducted, pursuant to a written
agreement between the shipper and the carrier, from any claim
against the carrier with respect to the transportation of such
property.
``(d)(1) A civil action under this section may be brought in a
district court of the United States or in a State court.
``(2)(A) A civil action under this section may only be brought--
``(i) against the originating rail carrier, in the judicial
district in which the point of origin is located;
``(ii) against the delivering rail carrier, in the judicial
district in which the principal place of business of the person
bringing the action is located if the delivering carrier
operates a railroad or a route through such judicial district,
or in the judicial district in which the point of destination is
located; and
``(iii) against the carrier alleged to have caused the loss
or damage, in the judicial district in which such loss or damage
is alleged to have occurred.
[[Page 109 STAT. 849]]
``(B) In this section, `judicial district' means (i) in the case of
a United States district court, a judicial district of the United
States, and (ii) in the case of a State court, the applicable geographic
area over which such court exercises jurisdiction.
``(e) A rail carrier may not provide by rule, contract, or
otherwise, a period of less than 9 months for filing a claim against it
under this section and a period of less than 2 years for bringing a
civil action against it under this section. The period for bringing a
civil action is computed from the date the carrier gives a person
written notice that the carrier has disallowed any part of the claim
specified in the notice. For the purposes of this subsection--
``(1) an offer of compromise shall not constitute a
disallowance of any part of the claim unless the carrier, in
writing, informs the claimant that such part of the claim is
disallowed and provides reasons for such disallowance; and
``(2) communications received from a carrier's insurer shall
not constitute a disallowance of any part of the claim unless
the insurer, in writing, informs the claimant that such part of
the claim is disallowed, provides reasons for such disallowance,
and informs the claimant that the insurer is acting on behalf of
the carrier.
Sec. ``11707. Liability when property is delivered in violation of
routing instructions
``(a)(1) When a rail carrier providing transportation subject to the
jurisdiction of the Board under this part diverts or delivers property
to another rail carrier in violation of routing instructions in the bill
of lading, both of those rail carriers are jointly and severally liable
to the rail carrier that was deprived of its right to participate in
hauling that property for the total amount of the rate it would have
received if it participated in hauling the property.
``(2) A rail carrier is not liable under paragraph (1) of this
subsection when it diverts or delivers property in compliance with an
order or regulation of the Board.
``(3) A rail carrier to whom property is transported is not liable
under this subsection if it shows that it had no notice of the routing
instructions before transporting the property. The burden of proving
lack of notice is on that rail carrier.
``(b) <<NOTE: Courts.>> The court shall award a reasonable
attorney's fee to the plaintiff in a judgment against the defendant rail
carrier under subsection (a) of this section. The court shall tax and
collect that fee as a part of the costs of the action.
``CHAPTER 119--CIVIL AND CRIMINAL PENALTIES
``Sec.
``11901. General civil penalties.
``11902. Interference with railroad car supply.
``11903. Record keeping and reporting violations.
``11904. Unlawful disclosure of information.
``11905. Disobedience to subpoenas.
``11906. General criminal penalty when specific penalty not provided.
``11907. Punishment of corporation for violations committed by certain
individuals.
``11908. Relation to other Federal criminal penalties.
``Sec. 11901. General civil penalties
``(a) Except as otherwise provided in this section, a rail carrier
providing transportation subject to the jurisdiction of the Board
[[Page 109 STAT. 850]]
under this part, an officer or agent of that rail carrier, or a
receiver, trustee, lessee, or agent of one of them, knowingly violating
this part or an order of the Board under this part is liable to the
United States Government for a civil penalty of not more than $5,000 for
each violation. Liability under this subsection is incurred for each
distinct violation. A separate violation occurs for each day the
violation continues.
``(b) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part, or a receiver or trustee of
that rail carrier, violating a regulation or order of the Board under
section 11124(a)(2) or (b) of this title is liable to the United States
Government for a civil penalty of $500 for each violation and for $25
for each day the violation continues.
``(c) A person knowingly authorizing, consenting to, or permitting a
violation of sections 10901 through 10906 of this title or of a
requirement or a regulation under any of those sections, is liable to
the United States Government for a civil penalty of not more than
$5,000.
``(d) A rail carrier, receiver, or operating trustee violating an
order or direction of the Board under section 11123 or 11124(a)(1) of
this title is liable to the United States Government for a civil penalty
of at least $100 but not more than $500 for each violation and for $50
for each day the violation continues.
``(e)(1) <<NOTE: Records.>> A person required under subchapter III
of chapter 111 of this title to make, prepare, preserve, or submit to
the Board a record concerning transportation subject to the jurisdiction
of the Board under this part that does not make, prepare, preserve, or
submit that record as required under that subchapter, is liable to the
United States Government for a civil penalty of $500 for each violation.
``(2) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part, and a lessor, receiver, or
trustee of that rail carrier, violating section 11144(b)(1) of this
title, is liable to the United States Government for a civil penalty of
$100 for each violation.
``(3) A rail carrier providing transportation subject to the
jurisdiction of the Board under this part, a lessor, receiver, or
trustee of that rail carrier, a person furnishing cars, and an officer,
agent, or employee of one of them, required to make a report to the
Board or answer a question that does not make the report or does not
specifically, completely, and truthfully answer the question, is liable
to the United States Government for a civil penalty of $100 for each
violation.
``(4) A separate violation occurs for each day a violation under
this subsection continues.
``(f) Trial in a civil action under subsections (a) through (e) of
this section is in the judicial district in which the rail carrier has
its principal operating office or in a district through which the
railroad of the rail carrier runs.
``Sec. 11902. Interference with railroad car supply
``(a) A person that offers or gives anything of value to another
person acting for or employed by a rail carrier providing transportation
subject to the jurisdiction of the Board under this part intending to
influence an action of that other person related to supply,
distribution, or movement of cars, vehicles, or vessels used in the
transportation of property, or because of the action of that
[[Page 109 STAT. 851]]
other person, shall be fined not more than $1,000, imprisoned for not
more than 2 years, or both.
``(b) A person acting for or employed by a rail carrier providing
transportation subject to the jurisdiction of the Board under this part
that solicits, accepts, or receives anything of value--
``(1) intending to be influenced by it in an action of that
person related to supply, distribution, or movement of cars,
vehicles, or vessels used in the transportation of property; or
``(2) because of the action of that person,
shall be fined not more than $1,000, imprisoned for not more than 2
years, or both.
``Sec. 11903. Record keeping and reporting violations
``A person required to make a report to the Board, or make, prepare,
or preserve a record, under subchapter III of chapter 111 of this title
about transportation subject to the jurisdiction of the Board under this
part that knowingly and willfully--
``(1) makes a false entry in the report or record;
``(2) destroys, mutilates, changes, or by another means
falsifies the record;
``(3) does not enter business related facts and transactions
in the record;
``(4) makes, prepares, or preserves the record in violation
of a regulation or order of the Board; or
``(5) files a false report or record with the Board,
shall be fined not more than $5,000, imprisoned for not more than 2
years, or both.
``Sec. 11904. Unlawful disclosure of information
``(a) A--
``(1) rail carrier providing transportation subject to the
jurisdiction of the Board under this part, or an officer, agent,
or employee of that rail carrier, or another person authorized
to receive information from that rail carrier, that knowingly
discloses to another person, except the shipper or consignee; or
``(2) a person who solicits or knowingly receives,
information described in subsection (b) without the consent of the
shipper or consignee shall be fined not more than $1,000.
``(b) The information referred to in subsection (a) is information
about the nature, kind, quantity, destination, consignee, or routing of
property tendered or delivered to that rail carrier for transportation
provided under this part, or information about the contents of a
contract authorized under section 10709 of this title, that may be used
to the detriment of the shipper or consignee or may disclose improperly,
to a competitor, the business transactions of the shipper or consignee.
``(c) This part does not prevent a rail carrier providing
transportation subject to the jurisdiction of the Board under this part
from giving information--
``(1) in response to legal process issued under authority of
a court of the United States or a State;
``(2) to an officer, employee, or agent of the United States
Government, a State, or a territory or possession of the United
States; or
[[Page 109 STAT. 852]]
``(3) to another rail carrier or its agent to adjust mutual
traffic accounts in the ordinary course of business.
``(d) An employee of the Board delegated to make an inspection or
examination under section 11144 of this title who knowingly discloses
information acquired during that inspection or examination, except as
directed by the Board, a court, or a judge of that court, shall be fined
not more than $500, imprisoned for not more than 6 months, or both.
``(e) A person that knowingly discloses confidential data made
available to such person under section 11163 of this title by a rail
carrier providing transportation subject to the jurisdiction of the
Board under this part shall be fined not more than $50,000.
``Sec. 11905. Disobedience to subpoenas
``A person not obeying a subpoena or requirement of the Board to
appear and testify or produce records shall be fined at least $100 but
not more than $5,000, imprisoned for not more than one year, or both.
``Sec. 11906. General criminal penalty when specific penalty not
provided
``When another criminal penalty is not provided under this chapter,
a rail carrier providing transportation subject to the jurisdiction of
the Board under this part, and when that rail carrier is a corporation,
a director or officer of the corporation, or a receiver, trustee,
lessee, or person acting for or employed by the corporation that, alone
or with another person, willfully violates this part or an order
prescribed under this part, shall be fined not more than $5,000. The
person may be imprisoned for not more than 2 years in addition to being
fined under this section. A separate violation occurs each day a
violation of this title continues.
``Sec. 11907. Punishment of corporation for violations committed
by certain individuals
``An act or omission that would be a violation of this part if
committed by a director, officer, receiver, trustee, lessee, agent, or
employee of a rail carrier providing transportation or service subject
to the jurisdiction of the Board under this part that is a corporation
is also a violation of this part by that corporation. The penalties of
this chapter apply to that violation. When acting in the scope of their
employment, the actions and omissions of individuals acting for or
employed by that rail carrier are considered to be the actions and
omissions of that rail carrier as well as that individual.
``Sec. 11908. Relation to other Federal criminal penalties
``Notwithstanding section 3571 of title 18, United States Code, the
criminal penalties provided for in this chapter are the exclusive
criminal penalties for violations of this part.''.
(b) Conforming Amendment.--The item relating to subtitle IV in the
table of subtitles of title 49, United States Code, is amended by
striking ``Commerce'' and inserting in lieu thereof ``Transportation''.
SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT FORWARDER
PROVISIONS.
Subtitle IV of title 49, United States Code, is further amended by
adding at the end the following:
[[Page 109 STAT. 853]]
``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT
FORWARDERS
``CHAPTER 131--GENERAL PROVISIONS
``Sec.
``13101. Transportation policy.
``13102. Definitions.
``13103. Remedies as cumulative.
``Sec. 13101. Transportation policy
``(a) In General.--To ensure the development, coordination, and
preservation of a transportation system that meets the transportation
needs of the United States, including the United States Postal Service
and national defense, it is the policy of the United States Government
to oversee the modes of transportation and--
``(1) in overseeing those modes--
``(A) to recognize and preserve the inherent
advantage of each mode of transportation;
``(B) to promote safe, adequate, economical, and
efficient transportation;
``(C) to encourage sound economic conditions in
transportation, including sound economic conditions
among carriers;
``(D) to encourage the establishment and maintenance
of reasonable rates for transportation, without
unreasonable discrimination or unfair or destructive
competitive practices;
``(E) to cooperate with each State and the officials
of each State on transportation matters; and
``(F) to encourage fair wages and working conditions
in the transportation industry;
``(2) in overseeing transportation by motor carrier, to
promote competitive and efficient transportation services in
order to--
``(A) encourage fair competition, and reasonable
rates for transportation by motor carriers of property;
``(B) promote efficiency in the motor carrier
transportation system and to require fair and
expeditious decisions when required;
``(C) meet the needs of shippers, receivers,
passengers, and consumers;
``(D) allow a variety of quality and price options
to meet changing market demands and the diverse
requirements of the shipping and traveling public;
``(E) allow the most productive use of equipment and
energy resources;
``(F) enable efficient and well-managed carriers to
earn adequate profits, attract capital, and maintain
fair wages and working conditions;
``(G) provide and maintain service to small
communities and small shippers and intrastate bus
services;
``(H) provide and maintain commuter bus operations;
``(I) improve and maintain a sound, safe, and
competitive privately owned motor carrier system;
``(J) promote greater participation by minorities in
the motor carrier system;
[[Page 109 STAT. 854]]
``(K) promote intermodal transportation;
``(3) in overseeing transportation by motor carrier of
passengers--
``(A) to cooperate with the States on transportation
matters for the purpose of encouraging the States to
exercise intrastate regulatory jurisdiction in
accordance with the objectives of this part;
``(B) to provide Federal procedures which ensure
that intrastate regulation is exercised in accordance
with this part; and
``(C) to ensure that Federal reform initiatives
enacted by section 31138 and the Bus Regulatory Reform
Act of 1982 are not nullified by State regulatory
actions; and
``(4) in overseeing transportation by water carrier, to
encourage and promote service and price competition in the
noncontiguous domestic trade.
``(b) Administration To Carry Out Policy.--This part shall be
administered and enforced to carry out the policy of this section and to
promote the public interest.
``Sec. 13102. Definitions
``In this part, the following definitions shall apply:
``(1) Board.--The term `Board' means the Surface
Transportation Board.
``(2) Broker.--The term `broker' means a person, other than
a motor carrier or an employee or agent of a motor carrier, that
as a principal or agent sells, offers for sale, negotiates for,
or holds itself out by solicitation, advertisement, or otherwise
as
selling, providing, or arranging for, transportation by motor carrier
for compensation.
``(3) Carrier.--The term `carrier' means a motor carrier, a
water carrier, and a freight forwarder.
``(4) Contract carriage.--The term `contract carriage'
means--
``(A) for transportation provided before the
effective date of this section, service provided
pursuant to a permit issued under section 10923, as in
effect on the day before the effective date of this
section; and
``(B) for transportation provided on or after such
date, service provided under an agreement entered into
under section 14101(b).
``(5) Control.--The term `control', when referring to a
relationship between persons, includes actual control, legal
control, and the power to exercise control, through or by--
``(A) common directors, officers, stockholders, a
voting trust, or a holding or investment company, or
``(B) any other means.
``(6) Foreign motor carrier.--The term `foreign motor
carrier' means a person (including a motor carrier of property
but excluding a motor private carrier)--
``(A)(i) that is domiciled in a contiguous foreign
country; or
``(ii) that is owned or controlled by persons of a
contiguous foreign country; and
``(B) in the case of a person that is not a motor
carrier of property, that provides interstate
transportation of property by motor vehicle under an
agreement or contract
[[Page 109 STAT. 855]]
entered into with a motor carrier of property (other
than a motor private carrier or a motor carrier of
property described in subparagraph (A)).
``(7) Foreign motor private carrier.--The term `foreign
motor private carrier' means a person (including a motor private
carrier but excluding a motor carrier of property)--
``(A)(i) that is domiciled in a contiguous foreign
country; or
``(ii) that is owned or controlled by persons of a
contiguous foreign country; and
``(B) in the case of a person that is not a motor
private carrier, that provides interstate transportation
of property by motor vehicle under an agreement or
contract entered into with a person (other than a motor
carrier of property or a motor private carrier described
in subparagraph (A)).
``(8) Freight forwarder.--The term `freight forwarder' means
a person holding itself out to the general public (other than as
a pipeline, rail, motor, or water carrier) to provide
transportation of property for compensation and in the ordinary
course of its business--
``(A) assembles and consolidates, or provides for
assembling and consolidating, shipments and performs or
provides for break-bulk and distribution operations of
the shipments;
``(B) assumes responsibility for the transportation
from the place of receipt to the place of destination;
and
``(C) uses for any part of the transportation a
carrier subject to jurisdiction under this subtitle.
The term does not include a person using transportation of an
air carrier subject to part A of subtitle VII.
``(9) Highway.--The term `highway' means a road, highway,
street, and way in a State.
``(10) Household goods.--The term `household goods', as used
in connection with transportation, means personal effects and
property used or to be used in a dwelling, when a part of the
equipment or supply of such dwelling, and similar property if
the transportation of such effects or property is--
``(A) arranged and paid for by the householder,
including transportation of property from a factory or
store when the property is purchased by the householder
with intent to use in his or her dwelling, or
``(B) arranged and paid for by another party.
``(11) Household goods freight forwarder.--The term
`household goods freight forwarder' means a freight forwarder of
one or more of the following items: household goods,
unaccompanied baggage, or used automobiles.
``(12) Motor carrier.--The term `motor carrier' means a
person providing motor vehicle transportation for compensation.
``(13) Motor private carrier.--The term `motor private
carrier' means a person, other than a motor carrier,
transporting property by motor vehicle when--
``(A) the transportation is as provided in section
13501 of this title;
``(B) the person is the owner, lessee, or bailee of
the property being transported; and
[[Page 109 STAT. 856]]
``(C) the property is being transported for sale,
lease, rent, or bailment or to further a commercial
enterprise.
``(14) Motor vehicle.--The term `motor vehicle' means a
vehicle, machine, tractor, trailer, or semitrailer propelled or
drawn by mechanical power and used on a highway in
transportation, or a combination determined by the Secretary,
but does not include a vehicle, locomotive, or car operated only
on a rail, or a trolley bus operated by electric power from a
fixed overhead wire, and providing local passenger
transportation similar to street-railway service.
``(15) Noncontiguous domestic trade.--The term
`noncontiguous domestic trade' means transportation subject to
jurisdiction under chapter 135 involving traffic originating in
or destined to Alaska, Hawaii, or a territory or possession of
the United States.
``(16) Person.--The term `person', in addition to its
meaning under section 1 of title 1, includes a trustee,
receiver, assignee, or personal representative of a person.
``(17) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(18) State.--The term `State' means the 50 States of the
United States and the District of Columbia.
``(19) Transportation.--The term `transportation' includes--
``(A) a motor vehicle, vessel, warehouse, wharf,
pier, dock, yard, property, facility, instrumentality,
or equipment of any kind related to the movement of
passengers or property, or both, regardless of ownership
or an agreement concerning use; and
``(B) services related to that movement, including
arranging for, receipt, delivery, elevation, transfer in
transit, refrigeration, icing, ventilation, storage,
handling, packing, unpacking, and interchange of
passengers and property.
``(20) United states.--The term `United States' means the
States of the United States and the District of Columbia.
``(21) Vessel.--The term `vessel' means a watercraft or
other artificial contrivance that is used, is capable of being
used, or is intended to be used, as a means of transportation by
water.
``(22) Water carrier.--The term `water carrier' means a
person providing water transportation for compensation.
``Sec. 13103. Remedies as cumulative
``Except as otherwise provided in this part, the remedies provided
under this part are in addition to remedies existing under another law
or common law.
``CHAPTER 133--ADMINISTRATIVE PROVISIONS
``Sec.
``13301. Powers.
``13302. Intervention.
``13303. Service of notice in proceedings.
``13304. Service of process in court proceedings.
``Sec. 13301. Powers
``(a) General Powers of Secretary.--Except as otherwise specified,
the Secretary shall carry out this part. Enumeration
[[Page 109 STAT. 857]]
of a power of the Secretary in this part does not exclude another power
the Secretary may have in carrying out this part. The Secretary may
prescribe regulations in carrying out this part.
``(b) Obtaining Information.--The Secretary may obtain from carriers
providing, and brokers for, transportation and service subject to this
part, and from persons controlling, controlled by, or under common
control with those carriers or brokers to the extent that the business
of that person is related to the management of the business of that
carrier or broker, information the Secretary decides is necessary to
carry out this part.
``(c) Subpoena Power.--
``(1) By secretary.--The Secretary may subpoena witnesses
and records related to a proceeding under this part from any
place in the United States, to the designated place of the
proceeding. If a witness disobeys a subpoena, the Secretary, or
a party to a proceeding under this part, may petition a court of
the United States to enforce that subpoena.
``(2) Enforcement.--The district courts of the United States
have jurisdiction to enforce a subpoena issued under this
section. Trial is in the district in which the proceeding is
conducted. The court may punish a refusal to obey a subpoena as
a contempt of court.
``(d) Testimony of Witnesses.--
``(1) Procedure for taking testimony.--In a proceeding under
this part, the Secretary may take the testimony of a witness by
deposition and may order the witness to produce records. A party
to a proceeding pending under this part may take the testimony
of a witness by deposition and may require the witness to
produce records at any time after a proceeding is at issue on
petition and answer.
``(2) Subpoena.--If a witness fails to be deposed or to
produce records under paragraph (1) of this subsection, the
Secretary may subpoena the witness to take a deposition, produce
the records, or both.
``(3) Depositions.--A deposition may be taken before a judge
of a court of the United States, a United States magistrate
judge, a clerk of a district court, or a chancellor, justice, or
judge of a supreme or superior court, mayor or chief magistrate
of a city, judge of a county court, or court of common pleas of
any State, or a notary public who is not counsel or attorney of
a party or interested in the proceeding.
``(4) Notice of deposition.--Before taking a deposition,
reasonable notice must be given in writing by the party or the
attorney of that party proposing to take a deposition to the
opposing party or the attorney of record of that party, whoever
is nearest. The notice shall state the name of the witness and
the time and place of taking the deposition.
``(5) Transcript.--The testimony of a person deposed under
this subsection shall be taken under oath. The person taking the
deposition shall prepare, or cause to be prepared, a transcript
of the testimony taken. The transcript shall be subscribed by
the deponent.
``(6) Foreign country.--The testimony of a witness who is in
a foreign country may be taken by deposition before an officer
or person designated by the Secretary or agreed on by the
parties by written stipulation filed with the Secretary. A
deposition shall be filed with the Secretary promptly.
[[Page 109 STAT. 858]]
``(e) Witness Fees.--Each witness summoned before the Secretary or
whose deposition is taken under this section and the individual taking
the deposition are entitled to the same fees and mileage paid for those
services in the courts of the United States.
``(f) Powers of Board.--For those provisions of this part that are
specified to be carried out by the Board, the Board shall have the same
powers as the Secretary has under this section.
``Sec. 13302. Intervention
``Under regulations of the Secretary, reasonable notice of, and an
opportunity to intervene and participate in, a proceeding under this
part related to transportation subject to jurisdiction under subchapter
I of chapter 135 shall be given to interested persons.
``Sec. 13303. Service of notice in proceedings
``(a) Agents for Service of Process.--A carrier, a broker, or a
freight forwarder providing transportation or service subject to
jurisdiction under chapter 135 shall designate, in writing, an agent by
name and post office address on whom service of notices in a proceeding
before, and of actions of, the Secretary may be made.
``(b) Filing With State.--A motor carrier providing transportation
under this part shall also file the designation with the appropriate
authority of each State in which it operates. The designation may be
changed at any time in the same manner as originally made.
``(c) Notice.--A notice to a motor carrier, freight forwarder, or
broker shall be served personally or by mail on the motor carrier,
freight forwarder, or broker or on its designated agent. Service by mail
on the designated agent shall be made at the address filed for the
agent. When notice is given by mail, the date of mailing is considered
to be the time when the notice is served. If a motor carrier, freight
forwarder, or broker does not have a designated agent, service may be
made by posting a copy of the notice at the headquarters of the
Department of Transportation.
``Sec. 13304. Service of process in court proceedings
``(a) Designation of Agent.--A motor carrier or broker providing
transportation subject to jurisdiction under chapter 135, including a
motor carrier or broker operating within the United States while
providing transportation between places in a foreign country or between
a place in one foreign country and a place in another foreign country,
shall designate an agent in each State in which it operates by name and
post office address on whom process issued by a court with subject
matter jurisdiction may be served in an action brought against that
carrier or broker. The designation shall be in writing and filed with
the Department of Transportation and each State in which the carrier
operates may require that an additional designation be filed with it. If
a designation under this subsection is not made, service may be made on
any agent of the carrier or broker within that State.
``(b) Change.--A designation under this section may be changed at
any time in the same manner as originally made.
[[Page 109 STAT. 859]]
``CHAPTER 135--JURISDICTION
``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION
``Sec.
``13501. General jurisdiction.
``13502. Exempt transportation between Alaska and other States.
``13503. Exempt motor vehicle transportation in terminal areas.
``13504. Exempt motor carrier transportation entirely in one State.
``13505. Transportation furthering a primary business.
``13506. Miscellaneous motor carrier transportation exemptions.
``13507. Mixed loads of regulated and unregulated property.
``13508. Limited authority over cooperative associations.
``SUBCHAPTER II--WATER CARRIER TRANSPORTATION
``13521. General jurisdiction.
``SUBCHAPTER III--FREIGHT FORWARDER SERVICE
``13531. General jurisdiction.
``SUBCHAPTER IV--AUTHORITY TO EXEMPT
``13541. Authority to exempt transportation or services.
``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION
``Sec. 13501. General jurisdiction
``The Secretary and the Board have jurisdiction, as specified in
this part, over transportation by motor carrier and the procurement of
that transportation, to the extent that passengers, property, or both,
are transported by motor carrier--
``(1) between a place in--
``(A) a State and a place in another State;
``(B) a State and another place in the same State
through another State;
``(C) the United States and a place in a territory
or possession of the United States to the extent the
transportation is in the United States;
``(D) the United States and another place in the
United States through a foreign country to the extent
the transportation is in the United States; or
``(E) the United States and a place in a foreign
country to the extent the transportation is in the
United States; and
``(2) in a reservation under the exclusive jurisdiction of
the United States or on a public highway.
``Sec. 13502. Exempt transportation between Alaska and other States
``To the extent that transportation by a motor carrier between a
place in Alaska and a place in another State under section 13501 is
provided in a foreign country--
``(1) neither the Secretary nor the Board has jurisdiction
to impose a requirement over conduct of the motor carrier in the
foreign country conflicting with a requirement of that country;
but
``(2) the motor carrier, as a condition of providing
transportation in the United States, shall comply, with respect
to all transportation provided between Alaska and the other
State, with the requirements of this part related to rates and
practices applicable to the transportation.
[[Page 109 STAT. 860]]
``Sec. 13503. Exempt motor vehicle transportation in terminal areas
``(a) Transportation by Carriers.--
``(1) In general.--Neither the Secretary nor the Board has
jurisdiction under this subchapter over transportation by motor
vehicle provided in a terminal area when the transportation--
``(A) is a transfer, collection, or delivery;
``(B) is provided by--
``(i) a rail carrier subject to jurisdiction
under chapter 105;
``(ii) a water carrier subject to jurisdiction
under subchapter II of this chapter; or
``(iii) a freight forwarder subject to
jurisdiction under subchapter III of this chapter;
and
``(C) is incidental to transportation or service
provided by the carrier or freight forwarder that is
subject to jurisdiction under chapter 105 of this title
or under subchapter II or III of this chapter.
``(2) Applicability of other provisions.--Transportation
exempt from jurisdiction under paragraph (1) of this subsection
is subject to jurisdiction under chapter 105 when provided by
such a rail carrier, under subchapter II of this chapter when
provided by such a water carrier, and under subchapter III of
this chapter when provided by such a freight forwarder.
``(b) Transportation by Agent.--
``(1) In general.--Except to the extent provided by
paragraph (2) of this subsection, neither the Secretary nor the
Board has jurisdiction under this subchapter over transportation
by motor vehicle provided in a terminal area when the
transportation--
``(A) is a transfer, collection, or delivery; and
``(B) is provided by a person as an agent or under
other arrangement for--
``(i) a rail carrier subject to jurisdiction
under chapter 105 of this title;
``(ii) a motor carrier subject to jurisdiction
under this subchapter;
``(iii) a water carrier subject to
jurisdiction under subchapter II of this chapter;
or
``(iv) a freight forwarder subject to
jurisdiction under subchapter III of this chapter.
``(2) Treatment of transportation by principal.--
Transportation exempt from jurisdiction under paragraph (1) of
this subsection is considered transportation provided by the
carrier or service provided by the freight forwarder for whom
the transportation was provided and is subject to jurisdiction
under chapter 105 of this title when provided for such a rail
carrier, under this subchapter when provided for such a motor
carrier, under subchapter II of this chapter when provided for
such a water carrier, and under subchapter III of this chapter
when provided for such a freight forwarder.
``Sec. 13504. Exempt motor carrier transportation entirely in one State
``Neither the Secretary nor the Board has jurisdiction under this
subchapter over transportation, except transportation of house
[[Page 109 STAT. 861]]
hold goods, by a motor carrier operating solely within the State of
Hawaii. The State of Hawaii may regulate transportation exempt from
jurisdiction under this section and, to the extent provided by a motor
carrier operating solely within the State of Hawaii, transportation
exempt under section 13503 of this title.
``Sec. 13505. Transportation furthering a primary business
``(a) In General.--Neither the Secretary nor the Board has
jurisdiction under this part over the transportation of property by
motor vehicle when--
``(1) the property is transported by a person engaged in a
business other than transportation; and
``(2) the transportation is within the scope of, and
furthers a primary business (other than transportation) of the
person.
``(b) Corporate Families.--
``(1) In general.--Neither the Secretary nor the Board has
jurisdiction under this part over transportation of property by
motor vehicle for compensation provided by a person who is a
member of a corporate family for other members of such corporate
family.
``(2) Definition.--In this section, `corporate family' means
a group of corporations consisting of a parent corporation and
all subsidiaries in which the parent corporation owns directly
or indirectly a 100 percent interest.
``Sec. 13506. Miscellaneous motor carrier transportation exemptions
``(a) In General.--Neither the Secretary nor the Board has
jurisdiction under this part over--
``(1) a motor vehicle transporting only school children and
teachers to or from school;
``(2) a motor vehicle providing taxicab service and having a
capacity of not more than 6 passengers and not operated on a
regular route or between specified places;
``(3) a motor vehicle owned or operated by or for a hotel
and only transporting hotel patrons between the hotel and the
local station of a carrier;
``(4) a motor vehicle controlled and operated by a farmer
and transporting--
``(A) the farmer's agricultural or horticultural
commodities and products; or
``(B) supplies to the farm of the farmer;
``(5) a motor vehicle controlled and operated by a
cooperative association (as defined by section 15(a) of the
Agricultural Marketing Act (12 U.S.C. 1141j(a)) or by a
federation of cooperative associations if the federation has no
greater power or purposes than a cooperative association, except
that if the cooperative association or federation provides
transportation for compensation between a place in a State and a
place in another State, or between a place in a State and
another place in the same State through another State--
``(A) for a nonmember that is not a farmer,
cooperative association, federation, or the United
States Government, the transportation (except for
transportation otherwise exempt under this subchapter)--
``(i) shall be limited to transportation
incidental to the primary transportation operation
of the coopera
[[Page 109 STAT. 862]]
tive association or federation and necessary for
its effective performance; and
``(ii) may not exceed in each fiscal year 25
percent of the total transportation of the
cooperative association or federation between
those places, measured by tonnage; and
``(B) the transportation for all nonmembers may not
exceed in each fiscal year, measured by tonnage, the
total transportation between those places for the
cooperative association or federation and its members
during that fiscal year;
``(6) transportation by motor vehicle of--
``(A) ordinary livestock;
``(B) agricultural or horticultural commodities
(other than manufactured products thereof);
``(C) commodities listed as exempt in the Commodity
List incorporated in ruling numbered 107, March 19,
1958, Bureau of Motor Carriers, Interstate Commerce
Commission, other than frozen fruits, frozen berries,
frozen vegetables, cocoa beans, coffee beans, tea,
bananas, or hemp, or wool imported from a foreign
country, wool tops and noils, or wool waste (carded,
spun, woven, or knitted);
``(D) cooked or uncooked fish, whether breaded or
not, or frozen or fresh shellfish, or byproducts thereof
not intended for human consumption, other than fish or
shellfish that have been treated for preserving, such as
canned, smoked, pickled, spiced, corned, or kippered
products; and
``(E) livestock and poultry feed and agricultural
seeds and plants, if such products (excluding products
otherwise exempt under this paragraph) are transported
to a site of agricultural production or to a business
enterprise engaged in the sale to agricultural producers
of goods used in agricultural production;
``(7) a motor vehicle used only to distribute newspapers;
``(8)(A) transportation of passengers by motor vehicle
incidental to transportation by aircraft;
``(B) transportation of property (including baggage) by
motor vehicle as part of a continuous movement which, prior or
subsequent to such part of the continuous movement, has been or
will be transported by an air carrier or (to the extent so
agreed by the United States and approved by the Secretary) by a
foreign air carrier; or
``(C) transportation of property by motor vehicle in lieu of
transportation by aircraft because of adverse weather conditions
or mechanical failure of the aircraft or other causes due to
circumstances beyond the control of the carrier or shipper;
``(9) the operation of a motor vehicle in a national park or
national monument;
``(10) a motor vehicle carrying not more than 15 individuals
in a single, daily roundtrip to commute to and from work;
``(11) transportation of used pallets and used empty
shipping containers (including intermodal
cargo containers), and other used shipping devices (other than
containers or devices used in the transportation of motor vehicles or
parts of motor vehicles);
``(12) transportation of natural, crushed, vesicular rock to
be used for decorative purposes;
[[Page 109 STAT. 863]]
``(13) transportation of wood chips;
``(14) brokers for motor carriers of passengers, except as
provided in section 13904(d); or
``(15) transportation of broken, crushed, or powdered glass.
``(b) Exempt Unless Otherwise Necessary.--Except to the extent the
Secretary or Board, as applicable, finds it necessary to exercise
jurisdiction to carry out the transportation policy of section 13101,
neither the Secretary nor the Board has jurisdiction under this part
over--
``(1) transportation provided entirely in a municipality, in
contiguous municipalities, or in a zone that is adjacent to, and
commercially a part of, the municipality or municipalities,
except--
``(A) when the transportation is under common
control, management, or arrangement for a continuous
carriage or shipment to or from a place outside the
municipality, municipalities, or zone; or
``(B) that in transporting passengers over a route
between a place in a State and a place in another State,
or between a place in a State and another place in the
same State through another State, the transportation is
exempt from jurisdiction under this part only if the
motor carrier operating the motor vehicle also is
lawfully providing intrastate transportation of
passengers over the entire route under the laws of each
State through which the route runs;
``(2) transportation by motor vehicle provided casually,
occasionally, or reciprocally but not as a regular occupation or
business, except when a broker or other person sells or offers
for sale passenger transportation provided by a person
authorized to transport passengers by motor vehicle under an
application pending, or registration issued, under this part; or
``(3) the emergency towing of an accidentally wrecked or
disabled motor vehicle.
``Sec. 13507. Mixed loads of regulated and unregulated property
``A motor carrier of property providing transportation exempt from
jurisdiction under paragraph (6), (8), (11), (12), or (13) of section
13506(a) may transport property under such paragraph in the same vehicle
and at the same time as property which the carrier is authorized to
transport under a registration issued under section 13902(a). Such
transportation shall not affect the unregulated status of such exempt
property or the regulated status of the property which the carrier is
authorized to transport under such registration.
``Sec. 13508. Limited authority over cooperative associations
``(a) <<NOTE: Records.>> In General.--Notwithstanding section
13506(a)(5), any cooperative association (as defined by section 15(a) of
the Agricultural Marketing Act (12 U.S.C. 1141j(a))) or a federation of
cooperative associations shall prepare and maintain such records
relating to transportation provided by such association or federation,
in such form as the Secretary or the Board may require by regulation to
carry out the provisions of such section 13506(a)(5). The Secretary or
the Board, or an employee designated by the Secretary or the Board, may
on demand and display of proper credentials--
[[Page 109 STAT. 864]]
``(1) inspect and examine the lands, buildings, and
equipment of such association or federation; and
``(2) inspect and copy any record of such association or
federation.
``(b) Reports.--Notwithstanding section 13506(a)(5), the Secretary
or the Board may require a cooperative association or federation of
cooperative associations described in subsection (a) of this section to
file reports with the Secretary or the Board containing answers to
questions about transportation provided by such association or
federation.
``(c) Enforcement.--The Secretary or the Board may bring a civil
action to enforce subsections (a) and (b) of this section or a
regulation or order of the Secretary or the Board issued under this
section, when violated by a cooperative association or federation of
cooperative associations described in subsection (a).
``(d) Reporting Penalties.--
``(1) In general.--A person required to make a report to the
Secretary or the Board, answer a question, or maintain a record
under this section, or an officer, agent, or employee of that
person, that--
``(A) does not make the report;
``(B) does not specifically, completely, and
truthfully answer the question; or
``(C) does not maintain the record in the form and
manner prescribed under this section;
is liable to the United States for a civil penalty of not more
than $500 for each violation and for not more than $250 for each
additional day the violation continues.
``(2) Venue.--Trial in a civil action under paragraph (1)
shall be in the judicial district in which--
``(A) the cooperative association or federation of
cooperative associations has its principal office;
``(B) the violation occurred; or
``(C) the offender is found.
Process in the action may be served in the judicial district of
which the offender is an inhabitant or in which the offender may
be found.
``(e) Evasion Penalties.--A person, or an officer, employee, or
agent of that person, that by any means knowingly and willfully tries to
evade compliance with the provisions of this section shall be fined at
least $200 but not more than $500 for the first violation and at least
$250 but not more than $2,000 for a subsequent violation.
``(f) Recordkeeping Penalties.--A person required to make a report,
answer a question, or maintain a record under this section, or an
officer, agent, or employee of that person, that--
``(1) willfully does not make that report;
``(2) willfully does not specifically, completely, and
truthfully answer that question in 30 days from the date that
the question is required to be answered;
``(3) willfully does not maintain that record in the form
and manner prescribed;
``(4) knowingly and willfully falsifies, destroys,
mutilates, or changes that report or record;
``(5) knowingly and willfully files a false report or record
under this section;
[[Page 109 STAT. 865]]
``(6) knowingly and willfully makes a false or incomplete
entry in that record about a business-related fact or
transaction; or
``(7) knowingly and willfully maintains a record in
violation of a regulation or order issued under this section;
shall be fined not more than $5,000.
``SUBCHAPTER II--WATER CARRIER TRANSPORTATION
``Sec. 13521. General jurisdiction
``(a) General Rules.--The Secretary and the Board have jurisdiction
over transportation insofar as water carriers are concerned--
``(1) by water carrier between a place in a State and a
place in another State, even if part of the transportation is
outside the United States;
``(2) by water carrier and motor carrier from a place in a
State to a place in another State; except that if part of the
transportation is outside the United States, the Secretary only
has jurisdiction over that part of the transportation provided--
``(A) by motor carrier that is in the United States;
and
``(B) by water carrier that is from a place in the
United States to another place in the United States; and
``(3) by water carrier or by water carrier and motor carrier
between a place in the United States and a place outside the
United States, to the extent that--
``(A) when the transportation is by motor carrier,
the transportation is provided in the United States;
``(B) when the transportation is by water carrier to
a place outside the United States, the transportation is
provided by water carrier from a place in the United
States to another place in the United States before
transshipment from a place in the United States to a
place outside the United States; and
``(C) when the transportation is by water carrier
from a place outside the United States, the
transportation is provided by water carrier from a place
in the United States to another place in the United
States after transshipment to a place in the United
States from a place outside the United States.
``(b) Definitions.--In this section, the terms `State' and `United
States' include the territories and possessions of the United States.
``SUBCHAPTER III--FREIGHT FORWARDER SERVICE
``Sec. 13531. General jurisdiction
``(a) In General.--The Secretary and the Board have jurisdiction, as
specified in this part, over service that a freight forwarder undertakes
to provide, or is authorized or required under this part to provide, to
the extent transportation is provided in the United States and is
between--
``(1) a place in a State and a place in another State, even
if part of the transportation is outside the United States;
``(2) a place in a State and another place in the same State
through a place outside the State; or
[[Page 109 STAT. 866]]
``(3) a place in the United States and a place outside the
United States.
``(b) Exemption of Certain Air Carrier Service.--Neither the
Secretary nor the Board has jurisdiction under subsection (a) of this
section over service undertaken by a freight forwarder using
transportation of an air carrier subject to part A of subtitle VII of
this title.
``SUBCHAPTER IV--AUTHORITY TO EXEMPT
``Sec. 13541. Authority to exempt transportation or services
``(a) In General.--In any matter subject to jurisdiction under this
part, the Secretary or the Board, as applicable, shall exempt a person,
class of persons, or a transaction or service from the application, in
whole or in part, of a provision of this part, or use this exemption
authority to modify the application of a provision of this part as it
applies to such person, class, transaction, or service, when the
Secretary or Board finds that the application of that provision--
``(1) is not necessary to carry out the transportation
policy of section 13101;
``(2) is not needed to protect shippers from the abuse of
market power or that the transaction or service is of limited
scope; and
``(3) is in the public interest.
``(b) Initiation of Proceeding.--The Secretary or Board, as
applicable, may, where appropriate, begin a proceeding under this
section on the Secretary's or Board's own initiative or on application
by an interested party.
``(c) Period of Exemption.--The Secretary or Board, as applicable,
may specify the period of time during which an exemption granted under
this section is effective.
``(d) Revocation.--The Secretary or Board, as applicable, may revoke
an exemption, to the extent specified, on finding that application of a
provision of this part to the person, class, or transportation is
necessary to carry out the transportation policy of section 13101.
``(e) Limitations.--
``(1) In general.--The exemption authority under this
section may not be used to relieve a person from the application
of, and compliance with, any law, rule, regulation, standard, or
order pertaining to cargo loss and damage, insurance, safety
fitness, or activities approved under section 13703 or 14302 or
not terminated under section 13907(d)(2).
``(2) Water carriers.--The Secretary or Board, as
applicable, may not exempt a water carrier from the application
of, or compliance with, section 13701 or 13702 for
transportation in the non-contiguous domestic trade.
``(f) Continuation of Certain Existing Exemptions for Water
Carriers.--The Secretary or Board, as applicable, shall not regulate or
exercise jurisdiction under this part over the transportation by water
carrier in the non-contiguous domestic trade of any cargo or type of
cargo or service which was not subject to regulation by, or under the
jurisdiction of, either the Federal Maritime Commission or Interstate
Commerce Commission under Federal law in effect on November 1, 1995.
[[Page 109 STAT. 867]]
``CHAPTER 137--RATES AND THROUGH ROUTES
``Sec.
``13701. Requirements for reasonable rates, classifications, through
routes, rules, and practices for certain transportation.
``13702. Tariff requirement for certain transportation.
``13703. Certain collective activities; exemption from antitrust laws.
``13704. Household goods rates--estimates; guarantees of service.
``13705. Requirements for through routes among motor carriers of
passengers.
``13706. Liability for payment of rates.
``13707. Payment of rates.
``13708. Billing and collecting practices.
``13709. Procedures for resolving claims involving unfiled, negotiated
transportation rates.
``13710. Additional billing and collecting practices.
``13711. Alternative procedure for resolving undercharge disputes.
``13712. Government traffic.
``13713. Food and grocery transportation.
``Sec. 13701. Requirements for reasonable rates, classifications,
through routes, rules, and practices for certain
transportation
``(a) Reasonableness.--
``(1) Certain household goods transportation; joint rates
involving water transportation.--A rate, classification, rule,
or practice related to transportation or service provided by a
carrier subject to jurisdiction under chapter 135 for
transportation or service involving--
``(A) a movement of household goods,
``(B) a rate for a movement by or with a water
carrier in noncontiguous domestic trade, or
``(C) rates, rules, and classifications made
collectively by motor carriers under agreements approved
pursuant to section 13703,
must be reasonable.
``(2) Through routes and divisions of joint rates.--Through
routes and divisions of joint rates for such transportation or
service must be reasonable.
``(b) Prescription by Board for Violations.--When the Board finds it
necessary to stop or prevent a violation of subsection (a), the Board
shall prescribe the rate, classification, rule, practice, through route,
or division of joint rates to be applied for such transportation or
service.
``(c) Filing of Complaint.--A complaint that a rate, classification,
rule, or practice in noncontiguous domestic trade violates subsection
(a) may be filed with the Board.
``(d) Zone of Reasonableness.--
``(1) In general.--For purposes of this section, a rate or
division of a motor carrier for service in noncontiguous
domestic trade or water carrier for port-to-port service in that
trade is reasonable if the aggregate of increases and decreases
in any such rate or division is not more than 7.5 percent above,
or more than 10 percent below, the rate or division in effect 1
year before the effective date of the proposed rate or division.
``(2) Adjustments to the zone.--The percentage specified in
paragraph (1) shall be increased or decreased, as the case may
be, by the percentage change in the Producers Price Index, as
published by the Department of Labor, that has occurred during
the most recent 1-year period before the date the rate or
division in question first took effect.
[[Page 109 STAT. 868]]
``(3) Determinations after complaint.--The Board shall
determine whether any rate or division of a carrier or service
in noncontiguous domestic trade which is not within the range
described in paragraph (1) is reasonable if a complaint is filed
under subsection (c) or section 13702(b)(6).
``(4) Reparations.--Upon a finding of violation of
subsection (a), the Board shall award reparations to the
complaining shipper or shippers in an amount equal to all sums
assessed and collected that exceed the determined reasonable
rate, division, rate structure, or tariff. Upon complaint from
any governmental agency or authority and upon a finding or
violation of subsection (a), the Board shall make such orders as
are just and shall require the carrier to return, to the extent
practicable, to shippers all amounts plus interest, which the
Board finds to have been assessed and collected in violation of
subsection (a).
``Sec. 13702. Tariff requirement for certain transportation
``(a) In General.--Except when providing transportation for
charitable purposes without charge, a carrier subject to jurisdiction
under chapter 135 may provide transportation or service that is--
``(1) in noncontiguous domestic trade, except with regard to
bulk cargo, forest products, recycled metal scrap, waste paper,
and paper waste; or
``(2) for movement of household goods;
only if the rate for such transportation or service is contained in a
tariff that is in effect under this section. The carrier may not charge
or receive a different compensation for the transportation or service
than the rate specified in the tariff, whether by returning a part of
that rate to a person, giving a person a privilege, allowing the use of
a facility that affects the value of that transportation or service, or
another device. A rate contained in a tariff shall be stated in money of
the United States.
``(b) Tariff Requirements for Noncontiguous Domestic Trade.--
``(1) <<NOTE: Publication.>> Filing.--A carrier providing
transportation or service described in subsection (a)(1) shall
publish and file with the Board tariffs containing the rates
established for such transportation or service. The carriers
shall keep such tariffs available for public
inspection. <<NOTE: Regulations.>> The Board shall prescribe
the form and manner of publishing, filing, and keeping
tariffs available for public inspection under this subsection.
``(2) Contents.--The Board may prescribe any specific
information and charges to be identified in a tariff, but at a
minimum tariffs must identify plainly--
``(A) the carriers that are parties to it;
``(B) the places between which property will be
transported;
``(C) terminal charges if a carrier provides
transportation or service subject to jurisdiction under
subchapter III of chapter 135;
``(D) privileges given and facilities allowed; and
``(E) any rules that change, affect, or determine
any part of the published rate.
``(3) Inland divisions.--A carrier providing transportation
or service described in subsection (a)(1) under a joint rate for
a through movement shall not be required to state sepa
[[Page 109 STAT. 869]]
rately or otherwise reveal in tariff filings the inland
divisions of that through rate.
``(4) Time-volume rates.--Rates in tariffs filed under this
subsection may vary with the volume of cargo offered over a
specified period of time.
``(5) Changes.--The Board may permit carriers to change
rates, classifications, rules, and practices without filing
complete tariffs under this subsection that cover matter that is
not being changed when the Board finds that action to be
consistent with the public interest. Those carriers may either--
``(A) publish new tariffs that incorporate changes,
or
``(B) plainly indicate the proposed changes in the
tariffs then in effect and make the tariffs as changed
available for public inspection.
``(6) Complaints.--A complaint that a rate or related rule
or practice maintained in a tariff under this subsection
violates section 13701(a) may be submitted to the Board for
resolution.
``(c) Tariff Requirements for Household Goods Carriers.--
``(1) In general.--A carrier providing transportation
described in subsection (a)(2) shall maintain rates and related
rules and practices in a published tariff. The tariff must be
available for inspection by the Board and be made available for
inspection by shippers upon reasonable request.
``(2) Notice of availability.--A carrier that maintains a
tariff under this subsection may not enforce the provisions of
the tariff unless the carrier has given notice that the tariff
is available for inspection in its bill of lading or by other
actual notice to individuals whose shipments are subject to the
tariff.
``(3) Requirements.--A carrier that maintains a tariff under
this subsection is bound by the tariff except as otherwise
provided in this part. A tariff that does not comply with this
subsection may not be enforced against any individual shipper.
``(4) Incorporation by reference.--A carrier may incorporate
by reference the rates, terms, and other conditions of a tariff
in agreements covering the transportation of household goods.
``(5) Complaints.--A complaint that a rate or related rule
or practice maintained in a tariff under this subsection
violates section 13701(a) may be submitted to the Board for
resolution.
``(d) Invalidation.--The Board may invalidate a tariff prepared by a
carrier or carriers under this section if that tariff violates this
section or a regulation of the Board carrying out this section.
``Sec. 13703. Certain collective activities; exemption from
antitrust laws
``(a) Agreements.--
``(1) Authority to enter.--A motor carrier providing
transportation or service subject to jurisdiction under chapter
135 may enter into an agreement with one or more such carriers
to establish--
``(A) through routes and joint rates;
``(B) rates for the transportation of household
goods;
``(C) classifications;
``(D) mileage guides;
``(E) rules;
``(F) divisions;
[[Page 109 STAT. 870]]
``(G) rate adjustments of general application based
on industry average carrier costs (so long as there is
no discussion of individual markets or particular
single-line rates); or
``(H) procedures for joint consideration,
initiation, or establishment of matters described in
subparagraphs (A) through (G).
``(2) Submission of agreement to board; approval.--An
agreement entered into under subsection (a) may be submitted by
any carrier or carriers that are parties to such agreement to
the Board for approval and may be approved by the Board only if
it finds that such agreement is in the public interest.
``(3) Conditions.--The Board may require compliance with
reasonable conditions consistent with this part to assure that
the agreement furthers the transportation policy set forth in
section 13101.
``(4) Independently established rates.--Any carrier which is
a party to an agreement under paragraph (1) is not, and may not
be, precluded from independently establishing its own rates,
classification, and mileages or from adopting and using a
noncollectively made classification or mileage guide.
``(5) Investigations.--
``(A) Reasonableness.--The Board may suspend and
investigate the reasonableness of any rate, rule,
classification, or rate adjustment of general
application made pursuant to an agreement under this
section.
``(B) Actions not in the public interest.--The Board
may investigate any action taken pursuant to an
agreement approved under this section. If the Board
finds that the action is not in the public interest, the
Board may take such measures as may be necessary to
protect the public interest with regard to the action,
including issuing an order directing the parties to
cease and desist or modify the action.
``(6) Effect of approval.--If the Board approves the
agreement or renews approval of the agreement, it may be made
and carried out under its terms and under the conditions
required by the Board, and the antitrust laws, as defined in the
first section of the Clayton Act (15 U.S.C. 12), do not apply to
parties and other persons with respect to making or carrying out
the agreement.
``(b) Records.--The Board may require an organization established or
continued under an agreement approved under this section to maintain
records and submit reports. The Board, or its delegate, may inspect a
record maintained under this section, or monitor any organization's
compliance with this section.
``(c) Review.--The Board may review an agreement approved under this
section, on its own initiative or on request, and shall change the
conditions of approval or terminate it when necessary to protect the
public interest. Action of the Board under this section--
``(1) approving an agreement,
``(2) denying, ending, or changing approval,
``(3) prescribing the conditions on which approval is
granted, or
``(4) changing those conditions,
[[Page 109 STAT. 871]]
has effect only as related to application of the antitrust laws referred
to in subsection (a).
``(d) Expiration of Approvals; Renewals.--Subject to subsection (c),
approval of an agreement under subsection (a) shall expire 3 years after
the date of approval unless renewed under this subsection. The approval
may be renewed upon request of the parties to the agreement if such
parties resubmit the agreement to the Board, the agreement is unchanged,
and the Board approves such renewal. The Board shall approve the renewal
unless it finds that the renewal is not in the public interest. Parties
to the agreement may continue to undertake activities pursuant to the
previously approved agreement while the renewal request is pending.
``(e) Existing Agreements.--Agreements approved under former section
10706(b) and in effect on the day before the effective date of this
section shall be treated for purposes of this section as approved by the
Board under this section beginning on such effective date.
``(f) Limitations on Statutory Construction.--
``(1) Undercharge claims.--Nothing in this section shall
serve as a basis for any undercharge claim.
``(2) Obligation of shipper.--Nothing in this title, the ICC
Termination Act of 1995, or any amendments or repeals made by
such Act shall be construed as creating any obligation for a
shipper based solely on a classification that was on file with
the Interstate Commerce Commission or elsewhere on the day
before the effective date of this section.
``(g) Industry Standard Guides.--
``(1) In general.--
``(A) <<NOTE: Publication.>> Public availability.--
Routes, rates, classifications, mileage guides, and
rules established under agreements approved under this
section shall be published and made available for public
inspection upon request.
``(B) Participation of carriers.--
``(i) In general.--A motor carrier of property
whose routes, rates, classifications, mileage
guides, rules, or packaging are determined or
governed by publications established under
agreements approved under this section must
participate in the determining or governing
publication for such provisions to apply.
``(ii) Power of attorney.--The motor carrier
of property shall issue a power of attorney to the
publishing agent and, upon its acceptance, the
agent shall issue a written certification to the
motor carrier affirming its participation in the
governing publication, and the certification shall
be made available for public inspection.
``(2) Mileage limitation.--No carrier subject to
jurisdiction under subchapter I or III of chapter 135 may
enforce collection of its mileage rates unless such carrier--
``(A) is a participant in a publication of mileages
formulated under an agreement approved under this
section; or
``(B) uses a publication of mileage (other than a
publication described in subparagraph (A)) that can be
examined by any interested person upon reasonable
request.
``(h) Single Line Rate Defined.--In this section, the term `single
line rate' means a rate, charge, or allowance proposed by
[[Page 109 STAT. 872]]
a single motor carrier that is applicable only over its line and for
which the transportation can be provided by that carrier.
``Sec. 13704. Household goods rates--estimates; guarantees of
service
``(a) In General.--
``(1) Authority.--Subject to the provisions of paragraph (2)
of this subsection, a motor carrier providing transportation of
household goods subject to jurisdiction under subchapter I of
chapter 135 may establish a rate for the transportation of
household goods which is based on the carrier's written, binding
estimate of charges for providing such transportation.
``(2) Nonpreferential; nonpredatory.--Any rate established
under this subsection must be available on a nonpreferential
basis to shippers and must not result in charges to shippers
which are predatory.
``(b) Rates for Guaranteed Service.--
``(1) Authority.--Subject to the provisions of paragraph (2)
of this subsection, a motor carrier providing transportation of
household goods subject to jurisdiction under subchapter I of
chapter 135 may establish rates for the transportation of
household goods which guarantee that the carrier will pick up
and deliver such household goods at the times specified in the
contract for such services and provide a penalty or per diem
payment in the event the carrier fails to pick up or deliver
such household goods at the specified time. The charges, if any,
for such guarantee and penalty provision may vary to reflect one
or more options available to meet a particular shipper's needs.
``(2) Authority of secretary to require nonguaranteed
service rates.--Before a carrier may establish a rate for any
service under paragraph (1) of this subsection, the Secretary
may require such carrier to have in effect and keep in effect,
during any period such rate is in effect under paragraph (1), a
rate for such service which does not guarantee the pick up and
delivery of household goods at the times specified in the
contract for such services and which does not provide a penalty
or per diem payment in the event the carrier fails to pick up or
deliver household goods at the specified time.
``Sec. 13705. Requirements for through routes among motor carriers
of passengers
``(a) Establishment; Reasonableness.--A motor carrier providing
transportation of passengers subject to jurisdiction under subchapter I
of chapter 135 shall establish through routes with other carriers of the
same type and shall establish individual and joint rates applicable to
them. Such through route must be reasonable.
``(b) Prescribed by Board.--When the Board finds it necessary to
enforce the requirements of this section, the Board may prescribe
through routes and the conditions under which those routes must be
operated for motor carriers providing transportation of passengers
subject to jurisdiction under subchapter I of chapter 135.
``Sec. 13706. Liability for payment of rates
``(a) Liability of Consignee.--Liability for payment of rates for
transportation for a shipment of property by a shipper or con
[[Page 109 STAT. 873]]
signor to a consignee other than the shipper or consignor, is determined
under this section when the transportation is provided by motor carrier
under this part. When the shipper or consignor instructs the carrier
transporting the property to deliver it to a consignee that is an agent
only, not having beneficial title to the property, the consignee is
liable for rates billed at the time of delivery for which the consignee
is otherwise liable, but not for additional rates that may be found to
be due after delivery if the consignee gives written notice to the
delivering carrier before delivery of the property--
``(1) of the agency and absence of beneficial title; and
``(2) of the name and address of the beneficial owner of the
property if it is reconsigned or diverted to a place other than
the place specified in the original bill of lading.
``(b) Liability of Beneficial Owner.--When the consignee is liable
only for rates billed at the time of delivery under subsection (a), the
shipper or consignor, or, if the property is reconsigned or diverted,
the beneficial owner is liable for those additional rates regardless of
the bill of the lading or contract under which the property was
transported. The beneficial owner is liable for all rates when the
property is reconsigned or diverted by an agent but is refused or
abandoned at its ultimate destination if the agent gave the carrier in
the reconsignment or diversion order a notice of agency and the name and
address of the beneficial owner. A consignee giving the carrier
erroneous information about the identity of the beneficial owner of the
property is liable for the additional rates.
``Sec. 13707. Payment of rates
``(a) Transfer of Possession Upon Payment.--Except as provided in
subsection (b), a carrier providing transportation or service subject to
jurisdiction under this part shall give up possession at the destination
of the property transported by it only when payment for the
transportation or service is made.
``(b) Exceptions.--
``(1) Regulations.--Under regulations of the Secretary
governing the payment for transportation and service and
preventing discrimination, those carriers may give up possession
at destination of property transported by them before payment
for the transportation or service. The regulations of the
Secretary may provide for weekly or monthly payment for
transportation provided by motor carriers and for periodic
payment for transportation provided by water carriers.
``(2) Extensions of credit to governmental entities.--Such a
carrier (including a motor carrier being used by a household
goods freight forwarder) may extend credit for transporting
property for the United States Government, a State, a territory
or possession of the United States, or a political subdivision
of any of them.
``Sec. 13708. Billing and collecting practices
``(a) Disclosure.--A motor carrier subject to jurisdiction under
subchapter I of chapter 135 shall disclose, when a document is presented
or electronically transmitted for payment to the person responsible
directly to the motor carrier for payment or agent of such responsible
person, the actual rates, charges, or allowances for any transportation
service and shall also disclose, at such time,
[[Page 109 STAT. 874]]
whether and to whom any allowance or reduction in charges is made.
``(b) False or Misleading Information.--No person may cause a motor
carrier to present false or misleading information on a document about
the actual rate, charge, or allowance to any party to the transaction.
``(c) Allowances for Services.--When the actual rate, charge, or
allowance is dependent upon the performance of a service by a party to
the transportation arrangement, such as tendering a volume of freight
over a stated period of time, the motor carrier shall indicate in any
document presented for payment to the person responsible directly to the
motor carrier that a reduction, allowance, or other adjustment may
apply.
``Sec. 13709. Procedures for resolving claims involving unfiled,
negotiated transportation rates
``(a) Transportation Provided at Rates Other Than Legal Tariff
Rates.--
``(1) In general.--When a claim is made by a motor carrier
of property (other than a household goods carrier) providing
transportation subject to jurisdiction under subchapter II of
chapter 105 (as in effect on the day before the effective date
of this section) or subchapter I of chapter 135, by a freight
forwarder (other than a household goods freight forwarder), or
by a party representing such a carrier or freight forwarder
regarding the collection of rates or charges for such
transportation in addition to those originally billed and
collected by the carrier or freight forwarder for such
transportation, the person against whom the claim is made may
elect to satisfy the claim under the provisions of subsection
(b), (c), or (d), upon showing that--
``(A) the carrier or freight forwarder is no longer
transporting property or is transporting property for
the purpose of avoiding the application of this section;
and
``(B) with respect to the claim--
``(i) the person was offered a transportation
rate by the carrier or freight forwarder other
than that legally on file at the time with the
Board or with the Interstate Commerce Commission,
as required, for the transportation service;
``(ii) the person tendered freight to the
carrier or freight forwarder in reasonable
reliance upon the offered transportation rate;
``(iii) the carrier or freight forwarder did
not properly or timely file with the Board or with
the Interstate Commerce Commission, as required, a
tariff providing for such transportation rate or
failed to enter into an agreement for contract
carriage;
``(iv) such transportation rate was billed and
collected by the carrier or freight forwarder; and
``(v) the carrier or freight forwarder demands
additional payment of a higher rate filed in a
tariff.
``(2) <<NOTE: Courts.>> Forum.--If there is a dispute as to
the showing under paragraph (1)(A), such dispute shall be
resolved by the court in which the claim is brought. If there is
a dispute as to the showing under paragraph (1)(B), such dispute
shall be resolved by the Board. Pending the resolution of any
such
[[Page 109 STAT. 875]]
dispute, the person shall not have to pay any additional
compensation to the carrier or freight forwarder.
``(3) Effect of satisfaction of claims.--Satisfaction of the
claim under subsection (b), (c), or (d) shall be binding on the
parties, and the parties shall not be subject to chapter 119 of
this title, as such chapter was in effect on the day before the
effective date of this section, or chapter 149.
``(b) Claims Involving Shipments Weighing 10,000 Pounds or Less.--A
person from whom the additional legally applicable and effective tariff
rate or charges are sought may elect to satisfy the claim if the
shipments each weighed 10,000 pounds or less, by payment of 20 percent
of the difference between the carrier's applicable and effective tariff
rate and the rate originally billed and paid. In the event that a
dispute arises as to the rate that was legally applicable to the
shipment, such dispute shall be resolved by the Board.
``(c) Claims Involving Shipments Weighing More Than 10,000 Pounds.--
A person from whom the additional legally applicable and effective
tariff rate or charges are sought may elect to satisfy the claim if the
shipments each weighed more than 10,000 pounds, by payment of 15 percent
of the difference between the carrier's applicable and effective tariff
rate and the rate originally billed and paid. In the event that a
dispute arises as to the rate that was legally applicable to the
shipment, such dispute shall be resolved by the Board.
``(d) Claims Involving Public Warehousemen.--Notwithstanding
subsections (b) and (c), a person from whom the additional legally
applicable and effective tariff rate or charges are sought may elect to
satisfy the claim by payment of 5 percent of the difference between the
carrier's applicable and effective tariff rate and the rate originally
billed and paid if such person is a public warehouseman. In the event
that a dispute arises as to the rate that was legally applicable to the
shipment, such dispute shall be resolved by the Board.
``(e) Effects of Election.--When a person from whom additional
legally applicable freight rates or charges are sought does not elect to
use the provisions of subsection (b), (c) or (d), the person may pursue
all rights and remedies existing under this part or, for transportation
provided before the effective date of this section, all rights and
remedies that existed under this title on the day before such effective
date.
``(f) Stay of Additional Compensation.--When a person proceeds under
this section to challenge the reasonableness of the legally applicable
freight rate or charges being claimed by a carrier or freight forwarder
in addition to those already billed and collected, the person shall not
have to pay any additional compensation to the carrier or freight
forwarder until the Board has made a determination as to the
reasonableness of the challenged rate as applied to the freight of the
person against whom the claim is made.
``(g) Notification of Election.--
``(1) General rule.--A person must notify the carrier or
freight forwarder as to its election to proceed under subsection
(b), (c), or (d). Except as provided in paragraphs (2), (3), and
(4), such election may be made at any time.
``(2) Demands for payment initially made after december 3,
1993.--If the carrier or freight forwarder or party rep
[[Page 109 STAT. 876]]
resenting such carrier or freight forwarder initially demands
the payment of additional freight charges after December 3,
1993, and notifies the person from whom additional freight
charges are sought of the provisions of subsections (a) through
(f) at the time of the making of such initial demand, the
election must be made not later than the later of--
``(A) the 60th day following the filing of an answer
to a suit for the collection of such additional legally
applicable freight rate or charges, or
``(B) March 5, 1994.
``(3) Pending suits for collection made before december 4,
1993.--If the carrier or freight forwarder or party representing
such carrier or freight forwarder has filed, before December 4,
1993, a suit for the collection of additional freight charges
and notifies the person from whom additional freight charges are
sought of the provisions of subsections (a) through (f), the
election must be made not later than the 90th day following the
date on which such notification is received.
``(4) Demands for payment made before december 4, 1993.--If
the carrier or freight forwarder or party representing such
carrier or freight forwarder has demanded the payment of
additional freight charges, and has not filed a suit for the
collection of such additional freight charges, before December
4, 1993, and notifies the person from whom additional freight
charges are sought of the provisions of subsections (a) through
(f), the election must be made not later than the later of--
``(A) the 60th day following the filing of an answer
to a suit for the collection of such additional legally
applicable freight rate or charges, or
``(B) March 5, 1994.
``(h) Claims Involving Small-Business Concerns, Charitable
Organizations, and Recyclable Materials.--
``(1) In general.--Notwithstanding subsections (b), (c), and
(d), a person from whom the additional legally applicable and
effective tariff rate or charges are sought shall not be liable
for the difference between the carrier's applicable and
effective tariff rate and the rate originally billed and paid--
``(A) if such person qualifies as a small-business
concern under the Small Business Act (15 U.S.C. 631 et
seq.),
``(B) if such person is an organization which is
described in section 501(c)(3) of the Internal Revenue
Code of 1986 and exempt from tax under section 501(a) of
such Code, or
``(C) if the cargo involved in the claim is
recyclable materials.
``(2) Recyclable materials defined.--In this subsection, the
term `recyclable materials' means waste products for recycling
or reuse in the furtherance of recognized pollution control
programs.
``Sec. 13710. Additional billing and collecting practices
``(a) Miscellaneous Provisions.--
``(1) Information relating to basis of rate.--A motor
carrier of property (other than a motor carrier providing
transportation in noncontiguous domestic trade) shall provide to
the shipper, on request of the shipper, a written or electronic
copy of the rate, classification, rules, and practices, upon
which
[[Page 109 STAT. 877]]
any rate applicable to its shipment or agreed to between the
shipper and carrier is based.
``(2) Reasonableness of rates; collecting additional
charges.--When the applicability or reasonableness of the rates
and related provisions billed by a motor carrier is challenged
by the person paying the freight charges, the Board shall
determine whether such rates and provisions are reasonable under
section 13701 or applicable based on the record before it.
``(3) Billing disputes.--
``(A) Initiated by motor carriers.--In those cases
where a motor carrier (other than a motor carrier
providing transportation of household goods or in
noncontiguous domestic trade) seeks to collect charges
in addition to those billed and collected which are
contested by the payor, the carrier may request that the
Board determine whether any additional charges over
those billed and collected must be paid. A carrier must
issue any bill for charges in addition to those
originally billed within 180 days of the receipt of the
original bill in order to have the right to collect such
charges.
``(B) Initiated by shippers.--If a shipper seeks to
contest the charges originally billed or additional
charges subsequently billed, the shipper may request
that the Board determine whether the charges billed must
be paid. A shipper must contest the original bill or
subsequent bill within 180 days of receipt of the bill
in order to have the right to contest such charges.
``(4) Voiding of certain tariffs.--Any tariff on file with
the Interstate Commerce Commission on August 26, 1994, and not
required to be filed after that date is null and void beginning
on that date. Any tariff on file with the Interstate Commerce
Commission on the effective date of this section and not
required to be filed after that date is null and void beginning
on that date.
``(b) Resolution of Disputes Over Status of Common Carrier or
Contract Carrier.--If a motor carrier (other than a motor carrier
providing transportation of household goods) that was subject to
jurisdiction under subchapter II of chapter 105, as in effect on the day
before the effective date of this section, and that had authority to
provide transportation as both a motor common carrier and a motor
contract carrier and a dispute arises as to whether certain
transportation that was provided prior to the effective date of this
section was provided in its common carrier or contract carrier capacity
and the parties are not able to resolve the dispute consensually, the
Board shall resolve the dispute.
``Sec. 13711. Alternative procedure for resolving undercharge
disputes
``(a) General Rule.--It shall be an unreasonable practice for a
motor carrier of property (other than a household goods carrier)
providing transportation subject to jurisdiction under subchapter I of
chapter 135 or, before the effective date of this section, to have
provided transportation that was subject to jurisdiction under
subchapter II of chapter 105, as in effect on the day before the
effective date of this section, a freight forwarder (other than a
household goods freight forwarder), or a party representing such
[[Page 109 STAT. 878]]
a carrier or freight forwarder to attempt to charge or to charge for a
transportation service the difference between (1) the applicable rate
that was lawfully in effect pursuant to a tariff that was filed in
accordance with this chapter or, with respect to transportation provided
before the effective date of this section, in accordance with chapter
107, as in effect on the date the transportation was provided, by the
carrier or freight forwarder applicable to such transportation service,
and (2) the negotiated rate for such transportation service if the
carrier or freight forwarder is no longer transporting property between
places described in section 13501(1) or is transporting property between
places described in section 13501(1) for the purpose of avoiding
application of this section.
``(b) Jurisdiction of Board.--
``(1) Determination.--The Board shall have jurisdiction to
make a determination of whether or not attempting to charge or
the charging of a rate by a motor carrier or freight forwarder
or party representing a motor carrier or freight forwarder is an
unreasonable practice under subsection (a). If the Board
determines that attempting to charge or the charging of the rate
is an unreasonable practice under subsection (a), the carrier,
freight forwarder, or party may not collect the difference
described in subsection (a) between the applicable rate and the
negotiated rate for the transportation service.
``(2) Factors to consider.--In making a determination under
paragraph (1), the Board shall consider--
``(A) whether the person was offered a
transportation rate by the carrier or freight forwarder
or party other than that legally on file with the
Interstate Commerce Commission or the Board, as
required, at the time of the movement for the
transportation service;
``(B) whether the person tendered freight to the
carrier or freight forwarder in reasonable reliance upon
the offered transportation rate;
``(C) whether the carrier or freight forwarder did
not properly or timely file with the Interstate Commerce
Commission or the Board, as required, a tariff providing
for such transportation rate or failed to enter into an
agreement for contract carriage;
``(D) whether the transportation rate was billed and
collected by the carrier or freight forwarder; and
``(E) whether the carrier or freight forwarder or
party demands additional payment of a higher rate filed
in a tariff.
``(c) Stay of Additional Compensation.--When a person proceeds under
this section to challenge the reasonableness of the practice of a motor
carrier, freight forwarder, or party described in subsection (a) to
attempt to charge or to charge the difference described in subsection
(a) between the applicable rate and the negotiated rate for the
transportation service in addition to those charges already billed and
collected for the transportation service, the person shall not have to
pay any additional compensation to the carrier, freight forwarder, or
party until the Board has made a determination as to the reasonableness
of the practice as applied to the freight of the person against whom the
claim is made.
``(d) Treatment.--Subsection (a) is an exception to the requirements
of section 13702 and, for transportation provided before
[[Page 109 STAT. 879]]
the effective date of this section, to the requirements of sections
10761(a) and 10762, as in effect on the day before such effective date,
as such sections relate to a filed tariff rate and other general tariff
requirements.
``(e) Nonapplicability of Negotiated Rate Dispute Resolution
Procedure.--If a person elects to seek enforcement of subsection (a)
with respect to a rate for a transportation or service, section 13709
shall not apply to such rate.
``(f) Definitions.--In this section, the term ``negotiated rate''
means a rate, charge, classification, or rule agreed upon by a motor
carrier or freight forwarder and a shipper through negotiations pursuant
to which no tariff was lawfully and timely filed and for which there is
written evidence of such agreement.
``(g) Applicability to Pending Cases.--This section shall apply to
all cases and proceedings pending on the effective date of this section.
``Sec. 13712. Government traffic
``A carrier providing transportation or service for the United
States Government may transport property or individuals for the United
States Government without charge or at a rate reduced from the
applicable commercial rate. Section 3709 of the Revised Statutes (41
U.S.C. 5) does not apply when transportation for the United States
Government can be obtained from a carrier lawfully operating in the area
where the transportation would be provided.
``Sec. 13713. Food and grocery transportation
``(a) Certain Compensation Prohibited.--Notwithstanding any other
provision of law, it shall not be unlawful for a seller of food and
grocery products using a uniform zone delivered pricing system to
compensate a customer who picks up purchased food and grocery products
at the shipping point of the seller if such compensation is available to
all customers of the seller on a nondiscriminatory basis and does not
exceed the actual cost to the seller of delivery to such customer.
``(b) Sense of Congress.--It is the sense of the Congress that any
savings accruing to a customer by reason of compensation permitted by
subsection (a) of this section should be passed on to the ultimate
consumer.
``CHAPTER 139--REGISTRATION
``Sec.
``13901. Requirement for registration.
``13902. Registration of motor carriers.
``13903. Registration of freight forwarders.
``13904. Registration of brokers.
``13905. Effective periods of registration.
``13906. Security of motor carriers, brokers, and freight forwarders.
``13907. Household goods agents.
``13908. Registration and other reforms.
``Sec. 13901. Requirement for registration
``A person may provide transportation or service subject to
jurisdiction under subchapter I or III of chapter 135 or be a broker for
transportation subject to jurisdiction under subchapter I of that
chapter, only if the person is registered under this chapter to provide
the transportation or service.
[[Page 109 STAT. 880]]
``Sec. 13902. Registration of motor carriers
``(a) Motor Carrier Generally.--
``(1) In general.--Except as provided in this section, the
Secretary shall register a person to provide transportation
subject to jurisdiction under subchapter I of chapter 135 of
this title as a motor carrier if the Secretary finds that the
person is willing and able to comply with--
``(A) this part and the applicable regulations of
the Secretary and the Board;
``(B) any safety regulations imposed by the
Secretary and the safety fitness requirements
established by the Secretary under section 31144; and
``(C) the minimum financial responsibility
requirements established by the Secretary pursuant to
sections 13906 and 31138.
``(2) Consideration of evidence; findings.--The Secretary
shall consider and, to the extent applicable, make findings on,
any evidence demonstrating that the registrant is unable to
comply with the requirements of subparagraph (A), (B), or (C) of
paragraph (1).
``(3) Withholding.--If the Secretary determines that any
registrant under this section does not meet the requirements of
paragraph (1), the Secretary shall withhold registration.
``(4) Limitation on complaints.--The Secretary may hear a
complaint from any person concerning a registration under this
subsection only on the ground that the registrant fails or will
fail to comply with this part, the applicable regulations of the
Secretary and the Board, the safety regulations of the
Secretary, or the safety fitness or minimum financial
responsibility requirements of paragraph (1) of this subsection.
``(b) Motor Carriers of Passengers.--
``(1) Registration of private recipients of governmental
assistance.--The Secretary shall register under subsection
(a)(1) a private recipient of governmental assistance to provide
special or charter transportation subject to jurisdiction under
subchapter I of chapter 135 as a motor carrier of passengers if
the Secretary finds that the recipient meets the requirements of
subsection (a)(1), unless the Secretary finds, on the basis of
evidence presented by any person objecting to the registration,
that the transportation to be provided pursuant to the
registration is not in the public interest.
``(2) Registration of public recipients of governmental
assistance.--
``(A) Charter transportation.--The Secretary shall
register under subsection (a)(1) a public recipient of
governmental assistance to provide special or charter
transportation subject to jurisdiction under subchapter
I of chapter 135 as a motor carrier of passengers if the
Secretary finds that--
``(i) the recipient meets the requirements of
subsection (a)(1); and
``(ii)(I) no motor carrier of passengers
(other than a motor carrier of passengers which is
a public recipient of governmental assistance) is
providing, or is willing to provide, the
transportation; or
[[Page 109 STAT. 881]]
``(II) the transportation is to be provided
entirely in the area in which the public recipient
provides regularly scheduled mass transportation
services.
``(B) Regular-route transportation.--The Secretary
shall register under subsection (a)(1) a public
recipient of governmental assistance to provide regular-
route transportation subject to jurisdiction under
subchapter I of chapter 135 as a motor carrier of
passengers if the Secretary finds that the recipient
meets the requirements of subsection (a)(1), unless the
Secretary finds, on the basis of evidence presented by
any person objecting to the registration, that the
transportation to be provided pursuant to the
registration is not in the public interest.
``(C) Treatment of certain public recipients.--Any
public recipient of governmental assistance which is
providing or seeking to provide transportation of
passengers subject to jurisdiction under subchapter I of
chapter 135 shall, for purposes of this part, be treated
as a person which is providing or seeking to provide
transportation of passengers subject to such
jurisdiction.
``(3) Intrastate transportation by interstate carriers.--A
motor carrier of passengers that is registered by the Secretary
under subsection (a) is authorized to provide regular-route
transportation entirely in one State as a motor carrier of
passengers if such intrastate transportation is to be provided
on a route over which the carrier provides interstate
transportation of passengers.
``(4) Preemption of state regulation regarding certain
service.--No State or political subdivision thereof and no
interstate agency or other political agency of 2 or more States
shall enact or enforce any law, rule, regulation, standard or
other provision having the force and effect of law relating to
the provision of pickup and delivery of express packages,
newspapers, or mail in a commercial zone if the shipment has had
or will have a prior or subsequent movement by bus in intrastate
commerce and, if a city within the commercial zone, is served by
a motor carrier of passengers providing regular-route
transportation of passengers subject to jurisdiction under
subchapter I of chapter 135.
``(5) Jurisdiction over certain intrastate transportation.--
Subject to section 14501(a), any intrastate transportation
authorized by this subsection shall be treated as transportation
subject to jurisdiction under subchapter I of chapter 135 until
such time as the carrier takes such action as is necessary to
establish under the laws of such State rates, rules, and
practices applicable to such transportation, but in no case
later than the 30th day following the date on which the motor
carrier of passengers first begins providing transportation
entirely in one State under this paragraph.
``(6) Special operations.--This subsection shall not apply
to any regular-route transportation of passengers provided
entirely in one State which is in the nature of a special
operation.
``(7) Suspension or revocation.--Intrastate transportation
authorized under this subsection may be suspended or revoked by
the Secretary under section 13905 of this title at any time.
[[Page 109 STAT. 882]]
``(8) Definitions.--In this subsection, the following
definitions apply:
``(A) Public recipient of governmental assistance.--
The term `public recipient of governmental assistance'
means--
``(i) any State,
``(ii) any municipality or other political
subdivision of a State,
``(iii) any public agency or instrumentality
of one or more States and municipalities and
political subdivisions of a State,
``(iv) any Indian tribe,
``(v) any corporation, board, or other person
owned or controlled by any entity described in
clause (i), (ii), (iii), or (iv), and
which before, on, or after the effective date of this
subsection received governmental assistance for the
purchase or operation of any bus.
``(B) Private recipient of government assistance.--
The term `private recipient of government assistance'
means any person
(other than a person described in subparagraph (A)) who before, on, or
after the effective date of this paragraph received governmental
financial assistance in the form of a subsidy for the purchase, lease,
or operation of any bus.
``(c) Restrictions on Motor Carriers Domiciled in or Owned or
Controlled by Nationals of a Contiguous Foreign Country.--
``(1) Prevention of discriminatory practices.--If the
President, or the delegate thereof, determines that an act,
policy, or practice of a foreign country contiguous to the
United States, or any political subdivision or any
instrumentality of any such country is unreasonable or
discriminatory and burdens or restricts United States
transportation companies providing, or seeking to provide, motor
carrier transportation to, from, or within such foreign country,
the President or such delegate may--
``(A) seek elimination of such practices through
consultations; or
``(B) notwithstanding any other provision of law,
suspend, modify, amend, condition, or restrict
operations, including geographical restriction of
operations, in the United States by motor carriers of
property or passengers domiciled in such foreign country
or owned or controlled by persons of such foreign
country.
``(2) Equalization of treatment.--Any action taken under
paragraph (1)(A) to eliminate an act, policy, or practice shall
be so devised so as to equal to the extent possible the burdens
or restrictions imposed by such foreign country on United States
transportation companies.
``(3) Removal or modification.--The President, or the
delegate thereof, may remove or modify in whole or in part any
action taken under paragraph (1)(A) if the President or such
delegate determines that such removal or modification is
consistent with the obligations of the United States under a
trade agreement or with United States transportation policy.
[[Page 109 STAT. 883]]
``(4) Protection of existing operations.--Unless and until
the President, or the delegate thereof, makes a determination
under paragraph (1) or (3), nothing in this subsection shall
affect--
``(A) operations of motor carriers of property or
passengers domiciled in any contiguous foreign country
or owned or controlled by persons of any contiguous
foreign country permitted in the commercial zones along
the United States-Mexico border as such zones were
defined on the day before the effective date of this
section; or
``(B) any existing restrictions on operations of
motor carriers of property or passengers domiciled in
any contiguous foreign country or owned or controlled by
persons of any contiguous foreign country or any
modifications thereof pursuant to section 6 of the Bus
Regulatory Reform Act of 1982.
``(5) <<NOTE: Federal Register, publication.>> Publication;
comment.--Unless the President, or the delegate thereof,
determines that expeditious action is required, the President
shall publish in the Federal Register any determination under
paragraph (1) or (3), together with a description of the facts
on which such a determination is based and any proposed action
to be taken pursuant to paragraph (1)(B) or (3), and provide an
opportunity for public comment.
``(6) Delegation to secretary.--The President may delegate
any or all authority under this subsection to the Secretary, who
shall consult with other agencies as appropriate. In accordance
with the directions of the President, the Secretary may issue
regulations to enforce this subsection.
``(7) Civil actions.--Either the Secretary or the Attorney
General may bring a civil action in an appropriate district
court of the United States to enforce this subsection or a
regulation prescribed or order issued under this subsection. The
court may award appropriate relief, including injunctive relief.
``(8) Limitation on statutory construction.--This subsection
shall not be construed as affecting the requirement for all
foreign motor carriers and foreign motor private carriers
operating in the United States to comply with all applicable
laws and regulations pertaining to fitness, safety of
operations, financial responsibility, and taxes imposed by
section 4481 of the Internal Revenue Code of 1986.
``(d) Transition Rule.--
``(1) In general.--Pending the implementation of the
rulemaking required by section 13908, the Secretary may register
a person under this section--
``(A) as a motor common carrier if such person would
have been issued a certificate to provide transportation
as a motor common carrier under this subtitle on the day
before the effective date of this section; and
``(B) as a motor contract carrier if such person
would have been issued a permit to provide
transportation as a motor contract carrier under this
subtitle on such day.
``(2) Definitions.--In this subsection, the terms `motor
common carrier' and `motor contract carrier' have the meaning
such terms had under section 10102 as such section was in effect
on the day before the effective date of this section.
[[Page 109 STAT. 884]]
``(e) Motor Carrier Defined.--In this section and sections 13905 and
13906, the term `motor carrier' includes foreign motor private carriers.
``Sec. 13903. Registration of freight forwarders
``(a) In General.--The Secretary shall register a person to provide
service subject to jurisdiction under subchapter III of chapter 135 as a
freight forwarder if the Secretary finds that the person is fit,
willing, and able to provide the service and to comply with this part
and applicable regulations of the Secretary and the Board.
``(b) Registration as Carrier Required.--The freight forwarder may
provide transportation as the carrier itself only if the freight
forwarder also has registered to provide transportation as a carrier
under this chapter.
``Sec. 13904. Registration of brokers
``(a) In General.--The Secretary shall register, subject to section
13906(b), a person to be a broker for transportation of property subject
to jurisdiction under subchapter I of chapter 135, if the Secretary
finds that the person is fit, willing, and able to be a broker for
transportation and to comply with this part and applicable regulations
of the Secretary.
``(b) Registration as Carrier Required.--
``(1) In general.--The broker may provide the transportation
itself only if the broker also has been registered to provide
the transportation as a motor carrier under this chapter.
``(2) Limitation.--This subsection does not apply to a motor
carrier registered under this chapter or to an employee or agent
of the motor carrier to the extent the transportation is to be
provided entirely by the motor carrier, with other registered
motor carriers, or with rail or water carriers.
``(c) Regulations To Protect Shippers.--Regulations of the Secretary
applicable to brokers registered under this section shall provide for
the protection of shippers by motor vehicle.
``(d) Bond and Insurance.--The Secretary may impose on brokers for
motor carriers of passengers such requirements for bonds or insurance or
both as the Secretary determines are needed to protect passengers and
carriers dealing with such brokers.
``Sec. 13905. Effective periods of registration
``(a) Person Holding ICC Authority.--Any person having authority to
provide transportation or service as a motor carrier, freight forwarder,
or broker under this title, as in effect on the day before the effective
date of this section, shall be deemed, for purposes of this part, to be
registered to provide such transportation or service under this part.
``(b) In General.--Except as otherwise provided in this part, each
registration issued under section 13902, 13903, or 13904 shall be
effective from the date specified by the Secretary and shall remain in
effect for such period as the Secretary determines appropriate by
regulation.
``(c) Suspension, Amendments, and Revocations.--On application of
the registrant, the Secretary may amend or revoke a registration. On
complaint or on the Secretary's own initiative and after notice and an
opportunity for a proceeding, the Secretary
[[Page 109 STAT. 885]]
may suspend, amend, or revoke any part of the registration of a motor
carrier, broker, or freight forwarder for willful failure to comply with
this part, an applicable regulation or order of the Secretary or of the
Board, or a condition of its registration.
``(d) Procedure.--Except on application of the registrant, the
Secretary may revoke a registration of a motor carrier, freight
forwarder, or broker, only after--
``(1) the Secretary has issued an order to the registrant
under section 14701 requiring compliance with this part, a
regulation of the Secretary, or a condition of the registration;
and
``(2) the registrant willfully does not comply with the
order for a period of 30 days.
``(e) Expedited Procedure.--
``(1) Protection of safety.--Without regard to subchapter II
of chapter 5 of title 5, the Secretary may suspend the
registration of a motor carrier, a freight forwarder, or a
broker for failure to comply with safety requirements of the
Secretary or the safety fitness requirements pursuant to section
13904(c), 13906, or 31144, of this title, or an order or
regulation of the Secretary prescribed under those sections.
``(2) Imminent hazard to public health.--Without regard to
subchapter II of chapter 5 of title 5, the Secretary may suspend
a registration of a motor carrier of passengers if the Secretary
finds that such carrier has been conducting unsafe operations
which are an imminent hazard to public health or property.
``(3) Notice; period of suspension.--The Secretary may
suspend under this subsection the registration only after giving
notice of the suspension to the registrant. The suspension
remains in effect until the registrant complies with those
applicable sections or, in the case of a suspension under
paragraph (2), until the Secretary revokes such suspension.
``Sec. 13906. Security of motor carriers, brokers, and freight
forwarders
``(a) Motor Carrier Requirements.--
``(1) Liability insurance requirement.--The Secretary may
register a motor carrier under section 13902 only if the
registrant files with the Secretary a bond, insurance policy, or
other type of security approved by the Secretary, in an amount
not less than such amount as the Secretary prescribes pursuant
to, or as is required by, sections 31138 and 31139, and the laws
of the State or States in which the registrant is operating, to
the extent applicable. The security must be sufficient to pay,
not more than the amount of the security, for each final
judgment against the registrant for bodily injury to, or death
of, an individual resulting from the negligent operation,
maintenance, or use of motor vehicles, or for loss or damage to
property (except property referred to in paragraph (3) of this
subsection), or both. A registration remains in effect only as
long as the registrant continues to satisfy the security
requirements of this paragraph.
``(2) Agency requirement.--A motor carrier shall comply with
the requirements of sections 13303 and 13304. To protect the
public, the Secretary may require any such motor carrier to file
the type of security that a motor carrier is required
[[Page 109 STAT. 886]]
to file under paragraph (1) of this subsection. This paragraph
only applies to a foreign motor private carrier and foreign
motor carrier operating in the United States to the extent that
such carrier is providing transportation between places in a
foreign country or between a place in one foreign country and a
place in another foreign country.
``(3) Transportation insurance.--The Secretary may require a
registered motor carrier to file with the Secretary a type of
security sufficient to pay a shipper or consignee for damage to
property of the shipper or consignee placed in the possession of
the motor carrier as the result of transportation provided under
this part. A carrier required by law to pay a shipper or
consignee for loss, damage, or default for which a connecting
motor carrier is responsible is subrogated, to the extent of the
amount paid, to the rights of the shipper or consignee under any
such security.
``(b) Broker Requirements.--The Secretary may register a person as a
broker under section 13904 only if the person files with the Secretary a
bond, insurance policy, or other type of security approved by the
Secretary to ensure that the transportation for which a broker arranges
is provided. The registration remains in effect only as long as the
broker continues to satisfy the security requirements of this
subsection.
``(c) Freight Forwarder Requirements.--
``(1) Liability insurance.--The Secretary may register a
person as a freight forwarder under section 13903 of this title
only if the person files with the Secretary a bond, insurance
policy, or other type of security approved by the Secretary. The
security must be sufficient to pay, not more than the amount of
the security, for each final judgment against the freight
forwarder for bodily injury to, or death of, an individual, or
loss of, or damage to, property (other than property referred to
in paragraph (2) of this subsection), resulting from the
negligent operation, maintenance, or use of motor vehicles by or
under the direction and control of the freight forwarder when
providing transfer, collection, or delivery service under this
part.
``(2) Freight forwarder insurance.--The Secretary may
require a registered freight forwarder to file with the
Secretary a bond, insurance policy, or other type of security
approved by the Secretary sufficient to pay, not more than the
amount of the security, for loss of, or damage to, property for
which the freight forwarder provides service.
``(3) Effective period.--The freight forwarder's
registration remains in effect only as long as the freight
forwarder continues to satisfy the security requirements of this
subsection.
``(d) Type of Insurance.--The Secretary may determine the type and
amount of security filed under this section. A motor carrier may submit
proof of qualifications as a self-insurer to satisfy the security
requirements of this section. The Secretary shall adopt regulations
governing the standards for approval as a self-insurer. Motor carriers
which have been granted authority to self-insure as of the effective
date of this section shall retain that authority unless, for good cause
shown and after notice
and an opportunity for a hearing, the Secretary finds that the authority
must be revoked.
[[Page 109 STAT. 887]]
``(e) Notice of Cancellation of Insurance. <<NOTE: Regulations.>> --
The Secretary shall issue regulations requiring the submission to the
Secretary of notices of insurance cancellation sufficiently in advance
of actual cancellation so as to enable the Secretary to promptly revoke
the registration of any carrier or broker after the effective date of
the cancellation.
``(f) Form of Endorsement.--The Secretary shall also prescribe the
appropriate form of endorsement to be appended to policies of insurance
and surety bonds which will subject the insurance policy or surety bond
to the full security limits of the coverage required under this section.
``Sec. 13907. Household goods agents
``(a) Carriers Responsible for Agents.--Each motor carrier providing
transportation of household goods shall be responsible for all acts or
omissions of any of its agents which relate to the performance of
household goods transportation services (including accessorial or
terminal services) and which are within the actual or apparent authority
of the agent from the carrier or which are ratified by the carrier.
``(b) Standard for Selecting Agents.--Each motor carrier providing
transportation of household goods shall use due diligence and reasonable
care in selecting and maintaining agents who are sufficiently
knowledgeable, fit, willing, and able to provide adequate household
goods transportation services (including accessorial and terminal
services) and to fulfill the obligations imposed upon them by this part
and by such carrier.
``(c) Enforcement.--
``(1) Complaint.--Whenever the Secretary has reason to
believe from a complaint or investigation that an agent
providing household goods transportation services (including
accessorial and terminal services) under the authority of a
motor carrier providing transportation of household goods has
violated section 14901(e) or 14912 or is consistently not fit,
willing, and able to provide adequate household goods
transportation services (including accessorial and terminal
services), the Secretary may issue to such agent a complaint
stating the charges and containing notice of the time and place
of a hearing which shall be held no later than 60 days after
service of the complaint to such agent.
``(2) Right to defend.--The agent shall have the right to
appear at such hearing and rebut the charges contained in the
complaint.
``(3) Order.--If the agent does not appear at the hearing or
if the Secretary finds that the agent has violated section
14901(e) or 14912 or is consistently not fit, willing, and able
to provide adequate household goods transportation services
(including accessorial and terminal services), the Secretary may
issue an order to compel compliance with the requirement that
the agent be fit, willing, and able. Thereafter, the Secretary
may issue an order to limit, condition, or prohibit such agent
from any involvement in the transportation or provision of
services incidental to the transportation of household goods if,
after notice and an opportunity for a hearing, the Secretary
finds that such agent, within a reasonable time after the date
of issuance of a compliance order under this section, but in
[[Page 109 STAT. 888]]
no event less than 30 days after such date of issuance, has
willfully failed to comply with such order.
``(4) Hearing.--Upon filing of a petition with the Secretary
by an agent who is the subject of an order issued pursuant to
the second sentence of paragraph (3) of this subsection and
after notice, a hearing shall be held with an opportunity to be
heard. At such hearing, a determination shall be made whether
the order issued pursuant to paragraph (3) of this subsection
should be rescinded.
``(5) Court review.--Any agent adversely affected or
aggrieved by an order of the Secretary issued under this
subsection may seek relief in the appropriate United States
court of appeals as provided by and in the manner prescribed in
chapter 158 of title 28, United States Code.
``(d) Limitation on Applicability of Antitrust Laws.--
``(1) In general.--The antitrust laws, as defined in the
first section of the Clayton Act (15 U.S.C. 12), do not apply to
discussions or agreements between a motor carrier providing
transportation of household goods and its agents (whether or not
an agent is also a carrier) related solely to--
``(A) rates for the transportation of household
goods under the authority of the principal carrier;
``(B) accessorial, terminal, storage, or other
charges for services incidental to the transportation of
household goods transported under the authority of the
principal carrier;
``(C) allowances relating to transportation of
household goods under the authority of the principal
carrier; and
``(D) ownership of a motor carrier providing
transportation of household goods by an agent or
membership on the board of directors of any such motor
carrier by an agent.
``(2) Board review.--The Board, upon its own initiative or
request, shall review any activities undertaken under paragraph
(1) and shall modify or terminate the activity if necessary to
protect the public interest.
``(e) Definitions.--In this section, the following definitions
apply:
``(1) Household goods.--The term `household goods' has the
meaning such term had under section 10102(11) of this title, as
in effect on the day before the effective date of this section.
``(2) Transportation.--The term `transportation' means
transportation that would be subject to the jurisdiction of the
Interstate Commerce Commission under subchapter II of chapter
105 of this title, as in effect on the day before such effective
date, if such subchapter were still in effect.
``Sec. 13908. Registration and other reforms
``(a) Regulations Replacing Certain Programs.--The Secretary, in
cooperation with the States, and after notice and opportunity for public
comment, shall issue regulations to replace the current Department of
Transportation identification number system, the single State
registration system under section 14504, the registration system
contained in this chapter, and the financial responsibility information
system under section 13906 with a single, on-line, Federal system. The
new system shall serve as a clearing
[[Page 109 STAT. 889]]
house and depository of information on and identification of all foreign
and domestic motor carriers, brokers, and freight forwarders, and others
required to register with the Department as well as information on
safety fitness and compliance with required levels of financial
responsibility. In issuing the regulations, the Secretary shall consider
whether or not to integrate the requirements of section 13304 into the
new system and may integrate such requirements into the new system.
``(b) Factors To Be Considered.--In conducting the rulemaking under
subsection (a), the Secretary shall, at a minimum, consider the
following factors:
``(1) Funding for State enforcement of motor carrier safety
regulations.
``(2) Whether the existing single State registration system
is duplicative and burdensome.
``(3) The justification and need for collecting the
statutory fee for such system under section 14504(c)(2)(B)(iv).
``(4) The public safety.
``(5) The efficient delivery of transportation services.
``(6) How, and under what conditions, to extend the
registration system to motor private carriers and to carriers
exempt under sections 13502, 13503, and 13506.
``(c) Fee System.--The Secretary may establish, under section 9701
of title 31, a fee system for registration and filing evidence of
financial responsibility under the new system under subsection (a). Fees
collected under the fee system shall cover the costs of operating and
upgrading the registration system, including all personnel costs
associated with the system. Fees collected under this subsection may be
credited to the Department of Transportation appropriations account for
purposes for which such fees are collected, and shall be available for
expenditure until expended.
``(d) State Registration Programs.--If the Secretary determines that
no State should require insurance filings or collect fees for such
filings (including filings and fees authorized under section 14504), the
Secretary may prevent any State or political subdivision thereof, or any
political authority of 2 or more States, from imposing any insurance
filing requirements or fees that are for the same purposes as filings or
fees the Secretary requires under the new system under subsection (a).
The Secretary may not take any action pursuant to this subsection
unless--
``(1) fees that will be collected by the Secretary under
subsection (c) and distributed in each fiscal year to the States
will provide each State with at least as much revenue as that
State received in fiscal year 1995 under section 11506, as in
effect on the day before the effective date of this section; and
``(2) all States will receive from the distribution of such
fees a minimum apportionment.
``(e) Deadline for Conclusion; Modifications.--Not later than 24
months after the effective date of this section, the Secretary--
``(1) shall conclude the rulemaking under this section;
``(2) may implement such changes under this section as the
Secretary considers appropriate and in the public interest; and
``(3) <<NOTE: Reports.>> shall transmit to Congress a
report on any findings of the rulemaking and the changes being
implemented under
[[Page 109 STAT. 890]]
this section, together with such recommendations for legislative
language necessary to conform this part to such changes.
``CHAPTER 141--OPERATIONS OF CARRIERS
``SUBCHAPTER I--GENERAL REQUIREMENTS
``Sec.
``14101. Providing transportation and service.
``14102. Leased motor vehicles.
``14103. Loading and unloading motor vehicles.
``14104. Household goods carrier operations.
``SUBCHAPTER II--REPORTS AND RECORDS
``14121. Definitions.
``14122. Records: form; inspection; preservation.
``14123. Financial reporting.
``SUBCHAPTER I--GENERAL REQUIREMENTS
``Sec. 14101. Providing transportation and service
``(a) On Reasonable Request.--A carrier providing transportation or
service subject to jurisdiction under chapter 135 shall provide the
transportation or service on reasonable request. In addition, a motor
carrier shall provide safe and adequate service, equipment, and
facilities.
``(b) Contracts With Shippers.--
``(1) In general.--A carrier providing transportation or
service subject to jurisdiction under chapter 135 may enter into
a contract with a shipper, other than for the movement of
household goods described in section 13102(10)(A), to provide
specified services under specified rates and conditions. If the
shipper and carrier, in writing, expressly waive any or all
rights and remedies under this part for the transportation
covered by the contract, the transportation provided under the
contract shall not be subject to the waived rights and remedies
and may not be subsequently challenged on the ground that it
violates the waived rights and remedies. The parties may not
waive the provisions governing registration, insurance, or
safety fitness.
``(2) Remedy for breach of contract.--The exclusive remedy
for any alleged breach of a contract entered into under this
subsection shall be an action in an appropriate State court or
United States district court, unless the parties otherwise
agree.
``Sec. 14102. Leased motor vehicles
``(a) General Authority of Secretary.--The Secretary may require a
motor carrier providing transportation subject to jurisdiction under
subchapter I of chapter 135 that uses motor vehicles not owned by it to
transport property under an arrangement with another party to--
``(1) make the arrangement in writing signed by the parties
specifying its duration and the compensation to be paid by the
motor carrier;
``(2) carry a copy of the arrangement in each motor vehicle
to which it applies during the period the arrangement is in
effect;
``(3) inspect the motor vehicles and obtain liability and
cargo insurance on them; and
[[Page 109 STAT. 891]]
``(4) have control of and be responsible for operating those
motor vehicles in compliance with requirements prescribed by the
Secretary on safety of operations and equipment, and with other
applicable law as if the motor vehicles were owned by the motor
carrier.
``(b) Responsible Party for Loading and
Unloading. <<NOTE: Regulations.>> --The Secretary shall require, by
regulation, that any arrangement, between a motor carrier of property
providing transportation subject to jurisdiction under subchapter I of
chapter 135 and any other person, under which such other person is to
provide any portion of such transportation by a motor vehicle not owned
by the carrier shall specify, in writing, who is responsible for loading
and unloading the property onto and from the motor vehicle.
``Sec. 14103. Loading and unloading motor vehicles
``(a) Shipper Responsible for Assisting.--Whenever a shipper or
receiver of property requires that any person who owns or operates a
motor vehicle transporting property in interstate commerce (whether or
not such transportation is subject to jurisdiction under subchapter I of
chapter 135) be assisted in the loading or unloading of such vehicle,
the shipper or receiver shall be responsible for providing such
assistance or shall compensate the owner or operator for all costs
associated with securing and compensating the person or persons
providing such assistance.
``(b) Coercion Prohibited.--It shall be unlawful to coerce or
attempt to coerce any person providing transportation of property by
motor vehicle for compensation in interstate commerce (whether or not
such transportation is subject to jurisdiction under subchapter I of
chapter 135) to load or unload any part of such property onto or from
such vehicle or to employ or pay one or more persons to load or unload
any part of such property onto or from such vehicle; except that this
subsection shall not be construed as making unlawful any activity which
is not unlawful under the National Labor Relations Act or the Act of
March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et seq.), commonly known as
the Norris-LaGuardia Act.
``Sec. 14104. Household goods carrier operations
``(a) General Regulatory Authority.--
``(1) Paperwork minimization.--The Secretary may issue
regulations, including regulations protecting individual
shippers, in order to carry out this part with respect to the
transportation of household goods by motor carriers subject to
jurisdiction under subchapter I of chapter 135. The regulations
and paperwork required of motor carriers providing
transportation of household goods shall be minimized to the
maximum extent feasible consistent with the protection of
individual shippers.
``(2) Performance standards.--
``(A) In general.--Regulations of the Secretary
protecting individual shippers shall include, where
appropriate, reasonable performance standards for the
transportation of household goods subject to
jurisdiction under subchapter I of chapter 135.
``(B) Factors to consider.--In establishing
performance standards under this paragraph, the
Secretary shall take into account at least the
following--
[[Page 109 STAT. 892]]
``(i) the level of performance that can be
achieved by a well-managed motor carrier
transporting household goods;
``(ii) the degree of harm to individual
shippers which could result from a violation of
the regulation;
``(iii) the need to set the level of
performance at a level sufficient to deter abuses
which result in harm to consumers and violations
of regulations;
``(iv) service requirements of the carriers;
``(v) the cost of compliance in relation to
the consumer benefits to be achieved from such
compliance; and
``(vi) the need to set the level of
performance at a level designed to encourage
carriers to offer service responsive to shipper
needs.
``(3) Limitations on statutory construction.--Nothing in
this section shall be construed to limit the Secretary's
authority to require reports from motor carriers providing
transportation of household goods or to require such carriers to
provide specified information to consumers concerning their past
performance.
``(b) Estimates.--
``(1) Authority to provide without compensation.--Every
motor carrier providing transportation of household goods
subject to jurisdiction under subchapter I of chapter 135, upon
request of a prospective shipper, may provide the shipper with
an estimate of charges for transportation of household goods and
for the proposed services. The Secretary shall not prohibit any
such carrier from charging a prospective shipper for providing a
written, binding estimate for the transportation and proposed
services.
``(2) Applicability of antitrust laws.--Any charge for an
estimate of charges provided by a motor carrier to a shipper for
transportation of household goods subject to jurisdiction under
subchapter I of chapter 135 shall be subject to the antitrust
laws, as defined in the first section of the Clayton Act (15
U.S.C. 12).
``(c) Flexibility in Weighing Shipments. <<NOTE: Regulations.>> --
The Secretary shall issue regulations that provide motor carriers
providing transportation of household goods subject to jurisdiction
under subchapter I of chapter 135 with the maximum possible flexibility
in weighing shipments, consistent with assurance to the shipper of
accurate weighing practices. The Secretary shall not prohibit such
carriers from backweighing shipments or from basing their charges on the
reweigh weights if the shipper observes both the tare and gross
weighings (or, prior to such weighings, waives in writing the
opportunity to observe such weighings) and such weighings are performed
on the same scale.
``SUBCHAPTER II--REPORTS AND RECORDS
``Sec. 14121. Definitions
``In this subchapter, the following definitions apply:
``(1) Carrier and broker.--The terms `carrier' and `broker'
include a receiver or trustee of a carrier and broker,
respectively.
[[Page 109 STAT. 893]]
``(2) Association.--The term `association' means an
organization maintained by or in the interest of a group of
carriers or brokers providing transportation or service subject
to jurisdiction under chapter 135 that performs a service, or
engages in activities, related to transportation under this
part.
``Sec. 14122. Records: form; inspection; preservation
``(a) Form of Records.--The Secretary or the Board, as applicable,
may prescribe the form of records required to be prepared or compiled
under this subchapter by carriers and brokers, including records related
to movement of traffic and receipts and expenditures of money.
``(b) Right of Inspection.--The Secretary or Board, or an employee
designated by the Secretary or Board, may on demand and display of
proper credentials--
``(1) inspect and examine the lands, buildings, and
equipment of a carrier or broker; and
``(2) inspect and copy any record of--
``(A) a carrier, broker, or association; and
``(B) a person controlling, controlled by, or under
common control with a carrier if the Secretary or Board,
as applicable, considers inspection relevant to that
person's relation to, or transaction with, that carrier.
``(c) Period for Preservation of Records.--The Secretary or Board,
as applicable, may prescribe the time period during which operating,
accounting, and financial records must be preserved by carriers and
brokers.
``Sec. 14123. Financial reporting
``(a) Reports.--
``(1) Annual reports.--The Secretary shall require Class I
and Class II motor carriers to file with the Secretary annual
financial and safety reports, the form and substance of which
shall be prescribed by the Secretary; except that, at a minimum,
such reports shall include balance sheets and income statements.
``(2) Other reports.--The Secretary may require motor
carriers, freight forwarders, brokers, lessors, and
associations, or classes of them as the Secretary may prescribe,
to file quarterly, periodic, or special reports with the
Secretary and to respond to surveys concerning their operations.
``(b) Matters To Be Covered.--In determining the matters to be
covered by any reports to be filed under subsection (a), the Secretary
shall consider--
``(1) safety needs;
``(2) the need to preserve confidential business information
and trade secrets and prevent competitive harm;
``(3) private sector, academic, and public use of
information in the reports; and
``(4) the public interest.
``(c) Exemptions.--
``(1) From filing.--The Secretary may exempt upon good cause
shown any party from the financial reporting requirements of
subsection (a). Any request for such exemption must demonstrate,
at a minimum, that an exemption is required to avoid competitive
harm and preserve confidential business information that is not
otherwise publicly available.
[[Page 109 STAT. 894]]
``(2) From public release.--
``(A) In general.--The Secretary shall allow, upon
request, a filer of a report under subsection (a) that
is not a publicly held corporation or that is not
subject to financial reporting requirements of the
Securities and Exchange Commission, an exemption from
the public release of such report.
``(B) Procedure.--After a request under subparagraph
(A) and notice and opportunity for comment but no event
later than 90 days after the date of such request, the
Secretary shall approve such request if the Secretary
finds that the exemption requested is necessary to avoid
competitive harm and to avoid the disclosure of
information that qualifies as a trade secret or
privileged or confidential information under section
552(b)(4) of title 5.
``(C) Use of data for internal dot purposes.--If an
exemption is granted under this paragraph, nothing shall
prevent the Secretary from using data from reports filed
under this subsection for internal purposes of the
Department of Transportation or including such data in
aggregate industry statistics released for publication
if such inclusion would not render the filer's data
readily identifiable.
``(D) Pending requests.--The Secretary shall not
release publicly the report of a carrier making a
request under subparagraph (A) while such request is
pending.
``(3) Period of exemptions.--Exemptions granted under this
subsection shall be for 3-year periods.
``(d) Streamlining and Simplification.--The Secretary shall
streamline and simplify, to the maximum extent practicable, any
reporting requirements the Secretary imposes under this section.
``CHAPTER 143--FINANCE
``Sec.
``14301. Security interests in certain motor vehicles.
``14302. Pooling and division of transportation or earnings.
``14303. Consolidation, merger, and acquisition of control of motor
carriers of passengers.
``Sec. 14301. Security interests in certain motor vehicles
``(a) Definitions.--In this section, the following definitions
apply:
``(1) Motor vehicle.--The term `motor vehicle' means a truck
of rated capacity (gross vehicle weight) of at least 10,000
pounds, a highway tractor of rated capacity (gross combination
weight) of at least 10,000 pounds, a property-carrying trailer
or semitrailer with at least one load-carrying axle of at least
10,000 pounds, or a motor bus with a seating capacity of at
least 10 individuals.
``(2) Lien creditor.--The term `lien creditor' means a
creditor having a lien on a motor vehicle and includes an
assignee for benefit of creditors from the date of assignment, a
trustee in a case under title 11 from the date of filing of the
petition in that case, and a receiver in equity from the date of
appointment of the receiver.
``(3) Security interest.--The term `security interest' means
an interest (including an interest established by a condi
[[Page 109 STAT. 895]]
tional sales contract, mortgage, equipment trust, or other lien
or title retention contract, or lease) in a motor vehicle when
the interest secures payment or performance of an obligation.
``(4) Perfection.--The term `perfection', as related to a
security interest, means taking action (including public filing,
recording, notation on a certificate of title, and possession of
collateral by the secured party), or the existence of facts,
required under law to make a security interest enforceable
against general creditors and subsequent lien creditors of a
debtor, but does not include compliance with requirements
related only to the establishment of a valid security interest
between the debtor and the secured party.
``(b) Requirements for Perfection of Security Interest.--A security
interest in a motor vehicle owned by, or in the possession and use of, a
carrier registered under section 13902 of this title and owing payment
or performance of an obligation secured by that security interest is
perfected in all jurisdictions against all general, and subsequent lien,
creditors of, and all persons taking a motor vehicle by sale (or taking
or retaining a security interest in a motor vehicle) from, that carrier
when--
``(1) a certificate of title is issued for a motor vehicle
under a law of a jurisdiction that requires or permits
indication, on a certificate or title, of a security interest in
the motor vehicle if the security interest is indicated on the
certificate;
``(2) a certificate of title has not been issued and the law
of the State where the principal place of business of that
carrier is located requires or permits public filing or
recording of, or in relation to, that security interest if there
has been such a public filing or recording; and
``(3) a certificate of title has not been issued and the
security interest cannot be perfected under paragraph (2) of
this subsection, if the security interest has been perfected
under the law (including the conflict of laws rules) of the
State where the principal place of business of that carrier is
located.
``Sec. 14302. Pooling and division of transportation or earnings
``(a) Approval Required.--A carrier providing transportation subject
to jurisdiction under subchapter I of chapter 135 may not agree or
combine with another such carrier to pool or divide traffic or services
or any part of their earnings without the approval of the Board under
this section.
``(b) Standards for Approval.--The Board may approve and authorize
an agreement or combination between or among motor carriers of
passengers, or between a motor carrier of passengers and a rail carrier
of passengers if the carriers involved assent to the pooling or division
and the Board finds that a pooling or division of traffic, services, or
earnings--
``(1) will be in the interest of better service to the
public or of economy of operation; and
``(2) will not unreasonably restrain competition.
``(c) Procedure.--
``(1) Application.--Any motor carrier of property may apply
to the Board for approval of an agreement or combination with
another such carrier to pool or divide traffic or any services
or any part of their earnings by filing such agreement or
combination with the Board not less than 50 days before its
effective date.
[[Page 109 STAT. 896]]
``(2) Determination of importance and restraint on
competition.--Prior to the effective date of the agreement or
combination, the Board shall determine whether the agreement or
combination is of major transportation importance and whether
there is substantial likelihood that the agreement or
combination will unduly restrain competition. If the Board
determines that neither of these 2 factors exists, it shall,
prior to such effective date and without a hearing, approve and
authorize the agreement or combination, under such rules and
regulations as the Board may issue, and for such consideration
between such carriers and upon such terms and conditions as
shall be found by the Board to be just and reasonable.
``(3) Hearing.--If the Board determines either that the
agreement or combination is of major transportation importance
or that there is substantial likelihood that the agreement or
combination will unduly restrain competition, the Board shall
hold a hearing concerning whether the agreement or combination
will be in the interest of better service to
the public or of economy in operation and whether it will unduly
restrain competition and shall suspend operation of such agreement or
combination pending such hearing and final decision thereon. After such
hearing, the Board shall indicate to what extent it finds that the
agreement or combination will be in the interest of better service to
the public or of economy in operation and will not unduly restrain
competition and if assented to by all the carriers involved, shall to
that extent, approve and authorize the agreement or combination, under
such rules and regulations as the Board may issue, and for such
consideration between such carriers and upon such terms and conditions
as shall be found by the Board to be just and reasonable.
``(4) Special rules for household goods carriers.--In the
case of an application for Board approval of an agreement or
combination between a motor carrier providing transportation of
household goods and its agents to pool or divide traffic or
services or any part of their earnings, such agreement or
combination shall be presumed to be in the interest of better
service to the public and of economy in operation and not to
restrain competition unduly if the practices proposed to be
carried out under such agreement or combination are the same as
or similar to practices carried out under agreements and
combinations between motor carriers providing transportation of
household goods to pool or divide traffic or service of any part
of their earnings approved by the Interstate Commerce Commission
before the effective date of this section.
``(5) Streamlining and simplifying.--The Board shall
streamline, simplify, and expedite, to the maximum extent
practicable, the process (including any paperwork) for
submission and approval of applications under this section for
agreements and combinations between motor carriers providing
transportation of household goods and their agents.
``(d) Conditions.--The Board may impose conditions governing the
pooling or division and may approve and authorize payment of a
reasonable consideration between the carriers.
``(e) Initiation of Proceeding.--The Board may begin a proceeding
under this section on its own initiative or on application.
``(f) Effect of Approval.--A carrier may participate in an
arrangement approved by or exempted by the Board under this
[[Page 109 STAT. 897]]
section without the approval of any other Federal, State, or municipal
body. A carrier participating in an approved or exempted arrangement is
exempt from the antitrust laws and from all other law, including State
and municipal law, as necessary to let that person carry out the
arrangement.
``(g) Continuation of Existing Agreements.--Any agreements in
operation under the provisions of this title on the effective date of
this section that are succeeded by this section shall remain in effect
until further order of the Board.
``(h) Definitions.--In this section, the following definitions
apply:
``(1) Household goods.--The term `household goods' has the
meaning such term had under section 10102(11) of this title, as
in effect on the day before the effective date of this section.
``(2) Transportation.--The term `transportation' means
transportation that would be subject to the jurisdiction of the
Interstate Commerce Commission under subchapter II of chapter
105 of this title, as in effect on the day before such effective
date, if such subchapter were still in effect.
``Sec. 14303. Consolidation, merger, and acquisition of control of motor
carriers of passengers
``(a) Approval Required.--The following transactions involving motor
carriers of passengers subject to jurisdiction under subchapter I of
chapter 135 may be carried out only with the approval of the Board:
``(1) Consolidation or merger of the properties or
franchises of at least 2 carriers into one operation for the
ownership, management, and operation of the previously
separately owned properties.
``(2) A purchase, lease, or contract to operate property of
another carrier by any number of carriers.
``(3) Acquisition of control of a carrier by any number of
carriers.
``(4) Acquisition of control of at least 2 carriers by a
person that is not a carrier.
``(5) Acquisition of control of a carrier by a person that
is not a carrier but that controls any number of carriers.
``(b) Standard for Approval.--The Board shall approve and authorize
a transaction under this section when it finds the transaction is
consistent with the public interest. The Board shall consider at least
the following:
``(1) The effect of the proposed transaction on the adequacy
of transportation to the public.
``(2) The total fixed charges that result from the proposed
transaction.
``(3) The interest of carrier employees affected by the
proposed transaction.
The Board may impose conditions governing the transaction.
``(c) <<NOTE: Federal Register, publication.>> Determination of
Completeness of Application.--Within 30 days after the date on which an
application is filed under this section, the Board shall either publish
a notice of the application in the Federal Register or reject the
application if it is incomplete.
[[Page 109 STAT. 898]]
``(d) Comments.--Written comments about an application may be filed
with the Board within 45 days after the date on which notice of the
application is published under subsection (c).
``(e) Deadlines.--The Board shall conclude evidentiary proceedings
by the 240th day after the date on which notice of the application is
published under subsection (c). The Board shall issue a final decision
by the 180th day after the conclusion of the evidentiary proceedings.
The Board may extend a time period under this subsection; except that
the total of all such extensions with respect to any application shall
not exceed 90 days.
``(f) Effect of Approval.--A carrier or corporation participating in
or resulting from a transaction approved by the Board under this
section, or exempted by the Board from the application of this section
pursuant to section 13541, may carry out the transaction, own and
operate property, and exercise control or franchises acquired through
the transaction without the approval of a State authority. A carrier,
corporation, or person participating in the approved or exempted
transaction is exempt from the antitrust laws and from all other law,
including State and municipal law, as necessary to let that person carry
out the transaction, hold, maintain, and operate property, and exercise
control or franchises acquired through the transaction.
``(g) Limitation on Applicability.--This section shall not apply to
transactions involving carriers whose aggregate gross operating revenues
were not more than $2,000,000 during a period of 12 consecutive months
ending not more than 6 months before the date of the agreement of the
parties.
``(h) Applicability of Certain Provisions.--When the Board approves
and authorizes a transaction under this section in which a person not a
carrier providing transportation subject to jurisdiction under
subchapter I of chapter 135 acquires control of at least 1 carrier
subject to such jurisdiction, the person is subject, as a carrier, to
the following provisions of this title that apply to the carrier being
acquired by that person, to the extent specified by the Board: sections
504(f), 14121-14123, 14901(a), and 14907.
``(i) Interim Approval.--Pending determination of an application
filed under this section, the Board may approve, for a period of not
more than 180 days, the operation of the properties sought to be
acquired by the person proposing in the application to acquire those
properties, when it appears that failure to do so may result in
destruction of or injury to those properties or substantially interfere
with their future usefulness in providing adequate and continuous
service to the public. Transportation provided by a motor carrier under
a grant of approval under this subsection is subject to this part.
``(j) Supplemental Orders.--When cause exists, the Board may issue
appropriate orders supplemental to an order made in a proceeding under
this section.
``CHAPTER 145--FEDERAL-STATE RELATIONS
``Sec.
``14501. Federal authority over intrastate transportation.
``14502. Tax discrimination against motor carrier transportation
property.
``14503. Withholding State and local income tax by certain carriers.
``14504. Registration of motor carriers by a State.
``14505. State tax.
[[Page 109 STAT. 899]]
``Sec. 14501. Federal authority over intrastate transportation
``(a) Motor Carriers of Passengers.--No State or political
subdivision thereof and no interstate agency or other political agency
of 2 or more States shall enact or enforce any law, rule, regulation,
standard, or other provision having the force and effect of law relating
to scheduling of interstate or intrastate transportation (including
discontinuance or reduction in the level of service) provided by motor
carrier of passengers subject to jurisdiction under subchapter I of
chapter 135 of this title on an interstate route or relating to the
implementation of any change in the rates for such transportation or for
any charter transportation except to the extent that notice, not in
excess of 30 days, of changes in schedules may be required. This
subsection shall not apply to intrastate commuter bus operations.
``(b) Freight Forwarders and Brokers.--
``(1) General rule.--Subject to paragraph (2) of this
subsection, no State or political subdivision thereof and no
intrastate agency or other political agency of 2 or more States
shall enact or enforce any law, rule, regulation, standard, or
other provision having the force and effect of law relating to
intrastate rates, intrastate routes, or intrastate services of
any freight forwarder or broker.
``(2) Continuation of hawaii's authority.--Nothing in this
subsection and the amendments made by the Surface Freight
Forwarder Deregulation Act of 1986 shall be construed to affect
the authority of the State of Hawaii to continue to regulate a motor
carrier operating within the State of Hawaii.
``(c) Motor Carriers of Property.--
``(1) General rule.--Except as provided in paragraphs (2)
and (3), a State, political subdivision of a State, or political
authority of 2 or more States may not enact or enforce a law,
regulation, or other provision having the force and effect of
law related to a price, route, or service of any motor carrier
(other than a carrier affiliated with a direct air carrier
covered by section 41713(b)(4)) or any motor private carrier,
broker, or freight forwarder with respect to the transportation
of property.
``(2) Matters not covered.--Paragraph (1)--
``(A) shall not restrict the safety regulatory
authority of a State with respect to motor vehicles, the
authority of a State to impose highway route controls or
limitations based on the size or weight of the motor
vehicle or the hazardous nature of the cargo, or the
authority of a State to regulate motor carriers with
regard to minimum amounts of financial responsibility
relating to insurance requirements and self-insurance
authorization;
``(B) does not apply to the transportation of
household goods; and
``(C) does not apply to the authority of a State or
a political subdivision of a State to enact or enforce a
law, regulation, or other provision relating to the
price of for-hire motor vehicle transportation by a tow
truck, if such transportation is performed without the
prior consent or authorization of the owner or operator
of the motor vehicle.
``(3) State standard transportation practices.--
[[Page 109 STAT. 900]]
``(A) Continuation.--Paragraph (1) shall not affect
any authority of a State, political subdivision of a
State, or political authority of 2 or more States to
enact or enforce a law, regulation, or other provision,
with respect to the intrastate transportation of
property by motor carriers, related to--
``(i) uniform cargo liability rules,
``(ii) uniform bills of lading or receipts for
property being transported,
``(iii) uniform cargo credit rules,
``(iv) antitrust immunity for joint line rates
or routes, classifications, mileage guides, and
pooling, or
``(v) antitrust immunity for agent-van line
operations (as set forth in section 13907),
if such law, regulation, or provision meets the
requirements of subparagraph (B).
``(B) Requirements.--A law, regulation, or provision
of a State, political subdivision, or political
authority meets the requirements of this subparagraph
if--
``(i) the law, regulation, or provision covers
the same subject matter as, and compliance with
such law, regulation, or provision is no more
burdensome than compliance with, a provision of
this part or a regulation issued by the Secretary
or the Board under this part; and
``(ii) the law, regulation, or provision only
applies to a carrier upon request of such carrier.
``(C) Election.--Notwithstanding any other provision
of law, a carrier affiliated with a direct air carrier
through common controlling ownership may elect to be
subject to a law, regulation, or provision of a State,
political subdivision, or political authority under this
paragraph.
``(4) Nonapplicability to hawaii.--This subsection shall not
apply with respect to the State of Hawaii.
``Sec. 14502. Tax discrimination against motor carrier transportation
property
``(a) Definitions.--In this section, the following definitions
apply:
``(1) Assessment.--The term `assessment' means valuation for
a property tax levied by a taxing district.
``(2) Assessment jurisdiction.--The term `assessment
jurisdiction' means a geographical area in a State used in
determining the assessed value of property for ad valorem
taxation.
``(3) Motor carrier transportation property.--The term
`motor carrier transportation property' means property, as
defined by the Secretary, owned or used by a motor carrier
providing transportation in interstate commerce whether or not
such transportation is subject to jurisdiction under subchapter
I of chapter 135.
``(4) Commercial and industrial property.--The term
`commercial and industrial property' means property, other than
transportation property and land used primarily for agricultural
purposes or timber growing, devoted to a commercial or
industrial use, and subject to a property tax levy.
[[Page 109 STAT. 901]]
``(b) Acts Burdening Interstate Commerce.--The following acts
unreasonably burden and discriminate against interstate commerce and a
State, subdivision of a State, or authority acting for a State or
subdivision of a State may not do any of them:
``(1) Excessive valuation of property.--Assess motor carrier
transportation property at a value that has a higher ratio to
the true market value of the motor carrier transportation
property than the ratio that the assessed value of other
commercial and industrial property in the same assessment
jurisdiction has to the true market value of the other
commercial and industrial property.
``(2) Tax on assessment.--Levy or collect a tax on an
assessment that may not be made under paragraph (1).
``(3) Ad valorem tax.--Levy or collect an ad valorem
property tax on motor carrier transportation property at a tax
rate that exceeds the tax rate applicable to commercial and
industrial property in the same assessment jurisdiction.
``(c) Jurisdiction.--
``(1) In general.--Notwithstanding section 1341 of title 28
and without regard to the amount in controversy or citizenship
of the parties, a district court of the United States has
jurisdiction, concurrent with other jurisdiction of courts of
the United States and the States, to prevent a violation of
subsection (b) of this section.
``(2) Limitation in relief.--Relief may be granted under
this subsection only if the ratio of assessed value to true
market value of motor carrier transportation property exceeds,
by at least 5 percent, the ratio of assessed value to true
market value of other commercial and industrial property in the
same assessment jurisdiction.
``(3) Burden of proof.--The burden of proof in determining
assessed value and true market value is governed by State law.
``(4) Violation.--If the ratio of the assessed value of
other commercial and industrial property in the assessment
jurisdiction to the true market value of all other commercial
and industrial property cannot be determined to the satisfaction
of the district court through the random-sampling method known
as a sales assessment ratio study (to be carried out under
statistical principles applicable to such a study), the court
shall find, as a violation of this section--
``(A) an assessment of the motor carrier
transportation property at a value that has a higher
ratio to the true market value of the motor carrier
transportation property than the assessment value of all
other property subject to a property tax levy in the
assessment jurisdiction has to the true market value of
all such other property; and
``(B) the collection of ad valorem property tax on
the motor carrier transportation property at a tax rate
that exceeds the tax ratio rate applicable to taxable
property in the taxing district.
``Sec. 14503. Withholding State and local income tax by certain carriers
``(a) Single State Tax Withholding.--
``(1) In general.--No part of the compensation paid by a
motor carrier providing transportation subject to jurisdiction
[[Page 109 STAT. 902]]
under subchapter I of chapter 135 or by a motor private carrier
to an employee who performs regularly assigned duties in 2 or
more States as such an employee with respect to a motor vehicle
shall be subject to the income tax laws of any State or
subdivision of that State, other than the State or subdivision
thereof of the employee's residence.
``(2) Employee defined.--In this subsection, the term
`employee' has the meaning given such term in section 31132.
``(b) Special Rules.--
``(1) Calculation of earnings.--In this subsection, an
employee is deemed to have earned more than 50 percent of pay in
a State or subdivision of that State in which the time worked by
the employee in the State or subdivision is more than 50 percent
of the total time worked by the employee while employed during
the calendar year.
``(2) Water carriers.--A water carrier providing
transportation subject to jurisdiction under subchapter II of
chapter 135 shall file income tax information returns and other
reports only with--
``(A) the State and subdivision of residence of the
employee (as shown on the employment records of the
carrier); and
``(B) the State and subdivision in which the
employee earned more than 50 percent of the pay received
by the employee from the carrier during the preceding
calendar year.
``(3) Applicability to sailors.--This subsection applies to
pay of a master, officer, or sailor who is a member of the crew
on a vessel engaged in foreign, coastwise, intercoastal, or
noncontiguous trade or in the fisheries of the United States.
``(c) Filing of Information. <<NOTE: Reports.>> --A motor and motor
private carrier withholding pay from an employee under subsection (a) of
this section shall file income tax information returns and other reports
only with the State and subdivision of residence of the employee.
``Sec. 14504. Registration of motor carriers by a State
``(a) Definitions.--In this section, the terms `standards' and
`amendments to standards' mean the specification of forms and procedures
required by regulations of the Secretary to prove the lawfulness of
transportation by motor carrier referred to in section 13501.
``(b) General Rule.--The requirement of a State that a motor
carrier, providing transportation subject to jurisdiction under
subchapter I of chapter 135 and providing transportation in that State,
must register with the State is not an unreasonable burden on
transportation referred to in section 13501 when the State registration
is completed under standards of the Secretary under subsection (c). When
a State registration requirement imposes obligations in excess of the
standards of the Secretary, the part in excess is an unreasonable
burden.
``(c) Single State Registration System.--
``(1) In general.--The Secretary shall maintain standards
for implementing a system under which--
``(A) a motor carrier is required to register
annually with only one State by providing evidence of
its Federal registration under chapter 139;
[[Page 109 STAT. 903]]
``(B) the State of registration shall fully comply
with standards prescribed under this section; and
``(C) such single State registration shall be deemed
to satisfy the registration requirements of all other
States.
``(2) Specific requirements.--
``(A) Evidence of federal registration; proof of
insurance; payment of fees.--Under the standards of the
Secretary implementing the single State registration
system described in paragraph (1) of this subsection,
only a State acting in its capacity as registration
State under such single State system may require a motor
carrier registered by the Secretary under this part--
``(i) to file and maintain evidence of such
Federal registration;
``(ii) to file satisfactory proof of required
insurance or qualification as a self-insurer;
``(iii) to pay directly to such State fee
amounts in accordance with the fee system
established under subparagraph (B)(iv) of this
paragraph, subject to allocation of fee revenues
among all States in which the carrier operates and
which participate in the single State registration
system; and
``(iv) to file the name of a local agent for
service of process.
``(B) Receipts; fee system.--The standards of the
Secretary--
``(i) shall require that the registration
State issue a receipt, in a form prescribed under
the standards, reflecting that the carrier has
filed proof of insurance as provided under
subparagraph (A)(ii) of this paragraph and has
paid fee amounts in accordance with the fee system
established under clause (iv) of this
subparagraph;
``(ii) shall require that copies of the
receipt issued under clause (i) of this
subparagraph be kept in each of the carrier's
commercial motor vehicles;
``(iii) shall not require decals, stamps, cab
cards, or any other means of registering or
identifying specific vehicles operated by the
carrier;
``(iv) shall establish a fee system for the
filing of proof of insurance as provided under
subparagraph (A)(ii) of this paragraph that--
``(I) is based on the number of
commercial motor vehicles the carrier
operates in a State and on the number of
States in which the carrier operates;
``(II) minimizes the costs of
complying with the registration system;
and
``(III) results in a fee for each
participating State that is equal to the
fee, not to exceed $10 per vehicle, that
such State collected or charged as of
November 15, 1991; and
``(v) shall not authorize the charging or
collection of any fee for filing and maintaining
evidence of Federal registration under
subparagraph (A)(i) of this paragraph.
[[Page 109 STAT. 904]]
``(C) Prohibited fees.--The charging or collection
of any fee under this section that is not in accordance
with the fee system established under subparagraph
(B)(iv) of this paragraph shall be deemed to be a burden
on interstate commerce.
``(D) Limitation on participation by states.--Only a
State which, as of January 1, 1991, charged or collected
a fee for a vehicle identification stamp or number under
part 1023 of title 49, Code of Federal Regulations,
shall be eligible to participate as a registration State
under this subsection or to receive any fee revenue
under this subsection.
``Sec. 14505. State tax
``A State or political subdivision thereof may not collect or levy a
tax, fee, head charge, or other charge on--
``(1) a passenger traveling in interstate commerce by motor
carrier;
``(2) the transportation of a passenger traveling in
interstate commerce by motor carrier;
``(3) the sale of passenger transportation in interstate
commerce by motor carrier; or
``(4) the gross receipts derived from such transportation.
``CHAPTER 147--ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES
``Sec.
``14701. General authority.
``14702. Enforcement by the regulatory authority.
``14703. Enforcement by the Attorney General.
``14704. Rights and remedies of persons injured by carriers or brokers.
``14705. Limitation on actions by and against carriers.
``14706. Liability of carriers under receipts and bills of lading.
``14707. Private enforcement of registration requirement.
``14708. Dispute settlement program for household goods carriers.
``14709. Tariff reconciliation rules for motor carriers of property.
``Sec. 14701. General authority
``(a) Investigations.--The Secretary or the Board, as applicable,
may begin an investigation under this part on the Secretary's or the
Board's own initiative or on complaint. If the Secretary or Board, as
applicable, finds that a carrier or broker is violating this part, the
Secretary or Board, as applicable, shall take appropriate action to
compel compliance with this part. If the Secretary finds that a foreign
motor carrier or foreign motor private carrier is violating chapter 139,
the Secretary shall take appropriate action to compel compliance with
that chapter. The Secretary or Board, as applicable, may take action
under this subsection only after giving the carrier or broker notice of
the investigation and an opportunity for a proceeding.
``(b) Complaints.--A person, including a governmental authority, may
file with the Secretary or Board, as applicable, a complaint about a
violation of this part by a carrier providing, or broker for,
transportation or service subject to jurisdiction under this part or a
foreign motor carrier or foreign motor private carrier providing
transportation registered under section 13902 of this title. The
complaint must state the facts that are the subject of the violation.
The Secretary or Board, as applicable, may dismiss a complaint
[[Page 109 STAT. 905]]
that it determines does not state reasonable grounds for investigation
and action.
``(c) Deadline.--A formal investigative proceeding begun by the
Secretary or Board under subsection (a) of this section is dismissed
automatically unless it is concluded with administrative finality by the
end of the 3d year after the date on which it was begun.
``Sec. 14702. Enforcement by the regulatory authority
``(a) In General.--The Secretary or the Board, as applicable, may
bring a civil action--
``(1) to enforce section 14103 of this title; or
``(2) to enforce this part, or a regulation or order of the
Secretary or Board, as applicable, when violated by a carrier or
broker providing transportation or service subject to
jurisdiction under subchapter I or III of chapter 135 of this
title or by a foreign motor carrier or foreign motor private
carrier providing transportation registered under section 13902
of this title.
``(b) Venue.--In a civil action under subsection (a)(2) of this
section--
``(1) trial is in the judicial district in which the
carrier, foreign motor carrier, foreign motor private carrier,
or broker operates;
``(2) process may be served without regard to the
territorial limits of the district or of the State in which the
action is instituted; and
``(3) a person participating with a carrier or broker in a
violation may be joined in the civil action without regard to
the residence of the person.
``(c) Standing.--The Board, through its own attorneys, may bring or
participate in any civil action involving motor carrier undercharges.
``Sec. 14703. Enforcement by the Attorney General
``The Attorney General may, and on request of either the Secretary
or the Board shall, bring court proceedings--
``(1) to enforce this part or a regulation or order of the
Secretary or Board or terms of registration under this part; and
``(2) to prosecute a person violating this part or a
regulation or order of the Secretary or Board or term of
registration under this part.
``Sec. 14704. Rights and remedies of persons injured by carriers or
brokers
``(a) In General.--
``(1) Enforcement of order.--A person injured because a
carrier or broker providing transportation or service subject to
jurisdiction under chapter 135 does not obey an order of the
Secretary or the Board, as applicable, under this part, except
an order for the payment of money, may bring a civil action to
enforce that order under this subsection. A person may bring a
civil action for injunctive relief for violations of sections
14102 and 14103.
``(2) Damages for violations.--A carrier or broker providing
transportation or service subject to jurisdiction under chap
[[Page 109 STAT. 906]]
ter 135 is liable for damages sustained by a person as a result
of an act or omission of that carrier or broker in violation of
this part.
``(b) Liability and Damages for Exceeding Tariff Rate.--A carrier
providing transportation or service subject to jurisdiction under
chapter 135 is liable to a person for amounts charged that exceed the
applicable rate for transportation or service contained in a tariff in
effect under section 13702.
``(c) Election.--
``(1) Complaint to dot or board; civil action.--A person may
file a complaint with the Board or the Secretary, as applicable,
under section 14701(b) or bring a civil action under subsection
(b) to enforce liability against a carrier or broker providing
transportation or service subject to jurisdiction under chapter
135.
``(2) Order of dot or board.--
``(A) In general.--When the Board or Secretary, as
applicable, makes an award under subsection (b) of this
section, the Board or Secretary, as applicable, shall
order the carrier to pay the amount awarded by a
specific date. The Board or Secretary, as applicable,
may order a carrier or broker providing transportation
or service subject to jurisdiction under chapter 135 to
pay damages only when the proceeding is on complaint.
``(B) Enforcement by civil action.--The person for
whose benefit an order of the Board or Secretary
requiring the payment of money is made may bring a civil
action to enforce that order under this paragraph if the
carrier or broker does not pay the amount awarded by the
date payment was ordered to be made.
``(d) Procedure.--
``(1) In general.--When a person begins a civil action under
subsection (b) of this section to enforce an order of the Board
or Secretary requiring the payment of damages by a carrier or
broker providing transportation or service subject to
jurisdiction under chapter 135 of this title, the text of the
order of the Board or Secretary must be included in the
complaint. In addition to the district courts of the United
States, a State court of general jurisdiction having
jurisdiction of the parties has jurisdiction to enforce an order
under this paragraph. The findings and order of the Board or
Secretary are competent evidence of the facts stated in them.
Trial in a civil action brought in a district court of the
United States under this paragraph is in the judicial district
in which the plaintiff resides or in which the principal
operating office of the carrier or broker is located. In a civil
action under this paragraph, the plaintiff is liable for only
those costs that accrue on an appeal taken by the plaintiff.
``(2) Parties.--All parties in whose favor the award was
made may be joined as plaintiffs in a civil action brought in a
district court of the United States under this subsection and
all the carriers that are parties to the order awarding damages
may be joined as defendants. Trial in the action is in the
judicial district in which any one of the plaintiffs could bring
the action against any one of the defendants. Process may be
served on a defendant at its principal operating office when
that defendant is not in the district in which the action
[[Page 109 STAT. 907]]
is brought. A judgment ordering recovery may be made in favor of
any of those plaintiffs against the defendant found to be liable
to that plaintiff.
``(e) Attorney's Fees. <<NOTE: Courts.>> --The district court shall
award a reasonable attorney's fee under this section. The district court
shall tax and collect that fee as part of the costs of the action.
``Sec. 14705. Limitation on actions by and against
carriers <<NOTE: Claims.>>
``(a) In General.--A carrier providing transportation or service
subject to jurisdiction under chapter 135 must begin a civil action to
recover charges for transportation or service provided by the carrier
within 18 months after the claim accrues.
``(b) Overcharges.--A person must begin a civil action to recover
overcharges within 18 months after the claim accrues. If the claim is
against a carrier providing transportation subject to jurisdiction under
chapter 135 and an election to file a complaint with the Board or
Secretary, as applicable, is made under section 14704(c)(1), the
complaint must be filed within 3 years after the claim accrues.
``(c) Damages.--A person must file a complaint with the Board or
Secretary, as applicable, to recover damages under section 14704(b)
within 2 years after the claim accrues.
``(d) Extensions.--The limitation periods under subsection (b) of
this section are extended for 6 months from the time written notice is
given to the claimant by the carrier of disallowance of any part of the
claim specified in the notice if a written claim is given to the carrier
within those limitation periods. The limitation periods under
subsections (b) and (c) of this section are extended for 90 days from
the time the carrier begins a civil action under subsection (a) to
recover charges related to the same transportation or service, or
collects (without beginning a civil action under that subsection) the
charge for that transportation or service if that action is begun or
collection is made within the appropriate period.
``(e) Payment.--A person must begin a civil action to enforce an
order of the Board or Secretary against a carrier within 1 year after
the date of the order.
``(f) Government Transportation.--This section applies to
transportation for the United States Government. The time limitations
under this section are extended, as related to transportation for or on
behalf of the United States Government, for 3 years from the later of
the date of--
``(1) payment of the rate for the transportation or service
involved;
``(2) subsequent refund for overpayment of that rate; or
``(3) deduction made under section 3726 of title 31.
``(g) Accrual Date.--A claim related to a shipment of property
accrues under this section on delivery or tender of delivery by the
carrier.
``Sec. 14706. Liability of carriers under receipts and bills of lading
``(a) General Liability.--
``(1) Motor carriers and freight forwarders.--A carrier
providing transportation or service subject to jurisdiction
under subchapter I or III of chapter 135 shall issue a receipt
or bill of lading for property it receives for transportation
under this part. That carrier and any other carrier that
delivers
[[Page 109 STAT. 908]]
the property and is providing transportation or service subject
to jurisdiction under subchapter I or III of chapter 135 or
chapter 105 are liable to the person entitled to recover under
the receipt or bill of lading. The liability imposed under this
paragraph is for the actual loss or injury to the property
caused by (A) the receiving carrier, (B) the delivering carrier,
or (C) another carrier over whose line or route the property is
transported in the United States or from a place in the United
States to a place in an adjacent foreign country when
transported under a through bill of lading and, except in the
case of a freight forwarder, applies to property reconsigned or
diverted under a tariff under section 13702. Failure to issue a
receipt or bill of lading does not affect the liability of a
carrier. A delivering carrier is deemed to be the carrier
performing the line-haul transportation nearest the destination
but does not include a carrier providing only a switching
service at the destination.
``(2) Freight forwarder.--A freight forwarder is both the
receiving and delivering carrier. When a freight forwarder
provides service and uses a motor carrier providing
transportation subject to jurisdiction under subchapter I of
chapter 135 to receive property from a consignor, the motor
carrier may execute the bill of lading or shipping receipt for
the freight forwarder with its consent. With the consent of the
freight forwarder, a motor carrier may deliver property for a
freight forwarder on the freight forwarder's bill of lading,
freight bill, or shipping receipt to the consignee named in it,
and receipt for the property may be made on the freight
forwarder's delivery receipt.
``(b) Apportionment.--The carrier issuing the receipt or bill of
lading under subsection (a) of this section or delivering the property
for which the receipt or bill of lading was issued is entitled to
recover from the carrier over whose line or route the loss or injury
occurred the amount required to be paid to the owners of the property,
as evidenced by a receipt, judgment, or transcript, and the
amount of its expenses reasonably incurred in defending a civil action
brought by that person.
``(c) Special Rules.--
``(1) Motor carriers.--
``(A) Shipper waiver.--Subject to the provisions of
subparagraph (B), a carrier providing transportation or
service subject to jurisdiction under subchapter I or
III of chapter 135 may, subject to the provisions of
this chapter (including with respect to a motor carrier,
the requirements of section 13710(a)), establish rates
for the transportation of property (other than household
goods described in section 13102(10)(A)) under which the
liability of the carrier for such property is limited to
a value established by written or electronic declaration
of the shipper or by written agreement between the
carrier and shipper if that value would be reasonable
under the circumstances surrounding the transportation.
``(B) Carrier notification.--If the motor carrier is
not required to file its tariff with the Board, it shall
provide under section 13710(a)(1) to the shipper, on
request of the shipper, a written or electronic copy of
the rate, classification, rules, and practices upon
which any rate applicable
[[Page 109 STAT. 909]]
to a shipment, or agreed to between the shipper and the
carrier, is based. The copy provided by the carrier
shall clearly state the dates of applicability of the
rate, classification, rules, or practices.
``(C) Prohibition against collective
establishment.--No discussion, consideration, or
approval as to rules to limit liability under this
subsection may be undertaken by carriers acting under an
agreement approved pursuant to section 13703.
``(2) Water carriers.--If loss or injury to property occurs
while it is in the custody of a water carrier, the liability of
that carrier is determined by its bill of lading and the law
applicable to water transportation. The liability of the initial
or delivering carrier is the same as the liability of the water
carrier.
``(d) Civil Actions.--
``(1) Against delivering carrier.--A civil action under this
section may be brought against a delivering carrier in a
district court of the United States or in a State court. Trial,
if the action is brought in a district court of the United
States is in a judicial district, and if in a State court, is in
a State through which the defendant carrier operates.
``(2) Against carrier responsible for loss.--A civil action
under this section may be brought against the carrier alleged to
have caused the loss or damage, in the judicial district in
which such loss or damage is alleged to have occurred.
``(3) Jurisdiction of courts.--A civil action under this
section may be brought in a United States district court or in a
State court.
``(4) Judicial district defined.--In this section, `judicial
district' means--
``(A) in the case of a United States district court,
a judicial district of the United States; and
``(B) in the case of a State court, the applicable
geographic area over which such court exercises
jurisdiction.
``(e) Minimum Period for Filing Claims.--
``(1) In general.--A carrier may not provide by rule,
contract, or otherwise, a period of less than 9 months for
filing a claim against it under this section and a period of
less than 2 years for bringing a civil action against it under
this section. The period for bringing a civil action is computed
from the date the carrier gives a person written notice that the
carrier has disallowed any part of the claim specified in the
notice.
``(2) Special rules.--For the purposes of this subsection--
``(A) an offer of compromise shall not constitute a
disallowance of any part of the claim unless the
carrier, in writing, informs the claimant that such part
of the claim is disallowed and provides reasons for such
disallowance; and
``(B) communications received from a carrier's
insurer shall not constitute a disallowance of any part
of the claim unless the insurer, in writing, informs the
claimant that such part of the claim is disallowed,
provides reason for
[[Page 109 STAT. 910]]
such disallowance, and informs the claimant that the
insurer is acting on behalf of the carrier.
``(f) Limiting Liability of Household Goods Carriers to Declared
Value.--A carrier or group of carriers subject to jurisdiction under
subchapter I or III of chapter 135 may petition the Board to modify,
eliminate, or establish rates for the transportation of household goods
under which the liability of the carrier for that property is limited to
a value established by written declaration of the shipper or by a
written agreement.
``(g) Modifications and Reforms.--
``(1) Study.--The Secretary shall conduct a study to
determine whether any modifications or reforms should be made to
the loss and damage provisions of this section, including those
related to limitation of liability by carriers.
``(2) Factors to consider.--In conducting the study, the
Secretary, at a minimum, shall consider--
``(A) the efficient delivery of transportation
services;
``(B) international and intermodal harmony;
``(C) the public interest; and
``(D) the interest of carriers and shippers.
``(3) Report.--Not later than 12 months after the effective
date of this section, the Secretary shall submit to Congress a
report on the results of the study, together with any
recommendations of the Secretary (including legislative
recommendations) for implementing modifications or reforms
identified by the Secretary as being appropriate.
``Sec. 14707. Private enforcement of registration requirement
``(a) In General.--If a person provides transportation by motor
vehicle or service in clear violation of section 13901-13904 or 13906, a
person injured by the transportation or service may bring a civil action
to enforce any such section. In a civil action under this subsection,
trial is in the judicial district in which the person who violated that
section operates.
``(b) Procedure.--A copy of the complaint in a civil action under
subsection (a) shall be served on the Secretary and a certificate of
service must appear in the complaint filed with the court. The Secretary
may intervene in a civil action under subsection (a). The Secretary may
notify the district court in which the action is pending that the
Secretary intends to consider the matter that is the subject of the
complaint in a proceeding before the Secretary. When that notice is
filed, the court shall stay further action pending disposition of the
proceeding before the Secretary.
``(c) Attorney's Fees.--In a civil action under subsection (a), the
court may determine the amount of and award a reasonable attorney's fee
to the prevailing party. That fee is in addition to costs allowable
under the Federal Rules of Civil Procedure.
``Sec. 14708. Dispute settlement program for household goods carriers
``(a) Offering Shippers Arbitration.--As a condition of registration
under section 13902 or 13903, a carrier providing transportation of
household goods subject to jurisdiction under subchapter I or III of
chapter 135 must agree to offer in accordance with this section to
shippers of household goods arbitration as a means of settling disputes
between such carriers and shippers of household goods concerning damage
or loss to the household goods transported.
[[Page 109 STAT. 911]]
``(b) Arbitration Requirements.--
``(1) Prevention of special advantage.--The arbitration that
is offered must be designed to prevent a carrier from having any
special advantage in any case in which the claimant resides or
does business at a place distant from the carrier's principal or
other place of business.
``(2) Notice of arbitration procedure.--The carrier must
provide the shipper an adequate notice of the availability of
neutral arbitration, including a concise easy-to-read, accurate
summary of the arbitration procedure, any applicable costs, and
disclosure of the legal effects of election to utilize
arbitration. Such notice must be given to persons for whom
household goods are to be transported by the carrier before such
goods are tendered to the carrier for transportation.
``(3) Provision of forms.--Upon request of a shipper, the
carrier must promptly provide such forms and other information
as are necessary for initiating an action to resolve a dispute
under arbitration.
``(4) Independence of arbitrator.--Each person authorized to
arbitrate or otherwise settle disputes must be independent of
the parties to the dispute and must be capable, as determined
under such regulations as the Secretary may issue, to resolve
such disputes fairly and expeditiously. The carrier must ensure
that each person chosen to settle the disputes is authorized and
able to obtain from the shipper or carrier any material and
relevant information to the extent necessary to carry out a fair
and expeditious decisionmaking process.
``(5) Apportionment of costs.--No shipper may be charged
more than half of the cost for instituting an arbitration
proceeding that is brought under this section. In the decision,
the arbitrator may determine which party shall pay the cost or a
portion of the cost of the arbitration proceeding, including the
cost of instituting the proceeding.
``(6) Requests.--The carrier must not require the shipper to
agree to utilize arbitration prior to the time that a dispute
arises. If the dispute involves a claim for $1,000 or less and
the shipper requests arbitration, such arbitration shall be
binding on the parties. If the dispute involves a claim for more
than $1,000 and the shipper requests arbitration, such
arbitration shall be binding on the parties only if the carrier
agrees to arbitration.
``(7) Oral presentation of evidence.--The arbitrator may
provide for an oral presentation of a dispute concerning
transportation of household goods by a party to the dispute (or
a party's representative), but such oral presentation may be
made only if all parties to the dispute expressly agree to such
presentation and the date, time, and location of such
presentation.
``(8) Deadline for decision.--The arbitrator must, as
expeditiously as possible but at least within 60 days of receipt
of written notification of the dispute, render a decision based
on the information gathered; except that, in any case in which a
party to the dispute fails to provide in a timely manner any
information concerning such dispute which the person settling
the dispute may reasonably require to resolve the dispute, the
arbitrator may extend such 60-day period for a reasonable period
of time. A decision resolving a dispute may include
[[Page 109 STAT. 912]]
any remedies appropriate under the circumstances, including
repair, replacement, refund, reimbursement for expenses, and
compensation for damages.
``(c) Limitation on Use of Materials.--Materials and information
obtained in the course of a decision making process to settle a dispute
by arbitration under this section may not be used to bring an action
under section 14905.
``(d) Attorney's Fees to Shippers.--In any court action to resolve a
dispute between a shipper of household goods and a carrier providing
transportation or service subject to jurisdiction under subchapter I or
III of chapter 135 concerning the transportation of household goods by
such carrier, the shipper shall be awarded reasonable attorney's fees
if--
``(1) the shipper submits a claim to the carrier within 120
days after the date the shipment is delivered or the date the
delivery is scheduled, whichever is later;
``(2) the shipper prevails in such court action; and
``(3)(A) a decision resolving the dispute was not rendered
through arbitration under this section within the period
provided under subsection (b)(8) of this section or an extension
of such period under such subsection; or
``(B) the court proceeding is to enforce a decision rendered
through arbitration under this section and is instituted after
the period for performance under such decision has elapsed.
``(e) Attorney's Fees to Carriers.--In any court action to resolve a
dispute between a shipper of household goods and a carrier providing
transportation, or service subject to jurisdiction under subchapter I or
III of chapter 135 concerning the transportation of household goods by
such carrier, such carrier may be awarded reasonable attorney's fees by
the court only if the shipper brought such action in bad faith--
``(1) after resolution of such dispute through arbitration
under this section; or
``(2) after institution of an arbitration proceeding by the
shipper to resolve such dispute under this section but before--
``(A) the period provided under subsection (b)(8)
for resolution of such dispute (including, if
applicable, an extension of such period under such
subsection) ends; and
``(B) a decision resolving such dispute is rendered.
``(f) Limitation of Applicability to Collect-on-Delivery
Transportation.--The provisions of this section shall apply only in the
case of collect-on-delivery transportation of household goods.
``(g) Review by Secretary.--Not later than 18 months after the
effective date of this section, the Secretary shall complete a review of
the dispute settlement program established under this
section. <<NOTE: Reports.>> If, after notice and opportunity for
comment, the Secretary determines that changes are necessary to such
program to ensure the fair and equitable resolution of disputes under
this section, the Secretary shall implement such changes and transmit a
report to Congress on such changes.
``Sec. 14709. Tariff reconciliation rules for motor carriers of property
``Subject to review and approval by the Board, motor carriers
subject to jurisdiction under subchapter I of chapter 135 (other than
motor carriers providing transportation of household goods) and shippers
may resolve, by mutual consent, overcharge and
[[Page 109 STAT. 913]]
under-charge claims resulting from incorrect tariff provisions or
billing errors arising from the inadvertent failure to properly and
timely file and maintain agreed upon rates, rules, or classifications in
compliance with section 13702 or, with respect to transportation
provided before the effective date of this section, sections 10761 and
10762, as in effect on the day before the effective date of this
section. Resolution of such claims among the parties shall not subject
any party to the penalties for departing from a tariff.
``CHAPTER 149--CIVIL AND CRIMINAL PENALTIES
Sec.
``14901. General civil penalties.
``14902. Civil penalty for accepting rebates from carrier.
``14903. Tariff violations.
``14904. Additional rate violations.
``14905. Penalties for violations of rules relating to loading and
unloading motor vehicles.
``14906. Evasion of regulation of carriers and brokers.
``14907. Recordkeeping and reporting violations.
``14908. Unlawful disclosure of information.
``14909. Disobedience to subpoenas.
``14910. General civil penalty when specific penalty not provided.
``14911. Punishment of corporation for violations committed by certain
individuals.
``14912. Weight-bumping in household goods transportation.
``14913. Conclusiveness of rates in certain prosecutions.
``14914. Civil penalty procedures.
``Sec. 14901. General civil penalties
``(a) Reporting and Recordkeeping.--A person required to make a
report to the Secretary or the Board, answer a question, or make,
prepare, or preserve a record under this part concerning transportation
subject to jurisdiction under subchapter I or III of chapter 135 or
transportation by a foreign carrier registered under section 13902, or
an officer, agent, or employee of that person that--
``(1) does not make the report;
``(2) does not specifically, completely, and truthfully
answer the question;
``(3) does not make, prepare, or preserve the record in the
form and manner prescribed;
``(4) does not comply with section 13901; or
``(5) does not comply with section 13902(c);
is liable to the United States for a civil penalty of not less than $500
for each violation and for each additional day the violation continues;
except that, in the case of a person who is not registered under this
part to provide transportation of passengers, or an officer, agent, or
employee of such person, that does not comply with section 13901 with
respect to providing transportation of passengers, the amount of the
civil penalty shall not be less than $2,000 for each violation and for
each additional day the violation continues.
``(b) Transportation of Hazardous Wastes.--A person subject to
jurisdiction under subchapter I of chapter 135, or an officer, agent, or
employee of that person, and who is required to comply with section
13901 of this title but does not so comply with respect to the
transportation of hazardous wastes as defined by the Environmental
Protection Agency pursuant to section 3001 of the Solid Waste Disposal
Act (but not including any waste the regulation
[[Page 109 STAT. 914]]
of which under the Solid Waste Disposal Act has been suspended by
Congress) shall be liable to the United States for a civil penalty not
to exceed $20,000 for each violation.
``(c) Factors To Consider in Determining Amount.--In determining and
negotiating the amount of a civil penalty under subsection (a) or (d)
concerning transportation of household goods, the degree of culpability,
any history of prior such conduct, the degree of harm to shipper or
shippers, ability to pay, the effect on ability to do business, whether
the shipper has been adequately compensated before institution of the
proceeding, and such other matters as fairness may require shall be
taken into account.
``(d) Protection of Household Goods Shippers.--If a carrier
providing transportation of household goods subject to jurisdiction
under subchapter I or III of chapter 135 or a receiver or trustee of
such carrier fails or refuses to comply with any regulation issued by
the Secretary or the Board relating to protection of individual
shippers, such carrier, receiver, or trustee is liable to the United
States for a civil penalty of not less than $1,000
for each violation and for each additional day during which the
violation continues.
``(e) Violation Relating to Transportation of Household Goods.--Any
person that knowingly engages in or knowingly authorizes an agent or
other person--
``(1) to falsify documents used in the transportation of
household goods subject to jurisdiction under subchapter I or
III of chapter 135 which evidence the weight of a shipment; or
``(2) to charge for accessorial services which are not
performed or for which the carrier is not entitled to be
compensated in any case in which such services are not
reasonably necessary in the safe and adequate movement of the
shipment;
is liable to the United States for a civil penalty of not less than
$2,000 for each violation and of not less than $5,000 for each
subsequent violation. Any State may bring a civil action in the United
States district courts to compel a person to pay a civil penalty
assessed under this subsection.
``(f) Venue.--Trial in a civil action under subsections (a) through
(e) of this section is in the judicial district in which--
``(1) the carrier or broker has its principal office;
``(2) the carrier or broker was authorized to provide
transportation or service under this part when the violation
occurred;
``(3) the violation occurred; or
``(4) the offender is found.
Process in the action may be served in the judicial district of which
the offender is an inhabitant or in which the offender may be found.
``(g) Business Entertainment Expenses.--
``(1) In general.--Any business entertainment expense
incurred by a water carrier providing transportation subject to
this part shall not constitute a violation of this part if that
expense would not be unlawful if incurred by a person not
subject to this part.
``(2) Cost of service.--Any business entertainment expense
subject to paragraph (1) that is paid or incurred by a water
carrier providing transportation subject to this part shall not
be taken into account in determining the cost of service or the
rate base for purposes of section 13702.
[[Page 109 STAT. 915]]
``Sec. 14902. Civil penalty for accepting rebates from carrier
``A person--
``(1) delivering property to a carrier providing
transportation or service subject to jurisdiction under chapter
135 for transportation under this part or for whom that carrier
will transport the property as consignor or consignee for that
person from a State or territory or possession of the United
States to another State or possession, territory, or to a
foreign country; and
``(2) knowingly accepting or receiving by any means a rebate
or offset against the rate for transportation for, or service
of, that property contained in a tariff required under section
13702;
is liable to the United States for a civil penalty in an amount equal to
3 times the amount of money that person accepted or received as a rebate
or offset and 3 times the value of other consideration accepted or
received as a rebate or offset. In a civil action under this section,
all money or other consideration received by the person during a period
of 6 years before an action is brought under this section may be
included in determining the amount of the penalty, and if that total
amount is included, the penalty shall be 3 times that total amount.
``Sec. 14903. Tariff violations
``(a) Civil Penalty for Undercharging and Overcharging.--A person
that offers, grants, gives, solicits, accepts, or receives by any means
transportation or service provided for property by a carrier subject to
jurisdiction under chapter 135 at a rate different than the rate in
effect under section 13702 is liable to the United States for civil
penalty of not more than $100,000 for each violation.
``(b) General Criminal Penalty.--A carrier providing transportation
or service subject to jurisdiction under chapter 135 or an officer,
director, receiver, trustee, lessee, agent, or employee of a corporation
that is subject to jurisdiction under that chapter, that willfully does
not observe its tariffs as required under section 13702, shall be fined
under title 18 or imprisoned not more than 2 years, or both.
``(c) Actions of Agents and Employees.--When acting in the scope of
their employment, the actions and omissions of persons acting for or
employed by a carrier or shipper that is subject to this section are
considered to be the actions and omissions of that carrier or shipper as
well as that person.
``(d) Venue.--Trial in a criminal action under this section is in
the judicial district in which any part of the
violation is committed or through which the transportation is conducted.
``Sec. 14904. Additional rate violations
``(a) Rebates by Agents.--A person, or an officer, employee, or
agent of that person, that--
``(1) offers, grants, gives, solicits, accepts, or receives
a rebate for concession, in violation of a provision of this
part related to motor carrier transportation subject to
jurisdiction under subchapter I of chapter 135; or
``(2) by any means assists or permits another person to get
transportation that is subject to jurisdiction under that
subchapter at less than the rate in effect for that
transportation under section 13702,
[[Page 109 STAT. 916]]
is liable to the United States for a civil penalty of $200 for the first
violation and $250 for a subsequent violation.
``(b) Undercharging.--
``(1) Freight forwarder.--A freight forwarder providing
service subject to jurisdiction under subchapter III of chapter
135, or an officer, agent, or employee of that freight
forwarder, that assists a person in getting, or willingly
permits a person to get, service provided under that subchapter
at less than the rate in effect for that service under section
13702, is liable to the United States for a civil penalty of not
more than $500 for the first violation and not more than $2,000
for a subsequent violation.
``(2) Others.--A person that by any means gets, or attempts
to get, service provided under subchapter III of chapter 135 at
less than the rate in effect for that service under section
13702, is liable to the United States for a civil penalty of not
more than $500 for the first violation and not more than $2,000
for a subsequent violation.
``Sec. 14905. Penalties for violations of rules relating to loading and
unloading motor vehicles
``(a) Civil Penalties.--Whoever knowingly authorizes, consents to,
or permits a violation of subsection (a) or (b) of section 14103 or who
knowingly violates subsection (a) of such section is liable to the
United States for a civil penalty of not more than $10,000 for each
violation.
``(b) Criminal Penalties.--Whoever knowingly violates section
14103(b) of this title shall be fined under title 18 or imprisoned not
more than 2 years, or both.
``Sec. 14906. Evasion of regulation of carriers and brokers
``A person, or an officer, employee, or agent of that person, that
by any means tries to evade regulation provided under this part for
carriers or brokers is liable to the United States for a civil penalty
of $200 for the first violation and at least $250 for a subsequent
violation.
``Sec. 14907. Recordkeeping and reporting violations
``A person required to make a report to the Secretary or the Board,
as applicable, answer a question, or make, prepare, or preserve a record
under this part about transportation subject to jurisdiction under
subchapter I or III of chapter 135, or an officer, agent, or employee of
that person, that--
``(1) does not make that report;
``(2) does not specifically, completely, and truthfully
answer that question in 30 days from the date the Secretary or
Board, as applicable, requires the question to be answered;
``(3) does not make, prepare, or preserve that record in the
form and manner prescribed;
``(4) falsifies, destroys, mutilates, or changes that report
or record;
``(5) files a false report or record;
``(6) makes a false or incomplete entry in that record about
a business related fact or transaction; or
``(7) makes, prepares, or preserves a record in violation of
an applicable regulation or order of the Secretary or Board;
[[Page 109 STAT. 917]]
is liable to the United States for a civil penalty of not more than
$5,000.
``Sec. 14908. Unlawful disclosure of information
``(a) Disclosure of Shipment and Routing Information.--
``(1) Violations.--A carrier or broker providing
transportation subject to jurisdiction under subchapter I, II,
or III of chapter 135 or an officer, receiver, trustee, lessee,
or employee of that carrier or broker, or another person
authorized by that carrier or broker to receive information from
that carrier or broker may not disclose to another person,
except the shipper or consignee, and a person may not solicit,
or receive, information about the nature, kind, quantity,
destination, consignee, or routing of property tendered or
delivered to that carrier or broker for transportation provided
under this part without the consent of the shipper or consignee
if that information may be used to the detriment of the shipper
or consignee or may disclose improperly to a competitor the
business transactions of the shipper or consignee.
``(2) Penalty.--A person violating paragraph (1) of this
subsection is liable to the United States for a civil penalty of
not more than $2,000.
``(b) Limitation on Statutory Construction.--This part does not
prevent a carrier or broker providing transportation subject to
jurisdiction under chapter 135 from giving information--
``(1) in response to legal process issued under authority of
a court of the United States or a State;
``(2) to an officer, employee, or agent of the United States
Government, a State, or a territory or possession of the United
States; or
``(3) to another carrier or its agent to adjust mutual
traffic accounts in the ordinary course of business.
``Sec. 14909. Disobedience to subpoenas
``Whoever does not obey a subpoena or requirement of the Secretary
or the Board to appear and testify or produce records shall be fined
under title 18 or imprisoned not more than 1 year, or both.
``Sec. 14910. General civil penalty when specific penalty not provided
``When another civil penalty is not provided under this chapter, a
person that violates a provision of this part or a regulation or order
prescribed under this part, or a condition of a registration under this
part related to transportation that is subject to jurisdiction under
subchapter I or III of chapter 135 or a condition of a registration of a
foreign motor carrier or foreign motor private carrier under section
13902, is liable to the United States for a civil penalty of $500 for
each violation. A separate violation occurs each day the violation
continues.
``Sec. 14911. Punishment of corporation for violations committed by
certain individuals
``An act or omission that would be a violation of this part if
committed by a director, officer, receiver, trustee, lessee, agent, or
employee of a carrier providing transportation or service subject to
jurisdiction under chapter 135 that is a corporation is also
[[Page 109 STAT. 918]]
a violation of this part by that corporation. The penalties of this
chapter apply to that violation. When acting in the scope of their
employment, the actions and omissions of individuals acting for or
employed by that carrier are considered to be the actions and omissions
of that carrier as well as that individual.
``Sec. 14912. Weight-bumping in household goods transportation
``(a) Weight-Bumping Defined.--For the purposes of this section,
`weight-bumping' means the knowing and willful making or securing of a
fraudulent weight on a shipment of household goods which is subject to
jurisdiction under subchapter I or III of chapter 135.
``(b) Penalty.--Whoever has been found to have committed weight-
bumping shall be fined under title 18 or imprisoned not more than 2
years, or both.
``Sec. 14913. Conclusiveness of rates in certain prosecutions
``When a carrier publishes or files a particular rate under section
13702 or participates in such a rate, the published or filed rate is
conclusive proof against that carrier, its officers, and agents that it
is the legal rate for that transportation or service in a proceeding
begun under section 14902 or 14903. A departure, or offer to depart,
from that published or filed rate is a violation of those sections.
``Sec. 14914. Civil penalty procedures
``(a) In General.--After notice and an opportunity for a hearing, a
person found by the Surface Transportation Board to have violated a
provision of law that the Board carries out or a regulation prescribed
under that law by the Board that is related to transportation which
occurs under subchapter II of chapter 135 for which a civil penalty is
provided, is liable to the United States for the civil penalty provided.
The amount of the civil penalty shall be assessed by the Board by
written notice. In determining the amount of the penalty, the Board
shall consider the nature, circumstances, extent, and gravity of the
prohibited acts committed and, with respect to the violator, the degree
of culpability, any history of prior offenses, ability to pay, and other
matters that justice requires.
``(b) Compromise.--The Board may compromise, modify, or remit, with
or without consideration, a civil penalty until the assessment is
referred to the Attorney General.
``(c) Collection.--If a person fails to pay an assessment of a civil
penalty after it has become final, the Board may refer the matter to the
Attorney General for collection in an appropriate district court of the
United States.
``(d) Refunds.--The Board may refund or remit a civil penalty
collected under this section if--
``(1) application has been made for refund or remission of
the penalty within 1 year from the date of payment; and
``(2) the Board finds that the penalty was unlawfully,
improperly, or excessively imposed.''.
SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.
(a) Grants to States.--Section 31102(b)(1) of title 49, United
States Code, is amended--
(1) by striking ``and'' at the end of subparagraph (O);
(2) by striking the period at the end of subparagraph (P)
and inserting in lieu thereof ``; and''; and
[[Page 109 STAT. 919]]
(3) by adding at the end the following:
``(Q) ensures that the State will cooperate in the
enforcement of registration and financial responsibility
requirements under sections 31140 and 31146, or regulations
issued thereunder.''
(b) Transport Vehicles for Off-Road, Competition Vehicles.--Section
31111(b)(1) of such title is amended--
(1) by striking ``or'' at the end of subparagraph (C);
(2) by striking the period at the end of subparagraph (D)
and inserting in lieu thereof a semicolon and ``or''; and
(3) by adding at the end thereof the following:
``(E) imposes a limitation of less than 46 feet on the
distance from the kingpin to the center of the rear axle on
trailers used exclusively or primarily in connection with
motorsports competition events.''.
(c) Multiple Insurers.--Section 31138(c) of such title is amended by
adding at the end the following new paragraph:
``(3) A motor carrier may obtain the required amount of financial
responsibility from more than one source provided the cumulative amount
is equal to the minimum requirements of this section.''.
(d) Minimum Financial Responsibility Requirements With Respect to
Certain Transportation Service.--Section 31138(e) is amended--
(1) by striking ``or'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting in lieu thereof ``; or''; and
(3) by adding at the end the following:
``(4) providing transportation service within a transit
service area under an agreement with a Federal, State, or local
government funded, in whole or in part, with a grant under
section 5307, 5310, or 5311, including transportation designed
and carried out to meet the special needs of elderly individuals
and individuals with disabilities; except that, in any case in
which the transit service area is located in more than 1 State,
the minimum level of financial responsibility for such motor
vehicle will be at least the highest level required for any of
such States.''.
(e) Transporters of Property.--Section 31139(e) of such title is
amended by adding at the end the following:
``(3) A motor carrier may obtain the required amount of financial
responsibility from more than one source provided the cumulative amount
is equal to the minimum requirements of this section.''.
(f) Commercial Motor Vehicle Defined.--Section 31132(1) of such
title is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by striking subparagraph (B) and inserting in lieu
thereof the following:
``(B) is designed or used to transport passengers
for compensation, but excluding vehicles providing
taxicab service and having a capacity of not more than 6
passengers and not operated on a regular route or
between specified places;
``(C) is designed or used to transport more than 15
passengers, including the driver, and is not used to
transport passengers for compensation; or''.
[[Page 109 STAT. 920]]
(g) Safety Fitness of Owners and Operators.--Section 31144 of such
title is amended--
(1) in the first sentence of subsection (a) by striking ``In
cooperation with the Interstate Commerce Commission, the'' and
inserting in lieu thereof ``The'';
(2) in such sentence by striking ``sections 10922 and
10923'' and inserting in lieu thereof ``section 13902'';
(3) in subsection (a)(1)(C) by striking ``and the
Commission''; and
(4) by striking subsection (b) and inserting in lieu thereof
the following:
``(b) Findings and Action on Registrations.--The Secretary shall
find that a person seeking to register as a motor carrier is unfit if
such person does not meet the safety fitness requirements established
under subsection (a) and shall not register such person.''.
(h) <<NOTE: 49 USC 13906 note.>> Self-Insurance Rules.--The
Secretary of Transportation shall continue to enforce the rules and
regulations of the Interstate Commerce Commission, as in effect on July
1, 1995, governing the qualifications for approval of a motor carrier as
a self-insurer, until such time as the Secretary finds it in the public
interest to revise such rules. The revised rules must provide for--
(1) continued ability of motor carriers to qualify as self-
insurers; and
(2) the continued qualification of all carriers then so
qualified under the terms and conditions set by the Interstate
Commerce Commission or Secretary at the time of qualification.
SEC. 105. <<NOTE: 5 USC 8332 note.>> CREDITABILITY OF ANNUAL
LEAVE FOR PURPOSES OF MEETING MINIMUM
ELIGIBILITY REQUIREMENTS FOR AN IMMEDIATE
ANNUITY.
(a) In General.--An employee of the Interstate Commerce Commission
who is separated from Government service pursuant to the abolition of
that agency under section 101 shall, upon appropriate written
application, be given credit, for purposes of determining eligibility
for and computing the amount of any annuity under subchapter III of
chapter 83 or chapter 84 of title 5, United States Code, for accrued
annual leave standing to such employee's credit at the time of
separation.
(b) Limitation and Other Conditions. <<NOTE: Regulations.>> --Any
regulations necessary to carry out this section shall be prescribed by
the Office of Personnel Management. Such regulations shall include
provisions--
(1) defining the types of leave for which credit may be
given under this section (such definition to be similar to the
corresponding provisions of the regulations under section
351.608(c)(2) of title 5 of the Code of Federal Regulations, as
in effect on the date of the enactment of this Act);
(2) limiting the amount of accrued annual leave which may be
used for the purposes specified in subsection (a) to the minimum
period of time necessary in order to permit such employee to
attain first eligibility for an immediate annuity under section
8336, 8412, or 8414 of title 5, United States Code (in a manner
similar to the corresponding provisions of the regulations
referred to in paragraph (1));
(3) under which contributions (or arrangements for the
making of contributions) shall be made so that--
[[Page 109 STAT. 921]]
(A) employee contributions for any period of leave
for which retirement credit may be obtained under this
section shall be made by the employee; and
(B) Government contributions with respect to such
period shall similarly be made by the Interstate
Commerce Commission or other appropriate officer or
entity (out of appropriations otherwise available for
such contributions); and
(4) under which subsection (a) shall not apply with respect
to an employee who declines a reasonable offer of employment in
another position in the Department of Transportation made under
this Act or any amendment made by this Act.
(c) Extinguishment of Eligibility for Lump-Sum Payment.--A lump-sum
payment under section 5551 of title 5, United States Code, shall not be
payable with respect to any leave for which retirement credit is
obtained under this section.
SEC. 106. PIPELINE CARRIER PROVISIONS.
(a) Amendment to Title 49.--Subtitle IV of title 49, United States
Code, is further amended by adding at the end the following:
``PART C--PIPELINE CARRIERS
``CHAPTER 151--GENERAL PROVISIONS
``CHAPTER 151--GENERAL PROVISIONS
``Sec.
``15101. Transportation policy.
``15102. Definitions.
``15103. Remedies as cumulative.
``Sec. 15101. Transportation policy
``(a) In General.--To ensure the development, coordination, and
preservation of a transportation system that meets the transportation
needs of the United States, including the national defense, it is the
policy of the United States Government to oversee of the modes of
transportation and in overseeing those modes--
``(1) to recognize and preserve the inherent advantage of
each mode of transportation;
``(2) to promote safe, adequate, economical, and efficient
transportation;
``(3) to encourage sound economic conditions in
transportation, including sound economic conditions among
carriers;
``(4) to encourage the establishment and maintenance of
reasonable rates for transportation without unreasonable
discrimination or unfair or destructive competitive practices;
``(5) to cooperate with each State and the officials of each
State on transportation matters; and
``(6) to encourage fair wages and working conditions in the
transportation industry.
``(b) Administration To Carry Out Policy.--This part shall be
administered and enforced to carry out the policy of this section.
``Sec. 15102. Definitions
``In this part--
``(1) Board.--The term `Board' means the Surface
Transportation Board.
``(2) Pipeline carrier.--The term `pipeline carrier' means a
person providing pipeline transportation for compensation.
[[Page 109 STAT. 922]]
``(3) Rate.--The term `rate' means a rate or charge for
transportation.
``(4) State.--The term `State' means a State of the United
States and the District of Columbia.
``(5) Transportation.--The term `transportation' includes--
``(A) property, facilities, instrumentalities, or
equipment of any kind related to the movement of
property, regardless of ownership or an agreement
concerning use; and
``(B) services related to that movement, including
receipt, delivery, transfer in transit, storage,
handling, and interchange of property.
``(6) United states.--The term `United States' means the
States of the United States and the District of Columbia.
``Sec. 15103. Remedies as cumulative
``Except as otherwise provided in this part, the remedies provided
under this part are in addition to remedies existing under another law
or common law.
``CHAPTER 153--JURISDICTION
``CHAPTER 153--JURISDICTION
``Sec.
``15301. General pipeline jurisdiction.
``15302. Authority to exempt pipeline carrier transportation.
``Sec. 15301. General pipeline jurisdiction
``(a) In General.--The Board has jurisdiction over transportation by
pipeline, or by pipeline and railroad or water, when transporting a
commodity other than water, gas, or oil. Jurisdiction under this
subsection applies only to transportation in the United States between a
place in--
``(1) a State and a place in another State;
``(2) the District of Columbia and another place in the
District of Columbia;
``(3) a State and a place in a territory or possession of
the United States;
``(4) a territory or possession of the United States and a
place in another such territory or possession;
``(5) a territory or possession of the United States and
another place in the same territory or possession;
``(6) the United States and another place in the United
States through a foreign country; or
``(7) the United States and a place in a foreign country.
``(b) No Jurisdiction Over Intrastate Transportation.--The Board
does not have jurisdiction under subsection (a) over the transportation
of property, or the receipt, delivery, storage, or handling of property,
entirely in a State (other than the District of Columbia) and not
transported between a place in the United States and a place in a
foreign country except as otherwise provided in this part.
``(c) Protection of States Powers.--This part does not affect the
power of a State, in exercising its police power, to require reasonable
intrastate transportation by carriers providing transportation subject
to the jurisdiction of the Board under this chapter
[[Page 109 STAT. 923]]
unless the State requirement is inconsistent with an order of the Board
issued under this part or is prohibited under this part.
``Sec. 15302. Authority to exempt pipeline carrier transportation
``(a) In General--In a matter related to a pipeline carrier
providing transportation subject to jurisdiction under this chapter, the
Board shall exempt a person, class of persons, or a transaction or
service when the Board finds that the application, in whole or in part,
of a provision of this part--
``(1) is not necessary to carry out the transportation
policy of section 15101; and
``(2) either (A) the transaction or service is of limited
scope, or (B) the application, in whole or in part, of the
provision is not needed to protect shippers from the abuse of
market power.
``(b) Initiation of Proceeding.--The Board may, where appropriate,
begin a proceeding under this section on its own initiative or an
interested party.
``(c) Period of Exemption.--The Board may specify the period of time
during which an exemption granted under this section is effective.
``(d) Revocation.--The Board may revoke an exemption, to the extent
it specifies, when it finds that application, in whole or in part, of a
provision of this part to the person, class, or transportation is
necessary to carry out the transportation policy of section 15101.
``CHAPTER 155--RATES
``Sec.
``15501. Standards for pipeline rates, classifications, through routes,
rules, and practices.
``15502. Authority for pipeline carriers to establish rates,
classifications, rules, and practices.
``15503. Authority and criteria: rates, classifications, rules, and
practices prescribed by Board.
``15504. Government traffic.
``15505. Prohibition against discrimination by pipeline carriers.
``15506. Facilities for interchange of traffic.
``Sec. 15501. Standards for pipeline rates, classifications,
through routes, rules, and practices
``(a) Reasonableness.--A rate, classification, rule, or practice
related to transportation or service provided by a pipeline carrier
subject to this part must be reasonable. A through route established by
such a carrier must be reasonable.
``(b) Nondiscrimination.--A pipeline carrier providing
transportation subject to this part may not discriminate in its rates
against a connecting line of any other pipeline, rail, or water carrier
providing transportation subject to this subtitle or unreasonably
discriminate against that line in the distribution of traffic that is
not routed specifically by the shipper.
``Sec. 15502. Authority for pipeline carriers to establish rates,
classifications, rules, and practices
``A pipeline carrier providing transportation or service subject to
this part shall establish--
``(1) rates and classifications for transportation and
service it may provide under this part; and
[[Page 109 STAT. 924]]
``(2) rules and practices on matters related to that
transportation or service.
``Sec. 15503. Authority and criteria: rates, classifications, rules, and
practices prescribed by Board
``(a) In General.--When the Board, after a full hearing, decides
that a rate charged or collected by a pipeline carrier for
transportation subject to this part, or that a classification, rule, or
practice of that carrier, does or will violate this part, the Board may
prescribe the rate, classification, rule, or practice to be followed. In
prescribing the rate, classification, rule, or practice, the Board may
utilize rate reasonableness procedures that provide an effective
simulation of a market-based price for a stand alone pipeline. The Board
may order the carrier to stop the violation. When a rate,
classification, rule, or practice is prescribed under this subsection,
the affected carrier may not publish, charge, or collect a different
rate and shall adopt the classification and observe the rule or practice
prescribed by the Board.
``(b) Factors To Consider.--When prescribing a rate, classification,
rule, or practice for transportation or service by a pipeline carrier,
the Board shall consider, among other factors--
``(1) the effect of the prescribed rate, classification,
rule, or practice on the movement of traffic by that carrier;
``(2) the need for revenues that are sufficient, under
honest, economical, and efficient management, to let the carrier
provide that transportation or service; and
``(3) the availability of other economic transportation
alternatives.
``(c) Proceeding.--The Board may begin a proceeding under this
section on complaint. A complaint under this section must contain a full
statement of the facts and the reasons for the complaint and must be
made under oath.
``Sec. 15504. Government traffic
``A pipeline carrier providing transportation or service for the
United States Government may transport property for the United States
Government without charge or at a rate reduced from the applicable
commercial rate. Section 3709 of the Revised Statutes (41 U.S.C. 5) does
not apply when transportation for the United States Government can be
obtained from a carrier lawfully operating in the area where the
transportation would be provided.
``Sec. 15505. Prohibition against discrimination by pipeline carriers
A pipeline carrier providing transportation or service subject to
this part may not subject a person, place, port, or type of traffic to
unreasonable discrimination.
``Sec. 15506. Facilities for interchange of traffic
``A pipeline carrier providing transportation subject to this part
shall provide reasonable, proper, and equal facilities that are within
its power to provide for the interchange of traffic between, and for the
receiving, forwarding, and delivering of property to and from, its
respective line and a connecting line of a pipeline, rail, or water
carrier under this subtitle.
[[Page 109 STAT. 925]]
``CHAPTER 157--OPERATIONS OF CARRIERS
``CHAPTER 157--OPERATIONS OF CARRIERS
``Subchapter A--General Requirements
``Sec.
``15701. Providing transportation and service.
``Subchapter B--Operations of Carriers
``15721. Definitions.
``15722. Records: form; inspection; preservation.
``15723. Reports by carriers, lessors, and associations.
``Subchapter A--General Requirements
``Sec. 15701. Providing transportation and service
``(a) Service on Reasonable Request.--A pipeline carrier providing
transportation or service under this part shall provide the
transportation or service on reasonable request.
``(b) Rates and Other Terms.--A pipeline carrier shall also provide
to any person, on request, the carrier's rates and other service terms.
The response by a pipeline carrier to a request for the carrier's rates
and other service terms shall be--
``(1) in writing and forwarded to the requesting person
promptly after receipt of the request; or
``(2) promptly made available in electronic form.
``(c) Limitation on Rate Increases and Changes to Service Terms.--A
pipeline carrier may not increase any common carrier rates or change any
common carrier service terms unless 20 days have expired after written
or electronic notice is provided to any person who, within the previous
12 months--
``(1) has requested such rates or terms under subsection
(b); or
``(2) has made arrangements with the carrier for a shipment
that would be subject to such increased rates or changed terms.
``(d) Provision of Service.--A pipeline carrier shall provide
transportation or service in accordance with the rates and service
terms, and any changes thereto, as published or otherwise made available
under subsection (b) or (c).
``(e) Regulations.--The Board shall, by regulation, establish rules
to implement this section. The regulations shall provide for immediate
disclosure and dissemination of rates and service terms, including
classifications, rules, and practices, and their effective dates. The
regulations may modify the 20-day period specified in subsection (c).
Final regulations shall be adopted by the Board not later than 180 days
after the effective date of this section.
``Subchapter B--Operations of Carriers
``Sec. 15721. Definitions
``In this subchapter, the following definitions apply:
``(1) Carrier, lessor.--The terms `carrier' and `lessor'
include a receiver or trustee of a pipeline carrier and lessor,
respectively.
``(2) Lessor.--The term `lessor' means a person owning a
pipeline that is leased to and operated by a carrier providing
transportation under this part.
``(3) Association.--The term `association' means an
organization maintained by or in the interest of a group of
[[Page 109 STAT. 926]]
pipeline carriers that performs a service, or engages in
activities, related to transportation under this part.
``Sec. 15722. Records: form; inspection; preservation
``(a) Form of Records.--The Board may prescribe the form of records
required to be prepared or compiled under this subchapter by pipeline
carriers and lessors, including records related to movement of traffic
and receipts and expenditures of money.
``(b) Inspection.--The Board, or an employee designated by the
Board, may on demand and display of proper credentials--
``(1) inspect and examine the lands, buildings, and
equipment of a pipeline carrier or lessor; and
``(2) inspect and copy any record of--
``(A) a pipeline carrier, lessor, or association;
and
``(B) a person controlling, controlled by, or under
common control with a pipeline carrier if the Board
considers inspection relevant to that person's relation
to, or transaction with, that carrier.
``(c) Preservation Period.--The Board may prescribe the time period
during which operating, accounting, and financial records must be
preserved by pipeline carriers and lessors.
``Sec. 15723. Reports by carriers, lessors, and associations
``(a) Filing of Reports.--The Board may require pipeline carriers,
lessors, and associations, or classes of them as the Board may
prescribe, to file annual, periodic, and special reports with the Board
containing answers to questions asked by it.
``(b) Under Oath.--Any report under this section shall be made under
oath.
``CHAPTER 159--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES
``CHAPTER 159--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES
``Sec.
``15901. General authority.
``15902. Enforcement by the Board.
``15903. Enforcement by the Attorney General.
``15904. Rights and remedies of persons injured by certain carriers.
``15905. Limitation on actions by and against pipeline carriers.
``15906. Liability of pipeline carriers under receipts and bills of
lading.
``15907. Liability when property is delivered in violation of routing
instructions.
``Sec. 15901. General authority
``(a) Investigation; Compliance Order.--Except as otherwise provided
in this part, the Board may begin an investigation under this part only
on complaint. If the Board finds that a pipeline carrier is violating
this part, the Board shall take appropriate action to compel compliance
with this part. The Board shall provide the carrier notice of the
investigation and an opportunity for a proceeding.
``(b) Complaint.--A person, including a governmental authority, may
file with the Board a complaint about a violation of this part by a
pipeline carrier providing transportation or service subject to this
part. The complaint must state the facts that are the subject of the
violation. The Board may dismiss a complaint it determines does not
state reasonable grounds for investigation and action. However, the
Board may not dismiss a complaint made
[[Page 109 STAT. 927]]
against a pipeline carrier providing transportation subject to this part
because of the absence of direct damage to the complainant.
``(c) Automatic Dismissal.--A formal investigative proceeding begun
by the Board under subsection (a) is dismissed automatically unless it
is concluded by the Board with administrative finality by the end of the
3d year after the date on which it was begun.
``Sec. 15902. Enforcement by the Board
``The Board may bring a civil action to enforce an order of the
Board, except a civil action to enforce an order for the payment of
money, when it is violated by a pipeline carrier providing
transportation subject to this part.
``Sec. 15903. Enforcement by the Attorney General
``(a) On Behalf of Board.--The Attorney General may, and on request
of the Board shall, bring court proceedings to enforce this part or a
regulation or order of the Board and to prosecute a person violating
this part or a regulation or order of the Board issued under this part.
``(b) On Behalf of Others.--The United States Government may bring a
civil action on behalf of a person to compel a pipeline carrier
providing transportation or service subject to this part to provide that
transportation or service to that person in compliance with this part at
the same rate charged, or on conditions as favorable as those given by
the carrier, for like traffic under similar conditions to another
person.
``Sec. 15904. Rights and remedies of persons injured by pipeline
carriers
``(a) Enforcement of Orders.--A person injured because a pipeline
carrier providing transportation or service subject to this part does
not obey an order of the Board, except an order for the payment of
money, may bring a civil action to enforce that order under this
subsection.
``(b) Liability of Carrier.--
``(1) Excessive charges.--A pipeline carrier providing
transportation subject to this part is liable to a person for
amounts charged that exceed the applicable rate for the
transportation.
``(2) Damages.--A pipeline carrier providing transportation
subject to this part is liable for damages sustained by a person
as a result of an act or omission of that carrier in violation
of this part.
``(c) Complaints.--
``(1) Filing.--A person may file a complaint with the Board
under section 11501(b) or bring a civil action under subsection
(b) to enforce liability against a pipeline carrier providing
transportation subject to this part.
``(2) Payment deadline.--When the Board makes an award under
subsection (b), the Board shall order the carrier to pay the
amount awarded by a specific date. The Board may order a carrier
providing transportation subject to this part to pay damages
only when the proceeding is on complaint. The person for whose
benefit an order of the Board requiring the payment of money is
made may bring a civil action to enforce that order under this
paragraph if the carrier does not pay the amount awarded by the
date payment was ordered to be made.
[[Page 109 STAT. 928]]
``(d) Civil Actions.--
``(1) Complaint.--When a person begins a civil action under
subsection (b) to enforce an order of the Board requiring the
payment of damages by a pipeline carrier providing
transportation subject to this part, the text of the order of
the Board must be included in the complaint. In addition to the
district courts of the United States, a State court of general
jurisdiction having jurisdiction of the parties has jurisdiction
to enforce an order under this paragraph. The findings and order
of the Board are competent evidence of the facts stated in them.
Trial in a civil action brought in a district court of the
United States under this paragraph is in the judicial district
in which the plaintiff resides or in which the principal
operating office of the carrier is located. In a civil action
under this paragraph, the plaintiff is liable for only those
costs that accrue on an appeal taken by the plaintiff.
``(2) Attorney's fees. <<NOTE: Courts.>> --The district
court shall award a reasonable attorney's fee as a part of the
damages for which a carrier is found liable under this
subsection. The district court shall tax and collect that fee as
a part of the costs of the action.
``Sec. 15905. Limitation on actions by and against
pipeline <<NOTE: Claims.>> carriers
``(a) In General.--A pipeline carrier providing transportation or
service subject to this part must begin a civil action to recover
charges for transportation or service provided by the carrier within 3
years after the claim accrues.
``(b) Overcharges.--A person must begin a civil action to recover
overcharges under section 15904(b)(1) within 3 years after the claim
accrues. If an election to file a complaint with the Board is made under
section 15904(c)(1), the complaint must be filed within 3 years after
the claim accrues.
``(c) Damages.--A person must file a complaint with the Board to
recover damages under section 15904(b)(2) within 2 years after the claim
accrues.
``(d) Extensions.--The limitation periods under subsection (b) are
extended for 6 months from the time written notice is given to the
claimant by the carrier of disallowance of any part of the claim
specified in the notice if a written claim is given to the carrier
within those limitation periods. The limitation periods under subsection
(b) and the 2-year period under subsection (c) are extended for 90 days
from the time the carrier begins a civil action under subsection (a) to
recover charges related to the same transportation or service, or
collects (without beginning a civil action under that subsection) the
charge for that transportation or service if that action is begun or
collection is made within the appropriate period.
``(e) Payment.--A person must begin a civil action to enforce an
order of the Board against a carrier for the payment of money within one
year after the date the order required the money to be paid.
``(f) Government Transportation.--This section applies to
transportation for the United States Government. The time limitations
under this section are extended, as related to transportation for or on
behalf of the United States Government, for 3 years from the date of--
[[Page 109 STAT. 929]]
``(1) payment of the rate for the transportation or service
involved,
``(2) subsequent refund for overpayment of that rate, or
``(3) deduction made under section 3726 of title 31,
whichever is later.
``(g) Accrual Date.--A claim related to a shipment of property
accrues under this section on delivery or tender of delivery by the
carrier.
``Sec. 15906. Liability of pipeline carriers under receipts and bills of
lading
``(a) General Liability.--A pipeline carrier providing
transportation or service subject to this part shall issue a receipt or
bill of lading for property it receives for transportation under this
part. That carrier and any other carrier that delivers the property and
is providing transportation or service subject to jurisdiction under
this part are liable to the person entitled to recover under the receipt
or bill of lading. The liability imposed under this subsection is for
the actual loss or injury to the property caused by the carrier over
whose line or route the property is transported in the United States or
from a place in the United States to a place in an adjacent foreign
country when transported under a through bill of lading. Failure to
issue a receipt or bill of lading does not affect the liability of a
carrier.
``(b) Apportionment.--The carrier issuing the receipt or bill of
lading under subsection (a) or delivering the property for which the
receipt or bill of lading was issued is entitled to recover from the
carrier over whose line or route the loss or injury occurred the amount
required to be paid to the owners of the property, as evidenced by a
receipt, judgment, or transcript, and the amount of its expenses
reasonably incurred in defending a civil action brought by that person.
``(c) Civil Actions.--A civil action under this section may be
brought against a delivering carrier in a district court of the United
States or in a State court. Trial, if the action is brought in a
district court of the United States is in a judicial district, and if in
a State court, is in a State, through which the defendant carrier
operates a line or route.
``(d) Minimum Period for Filing Claims.--A pipeline carrier may not
provide by rule, contract, or otherwise, a period of less than 9 months
for filing a claim against it under this section and a period of less
than 2 years for bringing a civil action against it under this section.
The period for bringing a civil action is computed from the date the
carrier gives a person written notice that the carrier has disallowed
any part of the claim specified in the notice. For the purposes of this
subsection--
``(1) an offer of compromise shall not constitute a
disallowance of any part of the claim unless the carrier, in
writing, informs the claimant that such part of the claim is
disallowed and provides reasons for such disallowance; and
``(2) communications received from a carrier's insurer shall
not constitute a disallowance of any part of the claim unless
the insurer, in writing, informs the claimant that such part of
the claim is disallowed, provides reasons for such disallowance,
and informs the claimant that the insurer is acting on behalf of
the carrier.
[[Page 109 STAT. 930]]
``CHAPTER 161--CIVIL AND CRIMINAL PENALTIES
``CHAPTER 161--CIVIL AND CRIMINAL PENALTIES
``Sec.
``16101. General civil penalties.
``16102. Recordkeeping and reporting violations.
``16103. Unlawful disclosure of information.
``16104. Disobedience to subpenas.
``16105. General criminal penalty when specific penalty not provided.
``16106. Punishment of corporation for violations committed by certain
individuals.
``Sec. 16101. General civil penalties
``(a) General.--Except as otherwise provided in this section, a
pipeline carrier providing transportation subject to this part, an
officer or agent of that carrier, or a receiver, trustee, lessee, or
agent of one of them, knowingly violating this part or an order of the
Board under this part is liable to the United States for a civil penalty
of not more than $5,000 for each violation. Liability under this
subsection is incurred for each distinct violation. A separate violation
occurs for each day the violation continues.
``(b) Recordkeeping and Reporting.--
``(1) Records.--A person required under chapter 157 to make,
prepare, preserve, or submit to the Board a record concerning
transportation subject to this part that does not make, prepare,
preserve, or submit that record as required under that chapter,
is liable to the United States for a civil penalty of $500 for
each violation.
``(2) Inspection.--A carrier providing transportation
subject to this part, and a lessor, receiver, or trustee of that
carrier, violating section 15722, is liable to the United States
for a civil penalty of $100 for each violation.
``(3) Reports.--A carrier providing transportation subject
to the jurisdiction of the Board under this part, a lessor,
receiver, or trustee of that carrier, and an officer, agent, or
employee of one of them, required to make a report to the Board
or answer a question that does not make the report or does not
specifically, completely, and truthfully answer the question, is
liable to the United States for a civil penalty of $100 for each
violation.
``(4) Continued violation.--A separate violation occurs for
each day violation under this subsection continues.
``(d) Venue.--Trial in a civil action under this section is in the
judicial district in which the carrier has its principal operating
office.
``Sec. 16102. Recordkeeping and reporting violations
``A person required to make a report to the Board, or make, prepare,
or preserve a record, under chapter 157 about transportation subject to
this part that knowingly and willfully--
``(1) makes a false entry in the report or record,
``(2) destroys, mutilates, changes, or by another means
falsifies the record,
``(3) does not enter business related facts and transactions
in the record,
``(4) makes, prepares, or preserves the record in violation
of a regulation or order of the Board, or
``(5) files a false report or record with the Board,
shall be fined under title 18 or imprisoned not more than 2 years, or
both.
[[Page 109 STAT. 931]]
``Sec. 16103. Unlawful disclosure of information
``(a) General Prohibition.--A pipeline carrier providing
transportation subject to this part, or an officer, agent, or employee
of that carrier, or another person authorized to receive information
from that carrier, that knowingly discloses to another person, except
the shipper or consignee, or a person who solicits or knowingly receives
information about the nature, kind, quantity, destination, consignee, or
routing of property tendered or delivered to that carrier for
transportation provided under this part without the consent of the
shipper or consignee, if that information may be used to the detriment
of the shipper or consignee or may disclose improperly, to a competitor
the business transactions of the shipper or consignee, is liable to the
United States for a civil penalty of not more than $1,000.
``(b) Limitation on Statutory Construction.--This part does not
prevent a pipeline carrier providing transportation under this part from
giving information--
``(1) in response to legal process issued under authority of
a court of the United States or a State;
``(2) to an officer, employee, or agent of the United States
Government, a State, or a territory or possession of the United
States; or
``(3) to another carrier or its agent to adjust mutual
traffic accounts in the ordinary course of business.
``(c) Board Employee.--An employee of the Board delegated to make an
inspection or examination under section 15722 who knowingly discloses
information acquired during that inspection or examination, except as
directed by the Board, a court, or a judge of that court, shall be fined
under title 18 or imprisoned for not more than 6 months, or both.
``Sec. 16104. Disobedience to subpenas
``Whoever does not obey a subpena or requirement of the Board to
appear and testify or produce records shall be fined under title 18 or
imprisoned not more than 1 year, or both.
``Sec. 16105. General criminal penalty when specific penalty not
provided
``When another criminal penalty is not provided under this chapter,
a pipeline carrier providing transportation subject to this part, and
when that carrier is a corporation, a director or officer of the
corporation, or a receiver, trustee, lessee, or person acting for or
employed by the corporation that, alone or with another person,
willfully violates this part or an order prescribed under this part,
shall be fined under title 18 or imprisoned not more than 2 years, or
both. A separate violation occurs each day a violation of this part
continues.
``Sec. 16106. Punishment of corporation for violations committed by
certain individuals
``An act or omission that would be a violation of this subtitle if
committed by a director, officer, receiver, trustee, lessee, agent, or
employee of a pipeline carrier providing transportation or service
subject to this part that is a corporation is also a violation of this
part by that corporation. The penalties of this chapter apply to that
violation. When acting in the scope of their employment, the actions and
omissions of individuals acting for or employed
[[Page 109 STAT. 932]]
by that carrier are considered to be the actions and omissions of that
carrier as well as that individual.''.
(b) <<NOTE: 49 USC 15101 note.>> GAO Report.--Within 3 years after
the effective date of this Act, the Comptroller General shall transmit
to the Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Transportation and Infrastructure of the House of
Representatives a report regarding the impact of regulations under part
C of title 49, United States Code, on the competitiveness of pipelines
and recommend whether to continue, revise, or sunset such regulations.
Congress shall take into account the findings of this report when
considering the Board's reauthorization.
TITLE II--SURFACE TRANSPORTATION BOARD
SEC. 201. TITLE 49 AMENDMENT.
(a) Amendment.--Subtitle I of title 49, United States Code, is
amended by adding at the end the following new chapter:
``CHAPTER 7--SURFACE TRANSPORTATION BOARD
``SUBCHAPTER I--ESTABLISHMENT
``Sec.
``701. Establishment of Board.
``702. Functions.
``703. Administrative provisions.
``704. Annual report.
``705. Authorization of appropriations.
``706. Reporting official action.
``SUBCHAPTER II--ADMINISTRATIVE
``721. Powers.
``722. Board action.
``723. Service of notice in Board proceedings.
``724. Service of process in court proceedings.
``725. Administrative support.
``726. Railroad-Shipper Transportation Advisory Council.
``727. Definitions.
``SUBCHAPTER I--ESTABLISHMENT
``Sec. 701. Establishment of Board
``(a) Establishment.--There is hereby established within the
Department of Transportation the Surface Transportation Board.
``(b) Membership.--(1) <<NOTE: President.>> The Board shall consist
of 3 members, to be appointed by the President, by and with the advice
and consent of the Senate. Not more than 2 members may be appointed from
the same political party.
``(2) At any given time, at least 2 members of the Board shall be
individuals with professional standing and demonstrated knowledge in the
fields of transportation or transportation regulation, and at least one
member shall be an individual with professional or business experience
(including agriculture) in the private sector.
``(3) The term of each member of the Board shall be 5 years and
shall begin when the term of the predecessor of that member ends. An
individual appointed to fill a vacancy occurring before the expiration
of the term for which the predecessor of that individual was appointed,
shall be appointed for the remainder of that
[[Page 109 STAT. 933]]
term. When the term of office of a member ends, the member may continue
to serve until a successor is appointed and qualified, but for a period
not to exceed one year. The President may remove a member for
inefficiency, neglect of duty, or malfeasance in office.
``(4) On the effective date of this section, the members of the
Interstate Commerce Commission serving unexpired terms on the date of
the enactment of the ICC Termination Act of 1995 shall become members of
the Board, to serve for a period of time equal to the remainder of the
term for which they were originally appointed to the Interstate Commerce
Commission. Any member of the Interstate Commerce Commission whose term
expires on December 31, 1995, shall become a member of the Board,
subject to paragraph (3).
``(5) No individual may serve as a member of the Board for more than
2 terms. In the case of an individual who becomes a member of the Board
pursuant to paragraph (4), or an individual appointed to fill a vacancy
occurring before the expiration of the term for which the predecessor of
that individual was appointed, such individual may not be appointed for
more than one additional term.
``(6) A member of the Board may not have a pecuniary interest in,
hold an official relation to, or own stock in or bonds of, a carrier
providing transportation by any mode and may not engage in another
business, vocation, or employment.
``(7) A vacancy in the membership of the Board does not impair the
right of the remaining members to exercise all of the powers of the
Board. The Board may designate a member to act as Chairman during any
period in which there is no Chairman designated by the President.
``(c) Chairman.--(1) <<NOTE: President.>> There shall be at the
head of the Board a Chairman, who shall be designated by the President
from among the members of the Board. The Chairman shall receive
compensation at the rate prescribed for level III of the Executive
Schedule under section 5314 of title 5.
``(2) Subject to the general policies, decisions, findings, and
determinations of the Board, the Chairman shall be responsible for
administering the Board. The Chairman may delegate the powers granted
under this paragraph to an officer, employee, or office of the Board.
The Chairman shall--
``(A) appoint and supervise, other than regular and full-
time employees in the immediate offices of another member, the
officers and employees of the Board, including attorneys to
provide legal aid and service to the Board and its members, and
to represent the Board in any case in court;
``(B) appoint the heads of offices with the approval of the
Board;
``(C) distribute Board business among officers and employees
and offices of the Board;
``(D) prepare requests for appropriations for the Board and
submit those requests to the President and Congress with the
prior approval of the Board; and
``(E) supervise the expenditure of funds allocated by the
Board for major programs and purposes.
``Sec. 702. Functions
``Except as otherwise provided in the ICC Termination Act of 1995,
or the amendments made thereby, the Board shall perform
[[Page 109 STAT. 934]]
all functions that, immediately before the effective date of such Act,
were functions of the Interstate Commerce Commission or were performed
by any officer or employee of the Interstate Commerce Commission in the
capacity as such officer or employee.
``Sec. 703. Administrative provisions
``(a) Executive Reorganization.--Chapter 9 of title 5, United States
Code, shall apply to the Board in the same manner as it does to an
independent regulatory agency, and the Board shall be an establishment
of the United States Government.
``(b) Open Meetings.--For purposes of section 552b of title 5,
United States Code, the Board shall be deemed to be an agency.
``(c) Independence.--In the performance of their functions, the
members, employees, and other personnel of the Board shall not be
responsible to or subject to the supervision or direction of any
officer, employee, or agent of any other part of the Department of
Transportation.
``(d) Representation by Attorneys.--Attorneys designated by the
Chairman of the Board may appear for, and represent the Board in, any
civil action brought in connection with any function carried out by the
Board pursuant to this chapter or subtitle IV or as otherwise authorized
by law.
``(e) Admission To Practice.--Subject to section 500 of title 5, the
Board may regulate the admission of individuals to practice before it
and may impose a reasonable admission fee.
``(f) Budget Requests.--In each annual request for appropriations by
the President, the Secretary of Transportation shall identify the
portion thereof intended for the support of the Board and include a
statement by the Board--
``(1) showing the amount requested by the Board in its
budgetary presentation to the Secretary and the Office of
Management and Budget; and
``(2) an assessment of the budgetary needs of the Board.
``(g) Direct Transmittal to Congress.--The Board shall transmit to
Congress copies of budget estimates, requests, and information
(including personnel needs), legislative recommendations, prepared
testimony for congressional hearings, and comments on legislation at the
same time they are sent to the Secretary of Transportation. An officer
of an agency may not impose conditions on or impair communications by
the Board with Congress, or a committee or Member of Congress, about the
information.
``Sec. 704. Annual report
``The Board shall annually transmit to the Congress a report on its
activities.
``Sec. 705. Authorization of appropriations
``There are authorized to be appropriated for the activities of the
Board--
``(1) $8,421,000 for fiscal year 1996;
``(2) $12,000,000 for fiscal year 1997; and
``(3) $12,000,000 for fiscal year 1998.
``Sec. 706. Reporting official action
``(a) Reports on Proceedings.--The Board shall make a written report
of each proceeding conducted on complaint or on its own initiative and
furnish a copy to each party to that proceeding.
[[Page 109 STAT. 935]]
The report shall include the findings, conclusions, and the order of the
Board and, if damages are awarded, the findings of fact supporting the
award. The Board may have its reports published for public use. A
published report of the Board is competent evidence of its contents.
``(b) Special Rules for Matters Related to Rail Carriers.--(1) When
action of the Board in a matter related to a rail carrier is taken by
the Board, an individual member of the Board, or another individual or
group of individuals designated to take official action for the Board,
the written statement of that action (including a report, order,
decision and order, vote, notice, letter, policy statement, or
regulation) shall indicate--
``(A) the official designation of the individual or group
taking the action;
``(B) the name of each individual taking, or participating
in taking, the action; and
``(C) the vote or position of each participating individual.
``(2) If an individual member of a group taking an official action
referred to in paragraph (1) does not participate in it, the written
statement of the action shall indicate that the member did not
participate. An individual participating in taking an official action is
entitled to express the views of that individual as part of the written
statement of the action. In addition to any publication of the written
statement, it shall be made available to the public under section 552(a)
of title 5.
``SUBCHAPTER II--ADMINISTRATIVE
``Sec. 721. Powers
``(a) In General.--The Board shall carry out this chapter and
subtitle IV. Enumeration of a power of the Board in this chapter or
subtitle IV does not exclude another power the Board may have in
carrying out this chapter or subtitle IV. The Board may prescribe
regulations in carrying out this chapter and subtitle IV.
``(b) Inquiries, Reports, and Orders.--The Board may--
``(1) inquire into and report on the management of the
business of carriers providing transportation and services
subject to subtitle IV;
``(2) inquire into and report on the management of the
business of a person controlling, controlled by, or under common
control with those carriers to the extent that the business of
that person is related to the management of the business of that
carrier;
``(3) obtain from those carriers and persons information the
Board decides is necessary to carry out subtitle IV; and
``(4) when necessary to prevent irreparable harm, issue an
appropriate order without regard to subchapter II of chapter 5
of title 5.
``(c) Subpoena Witnesses.--(1) The Board may subpoena witnesses and
records related to a proceeding of the Board from any place in the
United States, to the designated place of the proceeding. If a witness
disobeys a subpoena, the Board, or a party to a proceeding before the
Board, may petition a court of the United States to enforce that
subpoena.
``(2) <<NOTE: Courts.>> The district courts of the United States
have jurisdiction to enforce a subpoena issued under this section. Trial
is in the
[[Page 109 STAT. 936]]
district in which the proceeding is conducted. The court may punish a
refusal to obey a subpoena as a contempt of court.
``(d) Depositions.--(1) In a proceeding, the Board may take the
testimony of a witness by deposition and may order the witness to
produce records. A party to a proceeding pending before the Board may
take the testimony of a witness by deposition and may require the
witness to produce records at any time after a proceeding is at issue on
petition and answer.
``(2) If a witness fails to be deposed or to produce records under
paragraph (1), the Board may subpoena the witness to take a deposition,
produce the records, or both.
``(3) A deposition may be taken before a judge of a court of the
United States, a United States magistrate judge, a clerk of a district
court, or a chancellor, justice, or judge of a supreme or superior
court, mayor or chief magistrate of a city, judge of a county court, or
court of common pleas of any State, or a notary public who is not
counsel or attorney of a party or interested in the proceeding.
``(4) Before taking a deposition, reasonable notice must be given in
writing by the party or the attorney of that party proposing to take a
deposition to the opposing party or the attorney of record of that
party, whoever is nearest. The notice shall state the name of the
witness and the time and place of taking the deposition.
``(5) The testimony of a person deposed under this subsection shall
be taken under oath. The person taking the deposition shall prepare, or
cause to be prepared, a transcript of the testimony taken. The
transcript shall be subscribed by the deponent.
``(6) The testimony of a witness who is in a foreign country may be
taken by deposition before an officer or person designated by the Board
or agreed on by the parties by written stipulation filed with the Board.
A deposition shall be filed with the Board promptly.
``(e) Witness Fees.--Each witness summoned before the Board or whose
deposition is taken under this section and the individual taking the
deposition are entitled to the same fees and mileage paid for those
services in the courts of the United States.
``Sec. 722. Board action
``(a) Effective Date of Actions.--Unless otherwise provided in
subtitle IV, the Board may determine, within a reasonable time, when its
actions, other than an action ordering the payment of money, take
effect.
``(b) Terminating and Changing Actions.--An action of the Board
remains in effect under its own terms or until superseded. The Board may
change, suspend, or set aside any such action on notice. Notice may be
given in a manner determined by the Board. A court of competent
jurisdiction may suspend or set aside any such action.
``(c) Reconsidering Actions.--The Board may, at any time on its own
initiative because of material error, new evidence, or substantially
changed circumstances--
``(1) reopen a proceeding;
``(2) grant rehearing, reargument, or reconsideration of an
action of the Board; or
``(3) change an action of the Board.
An interested party may petition to reopen and reconsider an action of
the Board under this subsection under regulations of the Board.
[[Page 109 STAT. 937]]
``(d) Finality of Actions.--Notwithstanding subtitle IV, an action
of the Board under this section is final on the date on which it is
served, and a civil action to enforce, enjoin, suspend, or set aside the
action may be filed after that date.
``Sec. 723. Service of notice in Board proceedings
``(a) Designation of Agent.--A carrier providing transportation
subject to the jurisdiction of the Board under subtitle IV shall
designate an agent in the District of Columbia, on whom service of
notices in a proceeding before, and of actions of, the Board may be
made.
``(b) Filing and Changing Designations.--A designation under
subsection (a) shall be in writing and filed with the Board. The
designation may be changed at any time in the same manner as originally
made.
``(c) Service of Notice.--Except as otherwise provided, notices of
the Board shall be served on its designated agent at the office or usual
place of residence in the District of Columbia of that agent. A notice
of action of the Board shall be served immediately on the agent or in
another manner provided by law. If that carrier does not have a
designated agent, service may be made by posting the notice in the
office of the Board.
``(d) Special Rule for Rail Carriers.--In a proceeding involving the
lawfulness of classifications, rates, or practices of a rail carrier
that has not designated an agent under this section, service of notice
of the Board on an attorney in fact for the carrier constitutes service
of notice on the carrier.
``Sec. 724. Service of process in court proceedings
``(a) Designation of Agent.--A carrier providing transportation
subject to the jurisdiction of the Board under subtitle IV shall
designate an agent in the District of Columbia on whom service of
process in an action before a district court may be made. Except as
otherwise provided, process in an action before a district court shall
be served on the designated agent of that carrier at the office or usual
place of residence in the District of Columbia of that agent. If the
carrier does not have a designated agent, service may be made by posting
the notice in the office of the Board.
``(b) Changing Designation.--A designation under this section may be
changed at any time in the same manner as originally made.
``Sec. 725. Administrative support
``The Secretary of Transportation shall provide administrative
support for the Board.
``Sec. 726. Railroad-Shipper Transportation Advisory Council
``(a) Establishment; Membership.--There is established the Railroad-
Shipper Transportation Advisory Council (in this section referred to as
the `Council') to be composed of 19 members, of which 15 members shall
be appointed by the Chairman of the Board, after recommendation from
rail carriers and shippers, within 60 days after the date of enactment
of the ICC Termination Act of 1995. The members of the Council shall be
appointed as follows:
``(1) The members of the Council shall be appointed from
among citizens of the United States who are not regular full-
[[Page 109 STAT. 938]]
time employees of the United States and shall be selected for
appointment so as to provide as nearly as practicable a broad
representation of the various segments of the railroad and rail
shipper industries.
``(2) Nine of the members shall be appointed from senior
executive officers of organizations engaged in the railroad and
rail shipping industries, which 9 members shall be the voting
members of the Council. Council action and Council positions
shall be determined by a majority vote of the members present. A
majority of such voting members shall constitute a quorum. Of
such 9 voting members--
``(A) at least 4 shall be representative of small
shippers (as determined by the Chairman); and
``(B) at least 4 shall be representative of Class II
or III railroads.
``(3) The remaining 6 members of the Council shall serve in
a nonvoting advisory capacity only, but shall be entitled to
participate in Council deliberations. Of the remaining members--
``(A) 3 shall be representative of Class I
railroads; and
``(B) 3 shall be representative of large shipper
organizations (as determined by the Chairman).
``(4) The Secretary of Transportation and the members of the
Board shall serve as ex officio, nonvoting members of the
Council. The Council shall not be subject to the Federal
Advisory Committee Act. A list of the members appointed to the
Council shall be forwarded to the Chairmen and ranking members
of the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure of
the House of Representatives.
``(5) Each ex officio member of the Council may designate an
alternate, who shall serve as a member of the Council whenever
the ex officio member is unable to attend a meeting of the
Council. Any such designated alternate shall be selected from
individuals who exercise significant decision-making authority
in the Federal agency involved.
``(b) Term of Office.--The members of the Council shall be appointed
for a term of office of 3 years, except that of the members first
appointed--
``(1) 5 members shall be appointed for terms of 1 year; and
``(2) 5 members shall be appointed for terms of 2 years,
as designated by the Chairman at the time of appointment. Any member
appointed to fill a vacancy occurring before the expiration of the term
for which the member's predecessor was appointed shall be appointed only
for the remainder of such term. A member may serve after the expiration
of his term until his successor has taken office. Vacancies on the
Council shall be filled in the same manner in which the original
appointments were made. No member of the Council shall be eligible to
serve in excess of two consecutive terms.
``(c) Election and Duties of Officers.--The Council Chairman and
Vice Chairman and other appropriate officers of the Council shall be
elected by and from the voting members of the Council. The Council
Chairman shall serve as the Council's executive officer and shall direct
the administration of the Council, assign officer
[[Page 109 STAT. 939]]
and committee duties, and shall be responsible for issuing and
communicating the reports, policy positions and statements of the
Council. In the event that the Council Chairman is unable to serve, the
Vice Chairman shall act as Council Chairman.
``(d) Expenses.--(1) The members of the Council shall receive no
compensation for their services as such, but upon request by the Council
Chairman, based on a showing of significant economic burden, the
Secretary of Transportation or the Chairman of the Board, to the extent
provided in advance in appropriation Acts, may provide reasonable and
necessary travel expenses for such individual Council members from
Department or Board funding sources in order to foster balanced
representation on the Council.
``(2) Upon request by the Council Chairman, the Secretary or
Chairman of the Board, to the extent provided in advance in
appropriations Acts, may pay the reasonable and necessary expenses
incurred by the Council in connection with the coordination of Council
activities, announcement and reporting of meetings, and preparation of
such Council documents as are required or permitted by this section.
``(3) The Council may solicit and use private funding for its
activities, subject to this subsection.
``(4) Prior to making any Federal funding requests, the Council
Chairman shall undertake best efforts to fund such activities privately
unless the Council Chairman determines that such private funding would
create a conflict of interest, or the appearance thereof, or is
otherwise impractical. The Council Chairman shall not request funding
from any Federal agency without providing written justification as to
why private funding would create any such conflict or appearance, or is
otherwise impractical.
``(5) To enable the Council to carry out its functions--
``(A) the Council Chairman may request directly from any
Federal agency such personnel, information, services, or
facilities, on a compensated or uncompensated basis, as the
Council Chairman determines necessary to carry out the functions
of the Council;
``(B) each Federal agency may, in its discretion, furnish
the Council with such information, services,
and facilities as the Council Chairman may request to the extent
permitted by law and within the limits of available funds; and
``(C) each Federal agency may, in its discretion, detail to
temporary duty with the Council, such personnel as the Council
Chairman may request for carrying out the functions of the
Council, each such detail to be without loss of seniority, pay,
or other employee status.
``(e) Meetings.--The Council shall meet at least semi-annually and
shall hold other meetings at the call of the Council Chairman.
Appropriate Federal facilities, where available, may be used for such
meetings. Whenever the Council, or a committee of the Council, considers
matters that affect the jurisdictional interests of Federal agencies
that are not represented on the Council, the Council Chairman may invite
the heads of such agencies, or their designees, to participate in the
deliberations of the Council.
``(f) Functions and Duties; Annual Report.--(1) The Council shall
advise the Secretary, the Chairman, the Committee on Commerce, Science,
and Transportation of the Senate, and the Committee on Transportation
and Infrastructure of the House of Representatives with respect to rail
transportation policy issues
[[Page 109 STAT. 940]]
it considers significant, with particular attention to issues of
importance to small shippers and small railroads, including car supply,
rates, competition, and effective procedures for addressing legitimate
shipper and other claims.
``(2) To the extent the Council addresses specific grain car issues,
it shall coordinate such activities with the National Grain Car Council.
The Secretary and Chairman shall cooperate with the Council to provide
research, technical and other reasonable support in developing any
reports and policy statements required or authorized by this subsection.
``(3) The Council shall endeavor to develop within the private
sector mechanisms to prevent, or identify and effectively address,
obstacles to the most effective and efficient transportation system
practicable.
``(4) The Council shall prepare an annual report concerning its
activities and the results of Council efforts to resolve industry
issues, and propose whatever regulatory or legislative relief it
considers appropriate. The Council shall include in the annual report
such recommendations as it considers appropriate with respect to the
performance of the Secretary and Chairman under this chapter, and with
respect to the operation and effectiveness of meetings and industry
developments relating to the Council's efforts, and such other
information as it considers appropriate. Such annual reports shall be
reviewed by the Secretary and Chairman, and shall include the
Secretary's and Chairman's views or comments relating to--
``(A) the accuracy of information therein;
``(B) Council efforts and reasonableness of Council
positions and actions; and
``(C) any other aspects of the Council's work as they may
consider appropriate.
The Council may prepare other reports or develop policy statements as
the Council considers appropriate. An annual report shall be submitted
for each fiscal year and shall be submitted to the Secretary and
Chairman within 90 days after the end of the fiscal year. Other such
reports and statements may be submitted as the Council considers
appropriate.
``Sec. 727. Definitions
``All terms used in this chapter that are defined in subtitle IV
shall have the meaning given those terms in that subtitle.''.
(b) Table of Chapters Amendment.--The table of chapters of subtitle
I of title 49, United States Code, is amended by adding at the end the
following new item:
SURFACE TRANSPORTATION BOARD 701''.
SEC. 202. <<NOTE: 49 USC 701 note.>> REORGANIZATION.
The Chairman of the Surface Transportation Board (in this Act
referred to as the ``Board'') may allocate or reallocate any function of
the Board, consistent with this title and subchapter I of chapter 7, as
amended by section 201 of this title, among the members or employees of
the Board, and may establish, consolidate, alter, or discontinue in the
Board any organizational entities that were entities of the Interstate
Commerce Commission, as the Chairman considers necessary or appropriate.
[[Page 109 STAT. 941]]
SEC. 203. <<NOTE: 49 USC 701 note.>> TRANSFER OF ASSETS AND PERSONNEL.
(a) To Board.--Except as otherwise provided in this Act and the
amendments made by this Act, those personnel, property, and records
employed, used, held, available, or to be made available in connection
with a function transferred to the Board by this Act shall be
transferred to the Board for use in connection with the functions
transferred, and unexpended balances of appropriations, allocations, and
other funds of the Interstate Commerce Commission shall also be
transferred to the Board. Such unexpended balances, allocations, and
other funds, together with any unobligated balances from user fees
collected by the Commission during fiscal year 1996, may be used to pay
for the closedown of the Commission and severance costs for Commission
personnel, regardless of whether those costs are incurred at the
Commission or at the Board.
(b) To Secretary.--Except as otherwise provided in this Act and the
amendments made by this Act, those personnel, property, and records
employed, used, held, available, or to be made available in connection
with a function transferred to the Secretary by this Act shall be
transferred to the Secretary for use in connection with the functions
transferred.
(c) Separated Employees.--Notwithstanding all other laws and
regulations, the Department of Transportation shall place all Interstate
Commerce Commission employees separated from the Commission as a result
of this Act on the DOT reemployment priority list (competitive service)
or the priority employment list (excepted service).
SEC. 204. <<NOTE: 49 USC 701 note.>> SAVING PROVISIONS.
(a) Legal Documents.--All orders, determinations, rules,
regulations, permits, grants, loans, contracts, agreements,
certificates, licenses, and privileges--
(1) that have been issued, made, granted, or allowed to
become effective by the Interstate Commerce Commission, any
officer or employee of the Interstate Commerce Commission, or
any other Government official, or by a court of competent
jurisdiction, in the performance of any function that is
transferred by this Act or the amendments made by this Act; and
(2) that are in effect on the effective date of such
transfer (or become effective after such date pursuant to their
terms as in effect on such effective date),
shall continue in effect according to their terms until modified,
terminated, superseded, set aside, or revoked in accordance with law by
the Board, any other authorized official, a court of competent
jurisdiction, or operation of law. The Board shall promptly rescind all
regulations established by the Interstate Commerce Commission that are
based on provisions of law repealed and not substantively reenacted by
this Act.
(b) Proceedings.--(1) The provisions of this Act shall not affect
any proceedings or any application for any license pending before the
Interstate Commerce Commission at the time this Act takes effect,
insofar as those functions are retained and transferred by this Act; but
such proceedings and applications, to the extent that they relate to
functions so transferred, shall be continued. Orders shall be issued in
such proceedings, appeals shall be taken therefrom, and payments shall
be made pursuant to such orders, as if this Act had not been enacted;
and orders issued in any such
[[Page 109 STAT. 942]]
proceedings shall continue in effect until modified, terminated,
superseded, or revoked by a duly authorized official, by a court of
competent jurisdiction, or by operation of law. Nothing in this
subsection shall be deemed to prohibit the discontinuance or
modification of any such proceeding under the same terms and conditions
and to the same extent that such proceeding could have been discontinued
or modified if this Act had not been enacted.
(2) The Board and the Secretary are authorized to provide for the
orderly transfer of pending proceedings from the Interstate Commerce
Commission.
(3)(A) Except as provided in subparagraphs (B) and (C), in the case
of a proceeding under a provision of law repeal, and not reenacted, by
this Act such proceeding shall be terminated.
(B) Any proceeding involving a pipeline carrier under subtitle IV of
title 49, United States Code, shall be continued to be heard by the
Board under such subtitle, as in effect on the day before the effective
date of this section, until completion of such proceeding.
(C) Any proceeding involving the merger of a motor carrier property
under subtitle IV of title 49, United States Code, shall continue to be
heard by the Board under such subtitle, as in effect on the day before
the effective date of this section, until completion of such proceeding.
(4) Any proceeding with respect to any tariff, rate charge,
classification, rule, regulation, or service that was pending under the
Intercoastal Shipping Act, 1933 or the Shipping Act, 1916 before the
Federal Maritime Commission on November 1, 1995, shall continue to be
heard until completion or issuance of a final order thereon under all
applicable laws in effect as of November 1, 1995.
(c) Suits.--(1) This Act shall not affect suits commenced before the
date of the enactment of this Act, except as provided in paragraphs (2)
and (3). In all such suits, proceeding shall be had, appeals taken, and
judgments rendered in the same manner and with the same effect as if
this Act had not been enacted.
(2) Any suit by or against the Interstate Commerce Commission begun
before the effective date of this Act shall be continued, insofar as it
involves a function retained and transferred under this Act, with the
Board (to the extent the suit involves functions transferred to the
Board under this Act) or the Secretary (to the extent the suit involves
functions transferred to the Secretary under this Act) substituted for
the Commission.
(3) If the court in a suit described in paragraph (1) remands a case
to the Board or the Secretary, subsequent
proceedings related to such case shall proceed in accordance with
applicable law and regulations as in effect at the time of such
subsequent proceedings.
(d) Continuance of Actions Against Officers.--No suit, action, or
other proceeding commenced by or against any officer in his official
capacity as an officer of the Interstate Commerce Commission shall abate
by reason of the enactment of this Act. No cause of action by or against
the Interstate Commerce Commission, or by or against any officer thereof
in his official capacity, shall abate by reason of enactment of this
Act.
(e) Exercise of Authorities.--Except as otherwise provided by law,
an officer or employee of the Board may, for purposes of performing a
function transferred by this Act or the amendments made by this Act,
exercise all authorities under any other provision of law that were
available with respect to the performance of
[[Page 109 STAT. 943]]
that function to the official responsible for the performance of the
function immediately before the effective date of the transfer of the
function under this Act or the amendments made by this Act.
SEC. 205. <<NOTE: 49 USC 701 note.>> REFERENCES.
Any reference to the Interstate Commerce Commission in any other
Federal law, Executive order, rule, regulation, or delegation of
authority, or any document of or pertaining to the Interstate Commerce
Commission or an officer or employee of the Interstate Commerce
Commission, is deemed to refer to the Board, a member or employee of the
Board, or the Secretary, as appropriate.
TITLE III--CONFORMING AMENDMENTS
Subtitle A--Amendments to United States Code
SEC. 301. TITLE 5 AMENDMENTS.
(a) Compensation for Positions at Level III.--Section 5314 of title
5, United States Code, is amended by striking ``Chairman, Interstate
Commerce Commission.'' and inserting in lieu thereof ``Chairman, Surface
Transportation Board.''.
(b) Compensation for Positions at Level IV.--Section 5315 of title
5, United States Code, is amended by striking ``Members, Interstate
Commerce Commission.'' and inserting in lieu thereof ``Members, Surface
Transportation Board.''.
SEC. 302. TITLE 11 AMENDMENTS.
Subchapter IV of chapter 11 of title 11, United States Code, is
amended--
(1) by striking section 1162 and inserting in lieu thereof
the following:
``Sec. 1162. Definition
``In this subchapter, `Board' means the `Surface Transportation
Board'.''; and
(2) <<NOTE: 11 USC 1164, 1170, 1172.>> by striking
``Commission'' each place it appears and inserting in lieu
thereof ``Board''.
SEC. 303. TITLE 18 AMENDMENTS.
Title 18, United States Code, is amended--
(1) in section 921(a)(27) by striking ``10102'' and
inserting in lieu thereof ``13102''; and
(2) in section 6001(1) by striking ``Interstate Commerce
Commission'' and inserting in lieu thereof ``Surface
Transportation Board''.
SEC. 304. INTERNAL REVENUE CODE OF 1986 AMENDMENTS.
(a) Section 168.--Section 168(g)(4)(B)(i) of the Internal Revenue
Code of 1986 <<NOTE: 26 USC 168.>> is amended by striking ``domestic
railroad corporation providing transportation subject to subchapter I of
chapter 105'' and inserting in lieu thereof ``rail carrier subject to
part A of subtitle IV''.
(b) Section 281.--Subparagraphs (A) and (B) of section 281(d)(1) of
such Code <<NOTE: 26 USC 281.>> are each amended by striking ``domestic
[[Page 109 STAT. 944]]
railroad corporations providing transportation subject to subchapter I
of chapter 105'' and inserting in lieu thereof ``rail carriers subject
to part A of subtitle IV''.
(c) Section 354.--Section 354(c) of such Code <<NOTE: 26 USC 354.>>
is amended by striking ``or approved by the Interstate Commerce
Commission under subchapter IV of chapter 113 of title 49,''.
(d) Section 3231.--Section 3231 of such Code <<NOTE: 26 USC 3231.>>
is amended--
(1) in subsection (a) by striking ``Interstate Commerce
Commission'' and inserting in lieu thereof ``Surface
Transportation Board''; and
(2) in subsection (g) by striking ``an express carrier,
sleeping car carrier, or rail carrier providing transportation
subject to subchapter I of chapter 105'' and inserting in lieu
thereof ``a rail carrier subject to part A of subtitle IV''.
(e) Section 7701.--Section 7701(a) of such Code <<NOTE: 26 USC
7701.>> is amended--
(1) in paragraph (33)(B) by striking ``Federal Power
Commission'' and inserting in lieu thereof ``Federal Energy
Regulatory Commission'';
(2) in paragraph (33)(C)(i) by striking ``Interstate
Commerce Commission'' and inserting in lieu thereof ``Surface
Transportation Board'';
(3) in paragraph (33)(C)(ii) by striking ``Interstate
Commerce Commission'' and inserting in lieu thereof ``Federal
Energy Regulatory Commission'';
(4) in paragraph (33)(F) by striking ``common carrier'' and
all that follows through ``1933'' and inserting in lieu thereof
``a water carrier subject to jurisdiction under subchapter II of
chapter 135 of title 49'';
(5) in paragraph (33)(G) by striking ``railroad corporation
subject to subchapter I of chapter 105'' and inserting in lieu
thereof ``rail carrier subject to part A of subtitle IV''; and
(6) in paragraph (33)(H) by striking ``subchapter I of
chapter 105'' and inserting in lieu thereof ``part A of subtitle
IV''.
SEC. 305. TITLE 28 AMENDMENTS.
(a) Chapter 85.--Chapter 85 of title 28, United States Code, is
amended--
(1) in the section heading to section 1336 by striking
``Interstate Commerce Commission's'' and inserting in lieu
thereof ``Surface Transportation Board's'';
(2) in section 1336 by striking ``Interstate Commerce
Commission'' each place it appears and inserting in lieu thereof
``Surface Transportation Board'';
(3) in section 1337 by striking ``11707'' each place it
appears and inserting in lieu thereof ``11706 or 14706''; and
(4) in the item relating to section 1336 of the table of
sections by striking ``Interstate Commerce Commission's'' and
inserting in lieu thereof ``Surface Transportation Board's''.
(b) Section 1445.--Section 1445(b) of such title is amended--
(1) by striking ``common''; and
(2) by striking ``11707'' and inserting in lieu thereof
``11706 or 14706''.
(c) Chapter 157 Amendments.--
(1) In general.--Chapter 157 of such title is amended--
(A) by striking ``INTERSTATE COMMERCE COMMISSION''
in the chapter heading and inserting in lieu thereof
``SURFACE TRANSPORTATION BOARD'';
[[Page 109 STAT. 945]]
(B) by striking ``Commission's'' in the section
heading to section 2321 and inserting in lieu thereof
``Board's'';
(C) <<NOTE: 28 USC 2321, 2323.>> by striking
``Interstate Commerce Commission'' each place it appears
and inserting in lieu thereof ``Surface Transportation
Board'';
(D) in section 2323 by striking ``Commission'' the
second and third places it appears and inserting in lieu
thereof ``Board''; and
(E) in the item relating to section 2321 of the
table of sections by striking ``Commission's'' and
inserting in lieu thereof ``Board's''.
(2) Table of chapters.--The item relating to chapter 157 in
the table of chapters of such title is amended by striking
``Interstate Commerce Commission'' and inserting in lieu thereof
``Surface Transportation Board''.
(d) Chapter 158 Amendments.--Chapter 158 of such title is amended--
(1) in section 2341(3)(A) by striking ``the Interstate
Commerce Commission,'';
(2) by striking ``and'' at the end of section 2341(3)(C);
(3) by striking the period at the end of section 2341(3)(D)
and inserting in lieu thereof ``; and'';
(4) by inserting at the end of section 2341(3) the following
new subparagraph:
``(E) the Board, when the order was entered by the
Surface Transportation Board.'';
(5) in section 2342(3)(A) by striking ``41, or 43'' and
inserting in lieu thereof ``or 41'';
(6) by inserting ``or pursuant to part B or (C) of subtitle
IV of title 49'' before the semicolon at the end of section
2342(3)(A);
(7) in section 2342(3)(B)--
(A) by striking clauses (i) and (iii); and
(B) by redesignating clauses (ii), (iv), and (v) as
clauses (i), (ii), and (iii), respectively; and
(8) by striking paragraph (5) of section 2342 and inserting
in lieu thereof the following:
``(5) all rules, regulations, or final orders of the Surface
Transportation Board made reviewable by section 2321 of this
title;''.
SEC. 306. TITLE 31 AMENDMENTS.
Section 3726(b) of title 31, United States Code, is amended--
(1) in paragraph (1) by striking ``on file with the
Interstate Commerce Commission,'' and inserting in lieu thereof
``under title 49 or on file with'';
(2) in paragraph (1) by striking ``or'' at the end;
(3) by redesignating paragraph (2) as paragraph (3);
(4) by inserting after paragraph (1) the following new
paragraph:
``(2) a lawfully quoted rate subject to the jurisdiction of
the Surface Transportation Board; or''; and
(5) in paragraph (3), as redesignated by paragraph (4) of
this section, by striking ``sections 10721-10724'' and inserting
in lieu thereof ``sections 10721, 13712, and 15504''.
SEC. 307. TITLE 39 AMENDMENTS.
Title 39, United States Code, is amended--
[[Page 109 STAT. 946]]
(1) in section 5005(a)(4) by striking ``5201(7)'' and
inserting in lieu thereof ``5201(6)'';
(2) in section 5005(b)(3) by striking ``Interstate Commerce
Commission'' and inserting in lieu thereof ``Surface
Transportation Board''; and
(3) by striking paragraph (1) of section 5201 and inserting
in lieu thereof the following:
``(1) `Board' means the Surface Transportation Board;'';
(4) in section 5201(2) by striking ``a motor common carrier,
or express carrier'' and inserting in lieu thereof ``or a motor
carrier'';
(5) in section 5201(4)--
(A) by striking ``common''; and
(B) by striking ``permit'' and inserting in lieu
thereof ``registration'';
(6) in section 5201(5)--
(A) by striking ``common'' each place it appears;
(B) by striking ``10102(14)'' and inserting in lieu
thereof ``13102(12)''; and
(C) by striking ``certificate of public convenience
and necessity'' and inserting in lieu thereof
``registration'';
(7) by striking paragraph (6) of section 5201;
(8) in section 5201 by redesignating paragraphs (7) and (8)
as paragraphs (6) and (7), respectively;
(9) in section 5201(6), as so redesignated, by striking
``certificate of public convenience and necessity'' and
inserting in lieu thereof ``certificate or registration'';
(10) in section 5203(f) by striking ``motor common carrier''
each place it appears and inserting in lieu thereof ``motor
carrier'';
(11) in the section heading to section 5207 by striking
``Interstate Commerce Commission'' and inserting in lieu thereof
``Surface Transportation Board'';
(12) in sections 5208(a) and 5215(a) by striking
``Commission's'' and inserting in lieu thereof ``Board's'';
(13) in section 5215(a) by striking ``motor common carrier''
and inserting in lieu thereof ``motor carrier'';
(14) <<NOTE: 39 USC 5201, 5203, 5207-5209, 5212, 5215.>> in
chapter 52 by striking ``Commission'' each place it appears and
inserting in lieu thereof ``Board''; and
(15) in the item relating to section 5207 of the table of
sections of chapter 52, by striking ``Interstate Commerce
Commission'' and inserting in lieu thereof ``Surface
Transportation Board''.
SEC. 308. TITLE 49 AMENDMENTS.
(a) Section 302.--Section 302(a) of title 49, United States Code, is
amended by striking ``10101a'' and inserting in lieu thereof ``13101''.
(b) Section 333.--Section 333 of such title is amended--
(1) in subsection (c)(2) by striking ``11910(a)(1)'' and
inserting in lieu thereof ``11904''; and
(2) in subsection (e)--
(A) by striking ``11343(a)'' and inserting in lieu
thereof ``11323(a)''; and
(B) by striking ``11344(b)'' and inserting in lieu
thereof ``11324(b)''.
[[Page 109 STAT. 947]]
(c) Chapter 5.--Subchapter I of chapter 5 of such title is amended--
(1) by striking ``DUTIES'' the first place it appears in the
subchapter heading; and
(2) in section 501(a)(1) by striking ``section 10102'' and
inserting in lieu thereof ``sections 10102 and 13102''.
(d) Section 5102.--Section 5102(7) of such title is amended--
(1) by striking ``common'';
(2) by striking ``motor contract carrier,''; and
(3) by striking ``10102'' and inserting in lieu thereof
``13102''.
(e) Section 5333.--Section 5333(b)(3) of such title is amended by
striking ``11347'' and inserting in lieu thereof ``11326''.
(f) Chapter 221.--Chapter 221 of such title is amended--
(1) in section 22101(a) by striking ``subchapter I of
chapter 105'' and inserting in lieu thereof ``part A of subtitle
IV'';
(2) in section 22101(a)(1) by striking ``Interstate Commerce
Commission'' and inserting in lieu thereof ``Surface
Transportation Board'';
(3) in section 22103(b)(1) by striking ``Interstate Commerce
Commission'' and inserting in lieu thereof ``Surface
Transportation Board'';
(4) in section 22107(c)--
(A) by striking ``Interstate Commerce Commission''
and inserting in lieu thereof ``Surface Transportation
Board''; and
(B) by striking ``Commission'' the second place it
appears and inserting in lieu thereof ``Board''; and
(5) in section 22107(d) by striking ``subchapter I of
chapter 105'' and inserting in lieu thereof ``part A of subtitle
IV''.
(g) Section 24301.--Section 24301 of such title is amended--
(1) in subsection (c)--
(A) by striking ``Subtitle IV'' in paragraph (1) and
inserting in lieu thereof ``Part A of subtitle IV'';
(B) by striking ``sections 10721-10724 of this title
apply'' in paragraph (2)(A) and inserting in lieu
thereof ``section 10721 of this title applies''; and
(C) by striking ``Interstate Commerce Commission
under any provision of subtitle IV of this title
applicable to a carrier subject to subchapter I of
chapter 105'' in paragraph (2)(B) and inserting in lieu
thereof ``Surface Transportation Board under part A of
subtitle IV''; and
(2) in subsection (d) by striking ``common carrier subject
to subchapter I of chapter 105'' and inserting in lieu thereof
``rail carrier subject to part A of subtitle IV''.
(h) Section 24501.--Section 24501(b) of such title is amended by
striking ``subchapter I of chapter 105'' and inserting in lieu thereof
``part A of subtitle IV''.
(i) Section 24705.--Section 24705 of such title is amended by
striking subsection (d).
(j) Sections 30103 and 30166.--Sections 30103(a) and 30106(d) of
such title <<NOTE: 49 USC 30166.>> are each amended by striking
``subchapter II of chapter 105'' each place it appears and inserting in
lieu thereof ``subchapter I of chapter 135''.
(k) Chapter 315.--Chapter 315 of such title is amended--
(1) in section 31501(2) by striking ``10102'' and inserting
in lieu thereof ``13102'';
[[Page 109 STAT. 948]]
(2) in section 31501(3)(A) by striking ``10521(a)'' and
inserting in lieu thereof ``13501'';
(3) in section 31502(a)(1) by striking ``10521 and 10522''
by inserting in lieu thereof ``13501 and 13502''; and
(4) in section 31503(a) by striking ``subchapter II of
chapter 105'' and inserting in lieu thereof ``subchapter I of
chapter 135''.
(l) Sections 41309 and 41502.--Sections 41309(b)(2)(A) and 41502 of
such title are each amended by striking ``common'' each place it
appears.
(m) Section 60115.--Section 60115(b)(4)(A) of such title is amended
by striking ``(referred to in section 10344(f) of this title)''.
Subtitle B--Other Amendments
SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938 AMENDMENTS.
Section 201 of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1291) is amended--
(1) by striking ``Interstate Commerce Commission'' each
place it appears and inserting in lieu thereof ``Surface
Transportation Board'';
(2) by striking ``Commission'' each place it appears (other
than a place to which paragraph (1) applies) and inserting in
lieu thereof ``Board''; and
(3) by striking ``Commission's'' in subsection (b) and
inserting in lieu thereof ``Board's''.
SEC. 312. ANIMAL WELFARE ACT AMENDMENT.
Section 15(a) of the Animal Welfare Act (7 U.S.C. 2145(a)) is
amended by striking ``Interstate Commerce Commission'' and inserting in
lieu thereof ``Surface Transportation Board''.
SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AMENDMENTS.
Section 401 of the Federal Election Campaign Act of 1971 <<NOTE: 2
USC 451.>> is amended--
(1) by striking ``Interstate Commerce Commission shall each
promulgate, within ninety days after the date of enactment of
this Act'' and inserting in lieu thereof ``Surface
Transportation Board shall each maintain''; and
(2) by inserting ``or Board'' after ``or such Commission''.
SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT.
Section 621(b)(4) of the Fair Credit Reporting Act (15 U.S.C.
1681s(b)(4)) is amended by striking ``Interstate Commerce Commission
with respect to any common carrier subject to those Acts'' and inserting
in lieu thereof ``Secretary of Transportation, with respect to all
carriers subject to the jurisdiction of the Surface Transportation
Board''.
SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.
Section 704(a)(4) of the Equal Credit Opportunity Act (15 U.S.C.
1691c(a)(4)) is amended by striking ``Interstate Commerce Commission
with respect to any common carrier subject to those Acts'' and inserting
in lieu thereof ``Secretary of Transportation, with respect to all
carriers subject to the jurisdiction of the Surface Transportation
Board''.
[[Page 109 STAT. 949]]
SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMENDMENT.
Section 814(b)(4) of the Fair Debt Collection Practices Act (15
U.S.C. 1692l(b)(4)) is amended by striking ``Interstate Commerce
Commission with respect to any common carrier subject to those Acts''
and inserting in lieu thereof ``Secretary of Transportation, with
respect to all carriers subject to the jurisdiction of the Surface
Transportation Board''.
SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.
The National Trails System Act is amended--
(1) in section 8(d)-- <<NOTE: 16 USC 1247.>>
(A) by striking ``Chairman of the Interstate
Commerce Commission'' and inserting in lieu thereof
``Chairman of the Surface Transportation Board''; and
(B) by striking ``Commission'' the second place it
appears and inserting in lieu thereof ``Board''; and
(2) in section 9(b) <<NOTE: 16 USC 1248.>> by striking
``Interstate Commerce Commission'' and inserting in lieu thereof
``Surface Transportation Board''.
SEC. 318. CLAYTON ACT AMENDMENTS.
The Clayton Act is amended--
(1) in section 7 (15 U.S.C. 18)--
(A) by striking ``Interstate Commerce Commission''
and inserting in lieu thereof ``Surface Transportation
Board''; and
(B) by inserting ``, Board,'' after ``vesting such
power in such Commission'';
(2) in section 11(a) (15 U.S.C. 21(a)) by striking
``Interstate Commerce Commission where applicable to common
carriers subject to the Interstate Commerce Act, as amended''
and inserting in lieu thereof ``Surface Transportation Board
where applicable to common carriers subject to jurisdiction
under subtitle IV of title 49, United States Code''; and
(3) in section 16 (15 U.S.C. 22) <<NOTE: 15 USC 26.>> by
striking ``in equity for injunctive relief'' and all that
follows through ``Interstate Commerce Commission'' and inserting
in lieu thereof ``for injunctive relief against any common
carrier subject to the jurisdiction of the Surface
Transportation Board under subtitle IV of title 49, United
States Code''.
SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.
Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C.
App.) is amended by striking ``the Interstate Commerce Commission,''.
SEC. 320. ENERGY POLICY ACT OF 1992 AMENDMENTS.
Subsections (a) and (d) of section 1340 of the Energy Policy Act of
1992 (42 U.S.C. 13369 (a) and (d)) are each amended by striking
``Interstate Commerce Commission'' and inserting in lieu thereof
``Surface Transportation Board''.
SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS.
The Merchant Marine Act, 1920, is amended--
(1) in section 8 (46 U.S.C. App. 867)--
(A) by striking ``Interstate Commerce Commission''
both places it appears and inserting in lieu thereof
``Surface Transportation Board''; and
[[Page 109 STAT. 950]]
(B) by striking ``commission'' and inserting in lieu
thereof ``Board'';
(2) in section 27A (46 U.S.C. App. 883-1) by striking
``common or contract'' and all that follows through ``, which
otherwise'' and inserting in lieu thereof ``carrier subject to
jurisdiction under subchapter II of chapter 135 of title 49,
United States Code, which otherwise''; and
(3) in section 28 (46 U.S.C. App. 884)--
(A) by striking ``common'';
(B) by striking ``Interstate Commerce Commission''
and inserting in lieu thereof ``Surface Transportation
Board''; and
(C) by striking ``commission'' each place it appears
and inserting in lieu thereof ``Board''.
SEC. 322. RAILWAY LABOR ACT AMENDMENTS.
Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended--
(1) in the first paragraph by striking ``express company,
sleeping-car company, carrier by railroad, subject to the
Interstate Commerce Act'' and inserting in lieu thereof
``railroad subject to the jurisdiction of the Surface
Transportation Board'';
(2) in the first and fifth paragraphs by striking
``Interstate Commerce Commission'' each place it appears and
inserting in lieu thereof ``Surface Transportation Board''; and
(3) in the fifth paragraph by striking ``Commission'' the
second and fourth places it appears and inserting in lieu
thereof ``Board''.
SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMENDMENTS.
Section 1 of the Railroad Retirement Act of 1974 (45 U.S.C. 231) is
amended--
(1) by striking subsection (a)(1)(i) and inserting in lieu
thereof the following:
``(i) any carrier by railroad subject to the jurisdiction of
the Surface Transportation Board under part A of subtitle IV of
title 49, United States Code;'';
(2) in subsection (a)(2)(ii) by striking ``Interstate
Commerce Commission is hereby authorized and directed upon
request of the Board'' and inserting in lieu thereof ``Surface
Transportation Board is hereby authorized and directed upon
request of the Railroad Retirement Board''; and
(3) in subsection (o) by inserting ``the Surface
Transportation Board,'' after ``the Interstate Commerce
Commission,''.
SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT AMENDMENTS.
The Railroad Unemployment Insurance Act is amended--
(1) in section 1(a) (45 U.S.C. 351(a)) by striking
``Interstate Commerce Commission is hereby authorized and
directed upon request of the Board'' and inserting in lieu
thereof ``Surface Transportation Board is hereby authorized and
directed upon request of the Railroad Retirement Board'';
(2) by striking paragraph (b) of such section 1 and
inserting in lieu thereof the following:
``(b) The term `carrier' means a railroad subject to the
jurisdiction of the Surface Transportation Board under part A of
subtitle IV of title 49, United States Code.''; and
(3) by striking ``Interstate Commerce Commission, adjusted,
as determined by the Board'' in section 2(h)(3) (45 U.S.C.
[[Page 109 STAT. 951]]
352(h)(3)) and inserting in lieu thereof ``Surface
Transportation Board, adjusted, as determined by the Railroad
Retirement Board''.
SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMENDMENTS.
The Emergency Rail Services Act of 1970 is amended--
(1) in section 2 (45 U.S.C. 661)--
(A) by striking paragraph (2) and inserting in lieu
thereof the following:
``(2) `Board' means the Surface Transportation Board.''; and
(B) in paragraph (3) by striking ``common carrier by
railroad subject to part I of the Interstate Commerce
Act (49 U.S.C. 1-27)'' and inserting in lieu thereof
``rail carrier subject to part A of subtitle IV of title
49, United States Code'';
(2) in section 3--
(A) by striking ``the provisions of section 5 of the
Interstate Commerce Act'' in subsection (b)(4) and
inserting in lieu thereof ``subchapter II of chapter 113
of title 49, United States Code''; and
(B) by striking ``Commission'' each place it appears
and inserting in lieu thereof ``Board''; and
(3) in section 6(a) (45 U.S.C. 665(a)) by striking
``Interstate Commerce Commission'' and inserting in lieu thereof
``Board''.
SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982 AMENDMENTS.
Section 608 of the Alaska Railroad Transfer Act of 1982 (45 U.S.C.
1207) is amended--
(1) by striking ``the jurisdiction of the Interstate
Commerce Commission under chapter 105'' in subsection (a)(1) and
inserting in lieu thereof ``part A''; and
(2) by striking ``the jurisdiction of the Interstate
Commerce Commission under chapter 105'' in subsection (c) and
inserting in lieu thereof ``part A''.
SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973 AMENDMENTS.
The Regional Rail Reorganization Act of 1973 is amended--
(1) in section 102(15) (45 U.S.C. 702(15)) by striking
``common carrier by railroad as defined in section 1(3) of part
I of the Interstate Commerce Act (49 U.S.C. 1(3))'' and
inserting in lieu thereof ``rail carrier subject to part A of
subtitle IV of title 49, United States Code'';
(2) in section 301(b) (45 U.S.C. 741(b)) by striking
``common carrier by railroad under section 1(3) of the
Interstate Commerce Act (49 U.S.C. 1(3))'' and inserting in lieu
thereof ``rail carrier subject to part A of subtitle IV of title
49, United States Code'';
(3) in section 304 (45 U.S.C. 744)--
(A) by striking ``205(d)(6) of this Act'' in
subsection (a)(2)(B) and inserting in lieu thereof
``10362(b)(6) of title 49, United States Code'';
(B) by striking ``Interstate Commerce Act'' and
inserting in lieu thereof ``part A of subtitle IV of
title 49, United States Code'';
(C) in subsection (d)(3)--
[[Page 109 STAT. 952]]
(i) by striking ``this title,'' and all that
follows through ``(A) shall take'' and inserting
in lieu thereof ``this title, the Commission shall
take''; and
(ii) by striking ``this subsection; and'' and
all that follows through ``205(d)(6) of this Act''
and inserting in lieu thereof ``this subsection'';
(D) in subsection (e)(4)--
(i) by striking ``and under regulations issued
by the Office pursuant to section 205(d)(5) of
this Act'' in subparagraph (A); and
(ii) by striking ``and regulations issued by
the Office pursuant to section 205(d)(5) of this
Act'' in subparagraph (C);
(E) in subsection (e)(5)--
(i) by striking ``and under regulations issued
by the Office pursuant to section 205(d)(5) of
this Act'' in subparagraph (A); and
(ii) by striking ``and under regulations
issued by the Office pursuant to section 205(d)(5)
of this Act'' in subparagraph (B);
(F) in subsection (e)(7)(A) by striking ``and under
regulations issued by the Office pursuant to section
205(d)(5) of this Act''; and
(G) in subsection (g) by striking ``the Interstate
Commerce Act'' and inserting in lieu thereof ``part A of
subtitle IV of title 49, United States Code'';
(4) in section 308 (45 U.S.C. 748)--
(A) by striking ``10905(d)-(f)'' in subsection
(d)(1) and inserting in lieu thereof ``10904''; and
(B) by striking ``10903(b)(2)'' in subsection (f)
and inserting in lieu thereof ``10903(b)(3)''; and
(5) by inserting after section 712 the following new
section:
``class ii railroads receiving federal assistance
``Sec. 713. <<NOTE: 49 USC 797l.>> The Surface Transportation Board
shall impose no labor protection conditions in approving an application
under section 10902 of title 49, United States Code, when the
application involves a Class II rail carrier which--
``(1) is headquartered in a State, and operates in at least
one State, with a population of less than 1,000,000 persons, as
determined by the 1990 census; and
``(2) has, as of January 1, 1996, been a recipient of
repayable Federal Railroad Administration assistance in excess
of $5,000,000.''.
SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT AMENDMENT.
Section 18 of the Milwaukee Railroad Restructuring Act (45 U.S.C.
916) is repealed.
SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EMPLOYEE ASSISTANCE ACT
AMENDMENTS.
The Rock Island Railroad Transition and Employee Assistance Act is
amended--
(1) in section 104(a) (45 U.S.C. 1003(a)) by striking
``section 11125 of title 49, United States Code, or''; and
(2) by striking section 120 (45 U.S.C. 1015).
[[Page 109 STAT. 953]]
SEC. 330. RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976
AMENDMENTS.
The Railroad Revitalization and Regulatory Reform Act of 1976 is
amended--
(1) in section 102(7) (45 U.S.C. 802(7)) by striking
``common carrier by railroad or express, as defined in section
1(3) of the Interstate Commerce Act (49 U.S.C. 1(3))'' and
inserting in lieu thereof ``rail carrier subject to part A of
subtitle IV of title 49, United States Code'';
(2) in section 505(a)(3) (45 U.S.C. 825(a)(3))--
(A) by striking ``A financially responsible person
(as defined in section 10910(a)(1) of title 49, United
States Code)'' and inserting in lieu thereof ``(A) A
financially responsible person''; and
(B) by inserting at the end the following new
subparagraph:
``(B) For purposes of this paragraph, the term `financially
responsible person' means a person who (i) is capable of paying the
constitutional minimum value of the railroad line proposed to be
acquired, and (ii) is able to assure that adequate transportation will
be provided over such line for a period of not less than 3 years. Such
term includes a governmental authority but does not include a class I or
class II rail carrier.'';
(3) in section 509(b) (45 U.S.C. 829(b)) by striking
paragraph (2); and
(4) in section 510 (45 U.S.C. 830) by striking ``the
provisions of section 20a of the Interstate Commerce Act (49
U.S.C. 20a), nor''.
SEC. 331. NORTHEAST RAIL SERVICE ACT OF 1981 AMENDMENTS.
The Northeast Rail Service Act of 1981 is amended in section 1164
(45 U.S.C. 1112) by striking ``11344 or 11345'' each place it appears
and inserting in lieu thereof ``11324 or 11325''.
SEC. 332. CONRAIL PRIVATIZATION ACT AMENDMENT.
Section 4036 of the Conrail Privatization Act (45 U.S.C. 1344) is
amended by striking ``(19)''.
SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION ACT
AMENDMENTS.
Section 401(b)(2)(C) of the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1841(b)(2)(C)) is amended by striking ``part
II of the Interstate Commerce Act (49 U.S.C. 301 et seq.), or any
successor provision of'' and inserting in lieu thereof ``part B of''.
SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHORIZATION ACT OF 1994.
Section 601(d) of the Federal Aviation Administration Authorization
Act of 1994 (Public Law 103-305) <<NOTE: 49 USC 10521 note.>> is
repealed.
SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHORITY.
(a) <<NOTE: Effective date.>> Repeal of Intercoastal Shipping Act,
1933.--The Intercoastal Shipping Act, 1933 (46 U.S.C. App. 843 et seq.)
is repealed effective September 30, 1996.
(b) <<NOTE: Effective date.>> Repeal of Provisions of Shipping Act,
1916.--The following provisions of the Shipping Act, 1916 are repealed
effective September 30, 1996:
[[Page 109 STAT. 954]]
(1) Section 3 (46 U.S.C. App. 804).
(2) Section 14 (46 U.S.C. App. 812).
(3) Section 15 (46 U.S.C. App. 814).
(4) Section 16 (46 U.S.C. App. 815).
(5) Section 17 (46 U.S.C. App. 816).
(6) Section 18 (46 U.S.C. App. 817).
(7) Section 19 (46 U.S.C. App. 818).
(8) Section 20 (46 U.S.C. App. 819).
(9) Section 21 (46 U.S.C. App. 820).
(10) Section 22 (46 U.S.C. App. 821).
(11) Section 23 (46 U.S.C. App. 822).
(12) Section 24 (46 U.S.C. App. 823).
(13) Section 25 (46 U.S.C. App. 824).
(14) Section 27 (46 U.S.C. App. 826).
(15) Section 29 (46 U.S.C. App. 828).
(16) Section 30 (46 U.S.C. App. 829).
(17) Section 31 (46 U.S.C. App. 830).
(18) Section 32 (46 U.S.C. App. 831).
(19) Section 33 (46 U.S.C. App. 832).
(20) Section 35 (46 U.S.C. App. 833a).
(21) Section 43 (46 U.S.C. App. 841a).
(22) Section 45 (46 U.S.C. App. 841c).
(c) Conforming Amendments.--
(1) Merchant marine act, 1936.--Section 204(a) of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1114(a)) is amended by
striking ``the Intercoastal Shipping Act, 1933,''.
(2) Shipping act of 1984.--Section 5(e) of the Shipping Act
of 1984 (46 U.S.C. App. 1704(e)) is amended--
(A) by striking ``This Act, the Shipping Act, 1916,
and the Intercoastal Shipping Act, 1933,'' and inserting
``This Act and the Shipping Act, 1916''; and
(B) by striking ``this Act, the Shipping Act, 1916,
or the Intercoastal Shipping Act, 1933,'' and inserting
``this Act or the Shipping Act, 1916''.
SEC. 336. ARMORED CAR INDUSTRY RECIPROCITY ACT OF 1993 AMENDMENTS.
Section 5(2) of the Armored Car Industry Reciprocity Act of 1993 (15
U.S.C. 5904) is amended--
(1) by striking ``subchapter II of chapter 105'' and
inserting in lieu thereof ``subchapter I of chapter 135''; and
(2) by striking ``holding the appropriate certificate,
permit, or license issued under subchapter II of chapter 109''
and inserting in lieu thereof ``is registered under chapter
139''.
SEC. 337. LABOR MANAGEMENT RELATIONS ACT, 1947 AMENDMENT.
Section 302(b)(2) of the Labor Management Relations Act, 1947 (29
U.S.C. 186(b)(2)) is amended by striking the parenthetical phrase and
inserting in lieu thereof ``(as defined in section 13102 of title 49,
United States Code)''.
SEC. 338. INLANDS WATERWAY REVENUE ACT OF 1978 AMENDMENT.
Section 205(f)(1) of the Inlands Waterway Revenue Act of 1978 (33
U.S.C. 1803(f)(1)) is amended by striking ``as set forth'' and all that
follows through the period at the end and inserting in lieu thereof ``as
set forth in sections 10101 and 13101 of title 49, United States
Code.''.
[[Page 109 STAT. 955]]
SEC. 339. NOISE CONTROL ACT OF 1972 AMENDMENT.
Section 18(d) of the Noise Control Act of 1972 (42 U.S.C. 4917(d))
is amended to read as follows:
``(d) For purposes of this section, the term `motor carrier'
includes a motor carrier and motor private carrier as those terms are
defined in section 13102 of title 49, United States Code.''.
SEC. 340. FAIR LABOR STANDARDS ACT OF 1938 AMENDMENT.
Section 13(b)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C.
213(b)(2)) is amended by striking ``common carrier by rail and subject
to the provisions of part I of the Interstate Commerce Act'' and
inserting in lieu thereof ``rail carrier subject to part A of subtitle
IV of title 49, United States Code''.
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. <<NOTE: 42 USC 4332 note.>> CERTAIN COMMERCIAL SPACE LAUNCH
ACTIVITIES.
The licensing of a launch vehicle or launch site operator (including
any amendment, extension, or renewal of the license) under chapter 701
of title 49, United States Code, shall not be considered a major Federal
action for purposes of section 102(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(C)) if--
(1) the Department of the Army has issued a permit for the
activity; and
(2) the Army Corps of Engineers has found that the activity
has no significant impact.
SEC. 402. DESTRUCTION OF MOTOR VEHICLES OR MOTOR VEHICLE
FACILITIES; WRECKING TRAINS.
(a) Destruction of Motor Vehicles or Motor Vehicle Facilities.--
Section 33 of title 18, United States Code, is amended--
(1) by inserting ``(a)'' before ``Whoever'' the first place
it appears; and
(2) by adding at the end the following:
``(b) Whoever is convicted of a violation of subsection (a)
involving a motor vehicle that, at the time the violation occurred,
carried high-level radioactive waste (as that term is defined in section
2(12) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(12))) or
spent nuclear fuel (as that term is defined in section 2(23) of the
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(23))), shall be fined
under this title and imprisoned for any term of years not less than 30,
or for life.''.
(b) Wrecking Trains.--Section 1992 of such title is amended--
(1) by inserting ``(a)'' before ``Whoever'' the first place
it appears;
(2) by inserting ``(b)'' before ``Whoever is convicted'';
(3) striking ``any such crime, which'' and inserting ``a
violation of subsection (a) that'';
(4) by inserting after the paragraph beginning ``Whoever is
convicted'' the following:
``Whoever is convicted of any such violation involving a train that,
at the time the violation occurred, carried high-level radioactive waste
(as that term is defined in section 2(12) of the Nuclear Waste Policy
Act of 1982 (42 U.S.C. 10101(12))) or spent nuclear
[[Page 109 STAT. 956]]
fuel (as that term is defined in section 2(23) of the Nuclear Waste
Policy Act of 1982 (42 U.S.C. 10101(23))), shall be fined under this
title and imprisoned for any term or years not less than 30, or for
life.''; and
(5) by inserting ``(c)'' before ``A judgment''.
SEC. 403. VIOLATION OF GRADE-CROSSING LAWS AND REGULATIONS.
(a) Federal Regulations.--Section 31310 of title 49, United States
Code, is amended by adding at the end thereof the following:
``(h) Grade-Crossing Violations.--
``(1) Sanctions.--The Secretary shall issue regulations
establishing sanctions and penalties relating to violations, by
persons operating commercial motor vehicles, of laws and
regulations pertaining to railroad-highway grade crossings.
``(2) Minimum requirements.--The regulations issued under
paragraph (1) shall, at a minimum, require that--
``(A) the penalty for a single violation is not less
than a 60-day disqualification of the driver's
commercial driver's license; and
``(B) any employer that knowingly allows, permits,
authorizes, or requires an employee to operate a
commercial motor vehicle in violation of such a law or
regulation shall be subject to a civil penalty of not
more than $10,000.''.
(b) <<NOTE: 49 USC 31310 note.>> Deadline.--The initial regulations
required under section 31310(h) of title 49, United States Code, shall
be issued not later than 1 year after the date of the enactment of this
Act.
(c) State Regulations.--Section 31311(a) of title 49, United States
Code, is amended by adding at the end thereof the following:
``(18) The State shall adopt and enforce regulations
prescribed by the Secretary under section 31310(h) of this
title.''.
SEC. 404. MISCELLANEOUS TITLE 23 AMENDMENTS.
Section 127 of title 23, United States Code, is amended by adding at
the end the following:
``(g) Operation of Certain Specialized Hauling Vehicles on Certain
Pennsylvania Highways.--If the segment of United States Route 220
between Bedford and Bald Eagle, Pennsylvania, is designated as part of
the Interstate System, the single axle weight, tandem axle weight, gross
vehicle weight, and bridge formula limits set forth in subsection (a)
shall not apply to that segment with respect to the operation of any
vehicle which could have legally operated on that segment before the
date of the enactment of this subsection.''.
SEC. 405. TECHNICAL AMENDMENTS.
(a) <<NOTE: Effective date.>> NHS Designation Act.--Effective
November 28, 1995, the National Highway System Designation Act of 1995
(Public Law 104-59) is amended--
(1) in section 312(b) (109 Stat. 584) <<NOTE: 23 USC 127.>>
by striking ``of such title'' and inserting in lieu thereof ``of
title 23, United States Code'';
(2) in section 319(b)(3) (109 Stat. 589) <<NOTE: 23 USC
149.>> by striking ``at the end'' and inserting in lieu thereof
``after paragraph (3)'';
(3) in section 332(a)(1)(C)(iii) (109 Stat. 596) by
inserting closing quotation marks after ``Mexico'';
(4) in section 336(1) (109 Stat. 602)--
(A) by striking ``for'' each place it appears; and
[[Page 109 STAT. 957]]
(B) by inserting ``for'' after ``million'' each
place it appears; and
(5) by inserting closing quotation marks and a period after
the period at the end of section 337(c)(1)(B) (109 Stat.
603). <<NOTE: 16 USC 1261.>>
(b) Title 23.--Section 149(b) of title 23, United States Code, is
amended--
(1) by inserting ``or'' after the semicolon at the end of
paragraph (3); and
(2) by striking ``; or'' at the end of paragraph (4) and
inserting a period.
(c) ISTEA.--Section 1069(v) of the International Surface
Transportation Efficiency Act of 1991 (105 Stat. 2010) is amended by
striking the period at the end of the first sentence.
SEC. 406. <<NOTE: 49 USC 5103 note.>> FIBER DRUM PACKAGING.
(a) <<NOTE: Rules.>> In General.--In the administration of chapter
51 of title 49, United States Code, the Secretary of Transportation
shall issue a final rule within 60 days after the date of the enactment
of this Act authorizing the continued use of fiber drum packaging with a
removable head for the transportation of liquid hazardous materials with
respect to those liquid hazardous materials transported by such drums
pursuant to regulations in effect on September 30, 1991, if--
(1) the packaging is in compliance with regulations of the
Secretary under the Hazardous Materials Transportation Act as in
effect on September 30, 1991; and
(2) the packaging will not be used for the transportation of
hazardous materials that include materials which are poisonous
by inhalation or materials in Packing Groups I and II.
(b) Expiration.--The regulation referred to in subsection (a) shall
expire on the later of September 30, 1997, or the date on which funds
are authorized to be appropriated to carry out chapter 51 of title 49,
United States Code (relating to transportation of hazardous materials),
for fiscal years beginning after September 30, 1997.
(c) Study.--
(1) <<NOTE: Contracts.>> In general.--Within 90 days after
the date of the enactment of this Act, the Secretary shall
contract with the National Academy of Sciences to conduct a
study--
(A) to determine whether the requirements of section
5103(b) of title 49, United States Code (relating to
regulations for safe transportation), as they pertain to
fiber drum packaging with a removable head can be met
for the transportation of liquid hazardous materials
(with respect to those liquid hazardous materials
transported by such drums pursuant to regulations in
effect on September 30, 1991) with standards (including
fiber drum industry standards set forth in a June 8,
1992, exemption application submitted to the Department
of Transportation), other than the performance-oriented
packaging standards adopted under docket number HM-181
contained in part 178 of title 49, Code of Federal
Regulations; and
(B) to determine whether a packaging standard
(including such fiber drum industry standards), other
than such performance-oriented packaging standards, will
provide an equal or greater level of safety for the
transportation of
[[Page 109 STAT. 958]]
liquid hazardous materials than would be provided if
such performance-oriented packaging standards were in
effect.
(2) Completion.--The study shall be completed before March
1, 1997 and shall be transmitted to the Committee on Commerce,
Science, and Transportation of the Senate and the Transportation
and Infrastructure Committee of the House of Representatives.
(d) <<NOTE: Regulations.>> Secretarial Action.--By September 30,
1997, the Secretary shall issue final regulations to determine what
standards should apply to fiber drum packaging with a removable head for
transportation of liquid hazardous materials (with respect to those
liquid hazardous materials transported by such drums pursuant to
regulations in effect on September 30, 1991) after September 30, 1997.
In issuing such regulations, the Secretary shall give full and
substantial consideration to the results of the study conducted in
subsection (c).
SEC. 407. NONCONTIGUOUS DOMESTIC TRADE STUDY.
Within 6 months after the effective date of this Act, the Secretary
of Transportation shall transmit to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a study that analyzes
each of the noncontiguous domestic trades, including analyzing--
(1) carrier competition in both regulated and unregulated
portions of those trades;
(2) rate structures in those trades;
(3) the impact of tariff filing on carrier pricing;
(4) the problems of parallel pricing and its impact on
competition in the domestic trades;
(5) the impact on domestic cargo pricing of foreign cargo
services;
(6) whether additional protections are needed to protect
shippers from the abuse of market power; and
(7) the extent to which statutory or regulatory changes
should be made to further the transportation policy of section
13101 of title 49, United States Code.
SEC. 408. <<NOTE: 49 USC 31136 note.>> FEDERAL HIGHWAY ADMINISTRATION
RULEMAKING.
(a) Advance Notice.--The Federal Highway Administration shall issue
an advance notice of proposed rulemaking dealing with a variety of
fatigue-related issues pertaining to commercial motor vehicle motor
vehicle safety (including 8 hours of continuous sleep after 10 hours of
driving, loading and unloading operations, automated and tamper-proof
recording devices, rest and recovery cycles, fatigue and stress in
longer combination vehicles, fitness for duty, and other appropriate
regulatory and enforcement countermeasures for reducing fatigue-related
incidents and increasing driver alertness) not later than March 1, 1996.
[[Page 109 STAT. 959]]
(b) Rulemaking.--The Federal Highway Administration shall issue a
notice of proposed rulemaking dealing with such issues within 1 year
after issuance of the advance notice under subsection (a) is published
and shall issue a final rule dealing with those issues within 2 years
after the last day of such 1-year period.
Approved December 29, 1995.
LEGISLATIVE HISTORY--H.R. 2539 (S. 1396):
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HOUSE REPORTS: Nos. 104-311 (Comm. on Transportation and Infrastructure)
and 104-422 (Comm. of Conference).
SENATE REPORTS: No. 104-176 accompanying S. 1396 (Comm. on Commerce,
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 141 (1995):
Nov. 14, considered and passed House.
Nov. 28, considered and passed Senate, amended, in lieu of
S. 1396.
Dec. 21, Senate agreed to conference report.
Dec. 22, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995):
Dec. 29, Presidential statement.
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