ICC Termination Act of 1995

PUBLIC LAW 104–88—DEC. 29, 1995

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.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. 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
101. Abolition.
102. Rail provisions.
103. Motor carrier, water carrier, and freight forwarder provisions.
104. Miscellaneous motor carrier provisions.
105. Creditability of annual leave for purposes of meeting minimum eligibility
requirements for an immediate annuity.
Sec. 106. Pipeline carrier provisions.
Sec.
Sec.
Sec.
Sec.
Sec.

Sec.
Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.
205.

TITLE II—SURFACE TRANSPORTATION BOARD
Title 49 amendment.
Reorganization.
Transfer of assets and personnel.
Saving provisions.
References.
TITLE III—CONFORMING AMENDMENTS

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

301.
302.
303.
304.
305.
306.
307.
308.

Subtitle A—Amendments to United States Code
Title 5 amendments.
Title 11 amendments.
Title 18 amendments.
Internal Revenue Code of 1986 amendments.
Title 28 amendments.
Title 31 amendments.
Title 39 amendments.
Title 49 amendments.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

311.
312.
313.
314.
315.
316.
317.
318.
319.
320.

Subtitle B—Other Amendments
Agricultural Adjustment Act of 1938 amendments.
Animal Welfare Act amendment.
Federal Election Campaign Act of 1971 amendments.
Fair Credit Reporting Act amendment.
Equal Credit Opportunity Act amendment.
Fair Debt Collection Practices Act amendment.
National Trails System Act amendments.
Clayton Act amendments.
Inspector General Act of 1978 amendment.
Energy Policy Act of 1992 amendments.

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Dec. 29, 1995
[H.R. 2539]

ICC Termination
Act of 1995.
Government
organization.
49 USC 101 note.

109 STAT. 804

49 USC 701 note.

PUBLIC LAW 104–88—DEC. 29, 1995

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

321.
322.
323.
324.
325.
326.
327.
328.
329.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

330.
331.
332.
333.
334.
335.
336.
337.
338.
339.
340.

Merchant Marine Act, 1920, amendments.
Railway Labor Act amendments.
Railroad Retirement Act of 1974 amendments.
Railroad Unemployment Insurance Act amendments.
Emergency Rail Services Act of 1970 amendments.
Alaska Railroad Transfer Act of 1982 amendments.
Regional Rail Reorganization Act of 1973 amendments.
Milwaukee Railroad Restructuring Act amendment.
Rock Island Railroad Transition and Employee Assistance Act
amendments.
Railroad Revitalization and Regulatory Reform Act of 1976 amendments.
Northeast Rail Service Act of 1981 amendments.
Conrail Privatization Act amendment.
Migrant and Seasonal Agricultural Worker Protection Act amendments.
Federal Aviation Administration Authorization Act of 1994.
Termination of certain maritime authority.
Armored Car Industry Reciprocity Act of 1993 amendments.
Labor Management Relations Act, 1947 amendment.
Inlands Waterway Revenue Act of 1978 amendment.
Noise Control Act of 1972 amendment.
Fair Labor Standards Act of 1938 amendment.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

401.
402.
403.
404.
405.
406.
407.
408.

TITLE IV—MISCELLANEOUS PROVISIONS
Certain commercial space launch activities.
Destruction of motor vehicles or motor vehicle facilities; wrecking trains.
Violation of grade-crossing laws and regulations.
Miscellaneous title 23 amendments.
Technical amendments.
Fiber drum packaging.
Noncontiguous domestic trade study.
Federal Highway Administration rulemaking.

SEC. 2. 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
49 USC 701 note.

SEC. 101. ABOLITION.

The Interstate Commerce Commission is abolished.
SEC. 102. RAIL PROVISIONS.

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

‘‘SUBTITLE IV—INTERSTATE
TRANSPORTATION
‘‘PART A—RAIL
‘‘CHAPTER
‘‘101. GENERAL PROVISIONS ..........................................................................
‘‘105. JURISDICTION ..........................................................................................
‘‘107. RATES .........................................................................................................
‘‘109. LICENSING ................................................................................................
‘‘111. OPERATIONS .............................................................................................
‘‘113. FINANCE ....................................................................................................
‘‘115. FEDERAL-STATE RELATIONS ...............................................................
‘‘117. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES ....
‘‘119. CIVIL AND CRIMINAL PENALTIES ......................................................

Sec.
10101
10501
10701
10901
11101
11301
11501
11701
11901

‘‘PART B—MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT
FORWARDERS
Sec.
‘‘CHAPTER
‘‘131. GENERAL PROVISIONS .......................................................................... 13101

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PUBLIC LAW 104–88—DEC. 29, 1995

109 STAT. 805

‘‘CHAPTER
‘‘133. ADMINISTRATIVE PROVISIONS ...........................................................
‘‘135. JURISDICTION ..........................................................................................
‘‘137. RATES AND THROUGH ROUTES ..........................................................
‘‘139. REGISTRATION .........................................................................................
‘‘141. OPERATIONS OF CARRIERS ..................................................................
‘‘143. FINANCE ....................................................................................................
‘‘145. FEDERAL-STATE RELATIONS ...............................................................
‘‘147. ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES .............
‘‘149. CIVIL AND CRIMINAL PENALTIES ......................................................

Sec.
13301
13501
13701
13901
14101
14301
14501
14701
14901

‘‘PART C—PIPELINE CARRIERS
‘‘CHAPTER
‘‘151. GENERAL PROVISIONS ..........................................................................
‘‘153. JURISDICTION ..........................................................................................
‘‘155. RATES AND TARIFFS ..............................................................................
‘‘157. OPERATIONS OF CARRIERS ..................................................................
‘‘159. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES ....
‘‘161. CIVIL AND CRIMINAL PENALTIES ......................................................

Sec.
15101
15301
15501
15701
15901
16101

‘‘PART A—RAIL
‘‘CHAPTER 101—GENERAL PROVISIONS
‘‘Sec.
‘‘10101. Rail transportation policy.
‘‘10102. Definitions.

‘‘§ 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;

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109 STAT. 806

PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(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.

‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

109 STAT. 807

‘‘CHAPTER 105—JURISDICTION
‘‘Sec.
‘‘10501. General jurisdiction.
‘‘10502. Authority to exempt rail carrier transportation.

‘‘§ 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

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109 STAT. 808

PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.

Federal Register,
publication.

Federal Register,
publication.

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‘‘§ 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. 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. 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

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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.
‘‘10741.
‘‘10742.
‘‘10743.
‘‘10744.
‘‘10745.
‘‘10746.
‘‘10747.

‘‘SUBCHAPTER III—LIMITATIONS
Prohibitions against discrimination by rail carriers.
Facilities for interchange of traffic.
Liability for payment of rates.
Continuous carriage of freight.
Transportation services or facilities furnished by shipper.
Demurrage charges.
Designation of certain routes by shippers.

‘‘SUBCHAPTER I—GENERAL AUTHORITY
‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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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.
‘‘§ 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—

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‘‘(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.
‘‘§ 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

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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

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109 STAT. 814

Records.
Confidentiality.

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resulting from such discussion or agreement, shall not be admissible
if the discussion or agreement—
‘‘(I) was in accordance with an agreement approved under
paragraph (2) of this subsection; or
‘‘(II) concerned an interline movement of the rail carrier,
and the discussion or agreement would not, considered by itself,
violate the laws referred to in the first sentence of this clause.
In any proceeding before a jury, the court shall determine whether
the requirements of subclause (I) or (II) are satisfied before allowing
the introduction of any such evidence.
‘‘(C) An organization described in subparagraph (A) of this
paragraph shall provide that transcripts or sound recordings be
made of all meetings, that records of votes be made, and that
such transcripts or recordings and voting records be submitted
to the 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

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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) 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.
‘‘§ 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.

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109 STAT. 816

PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.
Publication.

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‘‘§ 10708. 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

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109 STAT. 817

index that does not take into account changes in railroad
productivity.
‘‘§ 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. 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.

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Publication.
Public
information.
Rules.

109 STAT. 818

Termination
date.

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‘‘(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) 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.

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109 STAT. 819

‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES
‘‘§ 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.
‘‘§ 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
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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PUBLIC LAW 104–88—DEC. 29, 1995

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

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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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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‘‘(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.
‘‘10902.
‘‘10903.
‘‘10904.
‘‘10905.
‘‘10906.
‘‘10907.

Notice.

Certificate.

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Authorizing construction and operation of railroad lines.
Short line purchases by Class II and Class III rail carriers.
Filing and procedure for application to abandon or discontinue.
Offers of financial assistance to avoid abandonment and discontinuance.
Offering abandoned rail properties for sale for public purposes.
Exception.
Railroad development.

‘‘§ 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. 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) 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

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‘‘(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.
‘‘§ 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. On receiving the
application, the Board shall give reasonable public notice of the
beginning of such proceeding.
‘‘(c) 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.
‘‘§ 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.

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Notice.

Certificate.

109 STAT. 824

Notice.

Publication.
Newspapers.

Certification.

Publication.

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‘‘(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) 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) 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) 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. 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

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‘‘(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.
‘‘§ 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;

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109 STAT. 826

PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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

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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.
‘‘§ 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.
‘‘§ 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

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109 STAT. 828

PUBLIC LAW 104–88—DEC. 29, 1995

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.

Notification.
Federal Register,
publication.

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‘‘§ 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. 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

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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) 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.

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109 STAT. 830

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‘‘11122. Compensation and practice.
‘‘11123. Situations requiring immediate action to serve the public.
‘‘11124. War emergencies; embargoes imposed by carriers.
‘‘11141.
‘‘11142.
‘‘11143.
‘‘11144.
‘‘11145.

‘‘SUBCHAPTER III—REPORTS AND RECORDS
Definitions.
Uniform accounting system.
Depreciation charges.
Records: form; inspection; preservation.
Reports by rail carriers, lessors, and associations.

‘‘11161.
‘‘11162.
‘‘11163.
‘‘11164.

‘‘SUBCHAPTER IV—RAILROAD COST ACCOUNTING
Implementation of cost accounting principles.
Rail carrier cost accounting system.
Cost availability.
Accounting and cost reporting.

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

Publication.
Public
information.

Regulations.

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‘‘§ 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) 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) 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-

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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.
‘‘§ 11102. Use of terminal facilities
‘‘(a) The Board may require terminal facilities, including mainline 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.
‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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
Safety.

‘‘§ 11121. Criteria
‘‘(a)(1) 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.
‘‘§ 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-

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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.
‘‘§ 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 30day 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.

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‘‘(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.
‘‘§ 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
‘‘§ 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.
‘‘§ 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.
‘‘§ 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—

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‘‘(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.
‘‘§ 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.
‘‘§ 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
‘‘§ 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

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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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.
‘‘11322.
‘‘11323.
‘‘11324.
‘‘11325.
‘‘11326.
‘‘11327.
‘‘11328.

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Scope of authority.
Limitation on pooling and division of transportation or earnings.
Consolidation, merger, and acquisition of control.
Consolidation, merger, and acquisition of control: conditions of approval.
Consolidation, merger, and acquisition of control: procedure.
Employee protective arrangements in transactions involving rail carriers.
Supplemental orders.
Restrictions on officers and directors.

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‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY
INTERESTS
‘‘§ 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. 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.

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109 STAT. 838
Public
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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(f) 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
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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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.
‘‘§ 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. 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.

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‘‘(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.
‘‘§ 11325. Consolidation, merger, and acquisition of control:
procedure
‘‘(a) 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

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PUBLIC LAW 104–88—DEC. 29, 1995

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.
‘‘§ 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

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for a lesser period of time by the rail carrier before the action
became effective, for that lesser period).
‘‘(b) 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.
‘‘§ 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.
‘‘§ 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.

‘‘§ 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.

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‘‘(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.
‘‘§ 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.

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‘‘(b) A rail carrier withholding pay from an employee under
subsection (a) of this section shall file income tax information
returns and other reports only with the State and subdivision
of residence of the employee.
‘‘CHAPTER 117—ENFORCEMENT: INVESTIGATIONS,
RIGHTS, AND REMEDIES
‘‘Sec.
‘‘11701.
‘‘11702.
‘‘11703.
‘‘11704.
‘‘11705.
‘‘11706.
‘‘11707.

General authority.
Enforcement by the Board.
Enforcement by the Attorney General.
Rights and remedies of persons injured by rail carriers.
Limitation on actions by and against rail carriers.
Liability of rail carriers under receipts and bills of lading.
Liability when property is delivered in violation of routing instructions.

‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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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.
‘‘§ 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

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any one of the defendants. Process may be served on a defendant
at its principal operating office when that defendant is not in
the district in which the action is brought. A judgment ordering
recovery may be made in favor of any of those plaintiffs against
the defendant found to be liable to that plaintiff.
‘‘(3) The district court shall award a reasonable attorney’s fee
as a part of the damages for which a rail carrier is found liable
under this subsection. The district court shall tax and collect that
fee as a part of the costs of the action.
‘‘§ 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.
‘‘§ 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

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PUBLIC LAW 104–88—DEC. 29, 1995

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.

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‘‘(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.
§ ‘‘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) 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.
‘‘11902.
‘‘11903.
‘‘11904.
‘‘11905.
‘‘11906.
‘‘11907.
‘‘11908.

General civil penalties.
Interference with railroad car supply.
Record keeping and reporting violations.
Unlawful disclosure of information.
Disobedience to subpoenas.
General criminal penalty when specific penalty not provided.
Punishment of corporation for violations committed by certain individuals.
Relation to other Federal criminal penalties.

‘‘§ 11901. General civil penalties
‘‘(a) Except as otherwise provided in this section, a rail carrier
providing transportation subject to the jurisdiction of the Board

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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) 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.
‘‘§ 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

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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.
‘‘§ 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.
‘‘§ 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

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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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:

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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.

‘‘§ 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;

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‘‘(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.
‘‘§ 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

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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

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(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.

‘‘§ 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.
‘‘13302.
‘‘13303.
‘‘13304.

Powers.
Intervention.
Service of notice in proceedings.
Service of process in court proceedings.

‘‘§ 13301. Powers
‘‘(a) GENERAL POWERS OF SECRETARY.—Except as otherwise
specified, the Secretary shall carry out this part. Enumeration

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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.

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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.

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109 STAT. 859

‘‘CHAPTER 135—JURISDICTION
‘‘SUBCHAPTER I—MOTOR CARRIER TRANSPORTATION
‘‘Sec.
‘‘13501.
‘‘13502.
‘‘13503.
‘‘13504.
‘‘13505.
‘‘13506.
‘‘13507.
‘‘13508.

General jurisdiction.
Exempt transportation between Alaska and other States.
Exempt motor vehicle transportation in terminal areas.
Exempt motor carrier transportation entirely in one State.
Transportation furthering a primary business.
Miscellaneous motor carrier transportation exemptions.
Mixed loads of regulated and unregulated property.
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
‘‘§ 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.
‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

‘‘§ 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.
‘‘§ 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-

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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.
‘‘§ 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.
‘‘§ 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-

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PUBLIC LAW 104–88—DEC. 29, 1995
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;

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‘‘(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.
‘‘§ 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.
‘‘§ 13508. Limited authority over cooperative associations
‘‘(a) IN GENERAL.—Notwithstanding section 13506(a)(5), any
cooperative association (as defined by section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a))) or a federation of cooperative associations shall prepare and maintain such records relating
to transportation provided by such association or federation, in
such form as the Secretary or the 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—

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‘‘(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;

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‘‘(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
‘‘§ 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
‘‘§ 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

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‘‘(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
‘‘§ 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.

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‘‘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.

‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(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).

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‘‘§ 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) 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. 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-

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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.
‘‘§ 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;

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‘‘(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,

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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) 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

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a single motor carrier that is applicable only over its line and
for which the transportation can be provided by that carrier.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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-

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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.
‘‘§ 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.
‘‘§ 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,

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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.

Courts.

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‘‘§ 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) 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

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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-

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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.
‘‘§ 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

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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.
‘‘§ 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

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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

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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.
‘‘§ 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.
‘‘§ 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.
‘‘13902.
‘‘13903.
‘‘13904.
‘‘13905.
‘‘13906.
‘‘13907.
‘‘13908.

Requirement for registration.
Registration of motor carriers.
Registration of freight forwarders.
Registration of brokers.
Effective periods of registration.
Security of motor carriers, brokers, and freight forwarders.
Household goods agents.
Registration and other reforms.

‘‘§ 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.

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‘‘§ 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

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‘‘(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.

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‘‘(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.

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‘‘(4) PROTECTION OF EXISTING OPERATIONS.—Unless and
until the President, or the delegate thereof, makes a determination under paragraph (1) or (3), nothing in this subsection
shall affect—
‘‘(A) operations of motor carriers of property or passengers domiciled in any contiguous foreign country or
owned or controlled by persons of any contiguous foreign
country permitted in the commercial zones along the United
States-Mexico border as such zones were defined on the
day before the effective date of this section; or
‘‘(B) any existing restrictions on operations of motor
carriers of property or passengers domiciled in any contiguous foreign country or owned or controlled by persons
of any contiguous foreign country or any modifications
thereof pursuant to section 6 of the Bus Regulatory Reform
Act of 1982.
‘‘(5) PUBLICATION; COMMENT.—Unless the President, or the
delegate thereof, determines that expeditious action is required,
the President shall publish in the Federal Register any determination under paragraph (1) or (3), together with a description
of the facts on which such a determination is based and any
proposed action to be taken pursuant to paragraph (1)(B) or
(3), and provide an opportunity for public comment.
‘‘(6) DELEGATION TO SECRETARY.—The President may delegate any or all authority under this subsection to the Secretary,
who shall consult with other agencies as appropriate. In accordance with the directions of the President, the Secretary may
issue regulations to enforce this subsection.
‘‘(7) CIVIL ACTIONS.—Either the Secretary or the Attorney
General may bring a civil action in an appropriate district
court of the United States to enforce this subsection or a
regulation prescribed or order issued under this subsection.
The court may award appropriate relief, including injunctive
relief.
‘‘(8) LIMITATION ON STATUTORY CONSTRUCTION.—This subsection shall not be construed as affecting the requirement
for all foreign motor carriers 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.

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‘‘(e) MOTOR CARRIER DEFINED.—In this section and sections
13905 and 13906, the term ‘motor carrier’ includes foreign motor
private carriers.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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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.
‘‘§ 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

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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.

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‘‘(e) NOTICE OF CANCELLATION OF INSURANCE.—The Secretary
shall issue regulations requiring the submission to the Secretary
of notices of insurance cancellation sufficiently in advance of actual
cancellation so as to enable the Secretary to promptly revoke the
registration of any carrier or broker after the effective date of
the cancellation.
‘‘(f) FORM OF ENDORSEMENT.—The Secretary shall also prescribe
the appropriate form of endorsement to be appended to policies
of insurance and surety bonds which will subject the insurance
policy or surety bond to the full security limits of the coverage
required under this section.
‘‘§ 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

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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.
‘‘§ 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-

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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) shall transmit to Congress a report on any findings
of the rulemaking and the changes being implemented under

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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.
‘‘14102.
‘‘14103.
‘‘14104.

Providing transportation and service.
Leased motor vehicles.
Loading and unloading motor vehicles.
Household goods carrier operations.

‘‘SUBCHAPTER II—REPORTS AND RECORDS
‘‘14121. Definitions.
‘‘14122. Records: form; inspection; preservation.
‘‘14123. Financial reporting.

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘§ 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.
‘‘§ 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

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‘‘(4) have control of and be responsible for operating those
motor vehicles in compliance with requirements prescribed by
the Secretary on safety of operations and equipment, and with
other applicable law as if the motor vehicles were owned by
the motor carrier.
‘‘(b) RESPONSIBLE PARTY FOR LOADING AND UNLOADING.—The
Secretary shall require, by regulation, that any arrangement,
between a motor carrier of property providing transportation subject
to jurisdiction under subchapter I of chapter 135 and any other
person, under which such other person is to provide any portion
of such transportation by a motor vehicle not owned by the carrier
shall specify, in writing, who is responsible for loading and unloading the property onto and from the motor vehicle.
‘‘§ 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.
‘‘§ 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—

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‘‘(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.—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
‘‘§ 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.

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‘‘(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.
‘‘§ 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.
‘‘§ 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.

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‘‘(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.

‘‘§ 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-

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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.
‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(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

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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.
‘‘§ 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) 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.

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109 STAT. 898

PUBLIC LAW 104–88—DEC. 29, 1995

‘‘(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.
‘‘14502.
‘‘14503.
‘‘14504.
‘‘14505.

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Federal authority over intrastate transportation.
Tax discrimination against motor carrier transportation property.
Withholding State and local income tax by certain carriers.
Registration of motor carriers by a State.
State tax.

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109 STAT. 899

‘‘§ 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.—

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(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.

‘‘§ 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.

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‘‘(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.
‘‘§ 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

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under subchapter I of chapter 135 or by a motor private carrier
to an employee who performs regularly assigned duties in 2
or more States as such an employee with respect to a motor
vehicle shall be subject to the income tax laws of any State
or subdivision of that State, other than the State or subdivision
thereof of the employee’s residence.
‘‘(2) EMPLOYEE DEFINED.—In this subsection, the term
‘employee’ has the meaning given such term in section 31132.
‘‘(b) SPECIAL RULES.—
‘‘(1) CALCULATION OF EARNINGS.—In this subsection, an
employee is deemed to have earned more than 50 percent
of pay in a State or subdivision of that State in which the
time worked by the employee in the State or subdivision is
more than 50 percent of the total time worked by the employee
while employed during the calendar year.
‘‘(2) WATER CARRIERS.—A water carrier providing transportation subject to jurisdiction under subchapter II of chapter
135 shall file income tax information returns and other reports
only with—
‘‘(A) the State and subdivision of residence of the
employee (as shown on the employment records of the
carrier); and
‘‘(B) the State and subdivision in which the employee
earned more than 50 percent of the pay received by the
employee from the carrier during the preceding calendar
year.
‘‘(3) APPLICABILITY TO SAILORS.—This subsection applies
to pay of a master, officer, or sailor who is a member of
the crew on a vessel engaged in foreign, coastwise, intercoastal,
or noncontiguous trade or in the fisheries of the United States.
‘‘(c) FILING OF INFORMATION.—A motor and motor private carrier withholding pay from an employee under subsection (a) of
this section shall file income tax information returns and other
reports only with the State and subdivision of residence of the
employee.
‘‘§ 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;

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‘‘(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.

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(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.

‘‘§ 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.
‘‘14702.
‘‘14703.
‘‘14704.
‘‘14705.
‘‘14706.
‘‘14707.
‘‘14708.
‘‘14709.

General authority.
Enforcement by the regulatory authority.
Enforcement by the Attorney General.
Rights and remedies of persons injured by carriers or brokers.
Limitation on actions by and against carriers.
Liability of carriers under receipts and bills of lading.
Private enforcement of registration requirement.
Dispute settlement program for household goods carriers.
Tariff reconciliation rules for motor carriers of property.

‘‘§ 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

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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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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-

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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

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is brought. A judgment ordering recovery may be made in
favor of any of those plaintiffs against the defendant found
to be liable to that plaintiff.
‘‘(e) ATTORNEY’S FEES.—The district court shall award a reasonable attorney’s fee under this section. The district court shall tax
and collect that fee as part of the costs of the action.
‘‘§ 14705. Limitation on actions by and against carriers
‘‘(a) IN GENERAL.—A carrier providing transportation or service
subject to jurisdiction under chapter 135 must begin a civil action
to recover charges for transportation or service provided by the
carrier within 18 months after the claim accrues.
‘‘(b) OVERCHARGES.—A person must begin a civil action to
recover overcharges within 18 months after the claim accrues. If
the claim is against a carrier providing transportation subject to
jurisdiction under chapter 135 and an election to file a complaint
with the 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.
‘‘§ 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

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Courts.

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109 STAT. 908

PUBLIC LAW 104–88—DEC. 29, 1995

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

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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

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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.
‘‘§ 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.
‘‘§ 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.

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‘‘(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

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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. 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.
‘‘§ 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

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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.
‘‘14902.
‘‘14903.
‘‘14904.
‘‘14905.
‘‘14906.
‘‘14907.
‘‘14908.
‘‘14909.
‘‘14910.
‘‘14911.
‘‘14912.
‘‘14913.
‘‘14914.

General civil penalties.
Civil penalty for accepting rebates from carrier.
Tariff violations.
Additional rate violations.
Penalties for violations of rules relating to loading and unloading motor vehicles.
Evasion of regulation of carriers and brokers.
Recordkeeping and reporting violations.
Unlawful disclosure of information.
Disobedience to subpoenas.
General civil penalty when specific penalty not provided.
Punishment of corporation for violations committed by certain individuals.
Weight-bumping in household goods transportation.
Conclusiveness of rates in certain prosecutions.
Civil penalty procedures.

‘‘§ 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

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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.

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‘‘§ 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.
‘‘§ 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.
‘‘§ 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,

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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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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;

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is liable to the United States for a civil penalty of not more than
$5,000.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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PUBLIC LAW 104–88—DEC. 29, 1995

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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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(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’’.

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49 USC 13906
note.

5 USC 8332 note.

Regulations.

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(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) 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 selfinsurers; 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. CREDITABILITY OF ANNUAL LEAVE FOR PURPOSES OF
MEETING MINIMUM ELIGIBILITY REQUIREMENTS FOR AN
IMMEDIATE ANNUITY.

(a) IN GENERAL.—An employee of the Interstate Commerce
Commission who is separated from Government service pursuant
to the abolition of that agency under section 101 shall, upon appropriate written application, be given credit, for purposes of determining eligibility for and computing the amount of any annuity under
subchapter III of chapter 83 or chapter 84 of title 5, United States
Code, for accrued annual leave standing to such employee’s credit
at the time of separation.
(b) LIMITATION AND OTHER CONDITIONS.—Any regulations necessary to carry out this section shall be prescribed by the Office
of Personnel Management. Such regulations shall include provisions—
(1) defining the types of leave for which credit may be
given under this section (such definition to be similar to the
corresponding provisions of the regulations under section
351.608(c)(2) of title 5 of the Code of Federal Regulations,
as in effect on the date of the enactment of this Act);
(2) limiting the amount of accrued annual leave which
may be used for the purposes specified in subsection (a) to
the minimum period of time necessary in order to permit such
employee to attain first eligibility for an immediate annuity
under section 8336, 8412, or 8414 of title 5, United States
Code (in a manner similar to the corresponding provisions
of the regulations referred to in paragraph (1));
(3) under which contributions (or arrangements for the
making of contributions) shall be made so that—

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(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.

‘‘§ 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.
‘‘§ 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.

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‘‘(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.

‘‘§ 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.

‘‘§ 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

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unless the State requirement is inconsistent with an order of the
Board issued under this part or is prohibited under this part.
‘‘§ 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.

‘‘§ 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.
‘‘§ 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

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘(2) rules and practices on matters related to that transportation or service.

‘‘§ 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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

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
‘‘§ 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

‘‘§ 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

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PUBLIC LAW 104–88—DEC. 29, 1995
pipeline carriers that performs a service, or engages in activities, related to transportation under this part.

‘‘§ 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.
‘‘§ 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.
‘‘15902.
‘‘15903.
‘‘15904.
‘‘15905.
‘‘15906.
‘‘15907.

General authority.
Enforcement by the Board.
Enforcement by the Attorney General.
Rights and remedies of persons injured by certain carriers.
Limitation on actions by and against pipeline carriers.
Liability of pipeline carriers under receipts and bills of lading.
Liability when property is delivered in violation of routing instructions.

‘‘§ 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

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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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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.

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109 STAT. 928

Courts.

Claims.

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‘‘(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.—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.

‘‘§ 15905. Limitation on actions by and against pipeline 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—

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‘‘(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.
‘‘§ 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.

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PUBLIC LAW 104–88—DEC. 29, 1995
‘‘CHAPTER 161—CIVIL AND CRIMINAL PENALTIES
‘‘CHAPTER 161—CIVIL AND CRIMINAL PENALTIES

‘‘Sec.
‘‘16101.
‘‘16102.
‘‘16103.
‘‘16104.
‘‘16105.
‘‘16106.

General civil penalties.
Recordkeeping and reporting violations.
Unlawful disclosure of information.
Disobedience to subpenas.
General criminal penalty when specific penalty not provided.
Punishment of corporation for violations committed by certain individuals.

‘‘§ 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.
‘‘§ 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.

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‘‘§ 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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 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

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109 STAT. 932

49 USC 15101
note.

PUBLIC LAW 104–88—DEC. 29, 1995

by that carrier are considered to be the actions and omissions
of that carrier as well as that individual.’’.
(b) 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.
‘‘702.
‘‘703.
‘‘704.
‘‘705.
‘‘706.

Establishment of Board.
Functions.
Administrative provisions.
Annual report.
Authorization of appropriations.
Reporting official action.

‘‘721.
‘‘722.
‘‘723.
‘‘724.
‘‘725.
‘‘726.
‘‘727.

‘‘SUBCHAPTER II—ADMINISTRATIVE
Powers.
Board action.
Service of notice in Board proceedings.
Service of process in court proceedings.
Administrative support.
Railroad-Shipper Transportation Advisory Council.
Definitions.

‘‘SUBCHAPTER I—ESTABLISHMENT

President.

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‘‘§ 701. Establishment of Board
‘‘(a) ESTABLISHMENT.—There is hereby established within the
Department of Transportation the Surface Transportation Board.
‘‘(b) MEMBERSHIP.—(1) 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

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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) 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 fulltime 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.
‘‘§ 702. Functions
‘‘Except as otherwise provided in the ICC Termination Act
of 1995, or the amendments made thereby, the Board shall perform

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PUBLIC LAW 104–88—DEC. 29, 1995

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.
‘‘§ 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.
‘‘§ 704. Annual report
‘‘The Board shall annually transmit to the Congress a report
on its activities.
‘‘§ 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.
‘‘§ 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.

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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
‘‘§ 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) The district courts of the United States have jurisdiction
to enforce a subpoena issued under this section. Trial is in the

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Courts.

109 STAT. 936

PUBLIC LAW 104–88—DEC. 29, 1995

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.
‘‘§ 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.

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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.
‘‘§ 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.
‘‘§ 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.
‘‘§ 725. Administrative support
‘‘The Secretary of Transportation shall provide administrative
support for the Board.
‘‘§ 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-

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109 STAT. 938

PUBLIC LAW 104–88—DEC. 29, 1995

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

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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

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PUBLIC LAW 104–88—DEC. 29, 1995

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.
‘‘§ 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:
‘‘7. SURFACE TRANSPORTATION BOARD .................................................
49 USC 701 note.

701’’.

SEC. 202. 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.

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PUBLIC LAW 104–88—DEC. 29, 1995

109 STAT. 941

SEC. 203. TRANSFER OF ASSETS AND PERSONNEL.

49 USC 701 note.

(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. SAVING PROVISIONS.

49 USC 701 note.

(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

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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

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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.
49 USC 701 note.

SEC. 205. REFERENCES.

Any reference to the Interstate Commerce Commission in any
other Federal law, Executive order, rule, regulation, or delegation
of authority, or any document of or pertaining to the Interstate
Commerce Commission or an officer or employee of the Interstate
Commerce Commission, is deemed to refer to the 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:
‘‘§ 1162. Definition
‘‘In this subchapter, ‘Board’ means the ‘Surface Transportation
Board’.’’; and
(2) by striking ‘‘Commission’’ each place it appears and
inserting in lieu thereof ‘‘Board’’.

11 USC 1164,
1170, 1172.

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 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 are each amended by striking ‘‘domestic

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26 USC 168.

26 USC 281.

109 STAT. 944

26 USC 354.

26 USC 3231.

26 USC 7701.

PUBLIC LAW 104–88—DEC. 29, 1995

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 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 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 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’’;

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PUBLIC LAW 104–88—DEC. 29, 1995

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(B) by striking ‘‘Commission’s’’ in the section heading
to section 2321 and inserting in lieu thereof ‘‘Board’s’’;
(C) 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—

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28 USC 2321,
2323.

109 STAT. 946

39 USC 5201,
5203, 5207–5209,
5212, 5215.

PUBLIC LAW 104–88—DEC. 29, 1995
(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) 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)’’.

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PUBLIC LAW 104–88—DEC. 29, 1995

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 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’’;

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49 USC 30166.

109 STAT. 948

PUBLIC LAW 104–88—DEC. 29, 1995

(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.
2 USC 451.

Section 401 of the Federal Election Campaign Act of 1971
is amended—
(1) by striking ‘‘Interstate Commerce Commission shall
each promulgate, within ninety days after the date of enactment
of this Act’’ and inserting in lieu thereof ‘‘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’’.

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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)—
(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) by striking ‘‘Interstate Commerce
Commission’’ and inserting in lieu thereof ‘‘Surface Transportation Board’’.

16 USC 1247.

16 USC 1248.

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) 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

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15 USC 26.

109 STAT. 950

PUBLIC LAW 104–88—DEC. 29, 1995
(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.

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PUBLIC LAW 104–88—DEC. 29, 1995

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)—

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109 STAT. 952

PUBLIC LAW 104–88—DEC. 29, 1995
(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

49 USC 797l.

II RAILROADS RECEIVING FEDERAL ASSISTANCE

‘‘SEC. 713. 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).

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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
PROTECTION ACT AMENDMENTS.

WORKER

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) is repealed.
SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHORITY.

(a) 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) REPEAL OF PROVISIONS OF SHIPPING ACT, 1916.—The following provisions of the Shipping Act, 1916 are repealed effective
September 30, 1996:

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49 USC 10521
note.
Effective date.

Effective date.

109 STAT. 954

PUBLIC LAW 104–88—DEC. 29, 1995
(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
AMENDMENTS.

RECIPROCITY

ACT

OF

1993

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.’’.

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PUBLIC LAW 104–88—DEC. 29, 1995

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. 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

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42 USC 4332
note.

109 STAT. 956

PUBLIC LAW 104–88—DEC. 29, 1995

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.

49 USC 31310
note.

(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) 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.
Effective date.

23 USC 127.

23 USC 149.

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(a) 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) 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) 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

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PUBLIC LAW 104–88—DEC. 29, 1995

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).
(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. FIBER DRUM PACKAGING.

(a) 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) 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

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16 USC 1261.

49 USC 5103
note.
Rules.

Contracts.

109 STAT. 958

Regulations.

PUBLIC LAW 104–88—DEC. 29, 1995

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) 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.
49 USC 31136
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SEC. 408. 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.

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(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):
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.

Æ

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