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   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES        Report
                                                       104-311
_______________________________________________________________________


                      ICC TERMINATION ACT OF 1995

                               ----------                              

                              R E P O R T

                                 of the

                      COMMITTEE ON TRANSPORTATION
                           AND INFRASTRUCTURE
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 2539

                             together with

                     MINORITY AND ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]




November 6, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
   104th Congress 1st   HOUSE OF REPRESENTATIVES        Report
         Session
                                                       104-311
_______________________________________________________________________




                      ICC TERMINATION ACT OF 1995

                               __________

                              R E P O R T

                                 of the

                      COMMITTEE ON TRANSPORTATION
                           AND INFRASTRUCTURE
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 2539

                             together with


                     MINORITY AND ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]




November 6, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
ICC TERMINATION ACT OF 1995
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-311
_______________________________________________________________________


                     ICC TERMINATION ACT OF 1995

                                _______


November 6, 1995.--Committed to the Committee on the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 2539]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2539) 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, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``ICC Termination Act of 1995''.

          TITLE I--ABOLITION OF INTERSTATE COMMERCE COMMISSION

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                                                          Sec.
``101. GENERAL PROVISIONS..................................       10101
``103. JURISDICTION........................................       10301
``105. RATES...............................................       10501
``107. LICENSING...........................................       10701
``109. OPERATIONS..........................................       10901
``111. FINANCE.............................................       11101
``113. FEDERAL-STATE RELATIONS.............................       11301
``115. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES...       11501
``117. CIVIL AND CRIMINAL PENALTIES........................       11701

    ``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
                               FORWARDERS

``Chapter                                                          Sec.
``131. GENERAL PROVISIONS..................................       13101
``133. ADMINISTRATIVE PROVISIONS...........................       13301
``135. JURISDICTION........................................       13501
``137. RATES AND THROUGH ROUTES............................       13701
``139. REGISTRATION........................................       13901
``141. OPERATIONS OF CARRIERS..............................       14101
``143. FINANCE.............................................       14301
``145. FEDERAL-STATE RELATIONS.............................       14501
``147. ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES.......       14701
``149. CIVIL AND CRIMINAL PENALTIES........................       14901

                             ``PART A--RAIL

                   ``CHAPTER 101--GENERAL PROVISIONS

``Sec.
``10101. Rail transportation policy.
``10102. Definitions.
``10103. Remedies are exclusive.

``Sec. 10101. Rail transportation policy

  ``In regulating the railroad industry, it is the policy of the United 
States Government--
          ``(1) to allow, to the maximum extent possible, competition 
        and the demand for services to establish reasonable rates for 
        transportation by rail;
          ``(2) to minimize the need for Federal regulatory control 
        over the rail transportation system and to require fair and 
        expeditious regulatory decisions when regulation is required;
          ``(3) to promote a safe and efficient rail transportation 
        system by allowing rail carriers to earn adequate revenues, as 
        determined by the Panel;
          ``(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;
          ``(12) 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; and
          ``(14) to encourage and promote energy conservation.

``Sec. 10102. Definitions

  ``In this part--
          ``(1) `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;
          ``(2) `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;
          ``(3) `Panel' means the Transportation Adjudication Panel;
          ``(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 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, fare, 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, 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.

``Sec. 10103. Remedies are exclusive

  ``Except as otherwise provided in this part, the remedies provided 
under this part are exclusive and preempt the remedies provided under 
Federal or State law.

                      ``CHAPTER 103--JURISDICTION

``Sec.
``10301. General jurisdiction.
``10302. Authority to exempt rail carrier transportation.

``Sec. 10301. General jurisdiction

  ``(a)(1) Subject to this chapter and other law, the Panel 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;
          ``(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 Panel 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.
  ``(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 Panel 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
          ``(iii) employment retirement, annuity, and unemployment 
        systems or other provisions related to dealings between 
        employees and employers.
  ``(B) The Panel has jurisdiction under sections 10902 and 10903 of 
this title over mass transportation provided by a local governmental 
authority.

``Sec. 10302. Authority to exempt rail carrier transportation

  ``(a) In a matter related to a rail carrier providing transportation 
subject to the jurisdiction of the Panel under this part, the Panel, to 
the maximum extent consistent with this part, shall exempt a person, 
class of persons, or a transaction or service whenever the Panel finds 
that the application 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 of the provision is not needed 
                to protect shippers from the abuse of market power.
  ``(b) The Panel 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 Panel shall, within 90 days 
after receipt of any such application, determine whether to begin an 
appropriate proceeding. If the Panel decides not to begin a 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 one year after it is begun.
  ``(c) The Panel may specify the period of time during which an 
exemption granted under this section is effective.
  ``(d) The Panel may revoke an exemption, to the extent it specifies, 
when it finds that application 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 Panel shall, 
within 90 days after receipt of a request for revocation under this 
subsection, determine whether to begin an appropriate proceeding. If 
the Panel decides not to begin a proceeding, 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 one year 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 11506 of this title. Nothing in this 
subsection or section 11506 of this title shall prevent rail carriers 
from offering alternative terms nor give the Panel the authority to 
require any specific level of rates or services based upon the 
provisions of section 11506 of this title.
  ``(f) The Panel may exercise its authority under this section to 
exempt transportation that is provided by a rail carrier.
  ``(g) The Panel 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 105--RATES

                   ``SUBCHAPTER I--GENERAL AUTHORITY

``Sec.

``10501. Standards for rates, classifications, through routes, rules, 
and practices.
``10502. Authority for rail carriers to establish rates, 
classifications, rules, and practices.
``10503. Authority for rail carriers to establish through routes.
``10504. Authority and criteria: rates, classifications, rules, and 
practices prescribed by Panel.
``10505. Authority: through routes, joint classifications, rates, and 
divisions prescribed by Panel.
``10506. Rate agreements: exemption from antitrust laws.
``10507. Determination of market dominance in rail rate proceedings.
``10508. Inflation-based rate increases.
``10509. Contracts.

                 ``SUBCHAPTER II--SPECIAL CIRCUMSTANCES

``10521. Government traffic.
``10522. Emergency rates.
``10523. Car utilization.

                     ``SUBCHAPTER III--LIMITATIONS

``10541. Prohibitions against discrimination by rail carriers.
``10542. Facilities for interchange of traffic.
``10543. Continuous carriage of freight.
``10544. Transportation services or facilities furnished by shipper.
``10545. Demurrage charges.
``10546. Designation of certain routes by shippers.

                   ``SUBCHAPTER I--GENERAL AUTHORITY

``Sec. 10501. 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 Panel 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 Panel 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 transporation subject to the jurisdiction of the Panel under 
this part may establish any rate for transportation or other service 
provided by the rail carrier.
  ``(d)(1) If the Panel determines, under section 10507 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.
  ``(2) In determining whether a rate established by a rail carrier is 
reasonable for purposes of this section, the Panel shall recognize the 
policy of this part that rail carriers shall earn adequate revenues, as 
established by the Panel under section 10504(a)(2) of this title.
  ``(3) The Panel shall, within one year after the date of the 
enactment of this paragraph, complete the pending Interstate Commerce 
Commission non-coal rate guidelines proceeding to establish simplified 
and expedited procedures for the determination of rate reasonableness 
cases in which a presentation of constrained market pricing evidence is 
impractical.

``Sec. 10502. Authority for rail carriers to establish rates, 
                    classifications, rules, and practices

  ``A rail carrier providing transportation or service subject to the 
jurisdiction of the Panel under this part shall establish reasonable--
          ``(1) rates, including divisions of joint rates, and 
        classifications for transportation and service it may provide 
        under this part; and
          ``(2) rules and practices on matters related to that 
        transportation or service.

``Sec. 10503. Authority for rail carriers to establish through routes

  ``Rail carriers providing transportation subject to the jurisdiction 
of the Panel under this part shall establish through routes with each 
other, shall establish rates and classifications applicable to those 
routes, and shall establish rules for their operation and provide--
          ``(1) reasonable facilities for operating the through route; 
        and
          ``(2) reasonable compensation to persons entitled to 
        compensation for services related to the through route.

``Sec. 10504. Authority and criteria: rates, classifications, rules, 
                    and practices prescribed by Panel

  ``(a)(1) When the Panel, after a full hearing, decides that a rate 
charged or collected by a rail carrier for transportation subject to 
the jurisdiction of the Panel under this part, or that a 
classification, rule, or practice of that carrier does or will violate 
this part, the Panel may prescribe the maximum rate, classification, 
rule, or practice to be followed. The Panel 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 Panel.
  ``(2) The Panel 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 Panel 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 Panel shall annually determine which rail carriers 
are earning adequate revenues.
  ``(b) The Panel may begin a proceeding under this section on its own 
initiative or on complaint. A complaint under subsection (a) of this 
section must be made under section 11501 of this title, but the 
proceeding may also be in extension of a complaint pending before the 
Panel.

``Sec. 10505. Authority: through routes, joint classifications, rates, 
                    and divisions prescribed by Panel

  ``(a)(1) The Panel 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 Panel under this 
part.
  ``(2) The Panel 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--
          ``(A) required under sections 10541, 10542, or 11101 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 Panel decides that the proposed through route is 
        needed to provide adequate, and more efficient or economic, 
        transportation.
The Panel shall give reasonable preference, subject to this subsection, 
to the rail carrier originating the traffic when prescribing through 
routes.
  ``(b) The Panel 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 10503 of 
this title, or under a decision of the Panel under subsection (a) of 
this section, does or will violate section 10501 of this title.
  ``(c) If a division of a joint rate prescribed under a decision of 
the Panel is later found to violate section 10501 of this title, the 
Panel 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 Panel decides is justified. The Panel may make a decision under 
this subsection effective as part of its original decision.

``Sec. 10506. 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 Panel shall by regulation 
        prescribe.
  ``(2)(A) A rail carrier providing transportation subject to the 
jurisdiction of the Panel 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 Panel for 
approval of that agreement under this subsection. The Panel 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 Panel approves the agreement, it may be made and 
carried out under its terms and under the conditions required by the 
Panel, 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 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 Panel 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 Panel may approve an agreement under subparagraph (A) of 
this paragraph only when the rail carriers applying for approval file a 
verified statement with the Panel. 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 Panel 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 Panel 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 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 Panel 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 
Panel 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 Panel 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 Panel 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 Panel under this 
part, for use by such rail carriers of rolling stock owned or leased by 
such shippers, the shippers shall apply to the Panel for approval of 
that agreement under this paragraph. The Panel 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 Panel approves the agreement, it may be made and 
carried out under its terms and under the terms required by the Panel, 
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 Panel 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 Panel 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 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 Panel. The Panel 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 Panel.
  ``(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 Panel may require an organization established or continued 
under an agreement approved under this section to maintain records and 
submit reports. The Panel may inspect a record maintained under this 
section.
  ``(c) The Panel 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 Panel 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 Panel may begin a proceeding under this section on its own 
initiative or on application. Action of the Panel 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) The Panel shall review each agreement approved under subsection 
(a) of this section periodically, but at least once every 3 years--
          ``(1) to determine whether the agreement or an organization 
        established or continued under one of those agreements still 
        complies with the requirements of that subsection and the 
        public interest; and
          ``(2) to evaluate the success and effect of that agreement or 
        organization on the consuming public and the national rail 
        freight transportation system.
If the Panel finds that an agreement or organization does not conform 
to the requirements of that subsection, it shall end or suspend its 
approval.
  ``(f)(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 Panel 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 Panel under this subsection shall be 
published and made available to the public under section 552(a) of 
title 5.

``Sec. 10507. 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.
  ``(b) When a rate for transportation by a rail carrier providing 
transportation subject to the jurisdiction of the Panel under this part 
is challenged as being unreasonably high, the Panel shall determine, 
within 90 days after the start of a proceeding, whether the rail 
carrier proposing the rate has market dominance over the transportation 
to which the rate applies. The Panel may make that determination on its 
own initiative or on complaint. A finding by the Panel 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 Panel or set aside by a court of competent 
jurisdiction.
  ``(c) When the Panel 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 Panel 
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 Class I rail 
carrier shall be determined only by using such carrier's unadjusted 
costs, calculated using the Panel's Rail Form A cost finding 
methodology (or an alternative methodology adopted by the Panel 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 Panel. 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 Panel 
shall prescribe.
  ``(2) A finding by the Panel that a rate charged by a rail carrier 
results in a revenue-variable cost percentage for the transportation to 
which the rate applies that is equal to or greater than 180 percent 
does not establish a presumption that--
          ``(A) such rail carrier has or does not have market dominance 
        over such transportation; or
          ``(B) the proposed rate exceeds or does not exceed a 
        reasonable maximum.

``Sec. 10508. Inflation-based rate increases

  ``(a) The Panel may, on a quarterly basis and consistent with the 
rail transportation policy set forth in section 10101 of this title, 
prescribe a percentage rate index for rail carriers in order to 
compensate for inflationary cost increases. Such percentage rate index 
may be applicable on an industry-wide, territory-wide, or carrier-by-
carrier basis.
  ``(b) For purposes of this section, a percentage rate index may 
permit rate increases within a specified range to allow carriers to 
recover a total revenue increase specified by the Panel as necessary to 
compensate for inflationary cost increases.
  ``(c) The Panel 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 Panel, 
with appropriate adjustments to reflect the changing 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.

``Sec. 10509. Contracts

  ``(a) One or more rail carriers providing transportation subject to 
the jurisdiction of the Panel 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 Panel 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.
  ``(d) 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.

                 ``SUBCHAPTER II--SPECIAL CIRCUMSTANCES

``Sec. 10521. Government traffic

  ``A rail 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 rail carrier lawfully operating in the area where 
the transportation would be provided.

``Sec. 10522. Emergency rates

  ``(a) The Panel may authorize a rail carrier providing transportation 
or service subject to its jurisdiction under this part to give reduced 
rates for service and transportation of property to or from an area in 
the United States to provide relief during emergencies. When the Panel 
takes action under this subsection, it must--
          ``(1) define the area of the United States in which the 
        reduced rates will apply;
          ``(2) specify the period during which the reduced rates are 
        to be in effect; and
          ``(3) define the class of persons entitled to the reduced 
        rates.
  ``(b) The Panel may specify those persons entitled to reduced rates 
by reference to those persons designated as being in need of relief by 
the United States Government or by a State government authorized to 
assist in providing relief during the emergency. The Panel may act 
under this section without regard to subchapter II of chapter 5 of 
title 5.

``Sec. 10523. 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 Panel shall facilitate development of such charges so as to 
increase the utilization of equipment.

                     ``SUBCHAPTER III--LIMITATIONS

``Sec. 10541. Prohibitions against discrimination by rail carriers

  ``(a)(1) A rail carrier providing transportation or service subject 
to the jurisdiction of the Panel 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 10509 of this title;
          ``(2) rail rates applicable to different routes; or
          ``(3) discrimination against the traffic of another carrier 
        providing transportation by any mode.
  ``(c) Differences between rates, classifications, rules, and 
practices of rail carriers do not constitute a violation of this 
section if such differences result from different services provided by 
rail carriers.

``Sec. 10542. Facilities for interchange of traffic

  ``A rail carrier providing transportation subject to the jurisdiction 
of the Panel 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.

``Sec. 10543. Continuous carriage of freight

  ``A rail carrier providing transportation or service subject to the 
jurisdiction of the Panel under this part may not enter a combination 
or arrangement to prevent the carriage of freight from being continuous 
from the place of shipment to the place of destination whether by 
change of time schedule, carriage in different cars, or by other means. 
The carriage of freight by those rail carriers is considered to be a 
continuous carriage from the place of shipment to the place of 
destination when a break of bulk, stoppage, or interruption is not made 
in good faith for a necessary purpose, and with the intent of avoiding 
or unnecessarily interrupting the continuous carriage or of evading 
this part.

``Sec. 10544. Transportation services or facilities furnished by 
                    shipper

  ``A rail carrier providing transportation or service subject to the 
jurisdiction of the Panel under this part may publish 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 Panel 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 Panel may begin a proceeding under 
this section on its own initiative or on application.

``Sec. 10545. Demurrage charges

  ``A rail carrier providing transportation subject to the jurisdiction 
of the Panel under this part shall compute demurrage charges, and 
establish rules related to those charges, in a way that fulfills the 
national needs related to--
          ``(1) freight car use and distribution; and
          ``(2) maintenance of an adequate supply of freight cars to be 
        available for transportation of property.

``Sec. 10546. 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 Panel 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
          ``(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 Panel may prescribe exceptions to the authority of a person 
to direct the movement of traffic under subsection (a) of this section.

                        ``CHAPTER 107--LICENSING

``Sec.
``10701. Authorizing construction and operation of railroad lines.
``10702. Finance and construction transactions by Class II and Class 
III rail carriers and noncarriers.
``10703. Filing and procedure for notice of intent to abandon or 
discontinue.
``10704. Offers to purchase to avoid abandonment and discontinuance.
``10705. Offering abandoned rail properties for sale for public 
purposes.
``10706. Exception.

``Sec. 10701. Authorizing construction and operation of railroad lines

  ``(a) A rail carrier providing transportation subject to the 
jurisdiction of the Panel under this part may--
          ``(1) construct an extension to any of its railroad lines;
          ``(2) construct an additional railroad line;
          ``(3) acquire or operate an extended or additional railroad 
        line; or
          ``(4) provide transportation over, or by means of, an 
        extended or additional railroad line;
only if the Panel 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 Panel shall give reasonable public notice of the 
beginning of such proceeding.
  ``(c) The Panel shall issue a certificate authorizing activities for 
which such authority is requested in an application filed under 
subsection (b) unless the Panel 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 the Panel 
finds necessary in the public interest.
  ``(d)(1) When a certificate has been issued by the Panel under this 
section or section 10702 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
          ``(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 Panel for 
determination. The Panel shall make a determination under this 
paragraph within 90 days after the dispute is submitted for 
determination.
  ``(e) The Panel may require any rail carrier proposing both to 
construct and operate a new railroad line pursuant to this section to 
provide a fair and equitable arrangement for the protection of the 
interests of railroad employees who may be affected thereby no less 
protective of and beneficial to the interests of such employees than 
those established pursuant to section 11126 of this title.
  ``(f) Subsections (a), (b), (c), and (e) of this section shall only 
apply to Class I rail carriers.

``Sec. 10702. Finance and construction transactions by Class II and 
                    Class III rail carriers and noncarriers

  ``(a)(1) A Class II or Class III (as defined by the Panel) rail 
carrier providing transportation subject to the jurisdiction of the 
Panel under this part, or a noncarrier, may--
          ``(A) construct an extension of any of its railroad lines;
          ``(B) construct an additional railroad line; or
          ``(C) acquire or operate a railroad line,
only if the Panel issues a certificate authorizing such activity under 
subsection (c).
  ``(2) A certificate issued by the Panel under subsection (c) shall 
also be required for--
          ``(A) a Class II or Class III rail carrier providing 
        transportation subject to the jurisdiction of the Panel under 
        this part, or a noncarrier to provide transportation over, or 
        by means of, a railroad line by trackage rights, lease, or 
        joint ownership or joint use of the railroad line (and 
        terminals incidental thereto);
          ``(B) a consolidation or merger of the properties or 
        franchises of at least 2 Class II or Class III rail carriers 
        into one corporation for the ownership, management, and 
        operation of the previously separately owned properties;
          ``(C) the acquisition of control of a Class II or Class III 
        rail carrier by one or more Class II or Class III rail 
        carriers;
          ``(D) the acquisition of control of at least 2 Class II or 
        Class III rail carriers by a person that is not a rail carrier; 
        and
          ``(E) the acquisition of control of a Class II or Class III 
        rail carrier by a person that is not a rail carrier but that 
        controls at least one Class II or Class III rail carrier.
  ``(b) A proceeding to grant authority under subsection (a) begins 
when an application is filed. On receiving the application, the Panel 
shall give reasonable public notice of the beginning of such 
proceeding.
  ``(c) The Panel shall issue a certificate authorizing activities for 
which such authority is requested in an application filed under 
subsection (b) unless the Panel finds that such activities are 
inconsistent with the public convenience and necessity because--
          ``(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.
Such certificate may approve the application as filed, or with 
modifications, and may require compliance with conditions the Panel 
finds necessary in the public interest.
  ``(d) When a person is involved in a transaction for which approval 
is sought under this section, the Panel shall require such person to 
protect the interest of affected employees to an extent equal to the 
protection required under sections 2 through 5 of the Worker Adjustment 
and Retraining Notification Act (29 U.S.C. 2101-2104).
  ``(e) The authority of the Panel over transactions described in 
subsection (a)(2) is exclusive. A rail carrier or corporation 
participating in or resulting from such a transaction 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 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.

``Sec. 10703. Filing and procedure for notice of intent to abandon or 
                    discontinue

  ``(a)(1) A rail carrier providing transportation subject to the 
jurisdiction of the Panel 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 a notice of intent relating thereto with the Panel. An 
abandonment or discontinuance may be carried out only as authorized 
under this chapter.
  ``(2) When a rail carrier providing transportation subject to the 
jurisdiction of the Panel under this part files a notice of intent, the 
notice 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 Panel on the future of 
        the rail line; and
          ``(C)(i) a statement that the line is available for sale in 
        accordance with section 10704 of this title, (ii) a statement 
        that the rail carrier will promptly provide to each interested 
        party an estimate of the minimum purchase price, calculated in 
        accordance with section 10704 of this title and (iii) the name 
        and business address of the person who is authorized to discuss 
        sale terms for the rail carrier.
  ``(3) The rail carrier shall--
          ``(A) send by certified mail a copy of the notice of intent 
        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 Panel) of the railroad line during the 12 months 
        preceding the filing of the notice of intent; and
          ``(E) attach to the notice filed with the Panel 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 notice of intent is 
        filed.
  ``(b)(1) Except as provided in paragraph (2) or subsection (d), 
abandonment and discontinuance may occur as provided in section 10704.
  ``(2) If, after considering the scope of an abandonment or 
discontinuance proposed in a notice of intent filed under this section, 
the Panel considers it necessary, to improve the viability of the lines 
included within the proposed abandonment or discontinuance for possible 
sale or transfer and continued operation, and to enhance competitive 
alternatives in the event of such sale or transfer, the Panel may 
require the filing of a new notice of intent which enlarges the scope 
of the proposed abandonment or discontinuance or provides for 
appropriate trackage rights.
  ``(3) The Panel 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 11126 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 
Panel. 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 Panel 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
          ``(B) identify each railroad line for which the rail carrier 
        plans to file a notice of intent to abandon or discontinue 
        under subsection (a) of this section.
  ``(d) The Panel may disapprove a proposed abandonment or 
discontinuance if the Panel finds it inconsistent with the public 
convenience and necessity.

``Sec. 10704. Offers to purchase to avoid abandonment and 
                    discontinuance

  ``(a) Any rail carrier which has filed a notice of intent to abandon 
or discontinue shall provide promptly to a party considering an offer 
to purchase and shall provide concurrently to the Panel--
          ``(1) a statement of the minimum purchase price required;
          ``(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 commercial potential of the railroad line; and
          ``(4) any other information that the Panel considers 
        necessary to allow a potential offeror to calculate an adequate 
        purchase offer.
  ``(b) Within 6 months after a notice of intent is filed under section 
10703, any person may offer to purchase the railroad line that is the 
subject of such notice of intent. Such offer shall be filed 
concurrently with the Panel. If the offer to purchase is less than the 
minimum purchase price stated pursuant to subsection (a)(1), the offer 
shall explain the basis of the disparity, and the manner in which the 
offer is calculated.
  ``(c)(1) Unless the Panel, within 15 days after the expiration of the 
6-month period described in subsection (b), finds that one or more 
financially responsible persons (including a governmental authority) 
have offered to purchase 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 10703.
  ``(2) If the Panel finds that such an offer or offers to purchase 
have 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 sale of the line; or
          ``(B) the conditions and amount of compensation are 
        established under subsection (e).
  ``(d) Except as provided in subsection (e)(3), if the rail carrier 
and a financially responsible person (including a governmental 
authority) fail to agree on the amount or terms of the purchase, either 
party may, within 30 days after the offer is made, request that the 
Panel establish the conditions and amount of compensation.
  ``(e)(1) Whenever the Panel is requested to establish the conditions 
and amount of compensation under this section--
          ``(A) the Panel shall render its decision within 30 days;
          ``(B) the Panel shall determine the price and other terms of 
        sale, except that in no case shall the Panel 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).
  ``(2) The decision of the Panel shall be binding on both parties, 
except that the person who has offered to purchase the line may 
withdraw his offer within 10 days of the Panel's decision. In such a 
case, the abandonment or discontinuance may 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 purchase, it 
shall select the offeror with whom it wishes to transact business, and 
complete the sale agreement, or request that the Panel establish the 
conditions and amount of compensation before the 40th day after the 
expiration of the 6-month period described in subsection (b). If no 
agreement on sale is reached within such 40-day period and the Panel 
has not been requested to establish the conditions and amount of 
compensation, any other offeror whose offer was made within the 6-month 
period described in subsection (b) may request that the Panel establish 
the conditions and amount of compensation. If the Panel has established 
the conditions and amount of compensation, and the original offer has 
been withdrawn, any other offeror whose offer was made within the 6-
month period described in subsection (b) may accept the Panel's 
decision within 20 days after such decision, and the Panel shall 
require the carrier to enter into a sale agreement with such offeror, 
if such sale agreement incorporates the Panel's decision.
  ``(4) 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.
  ``(f) Upon abandonment of a railroad line under this section, the 
obligation of the rail carrier abandoning the line to provide 
transportation on that line, as required by section 10901(a), is 
extinguished.

``Sec. 10705. Offering abandoned rail properties for sale for public 
                    purposes

  ``When a rail carrier files a notice of intent to abandon or 
discontinue under section 10703, the Panel 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 Panel 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 Panel. The conditions may 
include a prohibition on any such disposal for a period of not more 
than 180 days after the effective date of the order, unless the 
properties have first been offered, on reasonable terms, for sale for 
public purposes.

``Sec. 10706. Exception

  ``Notwithstanding section 10701 and subchapter II of chapter 111 of 
this title, and without the approval ofthe Panel, a rail carrier 
providing transportation subject to the jurisdiction of the Panel under 
this part may enter into arrangements for the joint ownership or joint 
use of spur, industrial, team, switching, or side tracks.

                       ``CHAPTER 109--OPERATIONS

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec.
``10901. Providing transportation, service, and rates.
``10902. Use of terminal facilities.
``10903. Switch connections and tracks.

                      ``SUBCHAPTER II--CAR SERVICE

``10921. Criteria.
``10922. Compensation and practice.
``10923. Rerouting traffic on failure of rail carrier to serve the 
public.
``10924. War emergencies; embargoes imposed by carriers.

                 ``SUBCHAPTER III--REPORTS AND RECORDS

``10941. Definitions.
``10942. Uniform accounting system.
``10943. Depreciation charges.
``10944. Records: form; inspection; preservation.
``10945. Reports by rail carriers, lessors, and associations.

               ``SUBCHAPTER IV--RAILROAD COST ACCOUNTING

``10961. Implementation of cost accounting principles.
``10962. Rail carrier cost accounting system.
``10963. Cost availability.
``10964. Accounting and cost reporting.

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec. 10901. Providing transportation, service, and rates

  ``(a) A rail carrier providing transportation or service subject to 
the jurisdiction of the Panel 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 10509 
of this title before responding to reasonable requests for service.
  ``(b) A rail carrier shall also provide to any person, on request, 
rates and other service terms. The response by a rail carrier to a 
request for 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 written notice is 
provided in accordance with subsection (d) to--
          ``(1) any person who has requested such rates or terms under 
        subsection (b); and
          ``(2) any person who has made arrangements with the carrier 
        for a shipment that would be subject to such increased rates or 
        changed terms.
  ``(d) The Panel shall, by regulation, establish rules to implement 
this section, including appropriate periods of notice.

``Sec. 10902. Use of terminal facilities

  ``(a) The Panel may require terminal facilities, including main-line 
tracks for a reasonable distance outside of a terminal, owned by a rail 
carrier providing transportation subject to the jurisdiction of the 
Panel under this part, to be used by another rail carrier if the Panel 
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 Panel 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 Panel 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 
Panel may establish such conditions and compensation.
  ``(2) The Panel 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 Panel shall complete any proceeding under subsection (a) or 
(b) within 180 days after the filing of the request for relief.

``Sec. 10903. 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 Panel 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.
  ``(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 Panel under section 11501 of this 
title. The Panel shall investigate the complaint and decide the safety, 
practicability, justification, and compensation to be paid for the 
connection. The Panel may direct the rail carrier to comply with 
subsection (a) of this section only after a full hearing.

                      ``SUBCHAPTER II--CAR SERVICE

``Sec. 10921. Criteria

  ``(a)(1) A rail carrier providing transportation subject to the 
jurisdiction of the Panel under this part shall furnish safe and 
adequate car service and establish, observe, and enforce reasonable 
rules and practices on car service. The Panel may require a rail 
carrier to provide facilities and equipment that are reasonably 
necessary to furnish safe and adequate car service if the Panel decides 
that the rail carrier has materially failed to furnish that service. 
The Panel may begin a proceeding under this paragraph when an 
interested person files an application with it. The Panel 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 Panel may require a rail carrier to file its car service 
rules with the Panel.
  ``(b) The Panel may designate and appoint agents and agencies to make 
and carry out its directions related to car service and matters under 
sections 10923 and 10924(a)(1) of this title.

``Sec. 10922. Compensation and practice

  ``(a) The regulations of the Panel 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 compensation, the Panel shall 
consider the transportation use of each type of freight car, the 
national level of ownership of each type of freight car, and other 
factors that affect the adequacy of the national freight car supply.

``Sec. 10923. Rerouting traffic on failure of rail carrier to serve the 
                    public

  ``(a) When the Panel considers that a rail carrier providing 
transportation subject to the jurisdiction of the Panel under this part 
cannot transport the traffic offered to it in a manner that properly 
serves the public, the Panel may direct the handling, routing, and 
movement of the traffic of that rail carrier and its distribution over 
other railroad lines to promote commerce and service to the public. 
Subject to subsection (b)(2) of this section, the rail carriers may 
establish the terms of compensation between themselves.
  ``(b)(1) Except as provided in paragraph (2) of this subsection, the 
Panel may act under this section on its own initiative or on 
application without regard to subchapter II of chapter 5 of title 5.
  ``(2) When the rail carriers do not agree on the terms of 
compensation under this section, the Panel may establish the terms for 
them in a later proceeding.
  ``(c) When there is a shortage of equipment, congestion of traffic, 
or other emergency declared by the Panel, it may prescribe temporary 
through routes that are desirable in the public interest on its own 
initiative or on application without regard to subchapter II of chapter 
7 of this title, and subchapter II of chapter 5 of title 5.

``Sec. 10924. War emergencies; embargoes imposed by carriers

  ``(a)(1) When the President, during time of war or threatened war, 
notifies the Panel 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 Panel 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 Panel under 
this part shall adopt every means within their control to facilitate 
and expedite the military traffic.
  ``(b) An embargo imposed by any such rail carrier does not apply to 
shipments consigned to agents of the United States Government for its 
use. The rail carrier shall deliver those shipments as promptly as 
possible.

                 ``SUBCHAPTER III--REPORTS AND RECORDS

``Sec. 10941. 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 Panel 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 
        Panel under this part that performs a service, or engages in 
        activities, related to transportation under this part.

``Sec. 10942. Uniform accounting system

  ``The Panel may prescribe a uniform accounting system for classes of 
rail carriers providing transportation subject to the jurisdiction of 
the Panel under this part. To the maximum extent practicable, the Panel 
shall conform such system to generally accepted accounting principles, 
and shall administer this subchapter in accordance with such 
principles.

``Sec. 10943. Depreciation charges

  ``The Panel 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 
Panel 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--
          ``(1) charge to operating expenses a depreciation charge on a 
        class of property other than that prescribed by the Panel;
          ``(2) charge another rate of depreciation; or
          ``(3) include other depreciation charges in operating 
        expenses.

``Sec. 10944. Records: form; inspection; preservation

  ``(a) The Panel 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 
        Panel under this part to the extent related to those cars or 
        that service.
  ``(b) The Panel, or an employee designated by the Panel, 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; and
                  ``(B) a person controlling, controlled by, or under 
                common control with a rail carrier if the Panel 
                considers inspection relevant to that person's relation 
                to, or transaction with, that rail carrier.
  ``(c) The Panel may prescribe the time period during which operating, 
accounting, and financial records must be preserved by rail carriers, 
lessors, and persons furnishing cars.

``Sec. 10945. Reports by rail carriers, lessors, and associations

  ``(a) The Panel may require rail carriers, lessors, and associations, 
or classes of them as the Panel may prescribe, to file annual, 
periodic, and special reports with the Panel containing answers to 
questions asked by it.
  ``(b)(1) An annual report shall contain an account, in as much detail 
as the Panel 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 Panel by the end of 
the third month after the end of the year for which the report is made 
unless the Panel extends the filing date or changes the period covered 
by the report. The annual report and, if the Panel requires, any other 
report made under this section, shall be made under oath.

               ``SUBCHAPTER IV--RAILROAD COST ACCOUNTING

``Sec. 10961. Implementation of cost accounting principles

  ``Not less than once every five years after the promulgation of 
original rules implementing the cost accounting principles established 
by the Railroad Accounting Principles Board, the Panel shall review 
such principles and shall, by rule, make such changes in such 
principles as are required to achieve the regulatory purposes of this 
part. The Panel 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 Panel shall conform such rules to 
generally accepted accounting principles.

``Sec. 10962. 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 Panel 
under section 10961 of this title. A rail carrier may, after notifying 
the Panel, make modifications in such system unless, within 60 days 
after the date of notification, the Panel finds such modifications to 
be inconsistent with the rules promulgated by the Panel under section 
10961 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 
Panel, the Panel shall have the right to examine and make copies of any 
documents, papers, or records of such rail carrier relating to 
compliance with such rules. Such documents, papers, and records (and 
any copies thereof) shall not be subject to the mandatory disclosure 
requirements of section 552 of title 5.

``Sec. 10963. Cost availability

  ``As required by the rules of the Panel governing discovery in Panel 
proceedings, rail carriers shall make relevant cost data available to 
shippers, States, ports, communities, and other interested parties that 
are a party to a Panel proceeding in which such data are required.

``Sec. 10964. Accounting and cost reporting

  ``(a) To obtain expense and revenue information for regulatory 
purposes, the Panel may promulgate reasonable rules for rail carriers 
providing transportation subject to the jurisdiction of the Panel 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. To the extent 
such rules are required solely to provide expense and revenue 
information necessary for determining railroad costs in regulatory 
proceedings under this part, such rules shall be promulgated in 
accordance with the cost accounting principles established by the 
Railroad Accounting Principles Board.
  ``(b) Any reports required by the rules established by the Panel 
under this section shall include only information considered necessary 
for disclosure under the cost accounting principles established by the 
Board or under generally accepted accounting principles or the 
requirements of the Securities and Exchange Commission.

                         ``CHAPTER 111--FINANCE

        ``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS

``Sec.
``11101. Equipment trusts: recordation; evidence of indebtedness.

                     ``SUBCHAPTER II--COMBINATIONS

``11121. Scope of authority.
``11122. Limitation on pooling and division of transportation or 
earnings.
``11123. Consolidation, merger, and acquisition of control.
``11124. Consolidation, merger, and acquisition of control: conditions 
of approval.
``11125. Consolidation, merger, and acquisition of control: procedure.
``11126. Employee protective arrangements in transactions involving 
rail carriers.
``11127. Supplemental orders.

        ``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS

``Sec. 11101. Equipment trusts: recordation; evidence of indebtedness

  ``(a) 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 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 Panel. 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 Panel. The 
instrument, assignment, or amendment must be in writing, executed by 
the parties to it, and acknowledged or verified under Panel 
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.
  ``(b) The Panel 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 
Panel 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 Panel shall to the greatest extent practicable perform its 
functions under this section through contracts with private sector 
entities.
  ``(d) The Panel shall assess user fees for services performed by the 
Panel or a contractor thereof under this section. Such fees may be used 
by the Panel to offset its costs, to the extent provided in advance in 
appropriations Acts.
  ``(e) 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 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.
  ``(f) 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.

                     ``SUBCHAPTER II--COMBINATIONS

``Sec. 11121. Scope of authority

  ``(a) The authority of the Panel under this subchapter is exclusive. 
A rail carrier or corporation participating in or resulting from a 
transaction approved by or exempted by the Panel 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.
  ``(b) The requirement to obtain the approval or authorization of the 
Panel under this subchapter shall only apply to transactions involving 
at least one Class I rail carrier, and shall not apply to transactions 
described in section 10702.

``Sec. 11122. Limitation on pooling and division of transportation or 
                    earnings

  ``(a) A rail carrier providing transportation subject to the 
jurisdiction of the Panel 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 Panel under this 
section or section 10923 of this title. The Panel may approve and 
authorize the agreement or combination if the rail carriers involved 
assent to the pooling or division and the Panel 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 Panel may impose conditions governing the pooling or 
division and may approve and authorize payment of a reasonable 
consideration between the rail carriers.
  ``(c) The Panel may begin a proceeding under this section on its own 
initiative or on application.

``Sec. 11123. Consolidation, merger, and acquisition of control

  ``(a) The following transactions involving rail carriers providing 
transportation subject to the jurisdiction of the Panel under this part 
may be carried out only with the approval and authorization of the 
Panel:
          ``(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 Panel under this subchapter. In addition to other transactions, 
each of the following transactions are considered achievements of 
control or management:
          ``(1) A transaction by a rail carrier that has the effect of 
        putting that rail carrier and person affiliated with it, taken 
        together, in control of another rail carrier.
          ``(2) A transaction by a person affiliated with a rail 
        carrier that has the effect of putting that rail carrier and 
        persons affiliated with it, taken together, in control of 
        another rail carrier.
          ``(3) A transaction by at least 2 persons acting together 
        (one of whom is a rail carrier or is affiliated with a rail 
        carrier) that has the effect of putting those persons and rail 
        carriers and persons affiliated with any of them, or with any 
        of those affiliated rail carriers, taken together, in control 
        of another rail carrier.
  ``(c) A person is affiliated with a rail carrier under this 
subchapter if, because of the relationship between that person and a 
rail carrier, it is reasonable to believe that the affairs of another 
rail carrier, control of which may be acquired by that person, will be 
managed in the interest of the other rail carrier.

``Sec. 11124. Consolidation, merger, and acquisition of control: 
                    conditions of approval

  ``(a) The Panel may begin a proceeding to approve and authorize a 
transaction referred to in section 11123 of this title on application 
of the person seeking that authority. When an application is filed with 
the Panel, the Panel 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 Panel 
shall hold a public hearing unless the Panel determines that a public 
hearing is not necessary in the public interest.
  ``(b) In a proceeding under this section which involves the merger or 
control of at least two Class I railroads, as defined by the Panel, the 
Panel 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 Panel shall approve and authorize a transaction under this 
section when it finds the transaction is consistent with the public 
interest. The Panel may impose conditions governing the transaction, 
including the divestiture of parallel tracks or requiring the granting 
of trackage rights. Any trackage rights conditions imposed to alleviate 
anticompetitive effects of the transaction shall provide for 
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 Panel may approve and authorize the transaction only 
if it finds that the guaranty, assumption, or increase is consistent 
with the public interest. The Panel may require inclusion of other rail 
carriers located in the area involved in the transaction if they apply 
for inclusion and the Panel 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 
Panel, the Panel 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 Panel 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 Secretary of Transportation.
  ``(e)(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.
  ``(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 Panel 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 Panel 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 
Panel 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 Panel, in their discretion, to note in the docket or 
otherwise publicly the occurrence and substance of an ex parte 
communication.

``Sec. 11125. Consolidation, merger, and acquisition of control: 
                    procedure

  ``(a) The Panel shall publish notice of the application under section 
11124 in the Federal Register by the end of the 30th day after the 
application is filed with the Panel. However, if the application is 
incomplete, the Panel shall reject it by the end of that period. The 
order of rejection is a final action of the Panel. 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 Panel, 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 Panel, the following 
conditions apply:
          ``(1) Written comments about an application may be filed with 
        the Panel 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, 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 
        Panel by the end of the 15th day after the date of receipt of 
        the written comments.
          ``(2) The Panel 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 90th day after 
        publication of notice under that subsection.
          ``(3) The Panel must conclude evidentiary proceedings by the 
        end of the 6th month after the date of publication of notice 
        under subsection (a) of this section. The Panel 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 Panel, 
which the Panel 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, may be filed with the Panel 
        within 30 days after notice of the application is published 
        under subsection (a) of this section.
          ``(2) The Panel 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 Panel must conclude any evidentiary proceedings by 
        the 125th day after the date of publication of notice under 
        subsection (a) of this section. The Panel must issue a final 
        decision by the 40th 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, may be filed with the Panel 
        within 30 days after notice of the application is published 
        under subsection (a) of this section.
          ``(2) The Panel must conclude any evidentiary proceedings by 
        the 105th day after the date of publication of notice under 
        subsection (a) of this section. The Panel must issue a final 
        decision by the 40th day after the date on which it concludes 
        the evidentiary proceedings.

``Sec. 11126. Employee protective arrangements in transactions 
                    involving rail carriers

  ``When approval is sought for a transaction under sections 11124 and 
11125 of this title, the Panel 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 Panel (or if an employee was employed for a lesser period of time 
by the rail carrier before the action became effective, for that lesser 
period).

``Sec. 11127. Supplemental orders

  ``When cause exists, the Panel may make appropriate orders 
supplemental to an order made in a proceeding under sections 11122 
through 11126 of this title.

                 ``CHAPTER 113--FEDERAL-STATE RELATIONS

``Sec.
``11301. Tax discrimination against rail transportation property.
``11302. Withholding State and local income tax by rail carriers.

``Sec. 11301. 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 Panel, owned or used by a rail carrier 
        providing transportation subject to the jurisdiction of the 
        Panel 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.
  ``(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 Panel under this part.
  ``(c) Notwithstanding section 1341 of title 28 and without regard to 
the amount in controversy or citizenship of the parties, a district 
court of the United States has jurisdiction, concurrent with other 
jurisdiction of courts of the United States and the States, to prevent 
a violation of subsection (b) of this section. Relief may be granted 
under this subsection only if the ratio of assessed value to true 
market value of rail transportation property exceeds by at least 5 
percent the ratio of assessed value to true market value of other 
commercial and industrial property in the same assessment jurisdiction. 
The burden of proof in determining assessed value and true market value 
is governed by State law. If the ratio of the assessed value of other 
commercial and industrial property in the assessment jurisdiction to 
the true market value of all other commercial and industrial property 
cannot be determined to the satisfaction of the district court through 
the random-sampling method known as a sales assessment ratio study (to 
be carried out under statistical principles applicable to such a 
study), the court shall find, as a violation of this section--
          ``(1) an assessment of the rail transportation property at a 
        value that has a higher ratio to the true market value of the 
        rail transportation property than the assessed value of all 
        other property subject to a property tax levy in the assessment 
        jurisdiction has to the true market value of all other 
        commercial and industrial property; and
          ``(2) the collection of an ad valorem property tax on the 
        rail transportation property at a tax rate that exceeds the tax 
        ratio rate applicable to taxable property in the taxing 
        district.

``Sec. 11302. 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 Panel 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.
  ``(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 115--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

``Sec.
``11501. General authority.
``11502. Enforcement by the Panel.
``11503. Enforcement by the Attorney General.
``11504. Rights and remedies of persons injured by rail carriers.
``11505. Limitation on actions by and against rail carriers.
``11506. Liability of rail carriers under receipts and bills of lading.

``Sec. 11501. General authority

  ``(a) The Panel may begin an investigation under this part on its own 
initiative or on complaint. If the Panel finds that a rail carrier is 
violating this part, the Panel shall take appropriate action to compel 
compliance with this part.
  ``(b) A person, including a governmental authority, may file with the 
Panel a complaint about a violation of this part by a rail carrier 
providing transportation or service subject to the jurisdiction of the 
Panel under this part.The complaint must state the facts that are the 
subject of the violation. The Panel may dismiss a complaint it 
determines does not state reasonable grounds for investigation and 
action. However, the Panel may not dismiss a complaint made against a 
rail carrier providing transportation subject to the jurisdiction of 
the Panel under this part because of the absence of direct damage to 
the complainant.
  ``(c) A formal investigative proceeding begun by the Panel under 
subsection (a) of this section is dismissed automatically unless it is 
concluded by the Panel with administrative finality by the end of the 
third year after the date on which it was begun.

``Sec. 11502. Enforcement by the Panel

  ``The Panel may bring a civil action--
          ``(1) to enjoin a rail carrier from violating sections 10701 
        through 10706 of this title, or a regulation prescribed or 
        order or certificate issued under any of those sections;
          ``(2) to enforce subchapter II of chapter 111 of this title 
        and to compel compliance with the order of the Panel under that 
        subchapter; and
          ``(3) to enforce an order of the Panel, 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 Panel under this part.

``Sec. 11503. Enforcement by the Attorney General

  ``The Attorney General may, and on request of the Panel shall, bring 
court proceedings to enforce this part, or a regulation or order of the 
Panel or certificate or permit issued under this part, and to prosecute 
a person violating this part or a regulation or order of the Panel or 
certificate or permit issued under this part.

``Sec. 11504. 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 Panel 
under this part does not obey an order of the Panel, except an order 
for the payment of money, may bring a civil action to enforce that 
order under this subsection.
  ``(b) A rail carrier providing transportation subject to the 
jurisdiction of the Panel 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.
  ``(c)(1) A person may file a complaint with the Panel under section 
11501(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 Panel under this 
part.
  ``(2) When the Panel makes an award under subsection (b) of this 
section, the Panel shall order the rail carrier to pay the amount 
awarded by a specific date. The Panel may order a rail carrier 
providing transportation subject to the jurisdiction of the Panel under 
this part to pay damages only when the proceeding is on complaint. The 
person for whose benefit an order of the Panel 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 Panel requiring the payment of 
damages by a rail carrier providing transportation subject to the 
jurisdiction of the Panel under this part, the text of the order of the 
Panel 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 Panel 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 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.

``Sec. 11505. Limitation on actions by and against rail carriers

  ``(a) A rail carrier providing transportation or service subject to 
the jurisdiction of the Panel 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 file a complaint with the Panel to recover 
damages under section 11504(b) of this title within 2 years after the 
claim accrues.
  ``(c) 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 period under subsection 
(b) of this section is 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.
  ``(d) A person must begin a civil action to enforce an order of the 
Panel against a rail carrier for the payment of money within one year 
after the date the order required the money to be paid.
  ``(e) 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.
  ``(f) A claim related to a shipment of property accrues under this 
section on delivery or tender of delivery by the rail carrier.

Sec. 11506. Liability of rail carriers under receipts and bills of 
                    lading

  ``(a) A rail carrier providing transportation or service subject to 
the jurisdiction of the Panel 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 rail carrier that delivers the 
property and is providing transportation or service subject to the 
jurisdiction of the Panel 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 Panel 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.
  ``(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.

              ``CHAPTER 117--CIVIL AND CRIMINAL PENALTIES

``Sec.
``11701. General civil penalties.
``11702. Interference with railroad car supply.
``11703. Record keeping and reporting violations.
``11704. Unlawful disclosure of information.
``11705. Disobedience to subpoenas.
``11706. General criminal penalty when specific penalty not provided.
``11707. Punishment of corporation for violations committed by certain 
individuals.

Sec. ``11701. General civil penalties

  ``(a) Except as otherwise provided in this section, a rail carrier 
providing transportation subject to the jurisdiction of the Panel under 
this part, an officer or agent of that rail carrier, or a receiver, 
trustee, lessee, or agent of one of them, knowingly violating an order 
of the Panel under this part is liable to the United States Government 
for a civil penalty of $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 Panel under this part, or a receiver or trustee of 
that rail carrier, violating a regulation or order of the Panel under 
section 10924(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 10701 through 10706 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 Panel under section 10923 or 10924(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 109 of 
this title to make, prepare, preserve, or submit to the Panel a record 
concerning transportation subject to the jurisdiction of the Panel 
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 Panel under this part, and a lessor, receiver, or 
trustee of that rail carrier, violating section 10944(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 Panel 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 
Panel 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 violation under this 
subsection continues.
  ``(f) Trial in a civil action under subsections (a) through (e) of 
this section is in the judicial district in which the rail carrier has 
its principal operating office or in a district through which the 
railroad of the rail carrier runs.

``Sec. 11702. 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 Panel under this part 
intending to influence an action of that other person related to 
supply, distribution, or movement of cars or vehicles used in the 
transportation of property, or because of the action of that 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 Panel under this part 
that solicits, accepts, or receives anything of value--
          ``(1) intending to be influenced by it in an action of that 
        person related to supply, distribution, or movement of cars, 
        vehicles, or vessels used in the transportation of property; or
          ``(2) because of the action of that person,
shall be fined not more than $1,000, imprisoned for not more than 2 
years, or both.

``Sec. 11703. Record keeping and reporting violations

  ``A person required to make a report to the Panel, or make, prepare, 
or preserve a record, under subchapter III of chapter 109 of this title 
about transportation subject to the jurisdiction of the Panel 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 Panel; or
          ``(5) files a false report or record with the Panel,
shall be fined not more than $5,000, imprisoned for not more than 2 
years, or both.

``Sec. 11704. Unlawful disclosure of information

  ``(a) A--
          ``(1) rail carrier providing transportation subject to the 
        jurisdiction of the Panel 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 10509 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 or broker providing 
transportation subject to the jurisdiction of the Panel 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 rail carrier or its agent to adjust mutual 
        traffic accounts in the ordinary course of business.
  ``(d) An employee of the Panel delegated to make an inspection or 
examination under section 10944 of this title who knowingly discloses 
information acquired during that inspection or examination, except as 
directed by the Panel, 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 10963 of this title by a rail 
carrier providing transportation subject to the jurisdiction of the 
Panel under this part shall be fined not more than $50,000.

``Sec. 11705. Disobedience to subpoenas

  ``A person not obeying a subpoena or requirement of the Panel to 
appear and testify or produce records shall be fined at least $100 but 
not more than $5,000, imprisoned for not more than one year, or both.

``Sec. 11706. 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 Panel 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. 
However, if the violation is for discrimination in rates charged for 
transportation, 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 section 11122 of this title continues.

``Sec. 11707. 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 Panel 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.''.
    (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:

    ``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
                               FORWARDERS

                   ``CHAPTER 131--GENERAL PROVISIONS

``Sec.
``13101. Transportation policy.
``13102. Definitions.
``13103. Remedies as cumulative.

``Sec. 13101. Transportation policy

  ``(a) In General.--To ensure the development, coordination, and 
preservation of a transportation system that meets the transportation 
needs of the United States, including the United States Postal Service 
and national defense, it is the policy of the United States Government 
to oversee the modes of transportation and--
          ``(1) in overseeing those modes--
                  ``(A) to recognize and preserve the inherent 
                advantage of each mode of transportation;
                  ``(B) to promote safe, adequate, economical, and 
                efficient transportation;
                  ``(C) to encourage sound economic conditions in 
                transportation, including sound economic conditions 
                among carriers;
                  ``(D) to encourage the establishment and maintenance 
                of reasonable rates for transportation, without 
                unreasonable discrimination or unfair or destructive 
                competitive practices;
                  ``(E) to cooperate with each State and the officials 
                of each State on transportation matters; and
                  ``(F) to encourage fair wages and working conditions 
                in the transportation industry;
          ``(2) in overseeing transportation by motor carrier, to 
        promote competitive and efficient transportation services in 
        order to--
                  ``(A) encourage fair competition, and reasonable 
                rates for transportation by motor carriers of property;
                  ``(B) promote efficiency in the motor carrier 
                transportation system and to require fair and 
                expeditious decisions when required;
                  ``(C) meet the needs of shippers, receivers, 
                passengers, and consumers;
                  ``(D) allow a variety of quality and price options to 
                meet changing market demands and the diverse 
                requirements of the shipping and traveling public;
                  ``(E) allow the most productive use of equipment and 
                energy resources;
                  ``(F) enable efficient and well-managed carriers to 
                earn adequate profits, attract capital, and maintain 
                fair wages and working conditions;
                  ``(G) provide and maintain service to small 
                communities and small shippers and intrastate bus 
                services;
                  ``(H) provide and maintain commuter bus operations;
                  ``(I) improve and maintain a sound, safe, and 
                competitive privately owned motor carrier system;
                  ``(J) promote greater participation by minorities in 
                the motor carrier system; and
                  ``(K) promote intermodal transportation; and
          ``(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.
  ``(b) Administration To Carry Out Policy.--This part shall be 
administered and enforced to carry out the policy of this section.

``Sec. 13102. Definitions

  ``In this part, the following definitions shall apply:
          ``(1) 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.
          ``(2) Carrier.--The term `carrier' means a motor carrier, a 
        water carrier, and a freight forwarder, and, for purposes of 
        sections 13902, 13905, and 13906, the term includes foreign 
        motor carriers and foreign motor private carriers.
          ``(3) 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).
          ``(4) 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.
          ``(5) 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 entered into with a motor carrier 
                of property `(other than a motor private carrier or a 
                motor carrier of property described in subparagraph 
                `(A)).
          ``(6) 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)).
          ``(7) 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 part.
        The term does not include a person using transportation of an 
        air carrier subject to part A of subtitle VII.
          ``(8) Highway.--The term `highway' means a road, highway, 
        street, and way in a State.
          ``(9) 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.
          ``(10) 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.
          ``(11) Motor carrier.--The term `motor carrier' means a 
        person providing motor vehicle transportation for compensation.
          ``(12) 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
                  ``(C) the property is being transported for sale, 
                lease, rent, or bailment or to further a commercial 
                enterprise.
          ``(13) 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.
          ``(14) 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.
          ``(15) Panel.--The term `Panel' means the Transportation 
        Adjudication Panel.
          ``(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 
                receipt, delivery, elevation, transfer in transit, 
                refrigeration, icing, ventilation, storage, handling, 
                and interchange of passengers and property.
          ``(20) United states.--The term `United States' means the 
        States of the United States and the District of Columbia.
          ``(21) Vessel.--The term `vessel' means a watercraft or other 
        artificial contrivance that is used, is capable of being used, 
        or is intended to be used, as a means of transportation by 
        water.
          ``(22) Water carrier.--The term `water carrier' means a 
        person providing water transportation for compensation.

``Sec. 13103. Remedies as cumulative

  ``Except as otherwise provided in this part, the remedies provided 
under this part are in addition to remedies existing under another law 
or common law.

                ``CHAPTER 133--ADMINISTRATIVE PROVISIONS

``Sec.
``13301. Powers.
``13302. Intervention.
``13303. Service of notice in proceedings.
``13304. Service of process in court proceedings.

``Sec. 13301. Powers

  ``(a) General Powers of Secretary.--Except as otherwise specified, 
the Secretary shall carry out this part. Enumeration 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.
  ``(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 Panel.--For those provisions of this part that are 
specified to be carried out by the Panel, the Panel shall have the same 
powers as the Secretary has under this section.

``Sec. 13302. Intervention

  ``Under regulations of the Secretary, reasonable notice of, and an 
opportunity to intervene and participate in, a proceeding under this 
part related to transportation subject to jurisdiction under subchapter 
I of chapter 135 shall be given to interested persons.

Sec. 13303. Service of notice in proceedings

  ``(a) Agents for Service of Process.--A carrier, a broker, or a 
freight forwarder providing transportation or service subject to 
jurisdiction under chapter 135 shall designate, in writing, an agent by 
name and post office address on whom service of notices in a proceeding 
before, and of actions of, the Secretary may be made.
  ``(b) Filing With State.--A motor carrier providing transportation 
under this part shall also file the designation with the authority of 
each State in which it operates having jurisdiction to regulate 
transportation by motor vehicle in intrastate commerce on the highways 
of that State. The designation may be changed at any time in the same 
manner as originally made.
  ``(c) Notice.--A notice to a motor carrier, freight forwarder, or 
broker shall be served personally or by mail on the motor carrier, 
freight forwarder, or broker or on its designated agent. Service by 
mail on the designated agent shall be made at the address filed for the 
agent. When notice is given by mail, the date of mailing is considered 
to be the time when the notice is served. If a motor carrier, freight 
forwarder, or broker does not have a designated agent, service may be 
made by posting a copy of the notice at the headquarters of the 
Department of Transportation.

``Sec. 13304. Service of process in court proceedings

  ``(a) Designation of Agent.--A motor carrier or broker providing 
transportation subject to jurisdiction under chapter 135 of this title, 
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. 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.

                      ``CHAPTER 135--JURISDICTION

              ``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION

``Sec.
``13501. General jurisdiction.
``13502. Exempt transportation between Alaska and other States.
``13503. Exempt motor vehicle transportation in terminal areas.
``13504. Exempt motor carrier transportation entirely in one State.
``13505. Transportation furthering a primary business.
``13506. Miscellaneous motor carrier transportation exemptions.
``13507. Mixed loads of regulated and unregulated property.
``13508. Limited authority over cooperative associations.

             ``SUBCHAPTER II--WATER CARRIER TRANSPORTATION

``13521. General jurisdiction.

              ``SUBCHAPTER III--FREIGHT FORWARDER SERVICE

``13531. General jurisdiction.

                  ``SUBCHAPTER IV--AUTHORITY TO EXEMPT

``13541. Authority to exempt transportation or services.

              ``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION

``Sec. 13501. General jurisdiction

  ``The Secretary and the Panel shall have jurisdiction, as specified 
in this part, over transportation by motor carrier and the procurement 
of that transportation, to the extent that passengers, property, or 
both, are transported by motor carrier--
          ``(1) between a place in--
                  ``(A) a State and a place in another State;
                  ``(B) a State and another place in the same State 
                through another State;
                  ``(C) the United States and a place in a territory or 
                possession of the United States to the extent the 
                transportation is in the United States;
                  ``(D) the United States and another place in the 
                United States through a foreign country to the extent 
                the transportation is in the United States; or
                  ``(E) the United States and a place in a foreign 
                country to the extent the transportation is in the 
                United States; and
          ``(2) in a reservation under the exclusive jurisdiction of 
        the United States or on a public highway.

``Sec. 13502. Exempt transportation between Alaska and other States

  ``To the extent that transportation by a motor carrier between a 
place in Alaska and a place in another State under section 13501 is 
provided in a foreign country--
          ``(1) neither the Secretary nor the Panel 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.

``Sec. 13503. Exempt motor vehicle transportation in terminal areas

  ``(a) Transportation by Carriers.--
          ``(1) In general.--Neither the Secretary nor the Panel 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 Panel has 
        jurisdiction under this subchapter over transportation by motor 
        vehicle provided in a terminal area when the transportation--
                  ``(A) is a transfer, collection, or delivery; and
                  ``(B) is provided by a person as an agent or under 
                other arrangement for--
                          ``(i) a rail carrier subject to jurisdiction 
                        under chapter 105 of this title;
                          ``(ii) a motor carrier subject to 
                        jurisdiction under this subchapter;
                          (iii) a water carrier subject to jurisdiction 
                        under subchapter II of this chapter; or
                          ``(iv) a freight forwarder subject to 
                        jurisdiction under subchapter III of this 
                        chapter.
          ``(2) Treatment of transportation by principal.--
        Transportation exempt from jurisdiction under paragraph (1) of 
        this subsection is considered transportation provided by the 
        carrier or service provided by the freight forwarder for whom 
        the transportation was provided and is subject to jurisdiction 
        under chapter 105 of this title when provided for such a rail 
        carrier, under this subchapter when provided for such a motor 
        carrier, under subchapter II of this chapter when provided for 
        such a water carrier, and under subchapter III of this chapter 
        when provided for such a freight forwarder.

``Sec. 13504. Exempt motor carrier transportation entirely in one State

  ``Neither the Secretary nor the Panel has jurisdiction under this 
subchapter over transportation, except transportation of household 
goods, by a motor carrier operating solely within the State of Hawaii. 
The State of Hawaii may regulate transportation exempt from 
jurisdiction under this section and, to the extent provided by a motor 
carrier operating solely within the State of Hawaii, transportation 
exempt under section 13503 of this title.

``Sec. 13505. Transportation furthering a primary business

  ``(a) In General.--Neither the Secretary nor the Panel 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 Panel has 
        jurisdiction under this part over transportation of property by 
        motor vehicle for compensation provided by a person who is a 
        member of a corporate family for other members of such 
        corporate family.
          ``(2) Definition.--In this section, `corporate family' means 
        a group of corporations consisting of a parent corporation and 
        all subsidiaries in which the parent corporation owns directly 
        or indirectly a 100 percent interest.

``Sec. 13506. Miscellaneous motor carrier transportation exemptions

  ``(a) In General.--Neither the Secretary nor the Panel 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 common 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 cooperative 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;
          ``(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 Panel, as applicable, finds it necessary to exercise 
jurisdiction to carry out the transportation policy of section 13101, 
neither the Secretary nor the Panel has jurisdiction under this part 
over--
          ``(1) transportation provided entirely in a municipality, in 
        contiguous municipalities, or in a zone that is adjacent to, 
        and commercially a part of, the municipality or municipalities, 
        except--
                  ``(A) when the transportation is under common 
                control, management, or arrangement for a continuous 
                carriage or shipment to or from a place outside the 
                municipality, municipalities, or zone; or
                  ``(B) that in transporting passengers over a route 
                between a place in a State and a place in another 
                State, or between a place in a State and another place 
                in the same State through another State, the 
                transportation is exempt from jurisdiction under this 
                part only if the motor carrier operating the motor 
                vehicle also is lawfully providing intrastate 
                transportation of passengers over the entire route 
                under the laws of each State through which the route 
                runs;
          ``(2) transportation by motor vehicle provided casually, 
        occasionally, or reciprocally but not as a regular occupation 
        or business, except when a broker or other person sells or 
        offers for sale passenger transportation provided by a person 
        authorized to transport passengers by motor vehicle under an 
        application pending, or registration issued, under this part; 
        or
          ``(3) the emergency towing of an accidentally wrecked or 
        disabled motor vehicle.

``Sec. 13507. Mixed loads of regulated and unregulated property

  ``A motor carrier of property providing transportation exempt from 
jurisdiction under paragraph (6), (8), (11), (12), or (13) of section 
13506(a) may transport property under such paragraph in the same 
vehicle and at the same time as property which the carrier is 
authorized to transport under a registration issued under section 
13902(a). Such transportation shall not affect the unregulated status 
of such exempt property or the regulated status of the property which 
the carrier is authorized to transport under such registration.

``Sec. 13508. Limited authority over cooperative associations

  ``(a) 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 Panel may require by regulation to 
carry out the provisions of such section 13506(a)(5). The Secretary or 
the Panel, or an employee designated by the Secretary or the Panel, may 
on demand and display of proper credentials--
          ``(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 Panel 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 Panel containing answers to 
questions about transportation provided by such association or 
federation.
  ``(c) Enforcement.--The Secretary or the Panel may bring a civil 
action to enforce subsections (a) and (b) of this section or a 
regulation or order of the Secretary or the Panel 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 Panel, 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 Government 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;
          ``(6) knowingly and willfully makes a false or incomplete 
        entry in that record about a business-related fact or 
        transaction; or
          ``(7) knowingly and willfully maintains a record in violation 
        of a regulation or order issued under this section;
shall be fined not more than $5,000.

             ``SUBCHAPTER II--WATER CARRIER TRANSPORTATION

``Sec. 13521. General jurisdiction

  ``(a) General Rules.--The Secretary has jurisdiction over 
transportation insofar as water carriers are concerned--
          ``(1) by water carrier between a place in a State and a place 
        in another State, even if part of the transportation is outside 
        the United States;
          ``(2) by water carrier and motor carrier from a place in a 
        State to a place in another State; except that if part of the 
        transportation is outside the United States, the Secretary only 
        has jurisdiction over that part of the transportation 
        provided--
                  ``(A) by motor carrier that is in the United States; 
                and
                  ``(B) by water carrier that is from a place in the 
                United States to another place in the United States; 
                and
          ``(3) by water carrier or by water carrier and motor carrier 
        between a place in the United States and a place outside the 
        United States, to the extent that--
                  ``(A) when the transportation is by motor carrier, 
                the transportation is provided in the United States;
                  ``(B) when the transportation is by water carrier to 
                a place outside the United States, the transportation 
                is provided by water carrier from a place in the United 
                States to another place in the United States before 
                transshipment from a place in the United States to a 
                place outside the United States; and
                  ``(C) when the transportation is by water carrier 
                from a place outside the United States, the 
                transportation is provided by water carrier from a 
                place in the United States to another place in the 
                United States after transshipment to a place in the 
                United States from a place outside the United States.
  ``(b) Definitions.--In this section, the terms State and United 
States include the territories and possessions of the United States.

              ``SUBCHAPTER III--FREIGHT FORWARDER SERVICE

``Sec. 13531. General jurisdiction

  ``(a) In General.--The Secretary and the Panel 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
          ``(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 Panel has jurisdiction under subsection (a) of this 
section over service undertaken by a freight forwarder using 
transportation of an air carrier subject to part A of subtitle VII of 
this title.

                  ``SUBCHAPTER IV--AUTHORITY TO EXEMPT

``Sec. 13541. Authority to exempt transportation or services

  ``(a) In General.--In any matter subject to jurisdiction under this 
part, the Secretary or the Panel, as applicable, shall exempt a person, 
class of persons, or a transaction or service from the application 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 Panel finds that 
the application of that provision in whole or in part--
          ``(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 Panel, as 
applicable, may, where appropriate, begin a proceeding under this 
section on the Secretary's or Panel's own initiative or on application 
by an interested party.
  ``(c) Period of Exemption.--The Secretary or Panel, as applicable, 
may specify the period of time during which an exemption granted under 
this section is effective.
  ``(d) Revocation.--The Secretary or Panel, 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.--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 not terminated under section 13907(d)(2).

                ``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. Billing and collecting practices.
``13708. Procedures for resolving claims involving unfiled, negotiated 
transportation rates.
``13709. Additional motor carrier undercharge provisions.
``13710. Alternative procedure for resolving undercharge disputes.
``13711. Government traffic.
``13712. Food and grocery transportation.

``Sec. 13701. Requirements for reasonable rates, classifications, 
                    through routes, rules, and practices for certain 
                    transportation

  ``(a) Reasonableness.--
          ``(1) Certain household goods transportation; joint rates 
        involving water transportation.--A rate, classification, rule, 
        or practice related to transportation or service provided by a 
        carrier subject to jurisdiction under chapter 135 for 
        transportation or service involving--
                  ``(A) a movement of household goods described in 
                section 13102(9)(A), or
                  ``(B) a rate for a movement by or with a water 
                carrier in noncontiguous domestic trade,
        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 Panel for Violations.--When the Panel finds it 
necessary to stop or prevent a violation of subsection (a), the Panel 
shall prescribe the rate, classification, rule, practice, through 
route, or division of joint rates to be applied for such transportation 
or service.
  ``(c) Zone of Reasonableness.--
          ``(1) In general.--For purposes of this section, a rate or 
        division of a carrier for service in noncontiguous domestic 
        trade is reasonable if the aggregate of increases and decreases 
        in any such rate or division is not more than 10 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.

``Sec. 13702. Tariff requirement for certain transportation

  ``(a) In General.--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 described in section 
        13102(9)(A);
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 
        Panel tariffs containing the rates established for such 
        transportation or service. The carriers shall keep such tariffs 
        available for public inspection. The Panel shall prescribe the 
        form and manner of publishing, filing, and keeping tariffs 
        available for public inspection under this subsection.
          ``(2) Contents.--The Panel 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 
        separately 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 Panel 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 Panel 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 kept open for public 
                inspection.
  ``(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 tariff. The tariff must be submitted 
        to the Panel for inspection 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 in a tariff 
        in agreements covering the transportation of households 
        described in section 13908.102(9)(B).
          ``(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 Panel for resolution.
  ``(d) Invalidation.--The Panel may invalidate a tariff prepared by a 
carrier or carriers under this section if that tariff violates this 
section or a regulation of the Panel carrying out this section.

``Sec. 13703. Certain collective activities; exemption from antitrust 
                    laws

  ``(a) Agreements.--
          ``(1) Authority to enter.--A motor carrier providing 
        transportation or service subject to jurisdiction under chapter 
        135 may enter into an agreement with one or more such carriers 
        to establish--
                  ``(A) through routes and joint rates;
                  ``(B) rates for the transportation of household goods 
                described in section 13102(9)(A);
                  ``(C) classifications;
                  ``(D) mileage guides;
                  ``(E) rules;
                  ``(F) divisions;
                  ``(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 panel; approval.--An 
        agreement entered into under subsection (a) may be submitted by 
        any carrier or carriers that are parties to such agreement to 
        the Panel for approval and may be approved by the Panel only if 
        it finds that such agreement is in the public interest.
          ``(3) Conditions.--The Panel 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) Investigations.--The Panel may suspend and investigate 
        the reasonableness of any classification or rate adjustment of 
        general application made pursuant to an agreement under this 
        section.
          ``(5) Effect of approval.--If the Panel 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 Panel, 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 Panel may require an organization established or 
continued under an agreement approved under this section to maintain 
records and submit reports. The Panel, or its delegate, may inspect a 
record maintained under this section, or monitor any organization's 
compliance with this section.
  ``(c) Review.--The Panel 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 Panel 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).
  ``(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 Panel, the agreement is 
unchanged, and the Panel approves such renewal. The Panel shall approve 
the renewal unless it finds that the renewal is not in the public 
interest.
  ``(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 Panel 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) Mileage Rate Limitation.--No carrier subject to jurisdiction 
under subchapter I or III of chapter 135 may enforce collection of its 
mileage rates unless such carrier--
          ``(1) uses an independent publication of mileage (other than 
        a publication referred to in paragraph (2)) which can be 
        examined by any interested person upon reasonable request; or
          ``(2) is a participant in a publication of mileages 
        formulated under an agreement approved under this section.
  ``(h) Single Line Rate Defined.--In this section, the term `single 
line rate' means a rate, charge, or allowance proposed by a single 
motor carrier that is applicable only over its line and for which the 
transportation can be provided by that carrier.

``Sec. 13704. Household goods rates--estimates; guarantees of service

  ``(a) In General.--
          ``(1) Authority.--Subject to the provisions of paragraph (2) 
        of this subsection, a motor carrier providing transportation of 
        household goods subject to jurisdiction under subchapter I of 
        chapter 135 may establish a rate for the transportation of 
        household goods which is based on the carrier's written, 
        binding estimate of charges for providing such transportation.
          ``(2) Nonpreferential; nonpredatory.--Any rate established 
        under this subsection must be available on a nonpreferential 
        basis to shippers and must not result in charges to shippers 
        which are predatory.
  ``(b) Rates for Guaranteed Service.--
          ``(1) Authority.--Subject to the provisions of paragraph (2) 
        of this subsection, a motor carrier providing transportation of 
        household goods subject to jurisdiction under subchapter I of 
        chapter 135 may establish rates for the transportation of 
        household goods which guarantee that the carrier will pick up 
        and deliver such household goods at the times specified in the 
        contract for such services and provide a penalty or per diem 
        payment in the event the carrier fails to pick up or deliver 
        such household goods at the specified time. The charges, if 
        any, for such guarantee and penalty provision may vary to 
        reflect one or more options available to meet a particular 
        shipper's needs.
          ``(2) Authority of secretary to require nonguaranteed service 
        rates.--Before a carrier may establish a rate for any service 
        under paragraph (1) of this subsection, the Secretary may 
        require such carrier to have in effect and keep in effect, 
        during any period such rate is in effect under paragraph (1), a 
        rate for such service which does not guarantee the pick up and 
        delivery of household goods at the times specified in the 
        contract for such services and which does not provide a penalty 
        or per diem payment in the event the carrier fails to pick up 
        or deliver household goods at the specified time.

``Sec. 13705. Requirements for through routes among motor carriers of 
                    passengers

  ``(a) Establishment; Reasonableness.--A motor carrier providing 
transportation of passengers subject to jurisdiction under subchapter I 
of chapter 135 shall establish through routes with other carriers of 
the same type and shall establish individual and joint rates applicable 
to them. Such through route must be reasonable.
  ``(b) Prescribed by Panel.--When the Panel finds it necessary to 
enforce the requirements of this section, the Panel may prescribe 
through routes and the conditions under which those routes must be 
operated for motor carriers providing transportation of passengers 
subject to jurisdiction under subchapter I of chapter 135.

``Sec. 13706. Liability for payment of rates

  ``(a) Liability of Consignee.--Liability for payment of rates for 
transportation for a shipment of property by a shipper or consignor to 
a consignee other than the shipper or consignor, is determined under 
this section when the transportation is provided by motor carrier under 
this part. When the shipper or consignor instructs the carrier 
transporting the property to deliver it to a consignee that is an agent 
only, not having beneficial title to the property, the consignee is 
liable for rates billed at the time of delivery for which the consignee 
is otherwise liable, but not for additional rates that may be found to 
be due after delivery if the consignee gives written notice to the 
delivering carrier before delivery of the property--
          ``(1) of the agency and absence of beneficial title; and
          ``(2) of the name and address of the beneficial owner of the 
        property if it is reconsigned or diverted to a place other than 
        the place specified in the original bill of lading.
  ``(b) Liability of Beneficial Owner.--When the consignee is liable 
only for rates billed at the time of delivery under subsection (a), the 
shipper or consignor, or, if the property is reconsigned or diverted, 
the beneficial owner is liable for those additional rates regardless of 
the bill of the lading or contract under which the property was 
transported. The beneficial owner is liable for all rates when the 
property is reconsigned or diverted by an agent but is refused or 
abandoned at its ultimate destination if the agent gave the carrier in 
the reconsignment or diversion order a notice of agency and the name 
and address of the beneficial owner. A consignee giving the carrier 
erroneous information about the identity of the beneficial owner of the 
property is liable for the additional rates.

``Sec. 13707. Billing and collecting practices

  ``(a) Timing.--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.
  ``(b) False or Misleading Information.--No person may cause a motor 
carrier to present false or misleading information on a document about 
the actual rate, charge, or allowance to any party to the transaction.
  ``(c) Allowances for Services.--When the actual rate, charge, or 
allowance is dependent upon the performance of a service by a party to 
the transportation arrangement, such as tendering a volume of freight 
over a stated period of time, the motor carrier shall indicate in any 
document presented for payment to the person responsible directly to 
the motor carrier that a reduction, allowance, or other adjustment may 
apply.

``Sec. 13708. Procedures for resolving claims involving unfiled, 
                    negotiated transportation rates

  ``(a) Transportation Provided Before Effective Date.--
          ``(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, 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 with the Interstate 
                        Commerce Commission 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 Interstate 
                        Commerce Commission 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 for resolution of showings.--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 Panel. Pending the 
        resolution of any such dispute, the person shall not have to 
        pay any additional compensation to the carrier or freight 
        forwarder.
          ``(3) Effect of satisfaction of claims under dispute 
        resolution procedure.--Satisfaction of a claim under subsection 
        (b), (c), or (d) shall be binding on the parties, and the 
        parties shall not be subject to chapter 119, as in effect on 
        the day before the effective date of this section.
  ``(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 Panel.
  ``(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 Panel.
  ``(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 Panel.
  ``(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 subsections (b), (c), or (d), the person may 
pursue all rights and remedies existing under this title on the day 
before the effective date of this section.
  ``(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 Panel 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 
        representing such carrier or freight forwarder initially 
        demands the payment of additional freight charges after 
        December 3, 1993, and notifies the person from whom additional 
        freight charges are sought of the provisions of subsections (a) 
        through (f) at the time of the making of such initial demand, 
        the election must be made not later than the later of--
                  ``(A) the 60th day following the filing of an answer 
                to a suit for the collection of such additional legally 
                applicable freight rate or charges, or
                  ``(B) March 5, 1994.
          ``(3) Pending suits for collection made before december 4, 
        1993.--If the carrier or freight forwarder or party 
        representing such carrier or freight forwarder has filed, 
        before December 4, 1993, a suit for the collection of 
        additional freight charges and notifies the person from whom 
        additional freight charges are sought of the provisions of 
        subsections (a) through (f), the election must be made not 
        later than the 90th day following the date on which such 
        notification is received.
          ``(4) Demands for payment made before december 4, 1993.--If 
        the carrier or freight forwarder or party representing such 
        carrier or freight forwarder has demanded the payment of 
        additional freight charges, and has not filed a suit for the 
        collection of such additional freight charges, before December 
        4, 1993, and notifies the person from whom additional freight 
        charges are sought of the provisions of subsections (a) through 
        (f), the election must be made not later than the later of--
                  ``(A) the 60th day following the filing of an answer 
                to a suit for the collection of such additional legally 
                applicable freight rate or charges, or
                  ``(B) March 5, 1994.
  ``(h) Claims Involving Small-Business Concerns, Charitable 
Organizations, and Recyclable Materials.--
          ``(1) In general.--Notwithstanding subsections (b), (c), and 
        (d), a person from whom the additional legally applicable and 
        effective tariff rate or charges are sought shall not be liable 
        for the difference between the carrier's applicable and 
        effective tariff rate and the rate originally billed and paid--
                  ``(A) if such person qualifies as a small-business 
                concern under the Small Business Act (15 U.S.C. 631 et 
                seq.),
                  ``(B) if such person is an organization which is 
                described in section 501(c)(3) of the Internal Revenue 
                Code of 1986 and exempt from tax under section 501(a) 
                of such Code, or
                  ``(C) if the cargo involved in the claim is 
                recyclable materials.
          ``(2) Recyclable materials defined.--In this subsection, the 
        term `recyclable materials' means waste products for recycling 
        or reuse in the furtherance of recognized pollution control 
        programs.

``Sec. 13709. Additional motor carrier undercharge provisions

  ``(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 any rate agreed to between the shipper 
        and carrier may have been based.
          ``(2) Reasonableness of rates; collecting additional 
        charges.--With respect to transportation provided before the 
        effective date of this section, 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 Panel shall determine whether such rates and 
        provisions are reasonable or applicable based on the record 
        before it. 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 Panel 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.
          ``(3) Charges before effective date.--With respect to 
        transportation provided before the effective date of this 
        section, if a shipper seeks to contest the charges originally 
        billed or additional charges subsequently billed, the shipper 
        may request that the Panel 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 
Panel shall resolve the dispute.

``Sec. 13710. 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 that was subject to jurisdiction under subchapter II of 
chapter 105 before the effective date of this section, a freight 
forwarder (other than a household goods freight forwarder), or a party 
representing such a carrier or freight forwarder to attempt to charge 
or to charge for a transportation service the difference between the 
applicable rate that was lawfully in effect pursuant to a tariff that 
was filed in accordance with chapter 107 of this title by the carrier 
or freight forwarder applicable to such transportation service and 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) of this title or is transporting property 
between places described in section 13501(1) of this title for the 
purpose of avoiding application of this section.
  ``(b) Jurisdiction of Panel.--
          ``(1) Determination.--The Panel 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 Panel 
        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 Panel 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 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 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 Panel 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 the effective 
date of this section, to the requirements of sections 10761(a) and 
10762, relating to a filed tariff rate and other general tariff 
requirements, as in effect on the day before such effective date.
  ``(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 13708 
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.

``Sec. 13711. Government traffic

  ``A carrier providing transportation or service for the United States 
Government may transport property or individuals for the United States 
Government without charge or at a rate reduced from the applicable 
commercial rate. Section 3709 of the Revised Statutes (41 U.S.C. 5) 
does not apply when transportation for the United States Government can 
be obtained from a carrier lawfully operating in the area where the 
transportation would be provided.

``Sec. 13712. Food and grocery transportation

  ``(a) Certain Compensation Prohibited.--Notwithstanding any other 
provision of law, it shall not be unlawful for a seller of food and 
grocery products using a uniform zone delivered pricing system to 
compensate a customer who picks up purchased food and grocery products 
at the shipping point of the seller if such compensation is available 
to all customers of the seller on a nondiscriminatory basis and does 
not exceed the actual cost to the seller of delivery to such customer.
  ``(b) Sense of Congress.--It is the sense of the Congress that any 
savings accruing to a customer by reason of compensation permitted by 
subsection (a) of this section should be passed on to the ultimate 
consumer.

                      ``CHAPTER 139--REGISTRATION

``Sec.
``13901. Requirement for registration.
``13902. Registration of motor carriers.
``13903. Registration of freight forwarders.
``13904. Registration of motor carrier brokers.
``13905. Effective periods of registration.
``13906. Security of motor carriers, brokers, and freight forwarders.
``13907. Household goods agents.
``13908. Registration and other reforms.

``Sec. 13901. Requirement for registration

  ``A person may provide transportation or service subject to 
jurisdiction under subchapter I or III of chapter 135 or be a broker 
for transportation subject to jurisdiction under subchapter I of that 
chapter, only if the person is registered under this chapter to provide 
the transportation or service.

``Sec. 13902. Registration of motor carriers

  ``(a) Motor Carrier Generally.--
          ``(1) In general.--Except as provided in this section, the 
        Secretary shall register a person to provide transportation 
        subject to jurisdiction under subchapter I of chapter 135 of 
        this title as a motor carrier if the Secretary finds that the 
        person is willing and able to comply with--
                  ``(A) this part and the applicable regulations of the 
                Secretary and the Panel;
                  ``(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 Panel, 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
                          ``(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.--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 regarding certain express 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) Treatment.--Except as provided in 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 the 30th day following the 
        date on which the motor carrier of passengers first begins 
        providing transportation entirely in one State under this 
        paragraph and the carrier takes such action as is necessary to 
        establish under the laws of such State rates, rules, and 
        practices applicable to such transportation.
          ``(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.
          ``(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.
          ``(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 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.

``Sec. 13903. Registration of freight forwarders

  ``(a) In General.--The Secretary shall register a person to provide 
service subject to jurisdiction under subchapter III of chapter 135 as 
a freight forwarder if the Secretary finds that the person is willing 
and able to provide the service and to comply with this part and 
applicable regulations of the Secretary and the Panel.
  ``(b) Registration as Carrier Required.--The freight forwarder may 
provide transportation as the carrier itself only if the freight 
forwarder also has registered to provide transportation as a carrier 
under this chapter.

``Sec. 13904. Registration of motor carrier 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 willing and able to be a broker for 
transportation and to comply with this part and applicable regulations 
of the Secretary.
  ``(b) Limitation.--
          ``(1) Registration as carrier required.--The broker may 
        provide transportation itself only if the broker also has 
        registered to provide transportation as a carrier under this 
        chapter.
          ``(2) Exception.--This subsection does not apply to a motor 
        carrier registered under this chapter or to an employee or 
        agent of the motor carrier to the extent the transportation is 
        to be provided entirely by the motor carrier, with other 
        registered motor carriers, or with rail or water carriers.
  ``(c) Regulations To Protect Shippers.--Regulations of the Secretary 
applicable to brokers registered under this section shall provide for 
the protection of shippers by motor vehicle.
  ``(d) Bond and Insurance.--The Secretary may impose on brokers for 
motor carriers of passengers such requirements for bonds or insurance 
or both as the Secretary determines are needed to protect passengers 
and carriers dealing with such brokers.

``Sec. 13905. Effective periods of registration

  ``(a) In General.--Each registration issued under section 13902, 
13903, or 13904 shall be effective from the date specified by the 
Secretary and shall remain in effect, except as otherwise provided in 
this part.
  ``(b) 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 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 Panel, or a 
condition of its registration.
  ``(c) 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 
        of the registrant; and
          ``(2) the registrant willfully does not comply with the order 
        for a period of 30 days.
  ``(d) Expedited Procedure.--
          ``(1) Protection of safety.--Without regard to subchapter II 
        of chapter 5 of title 5, the Secretary may suspend the 
        registration of a motor carrier, a freight forwarder, or a 
        broker for failure to comply with safety requirements of the 
        Secretary or the safety fitness requirements pursuant to 
        section 13904(c), 13906, or 31144, of this title, or an order 
        or regulation of the Secretary prescribed under those sections.
          ``(2) Imminent hazard to public health.--Without regard to 
        subchapter II of chapter 5 of title 5, the Secretary may 
        suspend a registration of a motor carrier of passengers if the 
        Secretary finds that such carrier has been conducting unsafe 
        operations which are an imminent hazard to public health or 
        property.
          ``(3) Notice; period of suspension.--The Secretary may 
        suspend under this subsection the registration only after 
        giving notice of the suspension to the registrant. The 
        suspension remains in effect until the registrant complies with 
        those applicable sections or, in the case of a suspension under 
        paragraph (2), until the Secretary revokes such suspension.

``Sec. 13906. Security of motor carriers, brokers, and freight 
                    forwarders

  ``(a) Motor Carrier Requirements.--
          ``(1) Liability insurance requirement.--The Secretary may 
        register a motor carrier under section 13902 only if the 
        registrant files with the Secretary a bond, insurance policy, 
        or other type of security approved by the Secretary, in an 
        amount not less than such amount as the Secretary prescribes 
        pursuant to, or as is required by, sections 31138 and 31139, 
        and the laws of the State or States in which the registrant is 
        operating, to the extent applicable. The security must be 
        sufficient to pay, not more than the amount of the security, 
        for each final judgment against the registrant for bodilyinjury 
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 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.
  ``(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.

``Sec. 13907. Household goods agents

  ``(a) Carriers Responsible for Agents.--Each motor carrier providing 
transportation of household goods shall be responsible for all acts or 
omissions of any of its agents which relate to the performance of 
household goods transportation services (including accessorial or 
terminal services) and which are within the actual or apparent 
authority of the agent from the carrier or which are ratified by the 
carrier.
  ``(b) Standard for Selecting Agents.--Each motor carrier providing 
transportation of household goods shall use due diligence and 
reasonable care in selecting and maintaining agents who are 
sufficiently knowledgeable, fit, willing, and able to provide adequate 
household goods transportation services (including accessorial and 
terminal services) and to fulfill the obligations imposed upon them by 
this part and by such carrier.
  ``(c) Enforcement.--
          ``(1) Complaint.--Whenever the Secretary has reason to 
        believe from a complaint or investigation that an agent 
        providing household goods transportation services (including 
        accessorial and terminal services) under the authority of a 
        motor carrier providing transportation of household goods has 
        violated section 14901(e) or 14912 or is consistently not fit, 
        willing, and able to provide adequate household goods 
        transportation services (including accessorial and terminal 
        services), the Secretary may issue to such agent a complaint 
        stating the charges and containing notice of the time and place 
        of a hearing which shall be held no later than 60 days after 
        service of the complaint to such agent.
          ``(2) Right to defend.--The agent shall have the right to 
        appear at such hearing and rebut the charges contained in the 
        complaint.
          ``(3) Order.--If the agent does not appear at the hearing or 
        if the Secretary finds that the agent has violated section 
        14901(e) or 14912 or is consistently not fit, willing, and able 
        to provide adequate household goods transportation services 
        (including accessorial and terminal services), the Secretary 
        may issue an order to compel compliance with the requirement 
        that the agent be fit, willing, and able. Thereafter, the 
        Secretary may issue an order to limit, condition, or prohibit 
        such agent from any involvement in the transportation or 
        provision of services incidental to the transportation of 
        household goods if, after notice and an opportunity for a 
        hearing, the Secretary finds that such agent, within a 
        reasonable time after the date of issuance of a compliance 
        order under this section, but in 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) Panel review.--The Panel, upon its own initiative or 
        request, shall review any activities undertaken under paragraph 
        (1) and shall modify or terminate the activity if necessary to 
        protect the public interest.
  ``(e) Definitions.--In this section, the following definitions apply:
          ``(1) Household goods.--The term `household goods' has the 
        meaning such term had under section 10102(11) of this title, as 
        in effect on the day before the effective date of this section.
          ``(2) Transportation.--The term `transportation' means 
        transportation that would be subject to the jurisdiction of the 
        Interstate Commerce Commission under subchapter II of chapter 
        105 of this title, as in effect on the day before such 
        effective date, if such subchapter were still in effect.

``Sec. 13908. Registration and other reforms

  ``(a) Regulations Replacing Certain Programs.--The Secretary, in 
cooperation with the States, and after notice and opportunity for 
public comment, shall issue regulations to replace the current 
Department of Transportation identification number system, the single 
State registration system under section 14504, the registration system 
contained in this chapter, and the financial responsibility information 
system under section 13906 with a single, on-line, Federal system. The 
new system shall serve as a clearinghouse 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.
  ``(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 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).
  ``(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 this 
        section, together with such recommendations for legislative 
        language necessary to conform this part to such changes.

                 ``CHAPTER 141--OPERATIONS OF CARRIERS

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec.
``14101. Providing transportation and service.
``14102. Leased motor vehicles.
``14103. Loading and unloading motor vehicles.
``14104. Household goods carrier operations.

                  ``SUBCHAPTER II--REPORTS AND RECORDS

``14121. Definitions.
``14122. Records: form; inspection; preservation.
``14123. Financial reporting.

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec. 14101. Providing transportation and service

  ``(a) On Reasonable Request.--A carrier providing transportation or 
service subject to jurisdiction under chapter 135 shall provide the 
transportation or service on reasonable request. In addition, a motor 
carrier shall provide safe and adequate service, equipment, and 
facilities.
  ``(b) Contracts With Shippers.--
          ``(1) In general.--A carrier providing transportation or 
        service subject to jurisdiction under chapter 135 may enter 
        into a contract with a shipper, other than for the movement of 
        household goods described in section 13102(9)(A), to provide 
        specified services under specified rates and conditions. If the 
        shipper, in writing, expressly waives 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 this part and may not be subsequently challenged on 
        the ground that it violates a provision of this part.
          ``(2) Remedy for breach of contract.--The exclusive remedy 
        for any alleged breach of a contract entered into under this 
        subsection shall be an action in an appropriate State court or 
        United States district court, unless the parties otherwise 
        agree.

``Sec. 14102. Leased motor vehicles

  ``(a) General Authority of Secretary.--The Secretary may require a 
motor carrier providing transportation subject to jurisdiction under 
subchapter I of chapter 135 that uses motor vehicles not owned by it to 
transport property under an arrangement with another party to--
          ``(1) make the arrangement in writing signed by the parties 
        specifying its duration and the compensation to be paid by the 
        motor carrier;
          ``(2) carry a copy of the arrangement in each motor vehicle 
        to which it applies during the period the arrangement is in 
        effect;
          ``(3) inspect the motor vehicles and obtain liability and 
        cargo insurance on them; and
          ``(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.

``Sec. 14103. Loading and unloading motor vehicles

  ``(a) Shipper Responsible for Assisting.--Whenever a shipper or 
receiver of property requires that any person who owns or operates a 
motor vehicle transporting property in interstate commerce (whether or 
not such transportation is subject to jurisdiction under subchapter I 
of chapter 135) be assisted in the loading or unloading of such 
vehicle, the shipper or receiver shall be responsible for providing 
such assistance or shall compensate the owner or operator for all costs 
associated with securing and compensating the person or persons 
providing such assistance.
  ``(b) Coercion Prohibited.--It shall be unlawful to coerce or attempt 
to coerce any person providing transportation of property by motor 
vehicle for compensation in interstate commerce (whether or not such 
transportation is subject to jurisdiction under subchapter I of chapter 
135) to load or unload any part of such property onto or from such 
vehicle or to employ or pay one or more persons to load or unload any 
part of such property onto or from such vehicle; except that this 
subsection shall not be construed as making unlawful any activity which 
is not unlawful under the National Labor Relations Act or the Act of 
March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et seq.), commonly known as 
the Norris-LaGuardia Act.

``Sec. 14104. Household goods carrier operations

  ``(a) General Regulatory Authority.--
          ``(1) Paperwork minimization.--The Secretary may issue 
        regulations, including regulations protecting individual 
        shippers, in order to carry out this part with respect to the 
        transportation of household goods by motor carriers subject to 
        jurisdiction under subchapter I of chapter 135. The regulations 
        and paperwork required of motor carriers providing 
        transportation of household goods shall be minimized to the 
        maximum extent feasible consistent with the protection of 
        individual shippers.
          ``(2) Performance standards.--
                  ``(A) In general.--Regulations of the Secretary 
                protecting individual shippers shall include, where 
                appropriate, reasonable performance standards for the 
                transportation of household goods subject to 
                jurisdiction under subchapter I of chapter 135.
                  ``(B) Factors to consider.--In establishing 
                performance standards under this paragraph, the 
                Secretary shall take into account at least the 
                following:
                          ``(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

``Sec. 14121. Definitions

  ``In this subchapter, the following definitions apply:
          ``(1) Carrier and broker.--The terms `carrier' and `broker' 
        include a receiver or trustee of a carrier and broker, 
        respectively.
          ``(2) Association.--The term `association' means an 
        organization maintained by or in the interest of a group of 
        carriers or brokers providing transportation or service subject 
        to jurisdiction under chapter 135 that performs a service, or 
        engages in activities, related to transportation under this 
        part.

``Sec. 14122. Records: form; inspection; preservation

  ``(a) Form of Records.--The Secretary or the Panel, 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 Panel, or an employee 
designated by the Secretary or Panel, 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 
                Panel, 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 Panel, as 
applicable, may prescribe the time period during which operating, 
accounting, and financial records must be preserved by carriers.

``Sec. 14123. Financial reporting

  ``(a) In General.--The Secretary shall require Class I motor 
carriers, and may require 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.
  ``(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) Exemption From Public Release.--
          ``(1) 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.
          ``(2) Procedure.--After a request under paragraph (1) 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.
          ``(3) Use of data for internal dot purposes.--If an exemption 
        is granted under this subsection, 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.
          ``(4) Period of exemptions.--Exemptions granted under this 
        subsection shall be for 3-year periods.
          ``(5) Pending requests.--The Secretary shall not release 
        publicly the report of a carrier making a request under 
        paragraph (1) while such request is pending.
  ``(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.

``Sec. 14301. Security interests in certain motor vehicles

  ``(a) Definitions.--In this section, the following definitions apply:
          ``(1) Motor vehicle.--The term `motor vehicle' means a truck 
        of rated capacity (gross vehicle weight) of at least 10,000 
        pounds, a highway tractor of rated capacity (gross combination 
        weight) of at least 10,000 pounds, a property-carrying trailer 
        or semitrailer with at least one load-carrying axle of at least 
        10,000 pounds, or a motor bus with a seating capacity of at 
        least 10 individuals.
          ``(2) Lien creditor.--The term `lien creditor' means a 
        creditor having a lien on a motor vehicle and includes an 
        assignee for benefit of creditors from the date of assignment, 
        a trustee in a case under title 11 from the date of filing of 
        the petition in that case, and a receiver in equity from the 
        date of appointment of the receiver.
          ``(3) Security interest.--The term `security interest' means 
        an interest (including an interest established by a conditional 
        sales contract, mortgage, equipment trust, or other lien or 
        title retention contract, or lease) in a motor vehicle when the 
        interest secures payment or performance of an obligation.
          ``(4) Perfection.--The term `perfection', as related to a 
        security interest, means taking action (including public 
        filing, recording, notation on a certificate of title, and 
        possession of collateral by the secured party), or the 
        existence of facts, required under law to make a security 
        interest enforceable against general creditors and subsequent 
        lien creditors of a debtor, but does not include compliance 
        with requirements related only to the establishment of a valid 
        security interest between the debtor and the secured party.
  ``(b) Requirements for Perfection of Security Interest.--A security 
interest in a motor vehicle owned by, or in the possession and use of, 
a carrier registered under section 13902 of this title and owing 
payment or performance of an obligation secured by that security 
interest is perfected in all jurisdictions against all general, and 
subsequent lien, creditors of, and all persons taking a motor vehicle 
by sale (or taking or retaining a security interest in a motor vehicle) 
from, that carrier when--
          ``(1) a certificate of title is issued for a motor vehicle 
        under a law of a jurisdiction that requires or permits 
        indication, on a certificate or title, of a security interest 
        in the motor vehicle if the security interest is indicated on 
        the certificate;
          ``(2) a certificate of title has not been issued and the law 
        of the State where the principal place of business of that 
        carrier is located requires or permits public filing or 
        recording of, or in relation to, that security interest if 
        there has been such a public filing or recording; and
          ``(3) a certificate of title has not been issued and the 
        security interest cannot be perfected under paragraph (2) of 
        this subsection, if the security interest has been perfected 
        under the law (including the conflict of laws rules) of the 
        State where the principal place of business of that carrier is 
        located.

``Sec. 14302. Pooling and division of transportation or earnings

  ``(a) Approval Required.--A carrier providing transportation subject 
to jurisdiction under subchapter I of chapter 135 of this title 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 
Panel under this section.
  ``(b) Standards for Approval.--The Panel 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 Panel 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 Panel 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 Panel not less than 50 days before its 
        effective date.
          ``(2) Determination of importance and restraint on 
        competition.--Prior to the effective date of the agreement or 
        combination, the Panel 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 Panel 
        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 Panel may issue, and for such consideration 
        between such carriers and upon such terms and conditions as 
        shall be found by the Panel to be just and reasonable.
          ``(3) Hearing.--If the Panel 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 Panel 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 Panel 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 Panel may issue, and for such consideration 
        between such carriers and upon such terms and conditions as 
        shall be found by the Panel to be just and reasonable.
          ``(4) Special rules for household goods carriers.--In the 
        case of an application for Panel 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 Panel 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 Panel 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 Panel 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 Panel under this 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.

                 ``CHAPTER 145--FEDERAL-STATE RELATIONS

``Sec.
``14501. Federal authority over intrastate transportation.
``14502. Tax discrimination against motor carrier transportation 
property.
``14503. Withholding State and local income tax by certain carriers.
``14504. Registration of motor carriers by a State.
``14505. State tax.

``Sec. 14501. Federal authority over intrastate transportation

  ``(a) Motor Carriers of Passengers.--No State or political 
subdivision thereof and no interstate agency or other political agency 
of two 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 two 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--
                          ``(i) at the request of a law enforcement 
                        officer; or
                          ``(ii) without the prior consent or 
                        authorization of the owner or operator of the 
                        motor vehicle.
          ``(3) State standard transportation practices.--
                  ``(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 theintrastate 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, or
                          ``(iv) antitrust immunity for joint line 
                        rates or routes, classifications, and mileage 
                        guides,
                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 Panel 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) This subsection shall not apply with respect to the 
        State of Hawaii until August 22, 1997.

``Sec. 14502. Tax discrimination against motor carrier transportation 
                    property

  ``(a) Definitions.--In this section, the following definitions apply:
          ``(1) Assessment.--The term `assessment' means valuation for 
        a property tax levied by a taxing district.
          ``(2) Assessment jurisdiction.--The term `assessment 
        jurisdiction' means a geographical area in a State used in 
        determining the assessed value of property for ad valorem 
        taxation.
          ``(3) Motor carrier transportation property.--The term `motor 
        carrier transportation property' means property, as defined by 
        the Secretary, owned or used by a motor carrier providing 
        transportation in interstate commerce whether or not such 
        transportation is subject to jurisdiction under subchapter I of 
        chapter 135.
          ``(4) Commercial and industrial property.--The term 
        `commercial and industrial property' means property, other than 
        transportation property and land used primarily for 
        agricultural purposes or timber growing, devoted to a 
        commercial or industrial use, and subject to a property tax 
        levy.
  ``(b) Acts Burdening Interstate Commerce.--The following acts 
unreasonably burden and discriminate against interstate commerce and a 
State, subdivision of a State, or authority acting for a State or 
subdivision of a State may not do any of them:
          ``(1) Excessive valuation of property.--Assess motor carrier 
        transportation property at a value that has a higher ratio to 
        the true market value of the motor carrier transportation 
        property than the ratio that the assessed value of other 
        commercial and industrial property in the same assessment 
        jurisdiction has to the true market value of the other 
        commercial and industrial property.
          ``(2) Tax on assessment.--Levy or collect a tax on an 
        assessment that may not be made under paragraph (1).
          ``(3) Ad valorem tax.--Levy or collect an ad valorem property 
        tax on motor carrier transportation property at a tax rate that 
        exceeds the tax rate applicable to commercial and industrial 
        property in the same assessment jurisdiction.
  ``(c) Jurisdiction.--
          ``(1) In general.--Notwithstanding section 1341 of title 28 
        and without regard to the amount in controversy or citizenship 
        of the parties, a district court of the United States has 
        jurisdiction, concurrent with other jurisdiction of courts of 
        the United States and the States, to prevent a violation of 
        subsection (b) of this section.
          ``(2) Limitation in relief.--Relief may be granted under this 
        subsection only if the ratio of assessed value to true market 
        value of motor carrier transportation property exceeds by at 
        least 5 percent, the ratio of assessed value to true market 
        value of other commercial and industrial property in the same 
        assessment jurisdiction.
          ``(3) Burden of proof.--The burden of proof in determining 
        assessed value and true market value is governed by State law.
          ``(4) Violation.--If the ratio of the assessed value of other 
        commercial and industrial property in the assessment 
        jurisdiction to the true market value of all other commercial 
        and industrial property cannot be determined to the 
        satisfaction of the district court through the random-sampling 
        method known as a sales assessment ratio study (to be carried 
        out under statistical principles applicable to such a study), 
        the court shall find, as a violation of this section--
                  ``(A) an assessment of the motor carrier 
                transportation property at a value that has a higher 
                ratio to the true market value of the motor carrier 
                transportation property than the assessment value of 
                all other property subject to a property tax levy in 
                the assessment jurisdiction has to the true market 
                value of all such other property; and
                  ``(B) the collection of ad valorem property tax on 
                the motor carrier transportation property at a tax rate 
                that exceeds the tax ratio rate applicable to taxable 
                property in the taxing district.

``Sec. 14503. Withholding State and local income tax by certain 
                    carriers

  ``(a) Single State Tax Withholding.--
          ``(1) In general.--No part of the compensation paid by a 
        motor carrier providing transportation subject to jurisdiction 
        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.

``Sec. 14504. Registration of motor carriers by a State

  ``(a) Definitions.--In this section, the terms `standards' and 
`amendments to standards' mean the specification of forms and 
procedures required by regulations of the Secretary to prove the 
lawfulness of transportation by motor carrier referred to in section 
13501.
  ``(b) General Rule.--The requirement of a State that a motor carrier, 
providing transportation subject to jurisdiction under subchapter I of 
chapter 135 and providing transportation in that State, must register 
with the State is not an unreasonable burden on transportation referred 
to in section 13501 when the State registration is completed under 
standards of the Secretary under subsection (c). When a State 
registration requirement imposes obligations in excess of the standards 
of the Secretary, the part in excess is an unreasonable burden.
  ``(c) Single State Registration System.--
          ``(1) In general.--The Secretary shall maintain standards for 
        implementing a system under which--
                  ``(A) a motor carrier is required to register 
                annually with only one State by providing evidence of 
                its Federal registration under chapter 139;
                  ``(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) will be 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) will minimize the costs of 
                                complying with the registration system; 
                                and
                                  ``(III) will result 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 a certificate or permit under 
                        subparagraph (A)(i) of this paragraph.
                  ``(C) Prohibited fees.--The charging or collection of 
                any fee under this section that is not in accordance 
                with the fee system established under subparagraph 
                (B)(iv) of this paragraph shall be deemed to be a 
                burden on interstate commerce.
                  ``(D) Limitation on participation by states.--Only a 
                State which, as of January 1, 1991, charged or 
                collected a fee for a vehicle identification stamp or 
                number under part 1023 of title 49, Code of Federal 
                Regulations, shall be eligible to participate as a 
                registration State under this subsection or to receive 
                any fee revenue under this subsection.

``Sec. 14505. State tax

  ``A State or political subdivision thereof may not collect or levy a 
tax, fee, head charge, or other charge on--
          ``(1) a passenger traveling in interstate commerce by motor 
        carrier;
          ``(2) the transportation of a passenger traveling in 
        interstate commerce by motor carrier;
          ``(3) the sale of passenger transportation in interstate 
        commerce by motor carrier; or
          ``(4) the gross receipts derived from such transportation.

      ``CHAPTER 147--ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES

``Sec.
``14701. General authority.
``14702. Enforcement by the regulatory authority.
``14703. Enforcement by the Attorney General.
``14704. Rights and remedies of persons injured by carriers or brokers.
``14705. Limitation on actions by and against carriers.
``14706. Liability of carriers under receipts and bills of lading.
``14707. Private enforcement of registration requirement.
``14708. Dispute settlement program for household goods carriers.
``14709. Tariff reconciliation rules for motor carriers of property.

``Sec. 14701. General authority

  ``(a) Investigations.--The Secretary or the Panel, as applicable, may 
begin an investigation under this part on the Secretary's or the 
Panel's own initiative or on complaint. If the Secretary or Panel, as 
applicable finds that a carrier or broker is violating this part, the 
Secretary or Panel, 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 Panel, 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 Panel, 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 Panel, as applicable, may dismiss a complaint that it 
determines does not state reasonable grounds for investigation and 
action.
  ``(c) Deadline.--A formal investigative proceeding begun by the 
Secretary or Panel under subsection (a) of this section is dismissed 
automatically unless it is concluded with administrative finality by 
the end of the 3d year after the date on which it was begun.

``Sec. 14702. Enforcement by the regulatory authority

  ``(a) In General.--The Secretary or the Panel, 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 Panel, 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 Panel, through its own attorneys, may bring or 
participate in any civil action involving motor carrier undercharges.

``Sec. 14703. Enforcement by the Attorney General

  ``The Attorney General may, and on request of either the Secretary of 
Transportation or Intermodal Surface Transportation Panel shall, bring 
court proceedings--
          ``(1) to enforce this part or a regulation or order of the 
        Secretary or Panel 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 Panel or term of 
        registration under this part.

``Sec. 14704. Rights and remedies of persons injured by carriers or 
                    brokers

  ``(a) 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 Panel, 
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.
  ``(b) Liability and Damages.--
          ``(1) Liability 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 of this 
        title.
          ``(2) Damages for violations.--A carrier or broker providing 
        transportation or service subject to jurisdiction under chapter 
        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.
  ``(c) Election.--
          ``(1) Complaint to dot or panel; civil action.--A person may 
        file a complaint with the Panel or the Secretary, as 
        applicable, under section 14701(b) of this title or bring a 
        civil action under subsection (b)(1) or (2) of this section to 
        enforce liability against a carrier or broker providing 
        transportation or service subject to jurisdiction under chapter 
        135. A person may bring a civil action for injunctive relief 
        for violations of sections 14102 and 14103.
          ``(2) Order of dot or panel.--
                  ``(A) In general.--When the Panel or Secretary, as 
                applicable, makes an award under subsection (b) of this 
                section, the Panel or Secretary, as applicable, shall 
                order the carrier to pay the amount awarded by a 
                specific date. The Panel 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 Panel 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 Panel 
        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 Panel 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 Panel 
        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 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) Attorney's fees.--The district court shall award a 
        reasonable attorney's fee as a part of the damages for which a 
        carrier or broker is found liable under this subsection. The 
        district court shall tax and collect that fee as a part of the 
        costs of the action.

``Sec. 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 Panel 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 Panel or 
Secretary, as applicable, to recover damages under section 14704(b)(2) 
of this title 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 
subsection (b) of this section and the 2-year period under subsection 
(c) of this section are extended for 90 days from the time the 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) Payment.--A person must begin a civil action to enforce an 
order of the Panel or Secretary against a carrier for the payment of 
money within 1 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 later of 
the date of--
          ``(1) payment of the rate for the transportation or service 
        involved;
          ``(2) subsequent refund for overpayment of that rate; or
          ``(3) deduction made under section 3726 of title 31.
  ``(g) Accrual Date.--A claim related to a shipment of property 
accrues under this section on delivery or tender of delivery by the 
carrier.

``Sec. 14706. Liability of carriers under receipts and bills of lading

  ``(a) General Liability.--
          ``(1) Motor carriers and freight forwarders.--A carrier 
        providing transportation or service subject to jurisdiction 
        under subchapter I or III of chapter 135 shall issue a receipt 
        or bill of lading for property it receives for transportation 
        under this part. That carrier and any other carrier that 
        delivers 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 filed under section 
        13702 of this title. 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) Limitation of liability by contract.--A carrier may 
        limit or be exempt from liability imposed under subsection (a) 
        of this section by a mutual written agreement, that is referred 
        to in the receipt, bill of lading, or contract for the 
        transportation involved entered into with the shipper, to limit 
        liability to a specified amount.
          ``(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 (other than 
        a rail 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 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 Panel 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.
          ``(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 18 months after the effective 
        date of this section, the Secretary shall submit to Congress a 
        report on the results of the study, together with any 
        recommendations of the Secretary (including legislative 
        recommendations) for implementing modifications or reforms 
        identified by the Secretary as being appropriate.

``Sec. 14707. Private enforcement of registration requirement

  ``(a) In General.--If a person provides transportation by motor 
vehicle or service in clear violation of section 13901-13904 or 13906, 
a person injured by the transportation or service may bring a civil 
action to enforce any such section. In a civil action under this 
subsection, trial is in the judicial district in which the person who 
violated that section operates.
  ``(b) Procedure.--A copy of the complaint in a civil action under 
subsection (a) shall be served on the Secretary and a certificate of 
service must appear in the complaint filed with the court. The 
Secretary may intervene in a civil action under subsection (a). The 
Secretary may notify the district court in which the action is pending 
that the Secretary intends to consider the matter that is the subject 
of the complaint in a proceeding before the Secretary. When that notice 
is filed, the court shall stay further action pending disposition of 
the proceeding before the Secretary.
  ``(c) Attorney's Fees.--In a civil action under subsection (a), the 
court may determine the amount of and award a reasonable attorney's fee 
to the prevailing party. That fee is in addition to costs allowable 
under the Federal Rules of Civil Procedure.

``Sec. 14708. Dispute settlement program for household goods carriers

  ``(a) Offering Shippers Arbitration.--As a condition of registration 
under section 13902 or 13903, a carrier providing transportation of 
household goods subject to jurisdiction under subchapter I or III of 
chapter 135 must agree to offer in accordance with this section to 
shippers of household goods arbitration as a means of settling disputes 
between such carriers and shippers of household goods concerning damage 
or loss to the household goods transported.
  ``(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 fees, 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 decision making process.
          ``(5) Limitation on fees.--No fee of more than $25 may be 
        charged a shipper for instituting an arbitration proceeding 
        under this subsection. In any case in which a shipper is 
        charged a fee under this paragraph for instituting an 
        arbitration proceeding and such dispute is settled in favor of 
        the shipper, the person settling the dispute must refund such 
        fee to the shipper unless the person settling the dispute 
        determines that such refund is inappropriate.
          ``(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 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 motor 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 those types of household 
goods.

``Sec. 14709. Tariff reconciliation rules for motor carriers of 
                    property

  ``Subject to review and approval by the Panel, 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 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 
sections 10761 and 10762 of this title 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 filed tariff.

              ``CHAPTER 149--CIVIL AND CRIMINAL PENALTIES

Sec.
``14901. General civil penalties.
``14902. Civil penalty for accepting rebates from carrier.
``14903. Tariff violations.
``14904. Additional rate violations.
``14905. Penalties for violations of rules relating to loading and 
unloading motor vehicles.
``14906. Evasion of regulation of carriers and brokers.
``14907. Record keeping and reporting violations.
``14908. Unlawful disclosure of information.
``14909. Disobedience to subpoenas.
``14910. General criminal penalty when specific penalty not provided.
``14911. Punishment of corporation for violations committed by certain 
individuals.
``14912. Weight-bumping in household goods transportation.
``14913. Conclusiveness of rates in certain prosecutions.

``Sec. 14901. General civil penalties

  ``(a) Reporting and Recordkeeping.--A person required to make a 
report to the Secretary or the Panel, 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 Government 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 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 Panel 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.

``Sec. 14902. Civil penalty for accepting rebates from carrier

  ``A person--
          ``(1) delivering property to a carrier providing 
        transportation or service subject to jurisdiction under chapter 
        135 for transportation under this part or for whom that carrier 
        will transport the property as consignor or consignee for that 
        person from a State or territory or possession of the United 
        States to another State or possession, territory, or to a 
        foreign country; and
          ``(2) knowingly accepting or receiving by any means a rebate 
        or offset against the rate for transportation for, or service 
        of, that property contained in a tariff required under section 
        13702;
is liable to the United States Government for a civil penalty in an 
amount equal to 3 times the amount of money that person accepted or 
received as a rebate or offset and 3 times the value of other 
consideration accepted or received as a rebate or offset. In a civil 
action under this section, all money or other consideration received by 
the person during a period of 6 years before an action is brought under 
this section may be included in determining the amount of the penalty, 
and if that total amount is included, the penalty shall be 3 times that 
total amount.

``Sec. 14903. Tariff violations

  ``(a) Criminal Penalty for Undercharging.--A person that knowingly 
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 less than the rate in effect under 
section 13702 shall be fined at least $1,000 but not more than $20,000, 
imprisoned for not more than 2 years, or both.
  ``(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 at least $1,000 but not more than $20,000, imprisoned 
for 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 subsection (a) or 
(b) of this section are considered to be the actions and omissions of 
that carrier or shipper as well as that person.
  ``(d) Venue.--Trial in a criminal action under this section is in the 
judicial district in which any part of the violation is committed or 
through which the transportation is conducted.

``Sec. 14904. Additional rate violations

  ``(a) Rebates by Agents.--A person, or an officer, employee, or agent 
of that person, that--
          ``(1) knowingly 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 knowingly and willfully 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,
shall be fined at least $200 for the first violation and at least $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 knowingly and willfully 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, shall be fined not more than $500 
        for the first violation and not more than $2,000 for a 
        subsequent violation.
          ``(2) Agents and others.--A person that knowingly and 
        willfully 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, shall be 
        fined not more than $500 for the first violation and not more 
        than $2,000 for a subsequent violation.

``Sec. 14905. Penalties for violations of rules relating to loading and 
                    unloading motor vehicles

  ``(a) Civil Penalties.--Any person who 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 Government for a civil penalty of not more than $10,000 
for each violation.
  ``(b) Criminal Penalties.--Any person who knowingly violates section 
14103(b) of this title shall be fined not more than $10,000, imprisoned 
for not more than 2 years, or both.

``Sec. 14906. Evasion of regulation of carriers and brokers

  ``A person, or an officer, employee, or agent of that person that by 
any means knowingly and willfully tries to evade regulation provided 
under this part for carriers or brokers shall be fined at least $200 
for the first violation and at least $250 for a subsequent violation.

``Sec. 14907. Record keeping and reporting violations

  ``A person required to make a report to the Secretary or the Panel, 
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) willfully does not make that report;
          ``(2) willfully does not specifically, completely, and 
        truthfully answer that question in 30 days from the date the 
        Secretary or Panel, as applicable, requires the question to be 
        answered;
          ``(3) willfully does not make, prepare, or preserve 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;
          ``(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 makes, prepares, or preserves a 
        record in violation of an applicable regulation or order of the 
        Secretary or Panel;
shall be fined not more than $5,000.

``Sec. 14908. Unlawful disclosure of information

  ``(a) Disclosure of Shipment and Routing Information.--
          ``(1) Violations.--A carrier or broker providing 
        transportation subject to jurisdiction under subchapter I, II, 
        or III of chapter 135 or an officer, receiver, trustee, lessee, 
        or employee of that carrier or broker, or another person 
        authorized by that carrier or broker to receive information 
        from that carrier or broker may not knowingly disclose to 
        another person, except the shipper or consignee, and another 
        person may not solicit, or knowingly 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) Fine; venue.--A person violating paragraph (1) of this 
        subsection shall be fined not less than $2,000. Trial in a 
        criminal action under this paragraph is in the judicial 
        district in which any part of the violation is committed.
  ``(b) Limitation on Statutory Construction.--This part does not 
prevent a carrier or broker providing transportation subject to 
jurisdiction under chapter 135 from giving information--
          ``(1) in response to legal process issued under authority of 
        a court of the United States or a State;
          ``(2) to an officer, employee, or agent of the United States 
        Government, a State, or a territory or possession of the United 
        States; or
          ``(3) to another carrier or its agent to adjust mutual 
        traffic accounts in the ordinary course of business.

``Sec. 14909. Disobedience to subpoenas

  ``A person not obeying a subpoena or requirement of the Secretary or 
the Panel to appear and testify or produce records shall be fined not 
less than $5,000, imprisoned for not more than 1 year, or both.

``Sec. 14910. General criminal penalty when specific penalty not 
                    provided

  ``When another criminal penalty is not provided under this chapter, a 
person that knowingly and willfully 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 under section 13902, shall be fined at 
least $500 for the first violation and at least $500 for a subsequent 
violation. A separate violation occurs each day the violation 
continues.

``Sec. 14911. Punishment of corporation for violations committed by 
                    certain individuals

  ``An act or omission that would be a violation of this part if 
committed by a director, officer, receiver, trustee, lessee, agent, or 
employee of a carrier providing transportation or service subject to 
jurisdiction under chapter 135 that is a corporation is also a 
violation of this part by that corporation. The penalties of this 
chapter apply to that violation. When acting in the scope of their 
employment, the actions and omissions of individuals acting for or 
employed by that carrier are considered to be the actions and omissions 
of that carrier as well as that individual.

``Sec. 14912. Weight-bumping in household goods transportation

  ``(a) Weight-Bumping Defined.--For the purposes of this section, 
`weight-bumping' means the knowing and willful making or securing of a 
fraudulent weight on a shipment of household goods which is subject to 
jurisdiction under subchapter I or III of chapter 135.
  ``(b) Penalty.--Any individual who has been found to have committed 
weight-bumping shall, for each offense, be fined at least $1,000 but 
not more than $10,000, imprisoned for not more than 2 years, or both.

``Sec. 14913. Conclusiveness of rates in certain prosecutions

  ``When a carrier publishes or files a particular rate under section 
13702 or participates in such a rate, the published or filed rate is 
conclusive proof against that carrier, its officers, and agents that it 
is the legal rate for that transportation or service in a proceeding 
begun under section 14902 or 14903. A departure, or offer to depart, 
from that published or filed rate is a violation of those sections.''.

SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.

  (a) Multiple Insurers.--Section 31138(c) of title 49, United States 
Code, is amended by adding at the end thereof 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.''.
  (b) Minimum Financial Responsibility Requirements With Respect to 
Certain Mass 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 ``; or''; and
          (3) by adding at the end the following:
          ``(4) providing mass transportation service within a transit 
        service area in other than urbanized areas under an agreement 
        with a State or local government funded, in whole or in part, 
        with a grant under section 5310 or 5311, including 
        transportation designed and carried out to meet the special 
        needs of elderly individuals and individuals with disabilities; 
        provided 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.''.
  (c) Transporters of Property.--Section 31139(e) of such title is 
amended by adding at the end thereof 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.''.
  (d) 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 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''.
  (e) Self-Insurance Rules.--The Secretary of Transportation shall 
continue to enforce the rules and regulations of the Interstate 
Commerce Commission, as in effect on July 1, 1995, governing the 
qualifications for approval of a motor carrier as a self-insurer, until 
such time as the Secretary finds it in the public interest to revise 
such rules. The revised rules must provide for--
          (1) continued ability of motor carriers to qualify as self-
        insurers; and
          (2) the continued qualification of all carriers then so 
        qualified under the terms and conditions set by the Interstate 
        Commerce Commission or Secretary at the time of qualification.
  (f) Automobile Transporters Defined.--The Secretary of Transportation 
shall issue a regulation amending the definition of automobile 
transporters under part 658 of title 23, Code of Federal Regulations, 
to mean any vehicle combination designed and used specifically for the 
transport of assembled (capable of being driven) highway vehicles, race 
car transporters, or specialty trailers designed for the racing 
industry with a 10-foot 1-inch spread axle setting.

              TITLE II--TRANSPORTATION ADJUDICATION PANEL

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--TRANSPORTATION ADJUDICATION PANEL

                     ``SUBCHAPTER I--ESTABLISHMENT

Sec.
``701. Establishment of Panel.
``702. Functions.
``703. Administrative provisions.
``704. Annual report.
``705. Authorization of appropriations.
``706. Reporting official action.

                    ``SUBCHAPTER II--ADMINISTRATIVE

``721. Powers.
``722. Panel action.
``723. Service of notice in Panel proceedings.
``724. Service of process in court proceedings.
``725. National organization of State commissions.
``726. Administrative support.
``727. Definitions.

                     ``SUBCHAPTER I--ESTABLISHMENT

``Sec. 701. Establishment of Panel

  ``(a) Establishment.--There is hereby established within the 
Department of Transportation the Transportation Adjudication Panel.
  ``(b) Membership.--(1) The Panel 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 Panel 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 in the private sector.
  ``(3) The term of each member of the Panel 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 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 then serving unexpired terms shall 
become members of the Panel, 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.
  ``(5) No individual may serve as a member of the Panel for more than 
2 terms. In the case of an individual who becomes a member of the Panel 
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 Panel 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 Panel does not impair the 
right of the remaining members to exercise all of the powers of the 
Panel. The Panel may designate a member to act as Director during any 
period in which there is no Director designated by the President.
  ``(c) Director.--(1) There shall be at the head of the Panel a 
Director, who shall be designated by the President from among the 
members of the Panel. The Director 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 Panel the Director shall be responsible for 
administering the Panel. The Director may delegate the powers granted 
under this paragraph to an officer, employee, or office of the Panel. 
The Director shall--
          ``(A) appoint and supervise, other than regular and full time 
        employees in the immediate offices of another member, the 
        officers and employees of the Panel, including attorneys to 
        provide legal aid and service to the Panel and its members, and 
        to represent the Panel in any case in court;
          ``(B) appoint the heads of offices with the approval of the 
        Panel;
          ``(C) distribute Panel responsibilities among officers and 
        employees and offices of the Panel;
          ``(D) prepare requests for appropriations for the Panel and 
        submit those requests to the President and Congress with the 
        prior approval of the Panel; and
          ``(E) supervise the expenditure of funds allocated by the 
        Panel for major programs and purposes.

``Sec. 702. Functions

  ``Except as otherwise provided in the ICC Termination Act of 1995, or 
the amendments made thereby, the Panel shall perform all functions 
that, immediately before the effective date of such Act, were functions 
of the Interstate Commerce Commission or were performed by any officer 
or employee of the Interstate Commerce Commission in the capacity as 
such officer or employee.

``Sec. 703. Administrative provisions

  ``(a) Executive Reorganization.--Chapter 9 of title 5, United States 
Code, shall apply to the Panel in the same manner as it does to an 
independent regulatory agency.
  ``(b) Open Meetings.--For purposes of section 552b of title 5, United 
States Code, the Panel shall be deemed to be an agency.
  ``(c) Independence.--In the performance of their functions, the 
members, employees, and other personnel of the Panel 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 
Director of the Panel may appear for, and represent the Panel in, any 
civil action brought in connection with any function carried out by the 
Panel 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 
Panel 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 Panel and include a 
statement by the Panel--
          ``(1) showing the amount requested by the Panel in its 
        budgetary presentation to the Secretary and the Office of 
        Management and Budget; and
          ``(2) an assessment of the budgetary needs of the Panel.
  ``(g) Direct Transmittal to Congress.--The Panel 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 Panel with Congress, or a committee or member of 
Congress, about the information.

``Sec. 704. Annual report

  ``The Panel shall annually transmit to the Congress a report on its 
activities.

``Sec. 705. Authorization of appropriations

  ``There are authorized to be appropriated to the Secretary of 
Transportation for the activities of the Panel--
          ``(1) $8,421,000 for fiscal year 1996;
          ``(2) $12,000,000 for fiscal year 1997; and
          ``(3) $12,000,000 for fiscal year 1998.

``Sec. 706. Reporting official action

  ``(a) The Panel 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. The report shall include the findings, 
conclusions, and the order of the Panel and, if damages are awarded, 
the findings of fact supporting the award. The Panel may have its 
reports published for public use. A published report of the Panel is 
competent evidence of its contents.
  ``(b)(1) When action of the Panel in a matter related to a rail 
carrier is taken by the Panel, an individual member of the Panel, or 
another individual or group of individuals designated to take official 
action for the Panel, the written statement of that action (including a 
report, order, decision and order, vote, notice, letter, policy 
statements, 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) of this subsection does not participate in 
it, the written statement of the action shall indicate that the member 
did not participate. An individual participating in taking an official 
action is entitled to express the views of that individual as part of 
the written statement of the action. In addition to any publication of 
the written statement, it shall be made available to the public under 
section 552(a) of title 5.

                    ``SUBCHAPTER II--ADMINISTRATIVE

``Sec. 721. Powers

  ``(a) The Panel shall carry out this chapter and subtitle IV. 
Enumeration of a power of the Panel in this chapter or subtitle IV does 
not exclude another power the Panel may have in carrying out this 
chapter or subtitle IV. The Panel may prescribe regulations in carrying 
out this chapter and subtitle IV.
  ``(b) The Panel may--
          ``(1) inquire into and report on the management of the 
        business of carriers providing, and brokers for, 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 or brokers to the extent 
        that the business of that person is related to the management 
        of the business of that carrier or broker;
          ``(3) obtain from those carriers, brokers, and persons 
        information the Panel 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)(1) The Panel may subpoena witnesses and records related to a 
proceeding of the Panel from any place in the United States, to the 
designated place of the proceeding. If a witness disobeys a subpoena, 
the Panel, or a party to a proceeding before the Panel, 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 district 
in which the proceeding is conducted. The court may punish a refusal to 
obey a subpoena as a contempt of court.
  ``(d)(1) In a proceeding, the Panel 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 Panel 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) of this subsection, the Panel 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 Panel 
or agreed on by the parties by written stipulation filed with the 
Panel. A deposition shall be filed with the Panel promptly.
  ``(e) Each witness summoned before the Panel or whose deposition is 
taken under this section and the individual taking the deposition are 
entitled to the same fees and mileage paid for those services in the 
courts of the United States.

``Sec. 722. Panel action

  ``(a) Unless otherwise provided in subtitle IV, the Panel may 
determine, within a reasonable time, when its actions, other than an 
action ordering the payment of money, take effect.
  ``(b) An action of the Panel remains in effect under its own terms or 
until superseded. The Panel may change, suspend, or set aside any such 
action on notice. Notice may be given in a manner determined by the 
Panel. A court of competent jurisdiction may suspend or set aside any 
such action.
  ``(c) The Panel 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 Panel; or
          ``(3) change an action of the Panel.
An interested party may petition to reopen and reconsider an action of 
the Panel under this subsection under regulations of the Panel.
  ``(d) Notwithstanding subtitle IV, an action of the Panel under this 
section is final on the date on which it is served, and a civil action 
to enforce, enjoin, suspend, or set aside the action may be filed after 
that date.

``Sec. 723. Service of notice in Panel proceedings

  ``(a) A carrier providing transportation subject to the jurisdiction 
of the Panel 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 Panel may be made.
  ``(b) A designation under subsection (a) of this section shall be in 
writing and filed with the Panel.
  ``(c) Except as otherwise provided, notices of the Panel 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 Panel 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 
Panel.
  ``(d) 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 Panel on an attorney in 
fact for the carrier constitutes service of notice on the carrier.

``Sec. 724. Service of process in court proceedings

  ``(a) A carrier providing transportation subject to the jurisdiction 
of the Panel 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 
Panel.
  ``(b) A designation under this section may be changed at any time in 
the same manner as originally made.

``Sec. 725. National organization of State commissions

  ``The Administrator of General Services shall assign space and 
facilities for the use of the national organization of the State 
commissions and their representatives. The space and facilities shall 
be available for the use of the State commissions and their 
representatives cooperating with the Panel or with another department, 
agency, or instrumentality of the United States Government. The rental 
for such space shall be paid by the national organization's Federal 
agency members other than the Panel.

``Sec. 726. Administrative support

  ``The Secretary of Transportation shall provide appropriate 
administrative support for the Panel.

``Sec. 727. Definitions

  ``All terms used in this chapter that are defined in subtitle IV 
shall have the meaning given those terms in that subtitle.''.
  (b) Table of Chapters Amendment.--The table of chapters of subtitle I 
of title 49, United States Code, is amended by adding at the end the 
following new item:

  ``7.  TRANSPORTATION ADJUDICATION PANEL                        701''.

SEC. 202. REORGANIZATION.

  The Director of the Transportation Adjudication Panel (in this Act 
referred to as the ``Panel'') may allocate or reallocate any function 
of the Panel, 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 Panel, and may establish, consolidate, alter, or discontinue in 
the Panel any organizational entities that were entities of the 
Interstate Commerce Commission, as the Director considers necessary or 
appropriate.

SEC. 203. TRANSFER OF ASSETS.

  Except as otherwise provided in this Act and the amendments made by 
this Act, so much of the personnel, property, records, and unexpended 
balances of appropriations, allocations, and other funds employed, 
used, held, available, or to be made available in connection with a 
function transferred to the Panel by this Act shall be available to the 
Panel at such time or times as the President directs for use in 
connection with the functions transferred.

SEC. 204. SAVING PROVISIONS.

  (a) Legal Documents.--All orders, determinations, rules, regulations, 
permits, grants, loans, contracts, agreements, certificates, licenses, 
and privileges--
          (1) that have been issued, made, granted, or allowed to 
        become effective by the President, 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 President, the Panel, any other authorized official, a court of 
competent jurisdiction, or operation of law.
  (b) Proceedings.--(1) Except as provided in paragraph (2), the Panel 
shall assume responsibility for the continuation of all proceedings 
pending before the Interstate Commerce Commission, and shall complete 
such proceedings in accordance with law and regulations as in effect 
before the date of the enactment of this Act.
  (2) In the case of a proceeding under a provision of law repealed, 
and not reenacted, by this Act, such proceeding shall be terminated.
  (c) Suits.--(1) This Act shall not affect suits commenced before the 
date of the enactment of this Act, except that the Panel shall assume 
the position of the Interstate Commerce Commission, and, except as 
provided in paragraph (2), 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) If the court in a suit described in paragraph (1) remands a case 
to the Panel, 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) Exercise of Authorities.--Except as otherwise provided by law, an 
officer or employee of the Panel 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 that function to the 
official responsible for the performance of the function immediately 
before the effective date of the transfer of the function under this 
Act or the amendments made by this Act.

SEC. 205. 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 Panel or a member or employee of 
the Panel, 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 ``Director, 
Transportation Adjudication Panel.''.
  (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, 
Transportation Adjudication Panel.''.

SEC. 302. TITLE 11 AMENDMENTS.

  Subchapter IV of chapter 11 of title 11, United States Code, is 
amended--
          (1) by amending section 1162 to read as follows:

``Sec. 1162. Definition

  ``In this subchapter, `Panel' means the `Transportation Adjudication 
Panel'.''; and
          (2) by striking ``Commission'' each place it appears and 
        inserting in lieu thereof ``Panel''.

SEC. 303. TITLE 18 AMENDMENT.

  Section 6001(1) of title 18, United States Code, is amended by 
striking ``Interstate Commerce Commission'' and inserting in lieu 
thereof ``Transportation Adjudication Panel''.

SEC. 304. INTERNAL REVENUE CODE OF 1986 AMENDMENTS.

  (a) Section 3231.--Section 3231 of the Internal Revenue Code of 1986 
is amended--
          (1) by striking ``Interstate Commerce Commission'' in 
        subsection (a) and inserting in lieu thereof ``Transportation 
        Adjudication Panel''; and
          (2) by striking ``an express carrier, sleeping car carrier, 
        or'' in subsection (g) and inserting in lieu thereof ``a''.
  (b) Section 7701.--Section 7701 of the Internal Revenue Code of 1986 
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 
        ``Transportation Adjudication Panel'';
          (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 ``Interstate Commerce 
        Commission under subchapter III of chapter 105'' and inserting 
        in lieu thereof ``Transportation Adjudication Panel under 
        subchapter II of chapter 135'';
          (5) in paragraph (33)(G), by striking ``subchapter I of 
        chapter 105'' and inserting in lieu thereof ``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 157 Amendments.--(1) Chapter 157 of title 28, United 
States Code, is amended--
          (A) by striking ``INTERSTATE COMMERCE COMMISSION'' in the 
        chapter heading and inserting in lieu thereof ``TRANSPORTATION 
        ADJUDICATION PANEL'';
          (B) by striking ``Commission's'' in the section heading of 
        section 2321 and inserting in lieu thereof ``Panel's'';
          (C) by striking ``Interstate Commerce Commission'' each place 
        it appears and inserting in lieu thereof ``Transportation 
        Adjudication Panel''; and
          (D) by striking ``Commission'' each place it appears and 
        inserting in lieu thereof ``Panel''.
  (2)(A) The item relating to chapter 157 in the table of chapters of 
title 28, United States Code, is amended by striking ``Interstate 
Commerce Commission'' and inserting in lieu thereof ``Transportation 
Adjudication Panel''.
  (B) The item relating to section 2321 in the table of sections of 
chapter 157 of title 28, United States Code, is amended by striking 
``Commission's'' and inserting in lieu thereof ``Panel's''.
  (b) Chapter 158 Amendments.--Chapter 158 of title 28, United States 
Code, is amended--
          (1) by striking ``the Interstate Commerce Commission,'' in 
        section 2341(3)(A);
          (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 Panel, when the order was entered by the 
                Transportation Adjudication Panel.''; and
          (5) in section 2342, by--
                  (A) inserting ``or pursuant to part B of subtitle IV 
                of title 49, United States Code'' before the semicolon 
                at the end of paragraph (3)(A); and
                  (B) striking paragraph (5) and inserting the 
                following:
          ``(5) all rules, regulations, or final orders of the 
        Transportation Adjudication Panel made reviewable by section 
        2321 of this title; and''.

SEC. 306. TITLE 39 AMENDMENTS.

  Title 39, United States Code, is amended--
          (1) in section 5005(b)(3), by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Transportation 
        Adjudication Panel''; and
          (2) in chapter 52--
                  (A) by amending paragraph (1) of section 5201 to read 
                as follows:
          ``(1) `Panel' means the Transportation Adjudication Panel;'';
                  (B) by striking subsection (f) of section 5203, and 
                redesignating subsection (g) of such section as 
                subsection (f);
                  (C) in subsection (f) of section 5203, as so 
                redesignated by subparagraph (B) of this paragraph, by 
                striking ``Commission'' and inserting in lieu thereof 
                ``Panel'';
                  (D) by striking ``Interstate Commerce Commission'' in 
                the section heading of section 5207 and inserting in 
                lieu thereof ``Transportation Adjudication Panel'';
                  (E) by striking ``Commission's'' in sections 5208(a) 
                and 5215(a) and inserting in lieu thereof ``Panel's'';
                  (F) by striking ``Commission'' each place it appears 
                and inserting in lieu thereof ``Panel''; and
                  (G) in the item relating to section 5207 in the table 
                of sections, by striking ``Interstate Commerce 
                Commission'' and inserting in lieu thereof 
                ``Transportation Adjudication Panel''.

SEC. 307. TITLE 49 AMENDMENTS.

  Title 49, United States Code, is amended--
          (1) in section 22106(e)(1) by striking ``an application for 
        abandonment of'' and inserting in lieu thereof ``a notice of 
        intent to abandon''; and
          (2) by repealing subsection (d) of section 24705.

                      Subtitle B--Other Amendments

SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938 AMENDMENT.

  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 ``Transportation 
        Adjudication Panel'';
          (2) by striking ``Commission'' each place it appears and 
        inserting in lieu thereof ``Panel''; and
          (3) by striking ``Commission's'' in subsection (b) and 
        inserting in lieu thereof ``Panel'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 ``Transportation Adjudication Panel''.

SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AMENDMENTS.

  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 ``Transportation 
        Adjudication Panel 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 Transportation 
Adjudication Panel''.

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 Transportation 
Adjudication Panel''.

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 
Transportation Adjudication Panel''.

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 ``Director 
                of the Transportation Adjudication Panel''; and
                  (B) by striking ``Commission'' and inserting in lieu 
                thereof ``Panel''; and
          (2) in section 9(b), by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Transportation 
        Adjudication Panel''.

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 ``Transportation 
                Adjudication Panel''; 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 ``Transportation Adjudication 
        Panel where applicable to common carriers subject to 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 Transportation Adjudication Panel 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 amended by striking ``Interstate 
Commerce Commission'' and inserting in lieu thereof ``Transportation 
Adjudication Panel''.

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 
                ``Transportation Adjudication Panel''; and
                  (B) by striking ``commission'' and inserting in lieu 
                thereof ``board''; and
          (2) in section 28 (46 U.S.C. App. 884)--
                  (A) by striking ``Interstate Commerce Commission'' 
                and inserting in lieu thereof ``Transportation 
                Adjudication Panel''; and
                  (B) by striking ``commission'' each place it appears 
                and inserting in lieu thereof ``Panel''.

SEC. 322. RAILWAY LABOR ACT AMENDMENTS.

  Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended--
          (1) by striking ``express company, sleeping-car company, 
        carrier by railroad, subject to the Interstate Commerce Act'' 
        in the first paragraph and inserting in lieu thereof ``railroad 
        subject to the jurisdiction of the Transportation Adjudication 
        Panel'';
          (2) by striking ``Interstate Commerce Commission'' each place 
        it appears in the first and fifth paragraphs and inserting in 
        lieu thereof ``Transportation Adjudication Panel''; and
          (3) by striking ``Commission'' each place it appears in the 
        fifth paragraph and inserting in lieu thereof ``Panel''.

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 amending subsection (a)(1)(i) to read as follows:
          ``(i) any carrier by railroad subject to the jurisdiction of 
        the Transportation Adjudication Panel under part A of subtitle 
        IV of title 49, United States Code;'';
          (2) by striking ``Interstate Commerce Commission is hereby 
        authorized and directed upon request of the Board'' in 
        subsection (a)(2)(ii) and inserting in lieu thereof 
        ``Transportation Adjudication Panel is hereby authorized and 
        directed upon request of the Railroad Retirement Board''; and
          (3) by inserting ``the Transportation Adjudication Panel,'' 
        after ``the Interstate Commerce Commission,'' in subsection 
        (o).

SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT AMENDMENTS.

  The Railroad Unemployment Insurance Act is amended--
          (1) by striking ``Interstate Commerce Commission is hereby 
        authorized and directed upon request of the Board'' in section 
        1(a) (45 U.S.C. 351(a)) and inserting in lieu thereof 
        ``Transportation Adjudication Panel is hereby authorized and 
        directed upon request of the Railroad Retirement Board'';
          (2) by amending paragraph (b) of such section 1 to read as 
        follows:
  ``(b) The term `carrier' means a railroad subject to the jurisdiction 
of the Transportation Adjudication Panel 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. 
        352(h)(3)) and inserting in lieu thereof ``Transportation 
        Adjudication Panel, 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) by amending paragraph (2) of section 2 (45 U.S.C. 661(2)) 
        to read as follows:
  ``(2) `Panel' means the Transportation Adjudication Panel.'';
          (2) by striking ``Interstate Commerce Commission'' in section 
        6(a) (45 U.S.C. 665(a)) and inserting in lieu thereof 
        ``Panel''; and
          (3) by striking ``Commission'' each place it appears and 
        inserting in lieu thereof ``Panel''.

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 ``Interstate Commerce Commission'' each place 
        it appears and inserting in lieu thereof ``Transportation 
        Adjudication Panel''; and
          (2) by striking ``Commission'' in subsection (b) and 
        inserting in lieu thereof ``Panel''.

SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973 AMENDMENTS.

  The Regional Rail Reorganization Act of 1973 is amended--
          (1) in section 304(d)(3) (45 U.S.C. 744(d)(3))--
                  (A) by striking ``this title,'' and all that follows 
                through ``(A) shall take'' and inserting in lieu 
                thereof ``this title, the Commission shall take''; and
                  (B) by striking ``this subsection; and'' and all that 
                follows through ``205(d)(6) of this Act'' and inserting 
                in lieu thereof ``this subsection''; and
          (2) in section 707 (45 U.S.C. 797f)--
                  (A) by inserting ``(a)'' at the beginning of the 
                text; and
                  (B) by adding at the end the following new 
                subsections:
  ``(b) Notwithstanding any other provision of this Act or any 
agreement or arrangement in effect as of the date of the enactment of 
this subsection, the Corporation may not sell or transfer ownership or 
management, in whole or in part, of any facility acquired by the 
Corporation under this Act that is used for the repair, rehabilitation, 
or maintenance of cars or locomotives, without first obtaining the 
expess consent of the authorized representatives of the employees at 
such facility covered by collective bargaining agreements. Any 
transaction undertaken in violation of this subsection or subsection 
(c) shall be considered in violation of section 6 of the Railway Labor 
Act, and shall be actionable as such.
  ``(c) Notwithstanding any other provision of this Act or any 
agreement or arrangement in effect as of the date of the enactment of 
this subsection, any transfer by the Corporation of ownership, in whole 
or in part, other than for scrappage, of a car or locomotive that was 
repaired, rehabilitated, or maintained, before the date of the 
enactment of this subsection, at a facility acquired by the Corporation 
under this Act, without first obtaining the express consent of the 
authorized representatives of the employees at the Corporation's 
principal maintenance facility covered by collective bargaining 
agreements, is prohibited.''.

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 repealing section 120 (45 U.S.C. 1015).

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 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.'';
          (2) in section 509(b) (45 U.S.C. 829(b)) by striking 
        paragraph (2); and
          (3) 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. SERVICE CONTRACT ACT OF 1965 AMENDMENT.

  Section 7(3) of the Service Contract Act of 1965 (41 U.S.C. 356(3)) 
is amended by striking ``where published tariff rates are in effect''.

SEC. 332. FISCAL YEAR 1982 CONTINUING RESOLUTION AMENDMENT.

  Section 115 of the Joint Resolution entitled ``Joint Resolution 
making further continuing appropriations for the fiscal year 1982, and 
for other purposes'' (Public Law 97-92; 95 Stat. 1196) is repealed.

SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION ACT.

  Section 401(b) of the Migrant and Seasonal Agricultural Worker 
Protection Act (29 U.S.C. 1841(b)) is amended by--
          (1) striking ``part II of the Interstate Commerce Act (49 
        U.S.C. 301 et seq.) , or any successor provision of'' in 
        paragraph (2)(C) and inserting ``part B of''; and
          (2) striking ``part II of the Interstate Commerce Act (49 
        U.S.C. 301 et seq.), and any successor provision of'' in 
        paragraph (3) and inserting ``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 amended by striking all after 
``subsection (c)'' and inserting ``shall not take effect as long as 
section 11501(g)(2) of title 49, United States Code, applies to that 
State.''.

SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHORITY.

  (a) Repeal of Intercoastal Shipping Act, 1933.--The Act of March 3, 
1933 (Chapter 199; 46 App. U.S.C. 843 et seq.), commonly referred to as 
the Intercoastal Shipping Act, 1933, 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:
          (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).

SEC. 336. DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES 
                    APPROPRIATION ACT, 1982 AMENDMENT.

  Section 402 of the Department of Transportation and Related Agencies 
Appropriation Act, 1982 (Public Law 97-102; 95 Stat. 1465) is repealed.

                            Committee Report

                          purpose and summary

    On October 26, 1995, H.R. 2539, the ICC Termination Act of 
1995, was introduced. The bill substantially deregulates the 
rail and motor carrier industries and abolishes the 108-year-
old Interstate Commerce Commission effective upon enactment.
    There is a long history behind the termination of the 
Interstate Commerce Commission beginning with the Staggers Act 
of 1980 and the Motor Carrier Act of 1980, which began the 
substantial economic deregulation of the surface transportation 
industry and the whittling away of the size and scope of the 
ICC. In 1970s the ICC had 11 Commissioners and employed over 
2,000 people; today it has 5 Commissioners and less than 400 
employees.
    The recognition that the surface transportation industry is 
competitive and that few economic regulatory activities are 
required to maintain a balanced transportation network has led 
to calls for the ICC's elimination. In the 1980s, the Reagan 
Administration submitted legislation on several occasions to 
terminate the ICC and transfer remaining activities to other 
Federal agencies. Congressional action was never taken on these 
legislative proposals; however, last year the House voted to 
eliminate all funding for the ICC in the FY 1995 Department of 
Transportation and Related Agencies Appropriations Act. Fiscal 
Year 1995 funding was subsequently partially restored in 
conference, with the understanding that authorizing legislation 
would be produced to complete termination of the ICC in FY 
1996. In April, the Clinton Administration submitted 
legislation to sunset the ICC effective September 30, 1996, 
which was introduced by Representatives Lipinski and Mineta by 
request as H.R. 1436.
    Summary of Rail Provisions in H.R. 2539. The bill 
eliminates obsolete rail provisions and transfers those 
activities that need to be continued to the Department of 
Transportation. A three-member decisionally independent 
adjudicatory panel (to be discussed in greater detail below) is 
established within the Department of Transportation to 
administer these remaining activities.
    Provisions and activities that are repealed or eliminated 
in H.R. 2539 include:
          Tariff filing: Requires that rail carriers file rates 
        for common carriage shipments with the ICC. (This is 
        replaced with an obligation that the railroad notify 
        the shipper of a change in a rate.)
          Regulation of entry, exit, and fares of passenger 
        rail service.
          Securities jurisdiction: Requires railroads to obtain 
        ICC authorization to issue securities or to assume an 
        obligation or liability with respect to the securities 
        of another, and address internal corporate 
        relationships between railroads and shareholders.
          Financial Assistance Program: Authorizes regulatory 
        policing of continued subsidy and purchase arrangements 
        between shippers and railroads on lines proposed for 
        abandonment.
          Feeder Line Development Program: Authorizes the ICC 
        to order the sale of a line whose shippers are not 
        being adequately served. (H.R. 2539 retains the 
        ``forced sale'' provisions of the abandonment process.)
          Minimum rate regulation: Prohibits rail carriers from 
        setting rates below a ``reasonable minimum'' to protect 
        railroads from rate wars and destructive competition.
          State certification: Requires that States may only 
        regulate intrastate rail transportation if certified by 
        the ICC. Replaced by direct preemption of State 
        economic regulation of rail transportation.
          The commodities clause: Prevents railroads from 
        transporting commodities that they themselves have 
        produced or own.
          Recyclable commodities rate regime: Prevents 
        discrimination against the transportation of recyclable 
        materials in rate structures and, for recyclables other 
        than scrap iron or steel, specifies a formula for 
        calculating a rate ceiling.
          Valuation jurisdiction: Charges the ICC with valuing 
        all property owned or used by each rail carrier.
          Protective services jurisdiction: Provides ICC 
        jurisdiction over protective services (refrigerated 
        cars).
          Intermodal ownership restrictions: Prevent railroads 
        from owning other types of transportation companies.
          Express service jurisdiction: Provides ICC 
        jurisdiction over express transportation.
          Postal Service contract filing and rate jurisdiction.
          Interlocking directorate authority: Allows the ICC to 
        prohibit a person from serving as a director or officer 
        of more than one rail carrier.
          Procedural recipes for rulemaking proceedings.
          Joint board, divisions of Commission, and other 
        decisional process provisions.
    Major provisions and activities that need to be continued 
are transferred to the Department of Transportation to be 
administered by the Transportation Adjudicatory Panel. These 
items include:
    Maximum rate regulation: This is designed to protect 
captive shippers from the abuse of market power while allowing 
railroads the flexibility to earn adequate revenues. It is only 
applied to common carriage transportation; railroads and 
shippers have the option of entering into confidential rate 
contracts that are completely exempt from regulation. Current 
Staggers Act maximum rate standards are retained. In addition, 
the TAP is required to complete within one year after enactment 
the pending ICC proceeding to establish non-coal rate 
guidelines aimed at providing simplified evidentiary standards 
of rate-reasonableness proceedings. The bill carries forward 
the Staggers Act policy that regulatory intervention should be 
relegated to a role as ``safety net'' in those relatively rare 
situations when market forces and shipper-carrier negotiations 
do not produce a satisfactory business relationship.
    Railroad mergers and consolidations: The existing Staggers 
Act public interest standard, including the conferment of 
antitrust immunity, is retained. H.R. 2539 elaborates on the 
existing power to impose conditions (including trackage rights 
and related compensation arrangements) on the approval of a 
merger or other regulated transaction, and allows for on-the-
record ex parte communications with the decisionmakers. In 
addition, the current 31-month schedule for merger proceedings 
is shortened to a maximum of 270 days.
    Various Intercarrier Transactions: The common carrier 
obligation, lines sales, through routes, joint rate 
jurisdiction, car hire, car supply and car interchange, 
terminal trackage rights and reciprocal switching jurisdiction 
are all transferred to the TAP under existing standards with 
minor modifications for large Class I railroads' transactions. 
A new separate procedure without mandatory transaction costs 
imposed by the agency is established for smaller Class II and 
Class III railroads' transactions.
    Abandonments: The current approval process under the 
``public convenience and necessity'' standard is transferred to 
the Panel. Where appropriate, the TAP is authorized to alter 
the scope of a proposed abandonment to afford the best 
opportunity for the line to be sold and operated as a viable 
short-line railroad.
    Exemption Authority: This critical function that allows for 
further deregulation through administrative action is 
transferred to the TAP. The deadline for deciding whether to 
begin an exemption proceeding is set at 90 days after an 
application is received, and any ensuing exemption proceedings 
must be completed within one year. Restrictions on intermodal 
ownership are eliminated, and the TAP is required to employ its 
exemption authority ``to the maximum extent'' consistent with 
applicable law.
    Labor Protection: No change is made to the level of 
protection in transactions involving Class I railroads. In line 
purchases and other inter-carrier transactions involving 
smaller (Class II and Class III railroads), Worker Adjustment 
and Retraining Notification Act levels of labor protection are 
imposed.
    Summary of Motor Carrier Provisions of H.R. 2539. H.R. 2539 
eliminates and then reenacts a revised Motor Carrier Act. The 
new Motor Carrier Act established in the bill eliminates 
numerous unnecessary provisions and streamlines many other of 
the ICC's functions regarding the regulation of the motor 
carrier industry. Most of the remaining functions are 
transferred to the Department of Transportation, with limited 
responsibilities transferred to the Transportation Adjudication 
Panel.
    Existing ICC functions that have been eliminated, 
deregulated or reformed:
          All tariff filings, except for noncontiguous domestic 
        trade are eliminated.
          All rate regulation, except for noncontiguous 
        domestic trade and individual household goods movements 
        are eliminated.
          Exemption authority to permit administrative 
        deregulation has been substantially broadened, with 
        restrictions only on cargo loss and damage, insurance, 
        safety fitness, and antitrust immunity.
          Federal grants of operating authority have been 
        eliminated.
          Regulation of Interstate bus routes and 
        discontinuances has been substantially reformed.
          Price regulation and tariff filing requirements for 
        office and exhibit moves have been eliminated.
          Household goods dispute resolution has been reformed.
          Federal resolution of routine commercial disputes has 
        been eliminated.
          Possibility of future undercharge claims has been 
        eliminated.
          State taxation of interstate bus tickets is 
        prohibited.
          Restrictions on intermodal ownership have been 
        eliminated.
          Review of motor carrier mergers has been eliminated.
          Restrictions on interlining between buses and rail 
        carriers have been eliminated.
          Federal regulation of chemical pipelines has been 
        eliminated.
          Registration and insurance filings will be 
        streamlined into a single Federal registration and 
        insurance system to eliminate duplicative and 
        burdensome filing requirements.
          State regulation of transportation intermediaries 
        eliminated.
    Motor Carrier functions transferred to the Department of 
Transportation. Most of the ICC's current authority to oversee 
the commercial operation of the motor carrier industry has been 
transferred to DOT. It is anticipated that these transferred 
functions will be carried out by the Office of Motor Carriers 
within the Federal Highway Administration. No new funding is 
provided for carrying out these responsibilities, but authority 
to collect and spend currently collected ICC fees is given to 
the Secretary.
    The primary remaining function which is transferred to DOT 
is motor carrier registration and the setting and maintenance 
of minimum levels of liability insurance. Foreign motor carrier 
registration and oversight will also be the responsibility of 
the Department and the relevant provisions in H.R. 2539 have 
been strengthened over existing law to enable the proper 
oversight, implementation and obligations imposed on the United 
States as part of the North American Free Trade Agreement.
    The maintenance of nationwide motor carrier industry 
commercial rules (such as leasing rules, uniform cargo loss and 
damage rules, rules for shipper payment, and perfecting 
security interest) will be transferred to the Department. Since 
motor carrier transportation is a truly interstate industry, it 
is critical to the smooth functioning of commerce that there be 
Federal commercial rules established to ensure that all 
interstate transportation is subject to the same rules and 
procedures. Otherwise, a motor carrier would be potentially 
subject to 50 different rules for operation. While DOT shall 
oversee and maintain these statutes and regulations, the 
Committee anticipates that very little effort or activity will 
be required regarding those matters.
    Motor Carrier functions transferred to the Transportation 
Adjudication Panel. The Panel will receive responsibility for 
the limited amount of rate regulation for individual movements 
of household goods, rate regulation and tariff filings which 
are required for shipments to Hawaii, Alaska, and the offshore 
territories and possessions, and requirements for reasonable 
through routes and division of joint rates. Approval and 
oversight of agreements for antitrust immunity and limited 
oversight responsibilities for household goods are transferred 
to the Panel. Final resolution of undercharge claims will be 
handled by the Panel.
    Summary of Significant Motor Carrier Provisions. The bill 
includes a number of significant policy changes which are 
summarized below.
    Antitrust Immunity for Business Practices. Currently, the 
motor carrier industry enjoys broad antitrust immunity for many 
collective activities of motor carriers as granted by the ICC. 
At a March 3, 1995 hearing conducted by the Subcommittee on 
Surface Transportation on the elimination of the ICC, many 
witnesses urged continuation of antitrust immunity authority as 
being beneficial to, or at the very least not harmful to, the 
transportation sector and allowing efficiencies within the 
industry. It was argued that the trucking industry is unique 
because nearly all motor carriers are potential competitors. 
Any cooperative activity would be a potential violation of the 
antitrust laws. Therefore, antitrust immunity is needed to 
permit certain types of joint activity that are beneficial. 
Over the past five decades, certain motor carrier business 
practices and industry standards have developed which rely on 
antitrust immunity, including collective ratemaking, joint line 
and pooling, mileage and classification guides, among others. A 
few stated that antitrust immunity should be eliminated and 
that collective activities should be judged under the ``Rule of 
Reason'' which would allow beneficial activities which do not 
hurt competition to continue.
    Loss and Damage Claims. Under the Carmack amendment, motor 
common carriers are liable for loss and damage while goods are 
in the possession of the carrier. The carrier is liable for the 
actual loss of provable damages to the property up to the full 
rates, rates for household goods movements arranged by 
individuals, classifications and mileage guides. Agreements may 
be submitted to the Panel for approval under the existing 
standard, and such approval would exempt parties from antitrust 
laws in carrying out the agreements. However, the approval 
period of agreements is limited to three years, at which time 
the agreement may be submitted for renewal. The Panel shall 
reapprove the agreement unless it finds that such reapproval is 
not in the public interest. Agreements shall continue in place 
until the Panel acts to disapprove them.
    Authority for the Panel to grant antitrust immunity is 
extended to pooling and division of transportation or earnings. 
Finally, H.R. 2539 provides for continued agent and van line 
immunity relating to household goods movements. It adds a new 
protection, however, that permits the Panel to revoke 
individual agent-van line immunity if maintaining such immunity 
is not in the public interest.
    Motor Carrier and Single State Registration. Currently, 
both the ICC and the DOT operate separate registration systems 
which vary in administration. The ICC requires that interstate, 
for-hire carriers receive a license (operating authority) with 
the standards for granting of authority limited to a showing of 
safety fitness and insurance coverage at a specified level. The 
ICC system is a vestige of when motor carriers were highly 
regulated and entry was severely restricted. The DOT 
registration system extends to all carriers, including private 
and exempt carriers not regulated by the ICC. DOT assigns each 
carrier an identification number. Carriers are not required to 
show proof of insurance at the time of DOT registration, nor is 
any fee currently charged.
    The bill continues the two registration systems for a 
period of 24 months, during which time the Secretary shall 
conduct a rulemaking and implement changes to consolidate these 
two registration systems into one system. The new system will 
serve as a clearing house and depository of information on and 
identification of all domestic and foreign motor carriers, 
brokers, freight forwarders and others required to register. 
The Department will utilize the information in overseeing 
safety fitness and compliance with required levels of 
insurance. Registrations will be renewed periodically and the 
on-line system will be available to state authorities and the 
public. The Committee does not intend that this new system 
impose additional burdens or require filings not currently 
required of carriers.
    Review of the single state registration under new section 
14504 is made a part of the above rulemaking and certain 
factors to be considered by the Secretary, including funding 
for State enforcement and the justification and need for 
collecting fees by States, are specified. Authority is granted 
for the Secretary to establish fees in order to cover all costs 
of operating the new registration system.
    H.R. 2539 continues antitrust immunity but contains 
significant reforms intended to prevent any potential market 
abuses. New section 13703 of title 49 permits motor carriers to 
enter into agreements for certain activities, including through 
routes and joint value of the goods. H.R. 2539 continues this 
uniform liability regime but directs the Secretary to report to 
Congress within 18 months on whether an alternative liability 
system should be implemented. The Department of Transportation 
will not mediate disputes between shippers and carriers 
regarding loss and damage claims as the ICC does currently.
    Rate Regulation and Filing of Tariffs. Under new section 
13701 of title 49, rate regulation is restricted to individual 
household moves and movements by a water carrier in 
noncontiguous domestic trade. Through routes and divisions of 
joint rates must also be reasonable. H.R. 2539 continues to 
reform and restrict the number and types of transportation for 
which tariffs must be filed. Under new section 13702 of title 
29, tariffs must be filed with the Panel only for noncontiguous 
domestic trade. Tariffs must be submitted to the Panel and 
available for inspection by shippers for the transportation of 
household goods when arranged by an individual.
    By eliminating nearly all remaining tariff filings, the 
bill eliminates any possibility of undercharges since there can 
be no application of the filed rate doctrine to those rates. 
For rates continued in tariffs, the bill directs that no 
undercharges may accrue as a result of such tariffs.
    Dispute Resolution. In addition to overseeing the 
background commercial rules of the motor carrier industry, the 
ICC currently resolves disputes that arise in such areas. There 
is no explicit statutory requirement to do so. Rather, the ICC 
has, in its discretion, chosen to allocate resources, dedicated 
to resolving disputes that arise in the motor carrier industry. 
The ICC dispute resolution programs include household goods and 
auto driveaway carriers, brokers, owner-operator leasing, loss 
and damage claims, duplicate payments and overcharges, and 
lumping.
    The bill transfers responsibility for all the areas in 
which the ICC resolves disputes to the Secretary (except 
passenger intercarrier disputes). The Committee does not 
believe that DOT should allocate scarce resources to resolving 
these essentially private disputes, and specifically directs 
that DOT should not continue the dispute resolution functions 
in these areas. The bill provides that private parties may 
bring actions in court to enforce the provisions of the Motor 
Carrier Act. This change will permit these private, commercial 
disputes to be resolved the way that all other commercial 
disputes are resolved--by the parties.
    The Committee does not intend that the Secretary have no 
oversight over these background commercial rules, however. The 
statutory authority in these areas has been transferred to DOT, 
as well as regulations promulgated thereunder, so that the 
Secretary could oversee and revise the functioning of these 
areas.
    Personnel Transfer. The Committee intends that any 
personnel and functions transferred to DOT should be integrated 
and performed within DOT's existing Fiscal Year 1996 funding 
and personnel allocations. The Committee expects that any ICC 
personnel transferred to DOT could be funded from the transfer 
of existing fees derived from transferred ICC functions. The 
Fiscal Year 1996 DOT Appropriations Bill permits the Secretary 
to utilize any fees collected to fund ICC personnel transferred 
to DOT. This bill provides the Secretary similar authority.
    Since the bill makes no change to current civil service 
personnel laws, the transfer of personnel will occur under 
existing rules. ICC personnel that perform new functions 
transferred to DOT have transfer rights. ICC personnel that 
perform functions which are not transferred to DOT have no 
transfer rights.
    The Committee understands that upon enactment of this act, 
the transferor agency, the ICC, shall determine which functions 
are new functions that transfer to DOT and which functions are 
currently performed by DOT. The DOT would then have to agree 
with the ICC as to which functions transfer and which do not. 
Any disagreements would be resolved by the Office of Management 
and Budget.
    The ICC has informed the Committee that, upon preliminary 
review of the motor carrier functions transferred to DOT in 
this bill, it expects that approximately 60 ICC employees will 
be transferred to DOT (separate from the Panel). There are the 
employees that would perform functions new to DOT. The ICC 
estimates that these personnel will result in a cost of $3.743 
million for the remainder of FY96 (annualized cost of $5 
million).
    The ICC estimates that continuing fees in FY96 will total 
$5.27 million. The ICC's fee schedule is below.

                                              ACTUAL AND PROJECTED APPLICATIONS AND FEES FOR MOTOR CARRIERS                                             
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Historical counts                             Fiscal year 1996 estimates \1\   
                                                 -------------------------------------------------------------------------------------------------------
                                                  Fiscal year  Fiscal year  Fiscal year  Fiscal year  Fiscal year                                       
                                                      1991         1992         1993         1994         1995        Count      $ Fee each  $ Fee total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Continuing fees:                                                                                                                                        
    Common carrier applications.................        4,963        5,090        5,240        5,602        7,609        8,000          300    1,800,000
    Property broker applications................        3,343        3,192        3,207        2,888        1,978        2,100          300      630,000
    Freignt forwarder applications (household                                                                                                           
     goods).....................................          130          123          123          121           67          100          300       30,000
    Reinstatement of applications...............           NA           NA           NA          865          748          725           70       50,750
    Insurance fees \2\..........................           NA           NA           NA       63,828       57,000       48,000           10      480,000
                                                 -------------------------------------------------------------------------------------------------------
      Total continuing fees.....................  ...........  ...........  ...........  ...........  ...........  ...........  ...........    2,990,750
                                                 =======================================================================================================
Projected additional fees:                                                                                                                              
    Contract carriers filing for common                                                                                                                 
     authority \3\..............................  ...........  ...........  ...........  ...........  ...........        3,000          300      900,000
    Mexican carrier applications \4\............  ...........  ...........  ...........  ...........  ...........        4,500          300    1,350,000
    Freight forwarder applications (non-                                                                                                                
     household goods-- \5\......................  ...........  ...........  ...........  ...........  ...........          100          300       30,000
                                                 -------------------------------------------------------------------------------------------------------
      Total additional fees.....................  ...........  ...........  ...........  ...........  ...........  ...........  ...........    2,280,000
                                                 =======================================================================================================
      Total continuing fees and projected                                                                                                               
       additional fees..........................  ...........  ...........  ...........  ...........  ...........  ...........  ...........    5,270,750
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ These estimates are based on an analysis of historical trends and expected legislative changes.                                                     
\2\ The insurance fee estimate for fiscal year 1996 takes into account the loss of fees for carriers with contract-only authority. It considers,        
  however, the addition of the Mexican carriers that would be obtaining border state authority.                                                         
\3\ The proposed legislation eliminates the requirement for contract carrier authority. We estimate that at least 10% of the approximately 30,000       
  carriers with contract-only authority will file for common carrier authority in fiscal year 1996. In fiscal year 1995, the ICC collected fees for     
  contract carrier authority. This table assumes the discontinuation of those fees.                                                                     
\4\ Beginning in fiscal year 1996, Mexican carriers may operate beyond the border commercial zones throughout the four states bordering Mexico (in      
  foreign commerce only). Because this new area of operations (Arizona, California, New Mexico, and Texas) represents a large market, we project that   
  50% of the approximately 5,000 Mexican carriers with commercial zone authority will convert to border state authority in fiscal year 1996.            
  Additionally, we conservatively estimate a new applicant pool of 2,000.                                                                               
\5\ Currently, non-household goods freight forwarders are not required to file for authority. Proposed legislation would require their registration.    

    DOT, both in its proposed ICC sunset legislation (H.R. 
1436), and during the preparation of this bill, requested a 
waiver from the current personnel rules to permit DOT greater 
flexibility in determining which ICC personnel transfer to DOT.
    Since the Committee has been informed by the ICC that about 
60 personnel would transfer to DOT, and that all of these 60 
could be funded from transferred ICC fees credited to DOT, 
there is no need to waive personnel rules. This is predicated, 
however, upon representations that only 60 ICC personnel would 
transfer to DOT.
    Summary of Administrative and Procedural Provisions of H.R. 
2539. A three-member independent adjudicatory panel is 
established within the Department of Transportation to 
administer remaining rail functions and certain motor carrier 
activities. Panelists will be required to have background and 
professional standing in the transportation field and in the 
private sector, and are limited to two complete or partial 
five-year terms. In addition, holdover tenure of an incumbent 
pending confirmation of a successor is limited to one year. 
H.R. 2539 also provides that any pending proceedings will be 
decided under applicable law on the day before the date of 
enactment, and that any suits shall be treated in like manner 
except if a proceeding is remanded by the courts to the Panel, 
in which case applicable law at the time of the remand would 
govern. Finally, H.R. 2539 provides authorizations of 
appropriations for the Panel of $8.41 million for fiscal year 
1996 and of $12 million for each of fiscal years 1997 and 1998.

                  Background and Need for Legislation

    History of Rail Deregulation. Since 1980, with the 
enactment of the Staggers Rail Act, the railroad industry has 
operated in an essentially deregulated environment. It took the 
near collapse of the entire industry and possible 
nationalization of all the nation's railroads to bring this 
deregulation about.
    The rail economic regulatory framework that existed prior 
to 1980 was developed, for the most part, during the late 19th 
century and the early 20th century when railroads held a 
virtual monopoly in many areas. At the time of the ICC's 
creation in 1887, the market conditions of the railroad 
industry were markedly different than they are today. Because 
railroads possess certain characteristics of natural 
monopolies, in the absence of competition from other modes of 
transportation, railroads were able to wield enormous power 
over the shippers and communities they served. For a railroad 
to withdraw service from an area, for example, threatened the 
livelihood of entire communities.
    The transportation sector has changed dramatically since 
the time of the ICC's creation. With the emergence of the 
trucking industry, as well as the pipeline and barge 
industries, railroads have increasingly faced competition from 
other modes of transportation. Unfortunately, Federal 
regulations did not always keep pace with the changing market. 
The combination of continued onerous Federal regulations and 
stiff competition from the motor carrier industry proved lethal 
for the railroads; by the 1970s, the railroad industry was on 
the brink of financial collapse.
    Congress took a number of steps to salvage the industry. 
First, it created Conrail from the remains of the bankrupt 
northeast rail carriers. The successful privatization of 
Conrail in 1987 has proven this to have been a sound decision. 
Second, Congress permitted the railroads to discontinue 
operating passenger rail service, which was producing 
substantial losses for the private railroads. In 1971, Congress 
created Amtrak to allow for continued passenger rail service in 
this country.
    Most importantly, though, Congress enacted the Staggers 
Rail Act of 1980. This landmark legislation deregulated most 
railroad rates, legalized railroad shipping contracts, 
simplified abandonments, and stimulated an explosion of service 
and marketing alternatives that would not have been possible 
under the Kafkaesque regulatory regime of the pre-Staggers era. 
In addition, the Staggers Act provided administrative authority 
to the ICC to further deregulate the industry through the 
exemption power, which has been employed aggressively since the 
enactment of Staggers. Because some shippers and communities 
continue to be dependent upon a single rail carrier and may not 
have access to alternative modes of transportation, the 
Staggers Act kept in place certain protections for ``captive 
shippers.'' These too have worked well to maintain a balanced 
transportation system.
    The Staggers Act has produced a renaissance in the railroad 
industry. Its return on investment, now approximately 8%, 
compares favorably to the 4% earned prior to 1980. Railroads 
have been able to maintain market share at approximately 38% 
during the last decade in a growing market, and recent 
indications show that their market share is increasing. 
Shippers have benefited from the Staggers Act reforms as well, 
since the railroads' real rates have declined by 1.6% annually 
since 1980. By allowing greater flexibility in line sales, the 
Staggers Act helped create several hundred short-line railroads 
that operate the lines more efficiently and at lower cost than 
a major carrier could. Finally, through early retirements and 
voluntary buyouts among both union members and managers, 
employment decreased from 532,000 in 1980 to 267,000 in 1994.
    History of Motor Carrier Deregulation. H.R. 2539 is another 
important step in a 15-year effort to deregulation the motor 
carrier industry.
    The ICC has been responsible for the regulation of the 
interstate trucking and bus industries since 1935. Over the 
years, the regulatory reach of the ICC was extended to cover 
the granting of operating authority, routes, rate regulation 
and tariff filings, cargo liability, dispute resolutions and a 
wide variety of other controls and oversight.
    During the past 15 years, as the trucking industry has 
become increasingly competitive, Congress has taken a series of 
steps to deregulate the motor carrier and bus industries. The 
landmark Motor Carrier Act of 1980 and the Household Goods Act 
of 1980 were the first reductions in federal regulations of 
these industries. Among other reforms, the ``public convenience 
and necessity'' standard for carriers applying for operating 
authority was modified, but strict entry requirements were 
still placed on applicants who had to show they were fit, 
willing, and able and to demonstrate that the proposed service 
would serve a useful purpose responsive to a public demand or 
need. The Motor Carrier Act encouraged a more competitive 
environment and led the ICC to change tariff filing regulations 
to permit tariff rate reductions and to allow carriers to 
establish rates for named shippers. Two years later, the Bus 
Regulatory Reform Act of 1982 was enacted which led to 
important reforms of the interstate bus industry and in 1986, 
the Surface Freight Forwarder Deregulation Act included 
additional reforms.
    The 103rd Congress took on an aggressive deregulatory role 
regarding the motor carrier industry by approving three 
historic initiatives. First, the Negotiated Rates Act of 1993 
related to procedures to resolve the on-going undercharge 
crisis which arose when bankruptcy trustees or receivers 
demanded payments from shippers for the difference between a 
negotiated rate for transportation services which was paid in 
full by a shipper but was never properly filed by the carrier 
and the rate contained in a tariff on file with the ICC.
    The undercharge situation which necessitated federal 
legislation highlighted the outdated tariff filing requirements 
in the current transportation environment. In response, the 
Trucking Industry Regulatory Reform Act of 1994 (TIRRA) 
eliminated tariff filing requirements for individually 
determined rates--which affected up to 90 percent of the 1.4 
million tariff filings at the ICC. TIRRA also gave to the ICC 
the authority to grant exemptions from trucking regulations, 
which was similar to the rail exemption authority. In addition, 
the ICC was directed to submit to Congress a report identifying 
and analyzing all regulatory responsibilities of the Commission 
and recommendations on which functions could be eliminated or 
restructured. The Secretary of Transportation was directed to 
submit to Congress a similar report, including recommendations 
on whether to reorganize the administration of the functions of 
the ICC within the Department or some other options. Those 
reports have been instrumental in creating H.R. 2539.
    One final regulatory initiative by Congress in 1994 does 
not pertain directly to federal ICC trucking regulation but has 
significant impacts on trucking in our nation generally. 
Section 601 of the Federal Aviation Administration Act of 1994 
preempts State regulation of prices, routes and services by air 
carriers and carriers affiliated with a direct air carrier 
through common controlling ownership and all other motor 
carriers. Prior to 1995, 41 jurisdictions imposed varying 
levels and forms of economic regulation of intrastate traffic. 
Congress determined state preemption was in the public interest 
and necessary to facilitate interstate commerce.
    Today, the trucking industry, an essential element to our 
nation's economic growth and international competitiveness, is 
vibrant and competitive. The easing of entry, rate and tariff 
requirements has allowed carriers to be more responsive to 
changing market conditions and shipper needs. Prior to 
deregulation, ICC-licensed carriers totalled approximately 
14,000. Now, roughly 15 years after the initiation of motor 
carrier deregulation, that number has grown to 55,000 carriers 
which generate $82 billion in revenues annually.
    Overall, the trucking sector of the U.S. economy represents 
more than $290 billion in gross revenues. Almost 8 million 
people are employed throughout the economy in jobs that relate 
to trucking activity, receiving approximately $227 billion in 
annual wages. In 1993, 5.1 billion tons of freight were 
transported by intercity and local trucks and 871 billion ton-
miles were logged by trucks. Over 78 percent of the value of 
all freight is transported by truck.
    The importance of the motor carrier industry to the 
movement of goods and people around the nation will continue to 
grow in the future. Motor carriers face intense competition not 
only from other motor carriers, but also from rail and ocean 
carriers. The trucking industry has matured to the point that 
less regulation is required and we should be certain that the 
policies of the Federal government encourage, and not hinder, 
continued growth and efficiency in this area.
    Conclusion. H.R. 2539 builds on the deregulatory policies 
that have promoted growth and stability in the surface 
transportation sector. For the rail industry, only regulations 
are retained that are necessary to maintain a ``safety net'' or 
``backstop'' of remedies to address problems of rates, access 
to facilities, and industry restructuring. The bill keeps 
bureaucracy and regulatory costs at the lowest possible level, 
consistent with affording remedies only where they are 
necessary and appropriate. Remaining rail and motor carrier 
activities combined will cost no more than the $8.4 million 
provided in the FY 1996 DOT appropriations bill conference 
report. This compares favorably with the $33 million provided 
to the ICC in FY 1995. Finally, termination of the ICC is 
effective upon enactment, in contrast to previous sunset 
efforts (i.e., CAB), that followed a more gradual approach.

                                Hearings

    The Subcommittee on Railroads held two hearings on 
abolishing the Interstate Commerce Commission and the 
subsequent transfer of any retained functions to other 
agencies, such as the Department of Transportation and the 
Department of Justice.
    On January 26, 1995, the Subcommittee held a hearing on the 
disposition of the ICC's jurisdiction over rail mergers. 
Testimony was received from the following witnesses: Mr. Steven 
C. Sunshine, Deputy Assistant Attorney General, U.S. Department 
of Justice; Mr. Frank Kruesi, Assistant Secretary for Policy, 
Department of Transportation; Honorable Gail McDonald, 
Chairman, Interstate Commerce Commission; Mr. Robert Krebs, 
Chairman and CEO, Santa Fe Pacific Corporation; Mr. James 
Hagen, Chairman and CEO, Consolidated Rail Corporation; Mr. 
John Shannon, Vice President-Law, Norfolk Southern Corporation; 
Honorable Drew Lewis, Chairman and CEO, Union Pacific 
Corporation; Honorable James Florio, Chairman, Save Transit and 
Rail Transportation; Mr. Edward Emmett, President, National 
Industrial Transportation League. Additional testimony was also 
received from Mr. Edward Wytkind, Chairman, Transport Trades 
Division, AFL-CIO and Mr. William Mahoney, attorney, who 
accompanied Mr. Florio.
    The Subcommittee held a second hearing on February 22, 
1995, on how to dispose in any sunset legislation of the ICC's 
diverse non-merger rail jurisdiction. Persons testifying at 
this hearing were: Mr. Edwin Harper, President and CEO, 
Association of American Railroads; Mr. James Hagen, Chairman 
and CEO, Consolidated Rail Corporation; Mr. David R. Goode,, 
Chairman, President, and CEO, Norfolk Southern Corporation; Mr. 
Gilbert M. Robert, Executive Director, Florida Tri-County 
Commuter Authority, on behalf of American Public Transit 
Association; Mr. Reilly McCarren, President, Gateway & Western 
Railroad, on behalf of Regional Railroads of America; Mr. 
William Loftus, President, American Short Line Railroad 
Association; Mr. Sonny Hall, President, Transportation Workers 
Union and President, Save Transit and Rail Transportation, 
accompanied by Mr. William Mahoney, attorney, and Mr. Greg 
Lawley, General Counsel; Mr. Edward Emmett, President, National 
Industrial Transportation League; Mr. Richard Dauphin, 
President, Western Coal Traffic League; Mr. Joseph Lema, Vice 
President-Transportation, National Mining Association; Mr. 
Russell J. Kocemba, Transportation Manager, General Mills, 
Inc., on behalf of National Grain and Feed Association; Fred R. 
Sasser, President, Chicago Freight Car Leasing Company, on 
behalf of Railway Progress Institute; Robert Granatelli, 
Manager, North American Transportation, Himont USA, Inc., on 
behalf of the Society of the Plastics Industry, Inc.; Mr. Barry 
Hill, Associate Director, Transportation Issues, General 
Accounting Office, accompanied by Mr. Frank Mulvey, Assistant 
Director, GAO; Honorable Gail McDonald, Chairman, Interstate 
Commerce Commission, accompanied by Vice Chairman Linda Morgan, 
Commissioner J.J. Simmons, and Commissioner, Gus Owen; 
Honorable Joseph Canny, Deputy Assistant Secretary of 
Transportation for Transportation Policy. Additional testimony 
was received for the record from: Mr. K. Earl Durden, 
President, Rail Management & Consulting Corporation; Mr. Thomas 
M. Downs, President, National Railroad Passenger Corporation 
(Amtrak); Mr. Kevin Kaufman, President, North America Freight 
Car Association; Mr. Gordon P. MacDougall, attorney; Mr. 
Richard T. Mueller, General Manager, Wyndmere Farmers Elevator; 
Ms. Mary Ann Oster, Research Consultant, Oster Researching 
Services; Honorable Earl Pomeroy, Member of Congress from North 
Dakota; Mr. T.L. Priest, Corporate Commerce Manager--Logistics, 
Coors Brewing Company, on behalf of the Committee Against 
Revising Staggers; Mr. John P. Prugh, President, U.S. Clay 
Producers Traffic Assn., Inc.; Andrew F. Reardon, Vice 
President-Law & Human Resources, TTX Company; Mr. Steven Drege, 
Executive Vice President, North Dakota Grain Dealers Assn.; and 
Frederick L. Webber, President and CEO, Chemical Manufacturers 
Association.
    The Subcommittee on Surface Transportation held a hearing 
on the elimination of the ICC on March 3, 1995. Testimony was 
received from: the Honorable Gail McDonald, Chairman of the 
ICC; Mr. Joseph Canny, Deputy Assistant Secretary for 
Transportation Policy, Department of Transportation; Mr. Barry 
Hill, Associate Director, Transportation Issues, Resources 
Community and Economic Development Division, General Accounting 
Office; Mr. Thomas J. Donohue, President and Chief Executive 
Officer, American Trucking Associations; Mr. K. Michael 
O'Connell, Counsel, Owner-Operated Independent Drivers 
Association, Inc.; Mr. James C. Harkins, Executive Director, 
Regular Common Carrier Conference; Mr. Ed Emmett, President, 
National Industrial Transportation League; Mr. Charles A. 
Gerardi, President, National Small Shipment Traffic Conference; 
Mr. Edward Wytkind, Executive Director, Transportation Trades 
Department, AFL-CIO; Mr. Theodore Knappen, Greyhound Lines, 
Inc.; Mr. Richard A. Allen, General Counsel, American Bus 
Association; Mr. Maurice Greenblatt, Chairman of the Board, 
United Van Lines, Inc.; and Mr. Jerry Gereghty, incoming 
President, Transportation Brokers Conference of America.

               Section-by-Section Analysis and Discussion

Section 102. Rail provisions

    This section revises and reorganizes the rail portions of 
subtitle IV of title 49, United States Code, as follows.

                 subtitle iv--interstate transportation

                              Part A--Rail

                    Chapter 101--General Provisions

Section 10101. Rail transportation policy

    This provision continues the relevant portions of former 
Section 10101a (rail transportation policy). The changes to the 
content of the rail transportation policy are to conform to the 
abolition of minimum rate jurisdiction by the Transportation 
Adjudication Panel (TAP).

Section 10102. Definitions

    The amended definitions delete several terms rendered 
redundant in light of the abolition of regulatory jurisdiction 
over express and sleeping car companies. Unlike the former 
Section 10102, the definitions are confined entirely to terms 
to railroad provisions.

Section 10103. Remedies are exclusive

    To reflect the replacement of the Staggers Act system of 
optional certification of State regulatory agencies to 
administer economic regulation of railroads using Federal 
standards, this provision is conformed  to  the  bill's  direct 
 and  general pre-emption of State jurisdiction  over  economic 
 regulation  of  railroads. As  used in this section, ``State 
or Federal law'' is intended to encompass all statutory, common 
law, and administrative remedies addressing the rail-related 
subject matter jurisdiction of the Transportation Adjudication 
Panel. The bill is intended to standardize all economic 
regulation (and deregulation) of rail transportation under 
Federal law, without the optional delegation of administrative 
authority to State agencies to enforce Federal standards, as 
provided in the relevant provisions of the Staggers Rail Act.

                       Chapter 103--Jurisdiction

Section. 10301. General jurisdiction

    This provision replaces the railroad portion of former 
Section 10501. Conforming changes are made to reflect the 
direct and complete pre-emption of State economic regulation of 
railroads. The changes include extending exclusive Federal 
jurisdiction to matters relating to spur, industrial, team, 
switching or side tracks formerly reserved for State 
jurisdiction under former section 10907. The former disclaimer 
regarding residual State police powers is eliminated as 
unnecessary, in view of the Federal policy of occupying the 
entire field of economic regulation of the interstate rail 
transportation system. Although States retain the police powers 
reserved by the Constitution, the Federal scheme of economic 
regulation and deregulation is intended to address and 
encompass all such regulation and to be completely exclusive. 
Any other construction would undermine the uniformity of 
Federal standards and risk the balkanization and subversion of 
the Federal scheme of minimal regulation for this intrinsically 
interstate form of transportation. The abolition of railroad 
securities jurisdiction formerly administered by the ICC places 
the railroad industry for securities purposes in the same 
position as other industries--being subject to Federal 
securities regulation by the Securities and Exchange 
Commission, and as applicable, State securities or ``blue sky'' 
laws. It is not consistent with the intent to have all economic 
regulation of rail transportation governed by uniform Federal 
standards for State securities laws to be employed as a means 
of reasserting pre-empted forms of economic regulation.
    This section also replaces former Section 10504, regarding 
the relationship between Federal economic regulation of rail 
transportation and State or local mass transportation 
activities, such as commuter rail operations. In keeping with 
the abolition of all Federal economic regulation of rates, 
entry, and exit in the rail passenger transportation field, 
this provision excludes mass transportation operations from the 
TAP's jurisdiction except for the limited purpose of matters 
relating to access to railroad facilities and infrastructure. 
The Committee does not intend for this section to alter any 
existing law as to the coverage and scope of the Federal 
statutes governing railroad retirement benefits and railroad 
unemployment insurance, and the Railway Labor Act.

Section 10302. Authority to exempt rail carrier transportation

    This provision replaces the railroad portions of former 
Section 10505. The basic criteria for exemption--a crucially 
important delegated power to expand existing statutory 
deregulation through administrative action--remain as in prior 
law. However, the new provision makes it an explicit part of 
the agency's statutory duty to utilize exemptions to the 
maximum extent permissible under the law. The revised provision 
sets a 90-day time limit for the agency to decide whether to 
conduct a proceeding, and a one-year limit on concluding any 
ensuing administrative proceeding. Parallel time limits are 
included for agency action on, and completion of proceedings 
regarding, the revocation of exemptions. It is anticipated that 
the TAP will follow prior ICC practice of acting expeditiously 
on individual, transaction-specific exemption requests, and 
will reserve more elaborate notice-and-comment proceedings for 
``class'' exemptions which suspend active regulation of a broad 
area of rail transportation on a permanent and generic basis. 
The new provision also eliminates former restrictions on use of 
the exemption power in matters relating to intermodal 
ownership, reflecting the economic reality that other modes of 
transportation are sufficiently competitive (as is the rail 
industry) as to make the former categorical immunization of 
intermodal ownership from administrative exemption obsolete and 
unnecessary.

                           Chapter 105--Rates

Section 10501. Standards for rates, classifications, through routes, 
        rules, and practices

    This provision replaces the rail portions of former 
sections 10701 and 10701a. It retains the basic Staggers Act 
standards for evaluating reasonableness of rail rates, 
including criteria related to market dominance (the absence of 
effective competition) and the need for  rail  carriers to earn 
adequate revenues. Subsection (d)(3) requires the TAP to 
complete within one year after enactment the pending ICC 
proceeding to establish noncoal rate guidelines aimed at 
providing simplified evidentiary standards for use in rate-
reasonableness proceedings. Language in the former section 
regarding reasonable minimum rates is deleted to conform with 
the abolition of minimum rate jurisdiction.

Section 10502. Authority for rail carriers to establish rates, 
        classifications, rules, and practices

    This provision replaces and retains the rail portions of 
former section 10702 regarding the duty of rail carriers to 
establish rates (including joint rates), classifications, rules 
and practices governing the rail transportation they provide. 
Unnecessary details in the former section are also deleted.

Section 10503. Authority for rail carriers to establish through routes

    This section replaces rail portions of former Section 
10703, retaining the duty of rail carriers to establish through 
(connecting) routes, and to provide reasonable facilities and 
compensation for furnished facilities. Language dealing with 
water carrier-rail carrier through routes is deleted.

Section 10504. Authority and criteria: rates, classifications, rules 
        and practices established by the panel

    This section replaces the rail portions of former section 
10704. It retains for the TAP the former ICC authority to 
review and order changes in rates, classifications, rules, and 
practices and to prescribe such matters. In keeping with the 
abolition of minimum rate jurisdiction, the portions of the 
former provision addressing this subject have been deleted. 
Also deleted are details regarding the relationship between 
rates paid for service to different shippers, communities, 
ports, and regions. This aspect of the pricing of rail 
transportation service is adequately addressed by the retained 
prohibitions on unreasonable discrimination.

Section 10505. Authority: through routes, joint classifications, rates, 
        and divisions prescribed in panel

    This section replaces rail portions of former section 10705 
and maintains the existing regulatory authority over inter-
carrier dealings consisting of joint rates, the divisions 
(revenue splitting) of such rates, and classifications. The new 
provision omits former references to tariff suspension 
procedures abolished elsewhere in the bill.
    Section 10705a, which provided specialized procedures for 
joint rate cancellations and surcharges, is being repealed as 
unneeded. When added to the statute by the Staggers Act in 
1980, it was intended to address the ICC's pre-Staggers Act 
insistence that all railroads participating in a movement 
subject to a joint rate concur in any change in either the 
joint rate or the division of revenues from the rate. Since 
that time, the ICC has modified its position to permit 
independent rate-setting actions authorized under section 
10705, and the rail industry has adopted many more flexible 
forms of rate and contract arrangements. As a result, the 
extremely complex surcharge provisions of section 10705a--which 
were not intended to replace the scope of carrier authority in 
joint rate matters governed by section 10705, but to provide a 
clear and timely method for achieving at least a minimum amount 
of ratemaking flexibility--have become redundant and 
unnecessary. Any remaining issues arising from changes in 
through rates and divisions can be adequately addressed under 
the Panel's continuing authority in new section 10505. The 
Committee intends that the Panel continue the policy of 
granting railroads the maximum possible freedom to set rates, 
routes, and divisions, so long as these actions are not 
anticompetitive.
    The authority in former section 10705(g) to prescribe 
emergency through routes is retained in section 10923.

Section 10506. Rate agreements: exemption from antitrust laws

    In replacing the rail portions of former section 10706, 
this provision maintains the existing system of approval of 
multi-carrier rate making agreements and scope of immunity, 
once approved by the TAP, from challenge under the antitrust 
laws. Changes from the former section 10706 are limited to 
elimination of obsolete or executed provisions.

Section 10507. Determination of market dominance in rail rate 
        proceedings

    This provision, which replace former section 10709, retains 
the Staggers Act criteria for evaluating the market dominance 
(absence of effective competition) of a rail carrier when a 
rail rate is challenged as unreasonably high. Language dealing 
with minimum rate regulation are deleted in conformity with the 
abolition of minimum-rate jurisdiction. This section also 
retains the statutory formula from former section 10705a(m) for 
agency computation of the Rail Cost Adjustment Factor (RCAF). 
Although relevant to administrative rate-reasonableness 
proceedings, this cost index has also become part of the 
commercial dealings between shippers and carriers under the 
highly successful contract rate authority granted by the 
Staggers Act. The RCAF is frequently used as a benchmark for 
inflation-indexing price provisions of long-term rail 
transportation contracts.

Section 10508. Inflation-based rate increases

    This provision retains the agency's authority under former 
section 10712 to compute and publish a quarterly percentage 
rate index.

Section 10509. Contracts

    This provision replaces former section 10713. It retains 
the Staggers Act's very successful encouragement and legal 
authorization of customized and confidential rate contracts 
between shippers and carriers, including the immunity of 
contracts from challenge under common-carrier rate-
reasonableness standards. This section eliminates the very 
limited and seldom utilized administrative complaint procedures 
for certain types of rate contracts, as well as the obligation 
to file summaries of contracts with the regulatory agency. The 
elimination of the filing requirement is consistent with the 
bill's elimination of common carrier tariff filing as the 
single lawful means of quoting and disseminating rates 
(prices). This section also corrects an oversight in the 
original Staggers Act provision by clarifying that rate 
contract information is not only confidential, but is also 
protected against disclosure under the Freedom of Information 
Act. As noted in connection with new section 10901, elimination 
of administrative procedures related to contract rates 
themselves does not mean that carriers may escape their common 
carrier service obligations generally.

                  Subchapter II--Special Circumstances

Section 10521. Government traffic

    This provision, which replaces the rail portions of former 
section 10721, retains the legal permission for rail carriers, 
when acting as common (as distinguished from contract) 
carriers, to provide reduced charge or free transportation for 
the United States Government. Language dealing with passenger 
rates is omitted as unnecessary in light of the abolition of 
regulatory jurisdiction over passenger rates.

Section 10522. Emergency rates

    This section retains the agency power to require reduced 
rates to provide relief during emergencies under former section 
10724.

Section 10523. Car utilization

    This provision replaces former section 10734, while 
retaining the authority for rail carriers to establish premium 
charges for special services outside the normal structure of 
common-carrier rates otherwise applicable to a particular rail 
movement.

                      Subchapter III--Limitations

Section 10541. Prohibitions against discrimination by rail carriers

    This section contains the relevant rail portions of former 
section 10741, and prohibits unreasonable discrimination by 
rail carriers against a shipper or other entity providing rail 
traffic to the carrier. References to provisions amended or 
repealed elsewhere in the bill are also eliminated.

Section 10542. Facilities for interchange to traffic

    This replacement for former section 10742 maintains the 
obligation of rail carriers to provide reasonable means for the 
interchange of traffic with other rail carriers. This provision 
is the cornerstone of the integrity of the national rail 
system, because it precludes the balkanization of the system 
through the possible refusal of one carrier to deal with 
another connecting carrier.

Section 10543. Continuous carriage of freight

    In replacing former section 10745, this section (like the 
preceding provision) retains the legal obligation of rail 
carriers to maintain continuous means for the efficient 
handling of freight that travels over more than one carrier's 
lines, and the correlative prohibition against carrier action 
to impede or prevent such continuous carriage.

Section 10544. Transportation service or facilities furnished by 
        shipper

    This provision, which replaces the rail portions of former 
section 10747, maintains the agency's regulatory authority to 
address the treatment by railroads of shipper-furnished or 
other non-railroad-owned cars, equipment, and services. The 
Committee is aware that certain segments of the national rail 
car fleet are already owned largely or entirely by non-
carriers, and that there is a strong possibility in the future 
that even more of the fleet will cease to be carrier-owned. 
Therefore, this provision remains highly relevant to future 
dealings of railroads with the owners of non-railroad-owned 
equipment. The Committee does not intend to disturb any 
existing arrangements or regulations, including those adopted 
in negotiated-rulemaking proceedings, on this subject.

Section 19545. Demurrage charges

    In replacing former section 10750, this provision retains 
the agency's authority over demurrage charges and related 
rules. Demurrage is the charge paid to the owner of a rail car 
for delay in its return to the owner.

Section 10546. Designation of certain routes by shippers

    This section replaces former section 10763 regarding the 
rights of shippers to designate routes to be utilized in moving 
their rail shipments.

                         Chapter 107--Licensing

Section 10701. Authorizing construction and operation of rail lines

            1. Construction and operation cases
    Subsections (a) through (c) retain the current Federal 
jurisdiction under former section 10901 over authority to 
construct, acquire or operate lines, when the applicant is a 
large (Class I) railroad. Transactions of this type involving 
smaller railroads are governed by a new separate provision, 
Section 10702, discussed below. The new Section 10701 retains 
existing discretionary agency authority to impose labor 
protection (mandatory severance and salary and benefit 
protection) requirements for employees affected by construction 
and line-acquisition transactions by Class I railroads.
            2. Crossing cases
    Subsection (d) replaces former section 10901(d), which 
empowers the agency to order one railroad whose tracks block 
the access of another railroad's tracks to provide crossing 
arrangements. The Committee is aware that in the past, some 
cases of this type, which can involve significant issues of 
rail competition, have not been adjudicated expeditiously. 
Therefore, subsection (d)(2) establishes a new 90-day deadline 
for determination of a dispute of this type, once submitted to 
the Panel for decision.

Section 10702. Finance and construction transactions by Class II and 
        Class III rail carriers and noncarriers

            1. Construction and operation cases
    This new provision delineates the authority of the agency 
to approve construction and operation of rail lines by Class II 
and Class III railroads and by noncarriers, previously governed 
by former section 10901. Section 10702 is intended to avoid the 
protracted regulatory and court litigation generated by the 
former dichotomy between ``carrier'' and ``noncarrier'' 
transactions and the consequent applicability or 
inapplicability of mandatory ``carrier'' labor protection 
requirements. Instead, this new provision, in combination with 
Section 10710, establishes a clear statutory division between 
transactions involving large Class I railroads on one had and 
small railroads on the other. This should promote clearer and 
more expeditious handling of the affected transactions, and 
avoid imposing additional and sometimes potentially fatal costs 
on start-up operations of smaller railroads who often can keep 
rail lines in service, even if not viable as part of a larger 
carrier's system.
            2. Acquisitions of control and other inter-carrier 
                    transactions
    Section 10702 also replaces the regulatory authority 
formerly exercised under Section 11343 over inter-carrier 
transactions, as to transactions that involve only Class II and 
Class III railroads. This is intended to provide a clearer 
delineation of the applicable standards as between large 
carrier and smaller railroad transactions. Class II and Class 
III transactions involving acquisitions of corporate control, 
transfers of trackage rights, and similar matters, are to be 
governed exclusively by the new provision, and instead of being 
subject to optional labor protection of up to 6 years' pay per 
employee under former section 10901, are instead required to 
provide for affected employees the notice and severance 
arrangements now mandated for industry generally under the 
Worker Adjustment and Retraining Notification Act.
    The carriers subject to this specialized provision are 
Class II and Class III railroads. Under current ICC 
regulations, Class III railroads are those having adjusted 
annual operating revenues of less than $20 million. A Class II 
railroad is one with adjusted annual operating revenues of $20 
million to $250 million. Although the creation of the hundreds 
of small railroads born in the rationalization of the major 
trunk carriers' route systems after the Staggers Act is 
classically perceived as involving primarily ``short-line'' 
railroads (usually Class III carriers), the Class II railroads 
also play a key role in keeping rail lines in service to 
shippers, when the lines would probably have been permanently 
abandoned by a higher-cost Class I trunk carrier. In addition, 
when a struggling shortline (Class III) operation can survive 
only with an infusion of capital, the Class II carriers often 
stand in the best position as rescuers of a floundering Class 
III railroad. Against this background, the Committee considers 
it crucial to avoid imposing the large and potentially fatal 
costs of unfunded labor protection benefit mandates on Class II 
and Class III transactions. To impose such costs would only 
increase the already substantial risk that the rail lines in 
question will be permanently abandoned once they have been 
removed from the route system of a major Class I railroad.

Section 10703. Filing and procedure for notice of intent to abandon or 
        discontinue

    This provision, which replaces former sections 10903 and 
10904, streamlines and modernizes the processing of 
applications for the abandonment or discontinuance of service 
on a rail line. The primary goal of the reforms contained in 
this section is to maximize the opportunity for the line to be 
acquired for continued operation by a smaller railroad, even 
though the line is revenue-deficient for a large trunk carrier.
    The agency's powers include the option to require in 
appropriate cases that the scope of the proposed abandonment be 
amended to afford the best opportunity for the line to be sold 
and operated as a viable short-line railroad. To provide 
maximum flexibility in addressing situations of this type, the 
agency may either require that the length of rail line proposed 
for abandonment be increased, require that trackage rights be 
included with the proposed abandonment to maximize competitive 
opportunities for a prospective short-line operator, or require 
some combination of enlarged abandonment and trackage rights. 
Labor protection requirements now applicable to abandonments 
are not changed from existing law. The agency also retains the 
authority to disapprove a proposed abandonment or 
discontinuance if not consistent with the public convenience 
and necessity.

Section 10704. Offers to purchase to avoid abandonment and 
        discontinuance

    This provision, which replaces former section 10905, 
governs so-called ``forced sales'' of lines proposing for 
abandonment. The new provision retains the procedure under 
which the agency screens potential offerors for fitness and, if 
specified conditions are met, sets the price for the sale of 
the line proposed for abandonment. The new provision eliminates 
the alternative (and rarely utilized) process for forcing 
continued operation of a line through use of a shipper or other 
non-rail party's subsidy, of its operation. Experience since 
the enactment of the Staggers Act has shown that, although 
outright sale of lines through this process can be an important 
means of assuring continued rail service under new private-
sector management, the subsidy procedure is very cumbersome, 
rarely employed, and requires considerable continuing 
regulatory supervision by the agency. In keeping with the goal 
of the bill to minimize the need for Federal regulation, one-
time outright sales, rather than continuing policing of subsidy 
arrangements, are clearly the preferable method of keeping 
lines in operation under private-sector management with a 
minimum of regulatory intervention.

Section 10705. Offering abandoned rail properties for sale for public 
        purposes

    In replacing former section 10906, this provision retains 
existing agency authority to examine the possibility that a 
line proposed for abandonment may be suitable for alternative 
public uses. Abandonment may be proposed for up to 6 months to 
allow for the pursuit of such alternatives.

Section 10706. Exception

    This section replaces former section 10907(a) as the source 
of rail carriers' authority to enter into joint ownership or 
use arrangements for spur, industrial, team, switching, or side 
tracks without agency approval. Former section 10907(b) is 
eliminated to conform to general pre-emption of State economic 
regulation of rail carriers. Although this means that the spur, 
industrial, and other peripheral tracks formerly reserved for 
State jurisdiction will now be within the exclusive authority 
of the Federal agency, the Committee expects the agency to 
minimize regulatory burdens by utilizing its exemption power 
wherever possible with respect to these tracks formerly 
excluded from its jurisdiction.

                        Chapter 109--Operations

Section 10901. Providing transportation, service, and rates

    This section replaces former section 11101, but retains the 
existing legal duty of a rail carrier to provide transportation 
upon reasonable request--the ``common carrier obligation.'' 
Subsection (a) also clarifies certain aspects of the common 
carrier obligation in light of the repeal of the limited 
administrative complaint procedures for challenging contract 
(non-common-carrier) rail rates. As under former section 11101, 
a person requesting common-carrier service from a railroad is 
not denied his legal due by the carrier if the railroad 
declines to respond immediately to the request due to a prior 
contractual commitment to another shipper. The inclusion of the 
qualification that the responding carrier may invoke the 
defense that it is responding to prior ``reasonable'' 
commitments under contractual arrangements is not intended to 
imply any retraction of or limitation on the immunity of 
contract rates from rate-reasonableness challenges--a key 
feature of the contract rate regime since its creation by the 
Staggers Act. Instead, the focus on ``reasonable'' contractual 
commitments is intended to clarify that, although a casual 
requester of service cannot legally demand equal treatment with 
another shipper who has made a prior contract for service, the 
carrier may not render itself incapable of reasonably 
responding to such casual requests for common carrier service, 
such as by effectively divesting itself of control of its car 
fleet through committing all or virtually all of the fleet 
under prior contracts.
    In lieu of the former duty to quote rates in the form of a 
tariff pursuant to former sections 10761 and 10762, the new 
provision requires the carrier to quote rates on request in 
writing or by electronic means. Any increase in a quoted rate 
must be preceded by written notice from the carrier for a 
period of time prior to the effectiveness of the rate change to 
be specified by agency regulation. This last matter is 
delegated to the agency's discretion to allow greater 
flexibility in modernizing and conforming notification and 
effectiveness procedures to changes in business practices, such 
as electronic data interchange.

Section 10902. Use of terminal facilities

    This section replaces former section 11103, which empowers 
the agency to order use of terminal facilities and to require 
``reciprocal switching'' arrangements between rail carriers. A 
time limit of 180 days is imposed on processing of terminal 
facilities cases.
    As noted in connection with section 10301, public mass 
transportation authorities are to be excluded from the most 
economic regulation under the amended statute. A specific 
exception is made in section 10301(c) for matters arising under 
sections 10902 an 10903. These are provisions dealing with 
access to or use of railroad facilities and infrastructure.
    Section 10902 retains the existing agency power to order 
access to terminal facilities, including main-line tracks a 
reasonable distance from the terminal. Under the statute as it 
would be amended by this bill, freight as well as passenger 
railroad operators could invoke this section in order to seek 
mandatory access to a freight railroad's terminal facilities 
and lines in close proximity to those facilities, based on a 
public-interest standard. Where the applicant for relief under 
section 10902 is a public mass transportation authority, as 
contemplated by section 10301(c), it is the Committee's 
expectation that the public interest standard would virtually 
always be satisfied, because the commuter rail or other mass 
transportation authority embodies the public policy decision of 
the State to devote resources to the known benefits of commuter 
rail and other mass transportation services.

Section 10903. Switch connections and tracks

    In replacing former section 11104, this section maintains 
the agency's authority to require that switch connections be 
made to branch lines or private side tracks, as well as the 
authority for the line owner or shipper to seek redress through 
an administrative complain to the agency.

                       Subchapter II--Car Service

Section 10921. Criteria

    This section replaces former section 11121, retaining 
existing authority to oversee and require reasonable rules and 
practices regarding car service. References to tariff 
requirements are deleted.

Section 10922. Compensation and practice

    This section replaces former section 11122, as the source 
of agency authority over arrangements for compensating the 
owners of rail cars for use of the cars. No substantive change 
is made to the statute, and no effect upon existing rules now 
in place is intended. The authority of the ICC to adopt its 
final rules in Ex Parte No. 334 (Sub-Nos. 8 and 8A) is hereby 
confirmed.

Section 10923. Rerouting traffic on failure of rail carrier to serve 
        the public

    This section, which replaces former section 11124, retains 
present agency authority to make arrangements, without a formal 
regulatory proceeding, for rail service when the carrier 
presently serving a particular area is unable to provide 
adequate service. Subsection (c) carries forward existing 
powers under former section 10705(g) for the agency to 
prescribe temporary through routes in emergencies. This new 
section is also intended to provide the agency with general 
emergency authority, even after the repeal of former section 
11123.

Section 10924. War emergencies; embargoes imposed by carriers

    This section replaces former section 11128, retaining 
existing powers of the agency to give preference or priority to 
military or war-related traffic at Presidential request.

                  Subchapter III--Reports and Records

Section 10941. Definitions

    This section replaces the relevant rail definitions of 
former section 11141.

Section 10942. Uniform accounting system

    This section retains the agency's power under former 
section 11142 to prescribe standard accounting procedures for 
rail carriers. To conform to the Staggers Act policy explicitly 
referenced in other accounting provisions, the section adds a 
new directive that the agency utilize, to the maximum extent 
feasible, generally accepted accounting principles.

Section 10943. Depreciation charges

    This section retains the agency's authority over rail 
carrier depreciation procedures under former section 11143.

Section 10944. Records: form; inspection; preservation

    This section replaces former section 11144 regarding the 
agency's authority over carrier and broker records. References 
to authority over ``protective services'' (refrigerated car 
arrangements) are deleted to conform to the abolition of 
regulation over such matters.

Section 10945. Reports by rail carriers, lessors, and brokers

    This section retains existing agency authority to require 
annual and other reports by regulated carriers under former 
section 11145. references to protective services are deleted in 
light of the abolition of agency jurisdiction over such 
matters.

                Subchapter IV--Railroad Cost Accounting

Section 10961. Implementation of cost accounting principles

    This section retains existing agency jurisdiction over 
railroad accounting practices under former section 11163. 
Former sections 11161 and 11162 are deleted as obsolete 
references to actions taken by the now defunct Railroad 
Accounting Principles Board temporarily established by the 
Staggers Rail Act.

Section 10962. Rail carrier cost accounting system

    This section replaces former section 11164 but retains the 
obligation of rail carriers to maintain a cost accounting 
system consistent with agency requirements. Obsolete references 
to the activities of the Railroad Accounting Principles Board 
are deleted.

Section 10963. Cost availability

    In replacing former section 11165, this provision retains 
the existing obligation of rail carriers to make relevant cost 
data available to other parties to agency proceedings.

Section 10964. Accounting and cost reporting

    This section replaces former section 11166, and retains the 
existing agency authority to promulgate accounting rules for 
rail carriers. Former section 11167 regarding the report of the 
Railroad Accounting Principles Board is deleted as obsolete and 
executed.

                          Chapter 111--Finance

Section 11101. Equipment trusts; recordation; evidence of indebtedness

    This section replaces former section 11303, governing 
recordation of security interests and other financial 
instruments affecting railroad rolling stock and locomotives. 
The new TAP will assume the former ICC's function as a central 
point of recordation for such financial instruments. The filing 
of such instruments, already a virtually universal practice 
requirement, is made mandatory. Given the ministerial nature of 
this function and its susceptibility to computerization, new 
language is added directing the agency to use private sector 
contractors to the greatest extent practicable in carrying out 
these duties. The TAP is also directed to collect user fees for 
services under this section and is authorized to use such fees 
to offset its costs, to the extent allowed by applicable 
appropriations measures. The language of the new section is 
also modernized to conform to the terminology of the Uniform 
Commercial Code and related statutes, and to facilitate 
international recognition of security interests in rail cars 
and locomotives registered to foreign individuals and 
corporations.

Section 11121. Scope of authority

    This section replaces former section 11341. It reenacts 
existing law as to the scope of the agency's authority over 
approval and implementation of mergers and other control 
transactions, including the preemptive effect of the Federal 
agency's approval on otherwise applicable law from any source. 
The requirement that mergers be approved by shareholders is 
deleted to conform with the general design of abolishing 
separate railroad securities jurisdiction and relying upon 
general Federal securities laws administered by the Securities 
and Exchange Commission.

Section 11122. Limitation on pooling and division of transportation or 
        earnings

    This provision replaces former section 11342. It retains 
agency authority over pooling arrangements, most commonly used 
in the railroad industry to arrange for joint ownership of cars 
through joint ventures.

Section 11123. Consolidation, merger, and acquisition of control

    This section replaces former section 11343, but only with 
respect to Class I rail carriers. (Class II and Class III 
carriers' finance transactions are to be governed by new 
section 10702, discussed earlier.)
    The extent of agency jurisdiction over inter-carrier 
transactions involving mergers, trackage rights, and similar 
transactions remains essentially the same as under the former 
provision. However, language addressing the internal procedures 
of corporations participating in transactions subject to this 
section dealing with shareholder approval is deleted. This 
conforms with the bill's broader policy of abolishing 
specialized (and duplicative) railroad securities jurisdiction, 
because the laws and regulations administered by the Securities 
and Exchange Commission adequately address this subject.

Section 11124. Consolidation, merger, and acquisition of control: 
        conditions of approval

    This section replaces former section 11344, and lists the 
specific criteria to be used in deciding whether and on what 
conditions to approve proposed mergers and related transactions 
involving Class I railroads. The sole change to the criteria is 
broadening subsection (b)(5) to include evaluation of adverse 
competitive effects to include effects on competition among 
rail carriers in the national rail system, not just ``in the 
affected region.''
    A second change from present law elaborates on the existing 
power to impose conditions on the approval of a merger or other 
regulated transaction. The bill explicitly authorizes 
imposition of conditions requiring divestiture of parallel 
tracks or requiring the granting of trackage rights. It also 
requires that, if trackage rights are required, the agency must 
provide for compensation arrangements that ensure the 
alleviation of the underlying anticompetitive effects sought to 
be avoided by imposing the trackage rights conditions.
    The principal procedural change is the express 
authorization for what would otherwise be impermissible ex 
parte communications between the decision makers and parties to 
the proceeding, as long as the communications are preserved in 
the record. Any such consultations are entirely at the decision 
maker's option. This is intended to address complaints that the 
former ICC process did not allow sufficient procedural 
flexibility to allow informal consultation to identify areas of 
concern at an early stage of the approval process.

Section 11125. Consolidation, merger, and acquisition of control: 
        procedure

    This section replaces former section 11345, setting forth 
the maximum time limits for processing control and merger 
applications. The prior statutory limit of 31 months for major 
rail transactions has been reduced to a maximum of 270 days.

Section 11126. Employee protective arrangements in transactions among 
        rail carriers

    This provision, which replaces former section 11347, 
continues the requirements for mandatory imposition of labor 
protection benefits (severance and salary and benefit 
protection) in transactions between Class I railroads. These 
include mergers, trackage rights transactions, and 
abandonments.

Section 11127. Supplemental orders

    This section replaces without alteration the existing 
agency power under former Section 11351 to exercise continuing 
jurisdiction over the implementation of regulated mergers or 
other inter-carrier transactions.

                  Chapter 113--State-Federal Relations

Section 11301. Tax discrimination against rail transportation property

    This provision replaces without substantive change former 
Section 11503, which forbids discriminatory State taxation of 
rail property as an unreasonable burden on interstate commerce.

Section 11302. Withholding State and local income tax by rail carriers

    This section preserves without substantive change the 
existing protections in former Section 11504 against double 
State or local taxation of the income of railroad employees 
whose work locations cover more than one State.

     Chapter 115--Enforcement: Investigations, Rights, and Remedies

Section 11501. General authority

    This section reenacts without change the prior rail-related 
enforcement powers delineated in former section 11701.

Section 11502. Enforcement by the panel

    This section replaces former section 11702, describing the 
agency's power to enforce its orders in court.

Section 11503. Enforcement by the Attorney General

    This section replaces former section 11703, delineating the 
Attorney General's authority to take judicial enforcement 
actions and duty to take such actions on the agency's request. 
The former authorization for the Attorney General to initiate 
civil actions regarding the rate-discrimination requirements of 
the statute is eliminated as unnecessary.

Section 11504. Rights and remedies of persons injured by rail carriers

    This section retains the rail portions of former section 
11705, describing procedural requirements and other matters 
concerning civil actions to obtain damages for violations of 
agency orders other than for the payment of money.

Section 11505. Limitations on actions by and against rail carriers

    This provision reenacts without significant change the 
existing statutes of limitations on court actions involving 
rail carriers, formerly set out in section 11706.

Section 11506. Liability of rail carriers under receipts and bills of 
        lading

    This section reenacts the rail portions of the statutory 
regime governing carrier liability for loss and damage to 
shipments, known as the ``Carmack Amendment'' from its 
antecedent legislation, previously recodified as section 11707. 
Along with the facilities access provisions discussed earlier, 
this is the only provision of the revised statute still made 
applicable to rail passenger transportation, as well as freight 
service. Changes are also made in new subsection (c)(3) to 
clarify the option of shippers and carriers, by mutual 
agreement, to establish either a declared value limit on 
liability for loss or damage to the shipment or to provide for 
a deductible as part of their liability arrangements. The 
explicit authority to establish declared-value limits and 
deductible limits replaces former section 10730(c).

               Chapter 117--Civil and Criminal Penalties

Section 11701. General civil penalties

    This section retains applicable rail portions of former 
section 11901, regarding civil penalties for violations of 
agency orders. Conforming changes are made to reflect matters 
eliminated from agency jurisdiction, such as protective 
services (refrigerated cars).

Section 11702. Interference with car supply

    This section reenacts the sanctions authorized in former 
section 11907 or bribery-related conduct intended to influence 
the allocation of available rail car supply.

Section 11703. Record keeping and reporting violations

    This section retains the penalties specified in former 
section 11909 for violation of agency orders and requirements 
on record keeping and reports.

Section 11704. Unlawful disclosure of information

    This section contains the existing penalties for disclosure 
of confidential information related to rail shipments, as set 
out in former section 11910.

Section 11705. Disobedience to subpoenas

    This section retains existing penalties for refusal to 
comply with agency subpoenas, as provided in former section 
11913.

Section 11706. General criminal penalty when specific penalty not 
        provided

    This provision incorporates existing general penalty 
provisions of former section 11914.

Section 11707. Punishment of corporations for violations committed by 
        certain individuals

    This section retains existing law from former section 
11915, making corporations liable for acts and omissions of 
specified types of corporate officials, in addition to any 
liability of the individuals themselves.

Sec. 103. Motor carrier, water carrier, and freight forwarder 
        provisions

    This section creates a new Motor Carrier Act by amendment 
Subtitle IV of title 49. It inserts after chapter 117 a new 
part B relating to motor carriers, water carriers, brokers, and 
freight forwarders. Part B is administered by the Secretary 
except for those provisions which specifically provide for 
administration by the Panel.

                    Chapter 131--General Provisions

Sec. 13101. Transportation policy

    This section maintains the current national transportation 
policy for the Motor Carrier Act. The Committee intends that 
the current transportation policy should be interpreted as 
determining what matters are in the public interest.

Sce. 13102. Definitions

    This section maintains existing motor and water carrier 
definitions that apply to part B. Revisions have been made to 
the definition of household goods to deregulate office and 
trade show moves, and the definition of foreign motor carriers 
is modified as requested by the Department of Transportation to 
conform to the NAFTA treaty. A change has been made to the 
definition of noncontiguous domestic trade to eliminate a 
limiting reference to motor-water shipments so that the 
definition refers to all shipments between the mainland United 
States and offshore States, possessions and territories.

Sec. 13103. Remedies as cumulative.

    This section maintains current law that remedies under this 
part are in addition to remedies existing under another law or 
common law.

                 Chapter 133--Administrative Provisions

Sec. 13301. Powers

    This section transfers to the Secretary all of the existing 
general regulatory powers of the ICC. Subsection (f) also 
transfers existing ICC powers to the Panel, insofar as they 
relate to any functions under the Motor Carrier Act transferred 
to the Panel. The Committee intends that powers conferred to 
the Secretary under this section that are beyond those general 
powers already conferred upon the Secretary in title 49 should 
only apply to the implementation of part B of Section IV of 
title 49. This is intended to confer upon the Secretary the 
same powers to enforce the Motor Carrier Act that the ICC had 
to enforce its provisions.

Sec. 13302. Intervention

    This section maintains current law regarding the right of 
interested persons to be afforded notice and an opportunity to 
participate in proceedings under part B.

Sec. 13303. Service of notice in proceedings

    This section maintains current law requiring entities 
regulated under part B to designate an agent on whom service of 
notice of administrative proceedings can be made.

Sec. 13304. Service of process in court proceedings

    This section maintains current law requiring motor carriers 
and brokers to designate an agent on whom service of process in 
court proceedings can be made.

                       Chapter 135--Jurisdiction

Sec. 13501. General jurisdiction

    This section transfers to the Secretary and the Panel the 
current ICC jurisdiction over transportation by motor carriers. 
This section defines which carriers are subject to the Motor 
Carrier Act.

Sec. 13502. Exempt transportation between Alaska and other States

    This section preserves the current exclusion from 
jurisdiction for transportation conducted while in a foreign 
country en route between Alaska and another state.

Sec. 13503. Exempt motor vehicle transportation in terminal areas

    This section preserves the current jurisdictional 
exemptions for operations conducted in a terminal area.

Sec. 13504. Exempt motor carrier transportation entirely in one State

    This section preserves the current exemption from 
jurisdiction for transportation (other than of household goods) 
and terminal operations within the State of Hawaii.

Sec. 13505. Transportation furthering a primary business

    This section preserves the current exemption from 
jurisdiction for transportation by a person engaged in a 
business other than transportation which furthers a primary 
business.

Sec. 13506. Miscellaneous motor carrier transportation exemptions

    This section preserves the current exemption from 
Jurisdiction for several types of transportation and 
transportation of certain commodities.

Sec. 13507. Mixed loads of regulated and unregulated property

    This section preserves current law regarding the 
transportation of regulated and unregulated property in the 
same vehicle at the same time.

Sec. 13508. Limited authority over cooperative associations

    This section preserves current law regarding authority over 
cooperative associations.

              Subchapter II--Water Carrier Transportation

Sec. 13521. General jurisdiction

    This section defines the jurisdiction of the Secretary 
insofar as water transportation is concerned. This includes 
both port-to-port transportation by a water carrier and 
intermodal transportation by a water and motor carrier between 
two states, territories, or possessions of the United States.

              Subchapter III--Freighter Forwarder Service

Sec. 13531. General jurisdiction

    This section transfers to the Secretary jurisdiction over 
all freight forwarders and certain household goods freight 
forwarders.

                   Subchapter IV--Authority to Exempt

Sec. 13541. Authority to exempt transportation or services

    This section broadens the ICC's current exemption authority 
and grants the Secretary and the Panel broad regulatory 
authority over the Motor Carrier Act. However, it provides that 
this exemption authority may not be used to relieve an entity 
from the cargo liability, insurance, safety fitness 
requirements or antitrust immunity authorities under section 
13703 and 13907. The Committee intends that the Secretary and 
the Panel should use the exemption authority to continue the 
streamlining and deregulation of the Motor Carrier Act.

                 Chapter 137--Rates and Through Routes

Sec. 13701. Requirements for rates, classifications, through routes, 
        rules, and practices for certain transportation

    This section virtually eliminates existing ICC motor 
carrier rate regulation by limiting the rate reasonableness 
requirement only to household goods movements paid for by the 
householder and movements by or with a water carrier in 
noncontiguous trade. The section maintains the current basic 
rate reasonableness requirements for those two limited areas 
and transfers the regulatory authority to the Panel to 
prescribe a rate when the carrier's rate is not reasonable.
    The requirement for noncontiguous domestic trade includes 
rates for both port-to-port movements by water carriers or 
intermodal movements by water or motor carriers. Currently, 
port-to-port movements are regulated by the Federal Maritime 
Commission under the Intercoastal Shipping Act of 1933 and the 
Shipping Act of 1916. This bifurcated jurisdiction has created 
much legal confusion and promoted forum shopping. By 
consolidating the regulation of these trades in a single panel, 
a more consistent and efficient transportation policy can be 
achieved. Under section 13702(b)(3), a carrier may increase or 
decrease a base rate by not more than 10 percent of the base 
rate in effect one year before that date and the new rate is 
considered reasonable. This 10 percent zone may be increased or 
decreased based on the change in the Procedures Price Index in 
the prior year period. However, this zone of reasonableness for 
rate increases does not mean that the base rate cannot be 
challenged as unreasonable.

Sec. 13702. Tariff requirement for certain transportation

    This section narrows the requirement to maintain tariffs to 
only two categories of traffic; rates for movements by or with 
a water carrier in noncontiguous domestic trade and movements 
of household goods paid for by the householder. Tariff filings 
with the Panel are required only for a movement by or with a 
water carrier in noncontiguous domestic trade and the 
requirements for the comparison of tariff are streamlined and 
clarified. Carriers providing transportation of household goods 
paid for by the householder must publish tariffs and maintain 
such tariffs for inspection, are bound by the terms of its 
tariffs, and transportation without a tariff is prohibited. 
This section also precludes the possibility of any future 
undercharges by eliminating future tariff filings and 
precluding any remaining filed tariffs from creating 
undercharges.
    A carrier providing intermodal services in this trade is 
not required to state separately or otherwise reveal in tariff 
filings the inland divisions of a through rate. This section 
consolidates the current ICC and Federal Maritime Commission 
tariff filing system for the noncontiguous domestic trades into 
a single tariff filing system. This tariff filing is maintained 
to ensure that similarly situated shippers are treated the same 
by carriers based on the type and volume of cargo. It is not to 
be used for anticompetitive purposes such as ``price-
watching,'' where carriers tend to follow the rates of the 
highest priced carrier. The Panel should take whatever steps 
are necessary to ensure that the tariff filing system is not 
used for anticompetitive practices such as this.

Sec. 13703. Certain collective activities; exemption from antitrust 
        laws

    This section streamlines and reforms the current authority 
to exempt carriers from the antitrust law. The section 
authorizes the Panel to approve agreements between motor 
carriers and confer antitrust immunity for establishing through 
routes and joint rates, rates for the movement of household 
goods paid for by the householder, classifications and mileage 
guides and certain other activities. Agreements may be approved 
only if the Panel finds it is in the public interest. The 
approval would expire three years after the approval date. 
Approvals may be renewed unless renewal is not in the public 
interest.
    The Committee intends that agreements currently approved 
shall continue as approved for three years after the date of 
enactment. The Committee further intends that at the end of a 
three year approval period, approved agreements would continue 
in effect until the Panel completes its consideration of the 
renewal request. While a renewal request is pending, the prior 
approval will still apply.

Sec. 13704. Household goods rates--estimates; guarantees of service

    This section incorporates current law allowing household 
goods carriers to use binding estimates and guaranteed pick-up 
and delivery times. Oversight is transferred to the Secretary.

Sec. 13705. Requirements for through routes among motor carriers of 
        passengers

    This section preserves current law providing that intercity 
bus companies may establish through routes with each other and 
such through routes must be reasonable. It authorizes the Panel 
to prescribe through routes and the conditions under which they 
are operated when necessary to enforce the requirement for rate 
reasonableness. This section permits the Panel to resolve 
disputes between bus carriers involving their operations.

Sec. 13706. Liability for payment of rates

    This section preserves current law regarding the liability, 
as between a consignor or consignee, for payment for 
transportation.

Sec. 13707. Billing and collecting practices

    This section preserves current law regarding the truth-in-
billing requirement, enacted for motor carriers in the 
Negotiated Rates Act of 1993.

Sec. 13708. Procedures for resolving claims involving unfiled, 
        negotiated transportation rates

    This section preserves, and places under the Panel's 
administration, the undercharge resolution provisions, as 
enacted in the Negotiated Rates Act of 1993, for transportation 
conducted prior to the effective date of this Act.

Sec. 13709. Additional motor carrier undercharge provisions

    This section preserves, and places under the Panel's 
administration, further undercharge procedures enacted in the 
Transportation Regulatory Reform Act of 1994 (TIRRA).

Sec. 13710. Alternative procedure for resolving undercharge disputes

    This section expands and codifies the undercharge relief 
provided in section 2(e) of the Negotiated Rates Act of 1993. 
Specifically, it expands the unreasonable practice relief by 
removing the September 30, 1990 cut-off date.

Sec. 13711. Government traffic

    This section preserves current law that transportation may 
be provided for the U.S. Government at discounted rates.

Sec. 13712. Good and grocery transportation

    This section preserves current law regarding compensation 
to a customer picking up food and grocery products at the 
shipping point of a seller using a uniform zone delivered 
pricing system.

                       Chapter 139--Registration

Sec. 13901. Requirement for registration

    This section conforms current law to provide that carriers 
register, rather than be granted a certificate of operating 
authority. This section preserves the concept from current law 
that a person may operate as a motor carrier, broker, or 
freight forwarder only if registered with the Secretary under 
chapter 139.

Sec. 13902. Registration of motor carriers

    This section transfers the responsibility and current 
requirements for registration of for-hire motor carriers to the 
Secretary. Registration is based on safety fitness and 
financial responsibility and shall be withheld if the carrier 
does not meet these requirements. This section also provides 
for the safety requirements for small package carriers and 
provides for intrastate bus service in conjunction with 
interstate bus operations. This section contains special 
registration provisions for foreign carriers, amended as 
requested by the Department of Transportation to reflect 
requirements under the NAFTA treaty.

Sec. 1393. Registration of freight forwarders

    This section transfers the responsibility for registration 
and current requirements of freight forwarders to the 
Secretary. Registration is based on whether the registrant is 
willing and able to provide the service and to comply with 
requirements imposed by the Secretary and Panel. When a freight 
forwarder acts in the capacity of a carrier for the entire 
move, it must be registered as a carrier as well.

Sec. 13904. Registration of motor carriers brokers

    This section transfers the responsibility for registration 
of brokers to the Secretary. Registration is based on whether 
the registrant is willing and able to provide the service and 
to comply with requirements imposed by the Secretary and Panel.

Sec. 13905. Effective periods of registration

    This section transfers to the Secretary the requirement 
that a registration generally remain in effect for so long as 
the registrant maintains its insurance coverage. However, the 
Secretary may amend or revoke a registration on request of the 
registrant or suspend or revoke a registration on complaint or 
on the Secretary's initiative for cause. Cause for suspension 
or revocation may be unsafe operations, lack of the required 
insurance coverage, or failure to comply with regulatory 
requirements.

Sec. 13906. Security of motor carriers, brokers, and freight forwarders

    This section transfers to the Secretary the insurance or 
bonding requirements for a motor carrier, broker, and freight 
forwarder needed to obtain and keep a registration to operate. 
Registration remains in effect only as long as the registrant 
continues to satisfy these security requirements. The provision 
also transfers the current authority for a motor carrier to 
qualify as a self-insurer under standards set by the Secretary. 
The section requires insurance carriers to notify the Secretary 
in advance of any cancellation of insurance, and directs that 
the insurance policy or surety bond provide for full coverage 
to the stated amount.

Sec. 13907. Household goods agents

    This section preserves the current law that grants agent-
van line arrangements antitrust immunity, including providing 
for agent-van line immunity for former ``second and third 
proviso'' moves. It retains a household goods carrier's 
responsibility for its agents and their actions. It also 
retains federal regulatory oversight over the agents used by 
such carriers and continues the antitrust immunity for 
discussions and agreements between such carriers and their 
agents but provides that the Panel may modify or terminate 
activities afforded antitrust immunity if not in the public 
interest.

Sec. 13908. Registration and other reforms

    This section directs the Secretary, in cooperation with the 
States and after notice and opportunity for public comment, to 
issue regulations within 24 months to consolidate the current 
ICC registration system, the current registration system, the 
Single State Registration System and the current DOT insurance 
registration system into one unified, computerized system. The 
Secretary is permitted to preempt States from imposing 
substantially similar requirements upon carriers. The Secretary 
may establish fees to fully support the system, including any 
personnel necessary to support the overall registration and 
insurance filing system. The DOT should continue to collect 
registration fees collected by the ICC until the conclusion of 
the rulemaking and the implementation of any new Federal 
system.
    The Committees does not intend that any new Federal system 
impose any additional burdens or mandates on carriers. The 
Committee is particularly concerned that any new system not 
impose any additional insurance filing requirements on private 
motor carriers.
    Furthermore, the Committee is aware of the State's 
responsibilities to protect their citizens, and the States' 
needs for adequate funding of safety programs. The Committee 
intends that the Secretary work closely with the States while 
developing the unified registration system. The Secretary 
should consider how the new system can enhance the Federal-
State partnership that exits to ensure and improve motor 
carrier safety.

                   Chapter 141--Operation of Carriers

                   Subchapter I--General Requirements

Sec. 14101. Providing transportation and service

    This section preserves current law regarding the common 
carrier obligation--a carrier's obligation to provide 
transportation or service on reasonable request and to provide 
safe and adequate service, equipment, and facilities.

Sec. 14102. Leased motor vehicles

    This section transfer to the Secretary and preserves the 
current leasing provisions, regulating the relationship between 
registered carriers and the owner-operators that they may use 
for providing service. The Committee directs that upon 
transfer, DOT should not continue any dispute resolution 
functions regarding the ICC leasing rules, but rather only 
oversee the regulations.

Sec. 14103. Loading and unloading motor vehicles

    This section preserves current law regarding ``lumping'' 
(the utilization of other persons to load or unload freight 
from a truck) in the trucking industry, whether or not the 
carriers involved are subject to jurisdiction under the Act. 
The Committee directs that upon transfer, DOT should not 
continue any dispute resolution functions regarding these 
rules, but rather only oversee the regulations.

Sec. 14104. Household goods carrier operations

    This section preserves the performance standards for 
household goods carriers.
    The Committee directs that upon transfer, DOT should not 
continue any dispute resolution functions regarding these 
rules, but rather only oversee the regulations.

                   Subchapter II--Reports and Records

Sec. 14121. Definitions

    This section continues the existing provision that 
requirements under this subchapter extend to receivers, 
trustees, and associations of carriers or brokers.

Sec. 14122. Records: form; inspection; preservation

    This section preserves current law and allows the Secretary 
or the Panel as applicable to prescribe the form of records to 
be kept by carriers and brokers, to inspect those records, and 
to set how long those records must be retained by the carrier.

Sec. 14123. Financial reporting

    Currently, the ICC has the authority to require, and does 
require, the filing of annual financial reports from Class I 
(annual revenues greater than $10 million) and Class II (annual 
revenues between $3 million and $10 million) carriers. The ICC 
received financial reports from 1,875 motor carriers in 1994.
    The Committee is aware that there is a difference of 
opinion as to the validity and benefits of financial reporting 
requirements. Labor representatives, safety groups, certain 
insurance interests, and some trucking companies (primarily 
public less-than-truckload carriers) believe that there is a 
safety benefit to these reporting requirements and that safety 
may be reduced in the face of financial difficulties. A 1991 
General Accounting Office report concluded that certain 
financial ratios such as operating ratio and net profit margin, 
could predict which interstate trucking companies would have 
safety problems. Some insurers have stated the financial 
reports are necessary to make determinations of insurability 
and to identify motor carriers most in need of supervision and 
assistance from safety engineers.
    However, others have stated that the reports cannot or 
should not be used to determine safety compliance, that needed 
information for insurance decisionmaking is easily obtained 
directly from the individual carrier client, and that the 
requirement is a paperwork burden particularly for smaller 
carriers. Several individual insurance companies have 
communicated to the Committee that these financial reports are 
not necessary for them to make insurance determinations. 
Another concern about the public release of this data was 
expressed to the Committee from privately-held carriers which 
do not file with the Securities and Exchange Commission and, 
thus, the information is not made publicly available through 
any other means. These carriers question whether the government 
and the public should have access to this otherwise private 
information.
    Some Members of the Committee were in favor of eliminating 
the reporting requirement altogether while others were in favor 
retaining it. The provision included in new section 14123 is a 
compromise which directs that the Secretary shall require 
financial reporting for Class I carriers and may require 
financial reporting for Class II carriers. Since many companies 
have raised concerns regarding the administrative burden in 
collecting and filing the information, the Secretary has 
discretion in requiring smaller carriers to file.
    Recognizing the legitimate concerns of privately-held 
companies about preserving the confidentiality of certain 
business information, upon request, the Secretary can exempt 
privately-held companies from the public release of their 
reports if it is necessary to avoid competitive harm and the 
disclosure of information that qualifies as a trade secret or 
privileged or confidential information under section 552(b)(4) 
of title 5. The Committee expects that the Secretary will 
review requests for exemptions from publication in a fair, 
reasonable manner. For example, the Secretary should allow an 
exemption where the filer has demonstrated a history of its 
treatment of the reports as trade secrets or privileged or 
confidential information, which history may include filing of 
such reports under a claim of confidentiality, litigation to 
prevent their release to the public, or release of such reports 
by the filer to third parties under confidentiality agreements 
or understanding. In considering any request, the Secretary may 
also consider the extent to which the filer has employed 
innovative technologies or methodologies, the cost or other 
effectiveness of which may be revealed in whole or in part by 
the public release of such reports, and such revelation may be 
considered to constitute competitive harm. Exemptions may also 
be granted upon a showing that the reports qualified under 
section 552(b)(4) of title 5. It is important to note that, 
even if an exemption is granted, the Secretary will still be in 
receipt of the information and can review the data for any 
safety implications. This should address concerns that safety 
may be diminished since the exemption covers only the public 
release of the data. The data can also be used in aggregate 
industry-wide statistics.
    Finally, the Secretary is given greater discretion in 
determining what data is to be reported and in what form. It is 
intended that the Secretary require only the information 
necessary to provide safety information or for the purposes 
under this section, and that the Secretary not impose onerous 
and excessive requirements. In addition, the Secretary should 
be aware that most carriers which are required to report are 
privately-held companies and information in the reports for 
these carriers would not be made public but for this 
requirement. Therefore, the Secretary should tailor reporting 
requirements to minimize disclosure of sensitive information.
    Current ICC regulations do not require carriers that carry 
more than 75% of their freight by contract to file financial 
reports. The Committee does not intend, through the elimination 
of the distinction between common and contract carriage, to 
extend financial reporting to those carriers that are currently 
exempt through this technical change in definition.

                          Chapter 143--Finance

Sec. 14301. Security interests in certain motor vehicles

    This section preserves current law governing the 
recordation of security interests in trucks, tractors, and 
trailers.

Sec. 14302. Pooling and division of transportation or earnings

    This section preserves current law providing for Panel 
supervision and approval of pooling arrangements among motor 
carriers. Approval confers immunity from anitrust and other 
laws for approved pooling arrangements as current law provides. 
The Committee does not intend any change from existing pooling 
law.

                  Chapter 145--Federal-State Relations

Sec. 14501. Federal authority over intrastate transportation

    This section preserves existing prohibitions against 
intrastate regulation of intercity bus rates, scheduling, and 
discontinuances or reductions in service; the rates, routes, or 
services of freight forwarders and transportation brokers; and 
trucking prices, routes, or services. The Section makes two 
changes to the existing provision. First, it clarifies in 
subsection (b) that transportation brokers are treated the same 
as freight forwarders for the purposes of State preemption.
    Second, it adds a new provision as subsection (c)(2)(C) 
which provides a new exemption from the preemption of State 
regulation of intrastate transportation relating to the price 
of non-consensual tow truck services. This is only intended to 
permit States or political subdivisions thereof to set maximum 
prices for non-consensual tows, and is not intended to permit 
re-regulation of any other aspect of tow truck operations.
    The Committee had been asked to go farther and permit 
States and political subdivisions thereof to re-regulate all 
aspects of non-consensual tow truck services. The Committee 
provision struck a balance between the need to protect 
consumers from exorbitant towing fees and the need for a free 
market in towing services. Under the current provision, States 
and political subdivisions thereof would need to take 
affirmative action to re-regulate the prices of non-consensual 
tow truck operations.

Sec. 14502. Tax discrimination against motor carrier transportation 
        property

    This section preserves current restrictions on State and 
local authorities regarding the authority to tax property used 
to provide interstate trucking service.

Sec. 14503. Withholding State and local income tax by certain carriers

    This section preserves the restrictions on State and local 
authorities regarding the authority to tax the earnings of 
employees of motor carriers and water carriers.

Sec. 14504. Registration of motor carriers by a State

    This section transfer the current single-state registration 
system for evidencing motor carrier insurance coverage to the 
Secretary until DOT develops a replacement under section 13908.

Sec. 14505. State tax

    This section prohibits a State or political subdivision of 
a State from levying a tax on bus tickets for interstate 
travel. This conforms the treatment of taxation of bus tickets 
to that of airline tickets.

       Chapter 147--Enforcement; Investigations; Rights; Remedies

Sec. 14701. General authority

    This section gives the Secretary and the Panel the general 
authority to conduct investigations and hear complaints, with 
respect to the functions assigned to each, as the ICC has under 
current law.

Sec. 14702. Enforcement by the regulatory authority

    This section preserves for the Secretary and the Panel, as 
to those regulatory functions transferred to each, the ICC's 
authority to bring civil enforcement actions in court.

Sec. 14703. Enforcement by the Attorney General

    This section preserves the Attorney General's authority to 
bring civil or criminal enforcement actions relating to this 
part, including orders or regulations of the Secretary or the 
Panel.

Sec. 14704. Rights and remedies of persons injured by carriers or 
        brokers

    This section provides for private enforcement of the 
provisions of the Motor Carrier Act in court. This expands the 
current law which only permits complaints brought under the Act 
to be brought before the ICC. This section provides that an 
injured person may bring a civil action to enforce an order of 
the Secretary or the Panel under this part. This section also 
provides that complaints brought to enforce the motor carrier 
leasing and lumping rules may also seek injunctive relief.

Sec. 14705. Limitation on actions by and against carriers

    This section preserves the current relevant statutes of 
limitation for bringing court suits by or against carriers and 
makes the time limits uniform for all types of traffic.

Sec. 14706. Liability of carriers under receipts and bills of lading

    This section preserves the current liability provisions 
which makes carriers and freight forwarders fully liable for 
loss or damage except to the extent there is a prior agreement 
between the carrier and shipper limiting the carriers' 
liability. The Secretary is directed to submit to Congress 
within 18 months a report on whether any modifications or 
reforms should be made to the loss and damage provisions of 
this section.

Sec. 14707. Private enforcement of registration requirement

    This section preserves the current private enforcement of 
the registration requirement by persons injured by the 
unregistered transportation of service.

Sec. 14708. Dispute settlement program for household good carriers

    This section modifies the current arbitration provisions by 
requiring all household goods carriers to offer shippers the 
option of neutral arbitration as a means of settling disputes 
over household goods transportation involving individual 
householders as a condition of registration. This arbitration 
system is intended to afford consumers a forum to resolve loss 
and damage claims that may arise as part of the transportation 
of household goods. For claims of $1000 and less, if a shipper 
requests arbitration, it shall be binding on both parties. For 
claims in excess of $1000, then both the carrier and the 
shipper must agree to arbitrate the dispute.
    This provision is intended to replace the informal dispute 
resolution activities of current ICC employees.

Sec. 14709. Tariff reconciliation rules for motor carriers of property

    This section preserves the right of the Panel to authorize 
departures by mutual consent of the carrier and shipper from 
the tariff rate for past shipments so as to avoid or resolve 
under- or overcharge claims.

               Chapter 149--Civil and Criminal Penalties

Sec. 14901. General civil penalties

    This section retains civil penalties for violating 
reporting and registration requirements or household goods 
consumer-protection requirements and updates some penalty 
amounts.

Sec. 14902. Civil penalty for accepting rebates from carriers

    This section retains civil penalties for accepting rebates 
from a carrier and updates some penalty amounts.

Sec. 14903. Tariff violations

    This section retains current penalties for tariff 
violations and updates some penalty amounts.

Sec. 14904. Additional rate violations

    This section retains penalties for violations regarding 
rebates by agents and undercharging and updates the penalty 
amounts.

Sec. 14905. Penalties for violations of rules relating to loading and 
        unloading motor vehicles

    This section retains current specific civil and criminal 
penalties for violating the lumping provisions of section 14103 
and updates the penalty amounts.

Sec. 14906. Evasion of regulation of motor carriers and brokers

    This section retains current penalties for evading 
regulations under part B and updates the penalty amounts.

Sec. 14907. Record keeping and reporting violations

    This section retains current specific penalties for 
withholding or falsifying records or reports that the Secretary 
or Panel requires and updates the penalty amounts.

Sec. 14908. Unlawful disclosure of information

    This section preserves current law prohibiting entities 
covered by part B (or anyone receiving information from 
entities covered by part B) from disclosing confidential 
shipper information and updates the penalty amounts.

Sec. 14909. Disobedience to subpoenas

    This section preserves current penalties for disobeying a 
subpoena issued by the Secretary or the Panel under part B and 
updates the penalty amounts.

Sec. 14910. General criminal penalty when specific penalty not provided

    This section preserves current general criminal penalties 
when specific penalties are not provided for violations under 
part B and updates the penalty amounts.

Sec. 14911. Punishment of corporation for violations committed by 
        certain individuals

    This section preserves current law which extends the 
penalties of this chapter to corporate officials, agents, and 
successors in interest and updated the penalty amounts.

Sec. 14912. Weight-bumping in household goods transportation

    This section preserves the penalties for weight-bumping and 
updates the penalty amounts.

Sec. 14913. Conclusiveness of rates in certain prosecutions

    This section preserves current law regarding the conclusive 
proof of published or filed rates in certain proceedings and 
updates the penalty amounts.

Sec. 104. Miscellaneous Motor Carrier Provisions

    This section makes several amendments to other motor 
carrier provisions.
    Subsections (a) and (c) permit motor carriers to obtain the 
amount of financial responsibility required by the Secretary 
from more than one source, provided the cumulative amount of 
coverage exceeds the minimum requirement. These changes conform 
the statute to existing practice.
    Subsection (b) provides relief from Federal insurance 
requirements for interstate transportation to recipients of 
Federal Transit Administration funding who are located near 
State borders and who provide transportation in rural areas, 
including transportation to meet the specialized needs of 
elderly individuals and individuals with disabilities. Similar 
relief is already provided for transit operators in urban areas 
in section 13506(b). The federally-imposed insurance 
requirements, which are designed for large, commercial 
interstate carriers, are financially burdensome for these 
operators. With the relief provided by this section, transit 
operators in small communities will be better able to provide 
cross-State transportation to nearby medical or other necessary 
facilities. The section requires that such transit operators, 
when they cross a State line, meet the insurance requirements 
of the higher of any of the States in which they provide 
transit services.
    Subsection (d) alters the existing definition of commercial 
motor vehicle in section 31132 of title 49. The new definition 
includes those that transport passengers for compensation, 
except for vehicles that transport 6 or fewer passengers and 
provide taxicab services not on a regular route, and those 
vehicles transporting more than15 passengers. This new 
definition conforms the Department of Transportation definition 
with existing ICC jurisdiction.
    Subsection (e) permits the Secretary to continue existing 
practice of the ICC permitting carriers to self-insure.
    Subsection (f) directs the Secretary to conform the 
definition of an automotive transportation vehicle to include 
any vehicle that is a specialty transporter of race cars or 
trailers designed for the racing industry.

              TITLE II--TRANSPORTATION ADJUDICATION PANEL

Section 201. Title 49 Amendment

    This section enacts a new chapter 6 of title 49, United 
States Code, establishing and authorizing the Transportation 
Adjudication Panel as a decisionally independent organization 
within the Department of Transportation. The new sections of 
chapter 7 are described below.

Section 701. Establishment of panel

    This provision establishes the organizational powers of the 
TAP, including legal representation and budget matters.

Section 702. Functions

    This section specifies that, except as provided elsewhere 
in this Act, all functions of the former Interstate Commerce 
Commission are assumed as of the date of enactment.

Section 703. Administrative provisions

    This provision outlines the administrative status of the 
new Transportation Adjudication Panel within the Department of 
Transportation. In general, the Panel will be decisionally 
independent from the Department, and will be authorized to 
represent itself in legal matters and budget requests.

Section 704. Annual report

    This section requires an annual report by the TAP to 
Congress.

Secton 705. Authorization of appropriations

    This section places the TAP on a limited, cyclical 
reauthorization basis. (The ICC had a permanent authorization.) 
The bill provides for a 3-year authorization as follows: Fiscal 
year 1996, $8.421 million;\1\ fiscal year 1997, $12.0 million; 
fiscal year 1998, $12.0 million.
    \1\ This equals the FY 1996 DOT appropriation for transferred ICC 
functions. Funds for the first quarter of FY 1996 were separately 
appropriated for the ICC through December 31, 1995.
---------------------------------------------------------------------------

Section 706. Reporting official action

    This section retains existing procedures for making a 
record of official actions by the agency. It replaced former 
Section 10310.

                     Subchapter II--Administrative

Section 721. Powers

    This section grants the Panel administrative powers to take 
evidence and testimony, and generally parallels the ICC powers 
in former section 10321. New subsection (b)(4) explicitly 
authorizes the Panel to issue unilateral emergency injunctive 
orders to prevent irreparable harm. This power has been 
asserted and used by the ICC in the past, although not 
specifically granted by statute. The Committee intends to 
confirm the scope of the former ICC power in this regard, and 
anticipates that the agency's authority to grant emergency 
injunctive relief will replace where necessary the repealed 
power in former section 10707 to suspend or otherwise enjoin 
actions that pose a threat of irreparable harm.

Section 722. Panel action

    This provision specifies the effectiveness of Panel 
decisions, and establishes a rule of finality in subsection (d) 
for purposes of seeking judicial review of such decisions. The 
section also confers on the Panel the discretionary power to 
reopen prior proceedings, paralleling the ICC's analogous 
authority under former section 10327(g)(1).

Section 723. Service of notice in panel proceedings

    This section retains the general requirements of former 
section 10329 with respect to rail carriers.

Section 724. Service of process in court proceedings

    This provision adopts the rules applicable under former 
section 10330 with respect to serving court process on rail 
carriers.

Section 725. Administrative support

    This section requires the Secretary of Transportation to 
provide appropriate administrative support for Panel 
operations. Although the Panel is authorized to receive a 
separate appropriation, the Committee intends that the goal of 
minimizing administrative bureaucracy should be advanced by 
avoiding all forms of administrative duplication that were 
inherent in the prior arrangement of the Interstate Commerce 
Commission as a separate independent agency. For example, once 
established within DOT, the Panel should not be required to 
maintain separate payroll, personnel, equal employment 
opportunity, Freedom of Information Act, and other 
administrative offices of its own. Instead, for these purposes, 
the Panel should be treated as part of DOT and provided with 
all necessary support in these areas by the appropriate DOT 
offices. This is essential to achieving the goal of minimizing 
administrative costs and limiting the separate status of the 
Panel to decisional independence only.

Section 727. Definitions

    This section makes a necessary cross-reference to the 
substantive regulatory provisions of the statute, to make the 
definitions found there applicable to Panel administrative 
matters as well.

Section 202. Reorganization

    This section provides the Transportation Adjudication Panel 
with plenary authority to reorganize any former ICC function 
conferred on the Panel by this legislation, including personnel 
reorganization matters.

Section 203. Transfer of assets

    This section confers on the Panel authority over the 
personnel and assets of the ICC as of the date of enactment.

Section 204. Saving provisions

    Subsection (a) maintains in force all ICC rules, orders, 
and regulations that conform to current law as amended by this 
legislation, until modified or rescinded by the Panel.
    Subsection (b) establishes a general transition rule 
regarding administrative proceedings pending at the ICC on the 
date of enactment. Proceedings governed by provisions repealed 
in this legislation are to be terminated. Any other proceedings 
are to be completed under the legal standards in effect prior 
to enactment.
    Subsection (c) establishes a transition rule for matters 
pending in court on the date of enactment. As a general rule, 
such pending court cases are to be completed under the law in 
effect prior to enactment. An exception is made for matters 
remanded from a court: after such a remand, any subsequent 
administrative proceedings before the Panel are to be governed 
by the law as amended by this legislation.
    Subsection (d) confirms that all legal authorities 
conferred under laws transferred to the Panel by this Act or 
under laws enacted in the Act may continue to be exercised by 
an officer or employee of the Panel, except as otherwise 
provided by law.

Section 205. References

    Section 205 confirms that, even if not specifically changed 
in the conforming amendments contained in Title III, all 
references to the Interstate Commerce Commission in statute, 
orders, regulations, or other documents are deemed to refer to 
the Panel or its members or employees, as appropriate.

                    title iii--conforming amendments

    Title III contains numerous conforming amendments to other 
laws containing references to the Interstate Commerce 
Commission.
                                APPENDIX

                   Disposition of Existing Provisions

----------------------------------------------------------------------------------------------------------------
             Section                     Mode               Part A              Part B              Subject     
----------------------------------------------------------------------------------------------------------------
10101...........................  All...............  X.................  13101.............  National Transp.  
                                                                                               Policy.          
10101a..........................  Rail..............  10101a............  ..................  Rail Transp.      
                                                                                               Policy.          
10102...........................  All...............  10102.............  13102.............  Definitions.      
10103...........................  All...............  10103.............  13103.............  Remedies as       
                                                                                               cumulative/      
                                                                                               exclusive.       
10301...........................  All...............  701...............  ..................  Organization.--Gen
                                                                                               eral.            
New.............................  All...............  702...............  ..................  Transfer of       
                                                                                               functions.       
New.............................  All...............  703...............  ..................  Independence of   
                                                                                               Panel.           
10302...........................  All...............  X.................  ..................  Org--Divisions.   
10303...........................  All...............  X.................  ..................  Org--Secretary.   
10304...........................  All...............  X.................  ..................  Org.--Employee    
                                                                                               Boards.          
10305...........................  All...............  X.................  ..................  Org.--Delegation  
                                                                                               of Authy'.       
10306...........................  All...............  X.................  ..................  Org.--Conduct of  
                                                                                               Proceedings.     
10307...........................  All...............  X.................  ..................  Org.--Office and  
                                                                                               sessions.        
10308...........................  All...............  703(e)............  ..................  Org.--Admission to
                                                                                               Practice.        
10309...........................  All...............  X.................  ..................  Org.--Cong. Access
                                                                                               to records.      
10310...........................  All...............  706...............  ..................  Org--Reporting    
                                                                                               official action. 
10311...........................  All...............  704...............  ..................  Org.--Annual      
                                                                                               Report.          
New.............................  All...............  705...............  ..................  3-yr.             
                                                                                               Authorization of 
                                                                                               appropriations.  
10321...........................  All...............  721...............  13301.............  Powers            
10322...........................  Nonrail...........  ..................  X.................  Nonrail           
                                                                                               procedures.      
10323...........................  ..................  ..................  ..................  [previously       
                                                                                               repealed]        
10324...........................  All...............  722(a)-(b)........  ..................  Agency action.    
10325...........................  ..................  ..................  ..................  [previously       
                                                                                               repealed]        
10326...........................  Rail..............  X.................  ..................  Limitations in    
                                                                                               Rail Rulemakings.
10327...........................  Rail..............  722(c)-(d)........  ..................  Rail Procedures.  
10328...........................  All...............  X.................  13302.............  Intervention.     
10329...........................  All...............  723...............  13303.............  Service of notice.
10330...........................  All...............  724...............  13304.............  Service of        
                                                                                               process.         
10341-10344.....................  All...............  X.................  ..................  Joint Boards.     
10344(f)........................  All...............  725...............  ..................  Space of NARUC.   
10361-10364.....................  Rail..............  X.................  ..................  Rail Services     
                                                                                               Planning Office. 
10381-10388.....................  Rail..............  X.................  ..................  Rail Public       
                                                                                               Counsel.         
New.............................  All...............  726...............  ..................  Admin. support for
                                                                                               Panel.           
New.............................  All...............  727...............  ..................  Definitions same  
                                                                                               as subtitle IV.  
10501...........................  Rail..............   10301............  ..................  Rail General      
                                                                                               Jurisdiction.    
10502...........................  Rail..............  X.................  ..................  Express Carrier   
                                                                                               Transportation.  
10503...........................  Rail..............  X.................  ..................  Rail-Water        
                                                                                               Connections.     
10504...........................  Rail..............  X.................  ..................  Exempt rail mass  
                                                                                               transp.          
10505...........................  All...............  10302.............  13541.............  Exemption Auth'y. 
10521...........................  Motor.............  ..................  13501.............  Motor General     
                                                                                               Jurisdiction     
10522...........................  Motor.............  ..................  13502.............  Exempt Transp.--  
                                                                                               Alaska.          
10523...........................  Motor.............  ..................  13503.............  Exempt Terminal   
                                                                                               Areas transp.    
10524...........................  Motor.............  ..................   13505............  Transp. Furthering
                                                                                               Primary Business.
10525...........................  Motor.............  ..................  13504.............  Transp. Entirely  
                                                                                               in 1 State.      
10526...........................  Motor.............  ..................  13506.............  Misc. Motor       
                                                                                               Exemptions.      
10527...........................  Motor.............  ..................  X.................  Written contracts 
                                                                                               for certain      
                                                                                               exempt           
                                                                                               agricultural     
                                                                                               movements.       
10528...........................  Motor.............  ..................  13507.............  Mixed regulated & 
                                                                                               unregulated.     
10529...........................  Motor.............  ..................  13508.............  Cooperative       
                                                                                               Ass'ns.          
10530...........................  Motor.............  ..................  13902(c)..........  Foreign Carrier   
                                                                                               registrations.   
10531...........................  Motor.............  ..................  X.................  Mass transp.      
                                                                                               Exemption.       
10541...........................  Water.............  ..................  13521.............  Water General     
                                                                                               Jurisdiction.    
10542...........................  Water.............  ..................  X.................  Water--Exempt bulk
                                                                                               transp.          
10543...........................  Water.............  ..................  X.................  Water--Exempt     
                                                                                               incidental       
                                                                                               transp.          
10544...........................  Water.............  ..................  X.................  Water--Misc.      
                                                                                               Exemptions.      
                                                                                                                
10561...........................  Frt. F............  ..................  13531.............  Frt. Forwarder--  
                                                                                               General Jurisd'n.
                                                                                                                
10701...........................  All...............  10501 (a), (b)....  13701 (a).........  Rate Reas. Reqts. 
                                                                                                                
10701(f)........................  Motor.............  ..................  13708.............  Undercharge       
                                                                                               settlements.     
                                                                                                                
10701a..........................  Rail..............  10501 (c), (d)....  ..................  Rail Rate Reas.   
                                                                                               Reqts.           
                                                                                                                
10702...........................  All...............  10502.............  X.................  Carrier Auth'y to 
                                                                                               set rates.       
                                                                                                                
10703...........................  All...............  10503.............  13705.............  Carrier Auth'y for
                                                                                               Through Routes.  
                                                                                                                
10704...........................  All...............  10504.............  13701(b)..........  ICC Auth'y to     
                                                                                               prescribe rates. 
                                                                                                                
10705...........................  All...............  10505.............  13701(b)..........  ICC Auth'y to set 
                                                                                               through routes.  
                                                                                                                
10705a..........................  Rail..............  X.................  ..................  Joint rate        
                                                                                               surcharges.      
                                                                                                                
10706...........................  All...............  10506.............  13703.............  Collective        
                                                                                               activities &     
                                                                                               antitrust        
                                                                                               exemption.       
                                                                                                                
10707...........................  Rail..............  X.................  ..................  Suspension of new 
                                                                                               rail rates.      
                                                                                                                
10707a..........................  Rail..............  X.................  ..................  Zone of rate      
                                                                                               flexibility.     
                                                                                                                
10708...........................  Pipe & Motor......  X.................  X.................  Suspension of new 
                                                                                               nonrail rates.   
                                                                                                                
10709...........................  Rail..............  10507.............  ..................  Market Dominance. 
                                                                                                                
10710...........................  All...............  X.................  X.................  Discrim. against  
                                                                                               recyclables.     
10711...........................  Rail..............  X.................  ..................  Effect of certain 
                                                                                               sections.        
10712...........................  Rail..............  10508.............  ..................  Inflation-based   
                                                                                               increases.       
10713...........................  Rail..............  10509.............  ..................  Contract transp.  
10721...........................  All...............  10521.............  13711.............  Govt. Transp.     
10722...........................  All...............  X.................  X.................  Special passenger 
                                                                                               rates.           
10723...........................  All...............  X.................  X.................  Charitable.       
10724...........................  All...............  10522.............  X.................  Emergency rates.  
10725...........................  Frt. F............  ..................  X.................  Special frt.      
                                                                                               forwarder rates. 
10726...........................  Rail..............  X.................  ..................  Long- & short-haul
                                                                                               rates transp.    
10727...........................  ..................  ..................  ..................  [previously       
                                                                                               repealed].       
10728...........................  Rail..............  X.................  ..................  Separate rates for
                                                                                               distinct         
                                                                                               services.        
10729...........................  ..................  ..................  ..................  [previously       
                                                                                               repealed].       
10730...........................  All...............  11506(c)(3).......  X.................  Released rates.   
10731...........................  Rail..............  X.................  ..................  Recyclables rates.
10732...........................  ..................  ..................  13712.............  Food & grocery    
                                                                                               transp.          
10733...........................  Motor.............  ..................  X.................  Recyclable rates. 
10734...........................  Rail..............  10523.............  ..................  Car utilization.  
10735...........................  Motor.............  ..................  13704.............  HHG--binding      
                                                                                               estimates.       
10741...........................  All...............  10541.............  X.................  Anti-             
                                                                                               discrimination.  
10742...........................  Rail-Water........  10542.............  X.................  Facilities for    
                                                                                               interchange.     
10743...........................  All...............  X.................  X.................  Payment of rates. 
10744...........................  All...............  X.................  13706.............  Liability for     
                                                                                               payment of rates.
10745...........................  Rail..............  10543.............  ..................  Continuous        
                                                                                               carriage of      
                                                                                               freight.         
10746...........................  Rail..............  X.................  ..................  Commodities       
                                                                                               clause.          
10747...........................  All...............  10544.............  X.................  Facilities        
                                                                                               provided by      
                                                                                               shipper.         
10748...........................  Rail..............  X.................  ..................  Transp. of        
                                                                                               livestock.       
10749...........................  Frt. F............  ..................  X.................  HHG frt.          
                                                                                               forwarders--exchg
                                                                                               . of services.   
10750...........................  Rail..............  10545.............  ..................  Demurrage.        
10751...........................  All...............  X.................  X.................  Business          
                                                                                               entertainment    
                                                                                               expenses.        
10761...........................  All...............  X.................  13702(a)..........  Tariff required.  
10762...........................  All...............  X.................  13702(b)-(d)......  Tariff            
                                                                                               requirements.    
10762(a)........................  Motor.............  ..................  13709(a)..........  Undercharge       
(3)-(5).........................                                                               applicability.   
New.............................  Water.............  ..................  13702(e)..........  Port-to-port      
                                                                                               rates.           
10763...........................  Rail..............  X.................  ..................  Shipper routing.  
10764...........................  Rail..............  X.................  ..................  Arrangements      
                                                                                               between carriers.
10765...........................  All...............  X.................  X.................  Water arrangements
                                                                                               with other       
                                                                                               carriers.        
10766...........................  Frt. F............  ..................  X.................  Frt. Forwarder    
                                                                                               traffic          
                                                                                               agreements.      
10767...........................  Motor.............  ..................  13707.............  Billing and       
                                                                                               collecting       
                                                                                               practices.       
10781-..........................  Rail..............  X.................  ..................  Rail property     
10786...........................                                                               valuation.       
New.............................  Motor.............  ..................  13710.............  Undercharge--Unrea
                                                                                               s. practice from 
                                                                                               NRA (now a stat. 
                                                                                               note to 10701).  
10901...........................  Rail..............  10701, 10702......  ..................  Construction &    
                                                                                               operation.       
10902...........................  Rail..............  X.................  ..................  Safe & adequate   
                                                                                               facilities.      
10903...........................  Rail..............  X.................  ..................  Abandonment       
                                                                                               approval         
                                                                                               required.        
10904...........................  Rail..............  10703.............  ..................  Abandonment       
                                                                                               procedures.      
10905...........................  Rail..............  10704.............  ..................  Financial         
                                                                                               assistance.      
10906...........................  Rail..............  10705.............  ..................  Public use of     
                                                                                               abandoned lines. 
10907...........................  Rail..............  10706,              ..................  Spur track        
                                                       10301(c)(3),                            exemption.       
                                                       10102(5).                                                
10908...........................  Rail..............  X.................  ..................  Passenger route   
                                                                                               discontinuance--i
                                                                                               nterstate.       
10909...........................  Rail..............  X.................  ..................  Passenger route   
                                                                                               discontinuance--i
                                                                                               ntrastate.       
10910...........................  Rail..............  X.................  ..................  Feeder line       
                                                                                               development.     
10921...........................  Motor.............  ..................  13901.............  License           
                                                                                               requirement.     
10922...........................  Motor.............  ..................  13902.............  Motor carrier     
                                                                                               license.         
10923...........................  Motor.............  ..................  13903.............  Frt. forwarder    
                                                                                               license.         
10924...........................  Motor.............  ..................  13904.............  Broker license.   
10925...........................  Motor.............  ..................  13905.............  Duration of       
                                                                                               license.         
10926...........................  Motor.............  ..................  X.................  Transfers of      
                                                                                               licenses.        
10927...........................  Motor.............  ..................  13906.............  Security          
                                                                                               (Insurance)      
                                                                                               requirement.     
10928...........................  Motor.............  ..................  X.................  Temporary         
                                                                                               authority.       
10929...........................  Water.............  ..................  X.................  Temporary water   
                                                                                               authority.       
10930...........................  Motor.............  ..................  X.................  Limitations on    
                                                                                               licenses.        
10931...........................  Motor.............  ..................  X.................  Intrastate        
                                                                                               licensing.       
10932...........................  Motor.............  ..................  X.................  Motor savings     
                                                                                               provision.       
10933...........................  Frt. F............  ..................  X.................  Ceasing HHG frt.  
                                                                                               forwarder        
                                                                                               service.         
10934...........................  Motor.............  ..................  13907.............  HHG Agents.       
10935...........................  Motor.............  ..................  X.................  Bus route         
                                                                                               discontinuances. 
10936...........................  Motor.............  ..................  X.................  Limit on          
                                                                                               intrastate bus   
                                                                                               regulation.      
New.............................  Motor.............  ..................  13908.............  Replacement       
                                                                                               unified          
                                                                                               registration     
                                                                                               system.          
11101...........................  All...............  10901.............  14101.............  Providing transp. 
                                                                                               (Common carrier  
                                                                                               oblig'n).        
11101(d)........................  Motor.............  ..................  13709(b)..........  Undercharge--contr
                                                                                               act vs. common   
                                                                                               disputes.        
11102...........................  Motor.............  ..................  X.................  Classification of 
                                                                                               Carriers.        
11103...........................  Rail..............  10902.............  ..................  Use of terminal   
                                                                                               facilities.      
11104...........................  Rail..............  10903.............  ..................  Switch            
                                                                                               connections.     
11105...........................  Rail..............  X.................  ..................  Protective        
                                                                                               services (heat   
                                                                                               and cold).       
11106...........................  Motor.............  ..................  X.................  Identification of 
                                                                                               vehicles.        
11107...........................  Motor.............  ..................  14102.............  Leased vehicles   
                                                                                               (owner-          
                                                                                               operators).      
11108...........................  Water.............  ..................  X.................  Water--unreas.    
                                                                                               discrimination.  
11109...........................  Motor.............  ..................  14103.............  Lumping.          
11110...........................  Motor.............  ..................  14104.............  HHG operations.   
11111...........................  Motor.............  ..................  X.................  CB radios on      
                                                                                               buses.           
11121...........................  Rail..............  10921.............  ..................  Car service       
                                                                                               criteria.        
11122...........................  Rail..............  10922.............  ..................  Car service       
                                                                                               compensation.    
11123...........................  Rail..............  X.................  ..................  Emergency         
                                                                                               situations.      
11124...........................  Rail..............  10923.............  ..................  Rerouting.        
11125...........................  Rail..............  X.................  ..................  Directed service. 
11126...........................  Rail..............  X.................  ..................  Distribution of   
                                                                                               coal cars.       
11127...........................  Motor.............  ..................  X.................  HHG Frt. Forwarder
                                                                                               services.        
11128...........................  All...............  10924.............  X.................  War emergencies   
11141...........................  All...............  10941.............  14121.............  Reports and       
                                                                                               records.         
11142...........................  Motor.............  10942.............  X.................  Uniform accounting
                                                                                               system.          
11143...........................  All...............  10943.............  X.................  Depreciation      
                                                                                               charges.         
11144...........................  All...............  10944.............  14122.............  Records inspection
                                                                                               and retention.   
11145...........................  All...............  10945.............  14123.............  Reports by        
                                                                                               carriers.        
11161...........................  Rail..............  X.................  ..................  Railroad          
                                                                                               Accounting       
                                                                                               Principles Board 
                                                                                               (RAPB).          
11162...........................  Rail..............  X.................  ..................  Cost accounting   
                                                                                               principles.      
11163...........................  Rail..............  10961.............  ..................  Implementing      
                                                                                               accounting       
                                                                                               principles,      
                                                                                               accounting.      
11164...........................  Rail..............  10962.............  ..................  Certification of  
                                                                                               carrier's        
                                                                                               accounting.      
11165...........................  Rail..............  10963.............  ..................  Cost info. made   
                                                                                               available.       
11166...........................  Rail..............  10964.............  ..................  Cost reporting.   
11167...........................  Rail..............  X.................  ..................  RAPB report.      
11168...........................  Rail..............  X.................  ..................  RAPB funding      
                                                                                               authorized.      
11301...........................  Rail..............  X.................  ..................  Securities        
                                                                                               issuances.       
11302...........................  ..................  ..................  ..................  [previously       
                                                                                               repealed].       
11303...........................  Rail..............  11101.............  ..................  Equipment trusts. 
11304...........................  Motor.............  ..................  14301.............  Security interests
                                                                                               in motor         
                                                                                               vehicles.        
11321...........................  Rail-Water........  X.................  X.................  Ownership of water
                                                                                               carriers.        
11322...........................  Rail..............  X.................  ..................  Interlocking      
                                                                                               officers &       
                                                                                               directors.       
11323...........................  All...............  X.................  X.................  Ownership of      
                                                                                               carriers by HHG  
                                                                                               frt. forwarders. 
11341...........................  All...............  1121..............  14302(f)..........  Scope of authority
                                                                                               (antitrust       
                                                                                               immunity).       
11342...........................  All...............  11122.............  14302.............  Pooling.          
11343...........................  All...............  11123, 10702......  X.................  Mergers &         
                                                                                               consolidations.  
11344...........................  All...............  11124.............  X.................  Merger procedures--
                                                                                               general.         
11345...........................  Rail..............  11125.............  ..................  Merger procedures--
                                                                                               rail.            
11345a..........................  Motor.............  ..................  X.................  Merger procedures--
                                                                                               motor.           
11346...........................  Rail..............  X.................  ..................  Expedited merger  
                                                                                               procedure.       
11347...........................  Rail..............  11126.............  ..................  Labor protection  
                                                                                               for mergers.     
11348...........................  All...............  X.................  X.................  Authority over    
                                                                                               noncarrier in    
                                                                                               control.         
11349...........................  Motor.............  ..................  X.................  Temporary auth'y  
                                                                                               for mergers.     
11350...........................  Rail..............  X.................  ..................  Mergers--DOT      
                                                                                               sponsorship.     
11351...........................  All...............  11127.............  X.................  Mergers--supplemen
                                                                                               tal orders.      
11361-11367.....................  Rail..............  X.................  ..................  Financial         
                                                                                               Structure.       
11501...........................  All...............  X.................  14501.............  State preemptions.
11502...........................  All...............  X.................  X.................  Conferences & jt. 
                                                                                               hearings w/      
                                                                                               states.          
11503...........................  Rail..............  11301.............  ..................  Tax discrim.--    
                                                                                               rail.            
11503a..........................  Motor.............  ..................  14502.............  Tax discrim.--    
                                                                                               motor.           
11504...........................  All...............  11302.............  14503.............  Withholding st. & 
                                                                                               local income tax.
11505...........................  Rail, Frt. F......  X.................  X.................  St. actions to    
                                                                                               injoin           
                                                                                               abandonments by  
                                                                                               rail or HHG frt. 
                                                                                               forwarders.      
11506...........................  Motor.............  ..................  14505.............  Single-State      
                                                                                               registration.    
11507...........................  All...............  X.................  X.................  Prison-made       
                                                                                               property.        
New.............................  Motor.............  ..................  14505.............  Bus sales tax.    
11701...........................  All...............  11501.............  14701.............  General           
                                                                                               enforcement      
                                                                                               authority.       
11702...........................  All...............  11502.............  14702.............  ICC enforcement.  
11703...........................  All...............  11503.............  14703.............  Atty. Gen.        
                                                                                               enforcement.     
11704...........................  Motor.............  ..................  X.................  Private actions to
                                                                                               enjoin HHG frt.  
                                                                                               forwarder        
                                                                                               cessation of     
                                                                                               service.         
11705...........................  All...............  11504.............  14704.............  Rights & remedies 
                                                                                               of injured       
                                                                                               persons.         
11706...........................  All...............  11505.............  14705.............  Statute of        
                                                                                               limitations.     
11707...........................  All...............  11506.............  14706.............  Liability of      
                                                                                               common carriers  
                                                                                               under bills of   
                                                                                               lading.          
11708...........................  Motor.............  ..................  14707.............  Private           
                                                                                               enforcement of   
                                                                                               licensing.       
11709...........................  Rail..............  X.................  ..................  Liability for     
                                                                                               securities       
                                                                                               issuances.       
11710...........................  Rail..............  X.................  ..................  Liability for     
                                                                                               misrouting.      
11711...........................  Motor.............  ..................  14708.............  HHG Arbitration   
                                                                                               program.         
11712...........................  Motor.............  ..................  14709.............  Tariff            
                                                                                               reconciliation   
                                                                                               rules            
                                                                                               (undercharges).  
11901...........................  All...............  11701.............  14901.............  General civil     
                                                                                               penalties.       
11902...........................  All...............  X.................  14902.............  Penalties for     
                                                                                               rebates.         
11902a..........................  Motor.............  ..................  14905.............  Penalties for     
                                                                                               lumping.         
11903...........................  All...............  X.................  14903.............  Rate, discrim. &  
                                                                                               tariff           
                                                                                               violations.      
11904...........................  All...............  X.................  14904.............  Additional rate & 
                                                                                               discrim.         
                                                                                               violations.      
11905...........................  All...............  X.................  X.................  Free transp.      
11906...........................  Motor.............  ..................  14906.............  Evasion of        
                                                                                               regulation.      
11907...........................  Rail..............  11702.............  ..................  Interference with 
                                                                                               car supply.      
11908...........................  Motor.............  ..................  X.................  HHG Frt. Forwarder
                                                                                               abandonment of   
                                                                                               service.         
11909...........................  All...............  11703.............  14907.............  Record keeping &  
                                                                                               reporting        
                                                                                               violations.      
11910...........................  All...............  11704.............  14908.............  Unlawful          
                                                                                               disclosure of    
                                                                                               info.            
11911...........................  Rail..............  X.................  ..................  Unlawfl securities
                                                                                               issuances.       
11912...........................  All...............  X.................  X.................  Merger--violations
                                                                                               by noncarriers.  
11913...........................  All...............  11705.............  14909.............  Disobedience to   
                                                                                               subpenas.        
11913a..........................  Rail..............  X.................  ..................  Accounting        
                                                                                               principles       
                                                                                               violations.      
11914...........................  All...............  11706.............  14910.............  General criminal  
                                                                                               penalties.       
11915...........................  All...............  11707.............  14911.............  Corporate         
                                                                                               liability.       
11916...........................  All...............  X.................  14913.............  Conclusiveness of 
                                                                                               rates.           
11917...........................  Motor.............  ..................  14912.............  HHG weight-       
                                                                                               bumping.         
----------------------------------------------------------------------------------------------------------------

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in this report.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the committee estimates that the 
enactment of H.R. 2539 will have no significant inflationary 
impact on prices and costs in the operations of the national 
economy.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2539. However, clause 7(d) provides that this requirement 
does not apply when the Committee has included in its report a 
timely submitted cost estimate of the bill prepared by the 
Director of the Congressional Budget Office under section 403 
of the Congressional Budget Act of 1974.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2539 does not contain any new budget authority, new credit 
authority, or an increase or decrease in revenues or tax 
expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight of the subject of H.R. 2539.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rules XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2539 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 6, 1995.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2539, the ICC 
Termination Act of 1995.
    Enacting H.R. 2539 would affect both direct spending and 
receipts, therefore, pay-as-you-go procedures would apply.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: H.R. 2539.
    2. Bill title: ICC Termination Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on Transportation and Infrastructure on November 1, 1995.
    4. Bill purpose: The bill would terminate the Interstate 
Commerce Commission (ICC) by:
          eliminating various functions of the Commission;
          transferring the remaining functions to a newly 
        created Transportation Adjudication Panel (TAP) of the 
        Department of Transportation (DOT) and to the Federal 
        Highway Administration (FHWA);
          authorizing the TAP and FHWA to collect recording and 
        registration fees to offset some costs of the two 
        agencies;
          authorizing an appropriation of $8.4 million for 
        fiscal year 1996 and $12 million for each of fiscal 
        years 1997 and 1998 for the TAP; and
          updating railroad and motor carrier regulations to 
        reflect the termination of the ICC and other revisions.
    5. Estimated cost to the Federal Government: The bill would 
authorize the appropriation of about $32 million for the TAP 
over the next three fiscal years. In addition this bill would 
change the amount of civil and criminal and civil penalties 
collected by the federal government and spending from the Crime 
Victims Fund; however, CBO expects any change would be 
insignificant.

----------------------------------------------------------------------------------------------------------------
                                                        1995      1996      1997      1998      1999       200  
----------------------------------------------------------------------------------------------------------------
                                     Additional Revenues and Direct Spending                                    
Revenues, estimated.................................  ........     (\1\)     (\1\)     (\1\)     (\1\)     (\1\)
Direct spending:                                                                                                
    Estimated budget authority......................  ........  ........     (\1\)     (\1\)     (\1\)     (\1\)
    Estimated outlays...............................  ........  ........     (\1\)     (\1\)     (\1\)     (\1\)
                                       Spending Subject to Appropriations                                       
Spending Under Current Law:                                                                                     
    Budget authority \2\............................        33        22  ........  ........  ........  ........
    Outlays.........................................        38        23         2  ........  ........  ........
Proposed changes:                                                                                               
    Authorization level.............................  ........  ........        12        12  ........  ........
    Estimated Outlays...............................  ........  ........        11        12         1  ........
Spending under H.R. 2539:                                                                                       
    Authorization level.............................        33        22        12        12  ........  ........
    Estimated outlays...............................        38        23        13        12         1  ........
----------------------------------------------------------------------------------------------------------------
\1\ Less than $50,000                                                                                           
\2\ The 1996 appropriations bill for transportation, which was recently cleared by the Congress, provides $8.4  
  million for the TAP--amounts equal to the authorization levels in H.R. 2539. In addition, the appropriations  
  bill provides $13.4 million to shut down the ICC.                                                             

    The costs of this bill fall within budget function 400.
    In addition to the amounts shown in the table, H.R. 2539 
could affect offsetting collections and spending from such 
collections. Because the CBO expects fees collections and 
spending from the fees to be equal, the fees should have no net 
impact on the budget.
    The bill would allow FHWA and the TAP to establish fees to 
replace fees currently collected by the ICC. FHWA would assess 
fees for registration of motor carriers and for filing evidence 
of financial responsibility. Under H.R. 2539, spending of those 
fees would not be subject to appropriations; spending of the 
current ICC fees is subject to appropriations.
    TAP would assess fees on railroads for the cost of 
recording evidence of mortgages, leases, and sales for railroad 
equipment. Spending of TAP fees would be subject to 
appropriations.
    6. Basis of estimate:
    Revenues and direct spending. If H.R. 2539 is enacted into 
law, the amount of civil and criminal penalties collected by 
the federal government would change. The bill would deregulate 
some of the activities for which the federal government 
currently collects civil penalties but also would increase the 
fines for the remaining activities. The ICC currently collects 
about $500,000 annually in both civil and criminal penalties, 
and we estimate that the net change in such penalties would be 
significantly less than $500,000 a year.
    Criminal penalties are deposited in the Crime Victims Fund 
and are spent the following year. Because the collection of 
criminal penalties would change, spending from the Crime 
Victims Fund would change. Because the change in penalties is 
expected to be very small, any change in spending also would be 
insignificant.
    Spending subject to appropriations. This estimate assumes 
that the full amounts authorized to be appropriated for the TAP 
would be appropriated for each fiscal year. (As shown in the 
table, the amounts authorized for 1996 have been included in 
the transportation appropriations bill recently cleared by the 
Congress.) The outlay estimates are based on the historical 
spending rate for the ICC. The bill does not specifically 
authorize funds to shut down the ICC, however, CBO estimates 
that at least $13 million (the amount provided in the 1996 
transportation appropriations bill) would be required to shut 
down the agency and provide severance pay, assuming that about 
100 people would be transferred to the TAP and 60 people to 
FHWA.
    The ICC and DOT have not determined how many people would 
be transferred if this bill is enacted into law. According to 
federal regulations, if a function is transferred from one 
agency to another, the people performing that function are 
automatically transferred. If significantly fewer than 160 
people are transferred from the ICC to the DOT, the ICC might 
need more than $13 million to shut down the agency. If 
significantly more than 160 people are transferred, the TAP and 
FHWA might need more funding than authorized in H.R. 2639 to 
handle the additional personnel.
    Fees. The bill does not authorize any additional funds to 
be appropriated to FHWA for the functions and personnel 
transferred to the agency. Such funding would come from the new 
fees that the bill would establish to replace fees currently 
collected by the ICC. The ICC collects about $8 million of fees 
annually for both rail and motor carrier activities, but the 
collection would drop if this bill is enacted because some of 
the functions that generate fees would be eliminated. Of that 
total, fees assessed to railroads by the TAP would total less 
than $1 million a year.
    FHWA would need to collect at least $5 million a year from 
motor carrier activities to pay the 60 people that would likely 
be transferred and to carry out its new functions. The bill 
would also require the FHWA to develop a new registration 
system for motor carriers within two years in order to 
streamline the current system. FHWA has doubts about its 
ability to collect sufficient funds to cover these costs under 
the ICC's fee structure. If the fees are not increased, 
additional funds would have to be appropriated or the FHWA 
would have to cut back in other areas.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
H.R. 2539 would change the amount of civil and criminal 
penalties collected by the federal government and spending from 
the Crime Victims Fund. Therefore, pay-as-you-go procedures 
would apply to the bill; however, the changes in both receipts 
and outlays would be less than $500,000 a year.

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

    8. Estimated cost to state and local governments: H.R. 2539 
contains a number of provisions that would affect state and 
local governments. Two provisions would likely result in costs 
to such governments, primarily in the form of lost revenues. 
The bill also has elements that would ease the requirements and 
regulatory burdens on state and local transportation agencies. 
Given the uncertainty over the impact of the bill's 
deregulatory measures at the state and local level, CBO is not 
able to provide an estimate of the bill's net impacts at this 
time. Provisions with the most direct effect on state and local 
governments are discussed below.
    Potential costs. H.R. 2539 would preempt a state's ability 
to collect taxes or fees on interstate bus travel. The state of 
Oklahoma is currently the only state with such a tax in place. 
The Oklahoma Tax Commission estimates that the tax generates 
approximately $400,000 a year in revenue for the state. The 
state of Utah recently approved a tax on interstate bus service 
that is scheduled to go into effect January 1, 1996. Utah was 
not able to provide an estimate of the revenue it expects to 
raise from the tax.
    The bill would require the Secretary, in cooperation with 
the states, to replace the current motor carrier 
identification, registration, and information systems with a 
single on-line system. This consolidation could lead to the 
repeal of the existing Single State Registration System (SSRS), 
which requires motor carriers to register annually with one 
state and provide proof of insurance. States are allowed to 
assess a fee for this service. According to the National 
Conference of State Transportation Specialists, states collect 
a total of approximately $89 million a year in such fees. If 
the Secretary prohibits the state insurance registration system 
in favor of a program administered at the federal level, the 
states would no longer be able to collect the SSRS fees. The 
states would, however, realize savings from not having to 
administer or enforce the program. None of the states we 
contacted, nor any of the national interest groups representing 
state interests, were able to provide an estimate of these 
costs. Many states also apply the SSRS revenues toward their 
matching requirements for federal Motor Carrier Safety 
Assistance Program (MCSAP) funds. To the extent that states use 
the fee revenue in this way, elimination of the single state 
registration program and the ability to charge these fees would 
require that some states find other sources of matching funds 
or face losing MCSAP monies.
    Potential savings. H.R. 2539 contains at least two 
provisions that would directly benefit state governments. The 
bill would exempt interstate mass transportation services 
funded with federal grants for rural, elderly, or disabled 
populations from federal minimum financial responsibility 
requirements as long as they meet state standards. This 
provision should make running these services easier and cheaper 
for state and local governments. The bill would also grant 
public rail authorities the right to reasonable use of terminal 
facilities, switch connections, and tracks of other rail 
carriers subject to the Transportation Adjudication Panel's 
jurisdiction. Although the public rail authorities would be 
required to provide compensation for such services, the 
provision could save the authorities from having to construct 
and maintain their own infrastructure to serve the same 
purposes.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal cost estimate, John 
Patterson and Stephanie Weiner; State and local government cost 
estimate, Karen McVey.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.
    On the motion to order H.R. 2539 to be reported, as 
amended, the vote was 36-22.
        AYES--36                      NAYS--22
Bachus                              Barcia
Baker                               Borski
Bateman                             Brown
Blute                               Clement
Boehlert                            Clyburn
Brewster                            Collins
Clinger                             Costello
Coble                               Cramer
Duncan                              Danner
Ehlers                              DeFazio
Emerson                             Filner
Ewing                               Johnson
Fowler                              Lipinski
Franks                              McCarthy
Gilchrest                           Mascara
Hayes                               Menendez
Horn                                Nadler
Hutchinson                          Norton
Kelly                               Oberstar
Kim                                 Poshard
LaHood                              Traficant
Latham                              Wise
LaTourette
Martini
Mica
Molinari
Parker
Petri
Quinn
Rahall
Seastrand
Tate
Wamp
Weller
Zeliff
Shuster

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 49, UNITED STATES CODE

                        TITLE 49--TRANSPORTATION

Subtitle                                                            Sec.
      DEPARTMENT OF TRANSPORTATION...................................101
     * * * * * * *
      INTERSTATE [COMMERCE] TRANSPORTATION.........................10101
     * * * * * * *


                SUBTITLE I--DEPARTMENT OF TRANSPORTATION


Chapter                                                             Sec.

      ORGANIZATION...................................................101
     * * * * * * *
      TRANSPORTATION ADJUDICATION PANEL..............................701
     * * * * * * *

              CHAPTER 7--TRANSPORTATION ADJUDICATION PANEL

                       SUBCHAPTER I--ESTABLISHMENT

Sec.
701. Establishment of Panel.
702. Functions.
703. Administrative provisions.
704. Annual report.
705. Authorization of appropriations.
706. Reporting official action.

                      SUBCHAPTER II--ADMINISTRATIVE

721. Powers.
722. Panel action.
723. Service of notice in Panel proceedings.
724. Service of process in court proceedings.
725. National organization of State commissions.
726. Administrative support.
727. Definitions.

                      SUBCHAPTER I--ESTABLISHMENT

Sec. 701. Establishment of Panel

  (a) Establishment.--There is hereby established within the 
Department of Transportation the Transportation Adjudication 
Panel.
  (b) Membership.--(1) The Panel 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 Panel 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 in the private sector.
  (3) The term of each member of the Panel 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 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 then serving unexpired terms 
shall become members of the Panel, 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.
  (5) No individual may serve as a member of the Panel for more 
than 2 terms. In the case of an individual who becomes a member 
of the Panel 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 Panel 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 Panel does not impair 
the right of the remaining members to exercise all of the 
powers of the Panel. The Panel may designate a member to act as 
Director during any period in which there is no Director 
designated by the President.
  (c) Director.--(1) There shall be at the head of the Panel a 
Director, who shall be designated by the President from among 
the members of the Panel. The Director 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 Panel the Director shall be responsible 
for administering the Panel. The Director may delegate the 
powers granted under this paragraph to an officer, employee, or 
office of the Panel. The Director shall--
          (A) appoint and supervise, other than regular and 
        full time employees in the immediate offices of another 
        member, the officers and employees of the Panel, 
        including attorneys to provide legal aid and service to 
        the Panel and its members, and to represent the Panel 
        in any case in court;
          (B) appoint the heads of offices with the approval of 
        the Panel;
          (C) distribute Panel responsibilities among officers 
        and employees and offices of the Panel;
          (D) prepare requests for appropriations for the Panel 
        and submit those requests to the President and Congress 
        with the prior approval of the Panel; and
          (E) supervise the expenditure of funds allocated by 
        the Panel for major programs and purposes.

Sec. 702. Functions

  Except as otherwise provided in the ICC Termination Act of 
1995, or the amendments made thereby, the Panel shall perform 
all functions that, immediately before the effective date of 
such Act, were functions of the Interstate Commerce Commission 
or were performed by any officer or employee of the Interstate 
Commerce Commission in the capacity as such officer or 
employee.

Sec. 703. Administrative provisions

  (a) Executive Reorganization.--Chapter 9 of title 5, United 
States Code, shall apply to the Panel in the same manner as it 
does to an independent regulatory agency.
  (b) Open Meetings.--For purposes of section 552b of title 5, 
United States Code, the Panel shall be deemed to be an agency.
  (c) Independence.--In the performance of their functions, the 
members, employees, and other personnel of the Panel 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 
Director of the Panel may appear for, and represent the Panel 
in, any civil action brought in connection with any function 
carried out by the Panel 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 Panel 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 Panel and include a statement by the Panel--
          (1) showing the amount requested by the Panel in its 
        budgetary presentation to the Secretary and the Office 
        of Management and Budget; and
          (2) an assessment of the budgetary needs of the 
        Panel.
  (g) Direct Transmittal to Congress.--The Panel 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 Panel 
with Congress, or a committee or member of Congress, about the 
information.

Sec. 704. Annual report

  The Panel shall annually transmit to the Congress a report on 
its activities.

Sec. 705. Authorization of appropriations

  There are authorized to be appropriated to the Secretary of 
Transportation for the activities of the Panel--
          (1) $8,421,000 for fiscal year 1996;
          (2) $12,000,000 for fiscal year 1997; and
          (3) $12,000,000 for fiscal year 1998.

Sec. 706. Reporting official action

  (a) The Panel 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. The report shall include 
the findings, conclusions, and the order of the Panel and, if 
damages are awarded, the findings of fact supporting the award. 
The Panel may have its reports published for public use. A 
published report of the Panel is competent evidence of its 
contents.
  (b)(1) When action of the Panel in a matter related to a rail 
carrier is taken by the Panel, an individual member of the 
Panel, or another individual or group of individuals designated 
to take official action for the Panel, the written statement of 
that action (including a report, order, decision and order, 
vote, notice, letter, policy statements, 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) of this subsection does not 
participate in it, the written statement of the action shall 
indicate that the member did not participate. An individual 
participating in taking an official action is entitled to 
express the views of that individual as part of the written 
statement of the action. In addition to any publication of the 
written statement, it shall be made available to the public 
under section 552(a) of title 5.

                     SUBCHAPTER II--ADMINISTRATIVE

Sec. 721. Powers

  (a) The Panel shall carry out this chapter and subtitle IV. 
Enumeration of a power of the Panel in this chapter or subtitle 
IV does not exclude another power the Panel may have in 
carrying out this chapter or subtitle IV. The Panel may 
prescribe regulations in carrying out this chapter and subtitle 
IV.
  (b) The Panel may--
          (1) inquire into and report on the management of the 
        business of carriers providing, and brokers for, 
        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 or brokers to 
        the extent that the business of that person is related 
        to the management of the business of that carrier or 
        broker;
          (3) obtain from those carriers, brokers, and persons 
        information the Panel 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)(1) The Panel may subpoena witnesses and records related 
to a proceeding of the Panel from any place in the United 
States, to the designated place of the proceeding. If a witness 
disobeys a subpoena, the Panel, or a party to a proceeding 
before the Panel, 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 district in which the proceeding is conducted. 
The court may punish a refusal to obey a subpoena as a contempt 
of court.
  (d)(1) In a proceeding, the Panel 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 Panel 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) of this subsection, the Panel 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 Panel or agreed on by the parties by written 
stipulation filed with the Panel. A deposition shall be filed 
with the Panel promptly.
  (e) Each witness summoned before the Panel or whose 
deposition is taken under this section and the individual 
taking the deposition are entitled to the same fees and mileage 
paid for those services in the courts of the United States.

Sec. 722. Panel action

  (a) Unless otherwise provided in subtitle IV, the Panel may 
determine, within a reasonable time, when its actions, other 
than an action ordering the payment of money, take effect.
  (b) An action of the Panel remains in effect under its own 
terms or until superseded. The Panel may change, suspend, or 
set aside any such action on notice. Notice may be given in a 
manner determined by the Panel. A court of competent 
jurisdiction may suspend or set aside any such action.
  (c) The Panel 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 Panel; or
          (3) change an action of the Panel.
An interested party may petition to reopen and reconsider an 
action of the Panel under this subsection under regulations of 
the Panel.
  (d) Notwithstanding subtitle IV, an action of the Panel under 
this section is final on the date on which it is served, and a 
civil action to enforce, enjoin, suspend, or set aside the 
action may be filed after that date.

Sec. 723. Service of notice in Panel proceedings

  (a) A carrier providing transportation subject to the 
jurisdiction of the Panel 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 Panel may be 
made.
  (b) A designation under subsection (a) of this section shall 
be in writing and filed with the Panel.
  (c) Except as otherwise provided, notices of the Panel 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 Panel 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 Panel.
  (d) 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 Panel on an attorney in fact for the carrier constitutes 
service of notice on the carrier.

Sec. 724. Service of process in court proceedings

  (a) A carrier providing transportation subject to the 
jurisdiction of the Panel 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 Panel.
  (b) A designation under this section may be changed at any 
time in the same manner as originally made.

Sec. 725. National organization of State commissions

  The Administrator of General Services shall assign space and 
facilities for the use of the national organization of the 
State commissions and their representatives. The space and 
facilities shall be available for the use of the State 
commissions and their representatives cooperating with the 
Panel or with another department, agency, or instrumentality of 
the United States Government. The rental for such space shall 
be paid by the national organization's Federal agency members 
other than the Panel.

Sec. 726. Administrative support

  The Secretary of Transportation shall provide appropriate 
administrative support for the Panel.

Sec. 727. Definitions

  All terms used in this chapter that are defined in subtitle 
IV shall have the meaning given those terms in that subtitle.
          * * * * * * *

                   [SUBTITLE IV--INTERSTATE COMMERCE

[Chapter                                                           [Sec.

[101.  General Provisions......................................... 10101
[103.  Interstate Commerce Commission............................. 10301
[105.  Jurisdiction............................................... 10501
[107.  Rates, Tariffs, and Valuations............................. 10701
[109.  Licensing.................................................. 10901
[111.  Operations of Carriers..................................... 11101
[113.  Finance.................................................... 11301
[115.  Federal-State Relations.................................... 11501
[117.  Enforcement: Investigations, Rights, and Remedies.......... 11701
[119.  Civil and Criminal Penalties............................... 11901

                    [CHAPTER 101--GENERAL PROVISIONS

[Sec.

[10101.  Transportation policy.
[10101a.  Rail transportation policy.
[10102.  Definitions.
[10103.  Remedies as cumulative.

[Sec. 10101. Transportation policy

  [(a) Except where policy has an impact on rail carriers, in 
which case the principles of section 10101a of this title shall 
govern, 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 provide for the impartial 
regulation of the modes of transportation subject to this 
subtitle, and--
          [(1) in regulating 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 regulating 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 Federal regulatory 
        efficiency in the motor carrier transportation system 
        and to require fair and expeditious regulatory 
        decisions when regulation is 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 on the motor carrier system; and (K) 
        promote intermodal transportation; and
          [(3) in regulating 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 
        subtitle; (B) to provide Federal procedures which 
        ensure that intrastate regulation is exercised in 
        accordance with this subtitle; and (C) to ensure that 
        Federal reform initiatives enacted by the Bus 
        Regulatory Reform Act of 1982 are not nullified by 
        State regulatory actions.
  [(b) This subtitle shall be administered and enforced to 
carry out the policy of this section.

[Sec. 10101a. 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 Interstate 
        Commerce Commission;
          [(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 cooperate with the States on transportation 
        matters to assure that intrastate regulatory 
        jurisdiction is exercised in accordance with the 
        standards established in this subtitle;
          [(10) to encourage honest and efficient management of 
        railroads and, in particular, the elimination of 
        noncompensatory rates for rail transportation;
          [(11) 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;
          [(12) to encourage fair wages and safe and suitable 
        working conditions in the railroad industry;
          [(13) to prohibit predatory pricing and practices, to 
        avoid undue concentrations of market power and to 
        prohibit unlawful discrimination;
          [(14) 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; and
          [(15) to encourage and promote energy conservation.

[Sec. 10102. Definitions

  [In this subtitle--
          [(1) ``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.
          [(2) ``carrier'' means a common carrier and a 
        contract carrier.
          [(3) ``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.
          [(4) ``common carrier'' means an express carrier, a 
        pipeline carrier, a rail carrier, a sleeping car 
        carrier, a motor common carrier, a water common 
        carrier, and a household goods freight forwarder.
          [(5) ``commuter bus operations'' means short-haul 
        regularly scheduled passenger service provided by motor 
        vehicle in metropolitan and suburban areas, whether 
        within or across the geographical boundaries of a 
        State, and utilized primarily by passengers using 
        reduced-fare, multiple-ride, or commutation tickets 
        during morning and evening peak period operations.
          [(6) ``contract carrier'' means a motor contract 
        carrier and water contract carrier.
          [(7) ``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.
          [(8) ``express carrier'' means a person providing 
        express transportation for compensation.
          [(9) ``freight forwarder'' means a person holding 
        itself out to the general public (other than as an 
        express, pipeline, rail, sleeping car, 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 the jurisdiction of the 
                Interstate Commerce Commission under subchapter 
                I, II, or III of chapter 105 of this title.
          [Such term does not include a person using 
        transportation of an air carrier subject to part A of 
        subtitle VII of this title.
          [(10) ``highway'' means a road, highway, street, and 
        way in a State.
          [(11) ``household goods'' means--
                  [(A) personal effects and property used or to 
                be used in a dwelling when a part of the 
                equipment or supply of such dwelling and such 
                other similar property as the Commission may 
                provide by regulation; except that this 
                subparagraph shall not be construed to include 
                property moving from a factory or store, except 
                such property as the householder has purchased 
                with intent to use in his dwelling and which is 
                transported at the request of, and the 
                transportation charges paid to the carrier by, 
                the householder;
                  [(B) furniture, fixtures, equipment, and the 
                property of stores, offices, museums, 
                institutions, hospitals or other establishments 
                when a part of the stock, equipment, or supply 
                of such stores, offices, museums, institutions, 
                hospitals, or other establishments and such 
                other similar property as the Commission may 
                provide by regulation; except that this 
                subparagraph shall not be construed to include 
                the stock-in-trade of any establishment, 
                whether consignor or consignee, other than used 
                furniture and used fixtures, except when 
                transported as incidental to moving of the 
                establishment, or a portion thereof, from one 
                location to another; and
                  [(C) articles, including objects of art, 
                displays, and exhibits, which because of their 
                unusual nature or value require the specialized 
                handling and equipment usually employed in 
                moving households goods and such other similar 
                articles as the Commission may provide by 
                regulation; except that this subparagraph shall 
                not be construed to include any article, 
                whether crated or uncrated, which does not, 
                because of its unusual nature or value, require 
                the specialized handling and equipment usually 
                employed in moving household goods.
          [(12) ``household goods freight forwarder'' means a 
        freight forwarder of one of more of the following 
        items: household goods, unaccompanied baggage, or used 
        automobiles.
          [(13) ``individually determined rate, classification, 
        rule, or practice'' means a rate, classification, rule, 
        or practice established by--
                  [(A) a single motor common carrier for 
                application to transportation that it can 
                provide over its line; or
                  [(B) 2 or more interlining carriers without 
                participation in an organization established or 
                continued under an agreement approved under 
                section 10706(b) for application to 
                transportation that the interlining carriers 
                can provide jointly over their lines.
          [(14) ``motor carrier'' means a motor common carrier 
        and a motor contract carrier.
          [(15) ``motor common carrier'' means a person holding 
        itself out to the general public to provide motor 
        vehicle transportation for compensation over regular or 
        irregular routes, or both.
          [(16) ``motor contract carrier'' means--
                  [(A) a person, other than a motor common 
                carrier, providing motor vehicle transportation 
                of passengers for compensation under continuing 
                agreements with a person or a limited number of 
                persons--
                          [(i) by assigning motor vehicles for 
                        a continuing period of time for the 
                        exclusive use of each such person; or
                          [(ii) designed to meet the distinct 
                        needs of each such person; and
                  [(B) a person providing motor vehicle 
                transportation of property for compensation 
                under continuing agreements with one or more 
                persons--
                          [(i) by assigning motor vehicles for 
                        a continuing period of time for the 
                        exclusive use of each such person; or
                          [(ii) designed to meet the distinct 
                        needs of each such person.
          [(17) ``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 10521(a) (1) and (2) of this title;
                  [(B) the person is the owner, lessee, or 
                bailee of the property being transported; and
                  [(C) the property is being transported for 
                sale, lease, rent, or bailment, or to further a 
                commercial enterprise.
          [(18) ``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 
        Commission, 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.
          [(19) ``non-contiguous domestic trade'' means motor-
        water transportation subject to the jurisdiction of the 
        Commission under chapter 105 of this title involving 
        traffic originating in or destined to Alaska, Hawaii, 
        or a territory or possession of the United States.
          [(20) ``person'', in addition to its meaning under 
        section 1 of title 1, includes a trustee, receiver, 
        assignee, or personal representative of a person.
          [(21) ``pipeline carrier'' means a person providing 
        pipeline transportation for compensation.
          [(22) ``rail carrier'' means a person providing 
        railroad transportation for compensation.
          [(23) ``railroad'' includes--
                  [(A) a bridge, car float, lighter, and ferry 
                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.
          [(24) ``rate'' means a rate, fare, or charge for 
        transportation.
          [(25) ``sleeping car carrier'' means a person 
        providing sleeping car transportation for compensation.
          [(26) ``State'' means a State of the United States 
        and the District of Columbia.
          [(27) ``tariff'', when used in reference to a 
        contract carrier, means a schedule.
          [(28) ``transportation'' includes--
                  [(A) a locomotive, car, vehicle, 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 receipt, delivery, elevation, 
                transfer in transit, refrigeration, icing, 
                ventilation, storage, handling, and interchange 
                of passengers and property.
          [(29) ``United States'' means the States of the 
        United States and the District of Columbia.
          [(30) ``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.
          [(31) ``water carrier'' means a water common carrier 
        and a water contract carrier.
          [(32) ``water common carrier'' means a person holding 
        itself out to the general public to provide water 
        transportation for compensation.
          [(33) ``water contract carrier'' means a person, 
        other than a water common carrier, providing water 
        transportation for compensation under an agreement with 
        another person, including transportation on a vessel 
        provided to a person other than a carrier subject to 
        the jurisdiction of the Commission under this subtitle 
        when the vessel is used to transport only the property 
        of the other person.

[Sec. 10103. Remedies as cumulative

  [Except as otherwise provided in this subtitle, the remedies 
provided under this subtitle are in addition to remedies 
existing under another law or at common law.

              [CHAPTER 103--INTERSTATE COMMERCE COMMISSION

                       [SUBCHAPTER I--ORGANIZATION

[Sec.

[10301.  General.
[10302.  Divisions of the Commission.
[10303.  Secretary of the Commission; public records.
[10304.  Employee boards.
[10305.  Delegation of authority.
[10306.  Conduct of proceedings.
[10307.  Office and sessions.
[10308.  Admission to practice.
[10309.  Access to records by congressional committees.
[10310.  Reporting official action.
[10311.  Annual report.

                     [SUBCHAPTER II--ADMINISTRATIVE

[10321.  Powers.
[10322.  Commission action and appellate procedure in non-rail 
          proceedings.
[10324.  Commission action.
[10326.  Limitations in rulemaking proceedings related to rail carriers.
[10327.  Commission action and appellate procedure in rail carrier 
          proceedings.
[10328.  Intervention.
[10329.  Service of notice in Commission proceedings.
[10330.  Service of process in court proceedings.

                      [SUBCHAPTER III--JOINT BOARDS

[10341.  Jurisdiction.
[10342.  Establishment.
[10343.  Powers.
[10344.  Administration.

              [SUBCHAPTER IV--RAIL SERVICES PLANNING OFFICE

[10361.  Organization.
[10362.  Duties.
[10363.  Director.
[10364.  Powers.

              [SUBCHAPTER V--OFFICE OF RAIL PUBLIC COUNSEL

[10381.  Organization.
[10382.  Duties; standing.
[10383.  Director.
[10384.  Office staff.
[10385.  Powers.
[10386.  Reports.
[10387.  Budget requests and estimates.
[10388.  Authorizations of appropriations.

                      [SUBCHAPTER I--ORGANIZATION

[Sec. 10301. General

  [(a) The Interstate Commerce Commission is an independent 
establishment of the United States Government.
  [(b) The Commission is composed of 5 members appointed by the 
President, by and with the advice and consent of the Senate. 
The President shall designate one of the members as Chairman. 
Not more than 3 members may be appointed from the same 
political party.
  [(c) The term of each member of the Commission is 5 years and 
begins 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, is appointed for the remainder of 
that term. When the term of office of a member ends, the member 
may continue to serve until a successor is appointed and 
qualified. The President may remove a member for inefficiency, 
neglect of duty, or malfeasance in office.
  [(d) A member of the Commission 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.
  [(e) A vacancy in the membership of the Commission does not 
impair the right of the remaining members to exercise all of 
the powers of the Commission. The Commission may designate a 
member to act as Chairman during any period in which there is 
no Chairman designated by the President.
  [(f) Subject to the general policies, decisions, findings, 
and determinations of the Commission, the Chairman is 
responsible for administering the Commission. The Chairman may 
delegate the powers granted under this subsection to an 
officer, employee, or administrative unit of the Commission. 
The Chairman shall--
          [(1) appoint and supervise, other than regular and 
        full time employees in the immediate offices of another 
        member, the officers and employees of the Commission, 
        including attorneys to provide legal aid and service to 
        the Commission and its members, to represent the public 
        interest in investigations and proceedings of the 
        Commission, and to represent the Commission in any case 
        in court;
          [(2) appoint the heads of major administrative units 
        with the approval of the Commission;
          [(3) distribute Commission business among officers 
        and employees and administrative units of the 
        Commission;
          [(4) prepare requests for appropriations for the 
        Commission and submit those requests to the President 
        and Congress with the prior approval of the Commission; 
        and
          [(5) supervise the expenditure of funds allocated by 
        the Commission for major programs and purposes.
  [(g) The Commission shall have a seal that shall be 
judicially recognized.
  [(h) The expenses of the Commission shall be paid after 
presentation and approval by the Chairman of itemized vouchers.

[Sec. 10302. Divisions of the Commission

  [(a) The Interstate Commerce Commission may establish and 
assign Commissioners to serve on as many divisions as may be 
necessary and may designate any division as an appellate 
division. Each division shall be composed of at least 3 
Commissioners. The Commission may assign a Commissioner to 
serve on more than one division.
  [(b) Unless otherwise directed by the Commission--
          [(1) the Commissioner senior in service of the 
        Commissioners on a division is chairman of the 
        division; and
          [(2) the Chairman of the Commission, or another 
        Commissioner designated by the Chairman, may serve on a 
        division temporarily, when there is a vacancy in the 
        membership of the division or when another Commissioner 
        is absent or unable to serve.
  [(c) The Commission shall designate each division numerically 
or by a term descriptive of the function of that division.

[Sec. 10303. Secretary of the Commission; public records

  [(a) The Chairman of the Interstate Commerce Commission, with 
its approval, shall appoint the Secretary of the Commission.
  [(b) The Secretary is the custodian of public records filed 
with the Commission. Copies of classifications, tariffs, and 
all arrangements filed with the Commission under this subtitle, 
and the statistics, tables, and figures contained in reports 
made to the Commission under this subtitle, are public records. 
A public record, or a copy or extract of it, certified by the 
Secretary under the seal of the Commission is competent 
evidence in a proceeding of the Commission and in a judicial 
proceeding.

[Sec. 10304. Employee boards

  [The Interstate Commerce Commission may establish employee 
boards composed of at least 3 employees. An employee who is a 
director or assistant director of a bureau, a chief of a 
section, an employee designated by the Commission, or an 
attorney may serve on a board.

[Sec. 10305. Delegation of authority

  [(a) The Interstate Commerce Commission may delegate to a 
division, an individual Commissioner, an employee board, or an 
employee appointed under section 3105 of title 5, a matter 
before the Commission for action, including a matter referred 
to it by either House of Congress or by Congress. However, the 
Commission may not delegate a matter required to be referred to 
a joint board under section 10341 of this title, or a function 
vested in the Commission under this chapter. The Commission may 
change or rescind a delegation under this subsection at any 
time. When a Commissioner or employee cannot act on a matter 
delegated under this section because of absence or another 
reason, the Chairman of the Commission may designate another 
Commissioner or employee, as the case may be, to serve 
temporarily until the Commission otherwise orders.
  [(b) Delegation to a division of a matter related to the 
validity of rates shall be made according to the character of 
regulation exercised. The delegation of any such matter may not 
be made according to the kind or class of carrier involved or 
to the form or mode of transportation in which that carrier may 
be engaged.
  [(c) A division, individual Commissioner, employee board, or 
an employee may act on a matter delegated under subsection (a) 
of this section. When acting under this section, a division, 
individual Commissioner, board, or an employee has the same 
power and authority and is subject to the same duties and 
obligations as the Commission. Action taken under this section 
has the same force and is taken in the same manner as if taken 
by the Commission.

[Sec. 10306. Conduct of proceedings

  [(a) A majority of the Interstate Commerce Commission, a 
division, or an employee board is a quorum for the transaction 
of business. A Commissioner, the Secretary of the Commission, a 
member of an employee board, or an employee delegated to act 
under section 10305 of this title may administer oaths.
  [(b) A party may appear and be heard before the Commission, a 
division, an individual Commissioner, a board, or an employee 
delegated to act under section 10305 of this title in person or 
by an individual admitted to practice under section 10308 of 
this title. A hearing before the Commission, a division, an 
individual Commissioner, a board, or an employee shall be made 
public on the request of an interested party.
  [(c) The Commission shall conform its forms for giving notice 
and their manner of service, to the extent practical, to those 
used by the courts of the United States.
  [(d) Votes and other official acts of the Commission, a 
division, an individual Commissioner, an employee board, or an 
employee delegated to act under section 10305 of this title 
shall be recorded and shall be made public on the request of an 
interested party.
  [(e) A member of a board and an employee delegated to act 
under section 10305 of this title may not have a pecuniary 
interest in, hold an official relation to, or own securities of 
a carrier providing transportation by any mode.
  [(f) The Commission shall review at least once every 3 years 
and revise as necessary the rules of practice for matters 
related to rail carriers adopted under section 305(c) of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (90 
Stat. 53).

[Sec. 10307. Office and sessions

  [(a) The principal office of the Interstate Commerce 
Commission is in the District of Columbia. Until otherwise 
provided by law, the Commission may obtain suitable offices for 
its use and may procure all necessary office supplies.
  [(b) General sessions of the Commission are held at its 
principal office. However, the Commission may hold special 
sessions in any part of the United States, for the convenience 
of the public or the parties and to avoid delay and expense. 
The Commission, an individual Commissioner, an employee board, 
or an employee delegated to act under section 10305 of this 
title may conduct proceedings under this subtitle in any part 
of the United States for the convenience of the parties.

[Sec. 10308. Admission to practice

  [Subject to section 500 of title 5, the Interstate Commerce 
Commission may regulate the admission of individuals to 
practice before it and may impose a reasonable admission fee.

[Sec. 10309. Access to records by congressional committees

  [(a) When the Committee on Energy and Commerce of the House 
of Representatives or the Committee on Commerce, Science, and 
Transportation of the Senate makes a written request for a 
record in the possession or under the control of the Interstate 
Commerce Commission related to a matter involving a rail 
carrier providing transportation subject to this subtitle, the 
Commission shall send that record or a copy to the committee by 
the 10th day after the date of receipt of the request. If the 
record is not sent, the Commission shall send a written report 
to that committee within the 10-day period stating the reason 
why the record has not been sent and the anticipated date on 
which it will be sent. If the Commission transfers a record in 
its possession or under its control to another department, 
agency, or instrumentality of the United States Government, or 
to a person, it must condition the transfer on the guaranteed 
return of the record by the transferee to the Commission so 
that the Commission can comply with this subsection.
  [(b) Subsection (a) of this section does not apply to a 
record obtained by the Commission from a person subject to 
regulation by it if the record contains trade secrets or 
commercial or financial information of a privileged or 
confidential nature. Subsection (a) of this section does not 
limit other authority of Congress, either House of Congress, or 
a committee or subcommittee of either House, to obtain a 
record.

[Sec. 10310. Reporting official action

  [(a) The Interstate Commerce Commission 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. 
The report shall include the findings, conclusions, and the 
order of the Commission and, if damages are awarded, the 
findings of fact supporting the award. The Commission may have 
its reports published for public use. A published report of the 
Commission is competent evidence of its contents.
  [(b)(1) When action of the Commission in a matter related to 
a rail carrier is taken by the Commission, a division, a group 
of Commissioners, an individual Commissioner, an employee 
board, an employee delegated to act under section 10305 of this 
title, or another individual or group of individuals designated 
to take official action for the Commission, the written 
statement of that action (including a report, order, decision 
and order, vote, notice, letter, policy statements, 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) of this subsection 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.

[Sec. 10311. Annual report

  [The Interstate Commerce Commission shall prepare and send to 
Congress an annual report before April 3 of each year. The 
Commission shall include in the annual report information that 
may be of value in answering questions related to regulation of 
transportation and the names and pay of individuals employed by 
the Commission. The Commission may include in its annual 
report, or send to Congress at any time, recommendations for 
additional legislation related to regulation of transportation.

                     [SUBCHAPTER II--ADMINISTRATIVE

[Sec. 10321. Powers

  [(a) The Interstate Commerce Commission shall carry out this 
subtitle. Enumeration of a power of the Commission in this 
subtitle does not exclude another power the Commission may have 
in carrying out this subtitle. The Commission may prescribe 
regulations in carrying out this subtitle.
  [(b) The Commission may--
          [(1) inquire into and report on the management of the 
        business of carriers providing, and brokers for, 
        transportation and services subject to this subtitle;
          [(2) inquire into and report on the management of the 
        business of a person 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;
          [(3) obtain from those carriers, brokers, and persons 
        information the Commission decides is necessary to 
        carry out this subtitle; and
          [(4) consistent with the transportation policy of 
        section 10101 of this title, provide administrative 
        assistance to small motor common carriers of passengers 
        and local governments in preparing for proceedings 
        under sections 10922(c)(2), 10935, and 11501(e) of this 
        title.
  [(c)(1) The Commission, an individual Commissioner, an 
employee board, and an employee delegated to act under section 
10305 of this title may subpena witnesses and records related 
to a proceeding of the Commission from any place in the United 
States, to the designated place of the proceeding. If a witness 
disobeys a subpena, the Commission, or a party to a proceeding 
before the Commission, may petition a court of the United 
States to enforce that subpena.
  [(2) Subpenas may be signed by a Commissioner, the Secretary 
of the Commission, or a member of a board when the subpena 
relates to a matter delegated to the board under section 10305 
of this title.
  [(3) The district courts of the United States have 
jurisdiction to enforce a subpena issued under this section. 
Trial is in the district in which the proceeding is conducted. 
The court may punish a refusal to obey a subpena as a contempt 
of court.
  [(d)(1) In a proceeding, the Commission 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 
Commission 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) of this subsection, the Commission may 
subpena 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 Commission or agreed on by the parties by 
written stipulation filed with the Commission. A deposition 
shall be filed with the Commission promptly.
  [(e) Each witness summoned before the Commission or whose 
deposition is taken under this section and the individual 
taking the deposition are entitled to the same fees and mileage 
paid for those services in the courts of the United States.

[Sec. 10322. Commission action and appellate procedure in nonrail 
                    proceedings

  [(a) This section applies to a matter before the Interstate 
Commerce Commission over which the Commission has jurisdiction 
under chapter 105 of this title, other than a matter involving 
a rail carrier providing transportation subject to the 
jurisdiction of the Commission under subchapter I of such 
chapter, or section 10934 or 11501(e). The deadlines set forth 
in this section do not apply to the following sections of this 
title: 10525(c), 10530, 10708(b), 10708(f), 10922(i)(2), 
10922(i)(4), 10928, 10934(c), 10935, 11345a, and 11701(c). In 
addition, the deadlines set forth in this section do not apply 
to any application filed under section 10922(c)(2)(A) of this 
title for authority to provide regular-route transportation 
entirely in one State as a motor common carrier of passengers.
  [(b)(1) Except as provided in paragraph (2) of this 
subsection, a division, individual commissioner, employee 
board, or an employee delegated under section 10305 of this 
title is to make an initial decision in a matter related to a 
carrier (other than a rail carrier), or, in the case of a 
matter referred to a joint board under section 10341 of this 
title, such joint board--
          [(A) shall, in any case in which an oral hearing is 
        held or the Commission has found that an issue of 
        general transportation importance is involved, complete 
        all evidentiary proceedings related to the matter not 
        later than the 180th day following institution of the 
        proceeding and shall issue in writing the initial 
        decision not later than the 270th day following 
        institution of the proceeding; and
          [(B) shall, in the case of all other proceedings 
        subject to this section, issue in writing the initial 
        decision by the 180th day following institution of the 
        proceeding.
If evidence is submitted in writing or testimony is taken at an 
oral hearing, the initial decision shall include specific 
findings of fact, specific and separate conclusions of law, an 
order, and justification for the findings of fact, conclusions 
of law, and order.
  [(2) In any case involving an application for authority to 
provide motor carrier transportation incidental to trailer-on-
flatcar or container-on-flatcar service by rail under 
subchapter II of chapter 109 of this subtitle, a final decision 
on such application shall be issued in writing not later than 
the 180th day following the date such application is filed with 
the Commission.
  [(3) At the earliest practicable time after the filing of an 
application for authority under subchapter II of chapter 109 of 
this title, the Commission shall publish notice of the filing 
of such application.
  [(c) The Commission, or a division designated by the 
Commission may waive the requirement for an initial decision 
under subsection (b) of this section and may require the matter 
to be considered by the Commission or such division on finding 
that the matter involves a question of Commission policy, a new 
or novel issue of law, or an issue of general transportation 
importance or that waiver of the initial decision is required 
for the timely execution of the Commission's functions. If the 
requirement for an initial decision is waived, a final decision 
shall be issued in writing within the time limit established 
for the issuance of the initial decision under subsection (b) 
of this section.
  [(d) In a proceeding under this section in which the parties 
have had at least an opportunity to submit evidence in written 
form, such parties shall have an opportunity to present 
arguments to the initial decisionmaker. The decisionmaker shall 
determine whether the arguments should be presented orally or 
in writing and may require that written arguments be submitted 
simultaneously with written submissions of evidence and that 
oral arguments be presented at an oral hearing. Upon issuance 
of an initial decision under this section, copies of such 
decision shall be served on the parties and submitted to the 
Commission.
  [(e) An initial decision under this section becomes a final 
decision on the 20th day after it is served on the interested 
parties, unless--
          [(1) an interested party files an appeal during the 
        20-day period or, if authorized by the Commission or 
        division designated by the Commission, by the end of an 
        additional period of not more than 20 days; or
          [(2) the Commission stays or postpones under 
        subsection (f)(1) of this section the initial decision 
        not later than the 20th day following the date it is 
        served on the parties.
  [(f)(1) Before an initial decision under this section becomes 
a final decision, the Commission or a division or an employee 
board designated by the Commission, may review the initial 
decision on its own initiative and shall review an initial 
decision if a timely appeal is filed under subsection (e) of 
this section.
  [(2) An initial decision may be reviewed on the record on 
which it is based or by a further hearing. If an initial 
decision is reviewed, it shall be stayed pending final 
determination of the matter and it becomes a final decision 
only after the final determination is made. If a timely appeal 
is filed under subsection (e) of this section, the final 
determination shall be made not later than the 50th day after 
the appeal is filed. If an initial decision under this section 
is reviewed by the Commission or a division or an employee 
board designated by the Commission on its own initiative, the 
final decision shall be made not later than the 50th day after 
initiation of such review.
  [(3) Notwithstanding the provisions of paragraph (2) of this 
subsection, if an initial decision under this section is 
reviewed by further hearing, such review shall be completed, 
and a final decision made, not later than the 120th day 
following the date the further hearing is granted.
  [(4) Review of, or appeal from, and initial decision under 
this section shall be conducted under section 557 of title 5. 
The Commission may prescribe rules limiting and defining the 
issues and pleadings on review under subsection (b) of such 
section.
  [(g)(1) The Commission may, at any time on its own initiative 
because of material error, new evidence, or substantially 
changed circumstances--
          [(A) reopen a proceeding;
          [(B) grant rehearing, reargument, or reconsideration 
        of an action of the Commission; and
          [(C) change an action of the Commission.
An interested party may petition to reopen and reconsider an 
action of the Commission under this paragraph under regulations 
of the Commission.
  [(2) The Commission may grant a rehearing, reargument, or 
reconsideration of an action of the Commission that was taken 
by a division or an employee board designated by the Commission 
if it finds that--
          [(A) the action involved a matter of general 
        transportation importance; or
          [(B) the action would be affected materially because 
        of clear and convincing new evidence or changed 
        circumstances.
An interested party may petition for rehearing, reargument, or 
reconsideration of an action of the Commission under this 
paragraph under regulations of the Commission. The Commission 
may stay an action pending a final determination under this 
paragraph. The Commission shall complete reconsideration and 
take final action by the 120th day after the petition is 
granted.
  [(3) If the Commission initiates any action under paragraph 
(1) of this subsection, final disposition under such paragraph 
shall be made not later than the 120th day following the date 
action is initiated.
  [(h) A final decision under this section shall be effective 
on the date it is served on the parties, and a civil action to 
enforce, enjoin, suspend, or set aside the decision may be 
filed after that date.
  [(i) In extraordinary circumstances, the Commission may 
extend a time period established by this section, except that 
the total of all such extensions with respect to any matter 
subject to the provisions of this section shall not exceed 90 
days.

[Sec. 10324. Commission action

  [(a) Unless otherwise provided in this subtitle, the 
Interstate Commerce Commission may determine, within a 
reasonable time, when its actions, other than an action 
ordering the payment of money, take effect.
  [(b) An action of the Commission remains in effect under its 
own terms or until superseded. The Commission may change, 
suspend, or set aside any such action on notice. Notice may be 
given in a manner determined by the Commission. A court of 
competent jurisdiction may suspend or set aside any such 
action.
  [(c) An action of the Commission under section 10327 of this 
title is enforceable, unless the Commission stays or postpones 
such action.

[Sec. 10326. Limitations in rulemaking proceedings related to rail 
                    carriers

  [(a) When, under section 553(e) of title 5, an interested 
person (including a governmental authority) petitions the 
Interstate Commerce Commission to begin a rulemaking proceeding 
in a matter related to a rail carrier providing transportation 
subject to this subtitle, the Commission, or a division, an 
individual Commissioner, an employee board, an employee 
delegated to act under section 10305 of this title, or another 
person authorized to act on behalf of the Commission for any 
part of the proceeding, shall grant or deny that petition by 
the 120th day after receiving it. If the petition is granted, 
the Commission, or its delegate, shall begin an appropriate 
proceeding as soon as practicable. If the petition is denied, 
the reasons for the denial shall be published in the Federal 
Register.
  [(b)(1) If a petition is denied or action is not taken within 
the 120-day period under subsection (a) of this section, the 
petitioner may begin a civil action in an appropriate court of 
appeals of the United States for an order directing the 
Commission to begin a proceeding to take the action requested 
in the petition. A civil action under this subsection must be 
filed by the 60th day after the date of the denial or by the 
60th day after the end of the 120-day period, whichever is 
appropriate.
  [(2) The court of appeals shall order the Commission to begin 
the action requested in the petition to the Commission if the 
court finds that the action requested in that petition is 
necessary and failure to take that action will result in the 
continuation of practices that are not consistent with the 
public interest or are not in accordance with this subtitle. 
The finding of the court must be based on a preponderance of 
the evidence in the record before the Commission or its 
delegate, or, if the civil action is based on a petition on 
which action was not taken, in a new proceeding before the 
court. The court may not require the Commission to take action 
under this subtitle other than to begin a rulemaking 
proceeding.

[Sec. 10327. Commission action and appellate procedure in rail carrier 
                    proceedings

  [(a) Notwithstanding sections 10322, 10323, and 10324(c) of 
this title, this section applies to a matter before the 
Interstate Commerce Commission involving a rail carrier 
providing transportation subject to the jurisdiction of the 
Commission under subchapter I of chapter 105 of this title. 
However, other sections of this subtitle related to action of 
the Commission in proceedings involving rail carriers supersede 
this section to the extent that they are inconsistent with the 
provisions of this section related to deadlines.
  [(b) A division, individual Commissioner, employee board, or 
employee delegated under section 10305 of this title to make an 
initial decision in a matter related to one of those rail 
carriers shall complete all evidentiary proceedings related to 
the matter by the 180th day after assignment of the matter. The 
initial decision shall be submitted to the Commission in 
writing. If evidence is submitted in writing or testimony is 
taken at a public hearing, the initial decision shall be 
submitted to the Commission in writing by the 120th day after 
completion of all evidentiary proceedings and shall include--
          [(1) specific findings of fact;
          [(2) specific and separate conclusions of law;
          [(3) an order; and
          [(4) justification of the findings of fact, 
        conclusions of law, and order.
  [(c) The Commission, or a division designated by the 
Commission, may void the requirement of an initial decision 
under subsection (b) of this section and may require the matter 
to be considered by the Commission or that division on finding 
that the matter involves a question of Commission policy, a new 
or novel issue of law, or an issue of general transportation 
importance, or that it is required for the timely execution of 
its functions.
  [(d) In a proceeding under this section, after the parties 
have had at least an opportunity to submit evidence in written 
form, the Commission shall give them an opportunity for briefs, 
written statements, or conferences of the parties. A conference 
of the parties must be chaired by a division, an individual 
Commissioner, an employee board, an employee delegated to act 
under section 10305 of this title, or an employee designated by 
the Commission.
  [(e) Copies of an initial decision under subsection (b) of 
this section shall be served on the interested parties. An 
initial decision becomes an action of the Commission on the 
20th day after it is served on the interested parties, unless--
          [(1) an interested party files an appeal during the 
        20-day period, or by the end of an additional period of 
        not more than 20 days, if authorized by the Commission 
        or division designated by the Commission; or
          [(2) The Commission stays or postpones the initial 
        decision under subsection (g)(2) or (j) of this section 
        within the period or additional period referred to in 
        clause (1) of this subsection.
  [(f)(1) Before an initial decision becomes an action of the 
Commission, the Commission, or a division or board designated 
by the Commission, may review the initial decision on its own 
initiative, and shall review an initial decision if an appeal 
is filed under subsection (e)(1) of this section. However, a 
board may not decide an appeal from an initial decision if the 
appeal may be further appealed to the Commission.
  [(2) An initial decision may be reviewed on the record on 
which it is based or by a further hearing. If an initial 
decision is reviewed, it shall be stayed pending final 
determination of the matter, and it is an action of the 
Commission only after the final determination is made. If an 
appeal is filed under subsection (e)(1) of this section, the 
final determination shall be made by the 180th day after the 
appeal is filed.
  [(3) Review of, or appeal from, an initial decision shall be 
conducted under section 557 of title 5. The Commission may 
prescribe rules limiting and defining the issues and pleadings 
on review under section 557(b) of that title.
  [(g)(1) The Commission may, at any time on its own initiative 
because of material error, new evidence, or substantially 
changed circumstances--
          [(A) reopen a proceeding;
          [(B) grant rehearing, reargument, or reconsideration 
        of an action of the Commission; and
          [(C) change an action of the Commission.
An interested party may petition to reopen and reconsider an 
action of the Commission under this paragraph under regulations 
of the Commission.
  [(2) The Commission may grant a rehearing, reargument, or 
reconsideration of an action of the Commission that was taken 
by a division designated by the Commission if it finds that--
          [(A) the action involves a matter of general 
        transportation importance; or
          [(B) the action would be affected materially because 
        of clear and convincing new evidence or changed 
        circumstances.
An interested party may petition for rehearing, reargument, or 
reconsideration of an action of the Commission under this 
paragraph under regulations of the Commission. The Commission 
may stay an action pending a final determination under this 
paragraph. The Commission shall complete reconsideration and 
take final action by the 120th day after the petition is 
granted.
  [(h) An action of the Commission under this section and an 
action of a designated division under subsection (c) of this 
section is effective on the 30th day after service on the 
parties to the proceeding unless the Commission provides for it 
to become effective on an earlier date.
  [(i) Notwithstanding this subtitle, an action of the 
Commission under this section and an action of a designated 
division under subsection (c) of 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.
  [(j) The Commission may extend a time period established by 
this section for a period of not more than 90 days. The 
extension shall be granted if a majority of the Commissioners 
agree to it by public vote.
  [(k) If an extension granted under subsection (j) of this 
section is not sufficient to allow for completion of necessary 
proceedings, the Commission may grant a further extension in an 
extraordinary situation if--
          [(1) a majority of the Commissioners agree to the 
        further extension by public vote; and
          [(2) not later than the 15th day before expiration of 
        the extension granted under subsection (j) of this 
        section, the Commission submits a written report to the 
        Congress that a further extension has been granted. The 
        report shall include--
                  [(A) a full explanation of the reasons for 
                the further extension;
                  [(B) the anticipated duration of the further 
                extension;
                  [(C) the issues involved in the matter before 
                the Commission; and
                  [(D) the names of personnel of the Commission 
                working on the matter.

[Sec. 10328. Intervention

  [(a) Designated representatives of employees of a carrier may 
intervene and be heard in a proceeding arising under this 
subtitle that affects those employees.
  [(b)(1) Under regulations of the Interstate Commerce 
Commission, reasonable notice of, and an opportunity to 
intervene and participate in, a proceeding under this subtitle 
related to transportation subject to the jurisdiction of the 
Commission under subchapter II of chapter 105 of this title 
shall be given to interested persons.
  [(2) The Commission may adopt, after a rulemaking proceeding 
in accordance with the provisions of section 553 of title 5, a 
special procedure for providing interested parties reasonable 
notice of applications to provide transportation as a motor or 
water common or contract carrier or household goods freight 
forwarder, or to be a broker for transportation, under sections 
10922, 10923, 10924, and 10928 of this title, or applications 
for removal of operating restrictions under section 10922 of 
this title. The special procedure may consist of printing and 
distributing to subscribers an independent publication to 
provide notice of such applications, if the Commission finds, 
as a result of its rulemaking proceedings, that such method of 
providing notice would not be unduly burdensome to the public.

[Sec. 10329. Service of notice in Commission proceedings

  [(a)(1) A common carrier providing transportation subject to 
the jurisdiction of the Interstate Commerce Commission under 
subchapter I of chapter 105 of this title shall designate an 
agent in the District of Columbia, on whom service of notices 
in a proceeding before, and of actions of, the Commission may 
be made.
  [(2) A motor carrier, a broker, a water carrier, or a 
household goods freight forwarder providing transportation or 
service subject to the jurisdiction of the Commission under 
subchapter II, III, or IV of chapter 105 of this title shall 
designate an agent by name and post office address on whom 
service of notices in a proceeding before, and of actions of, 
the Commission may be made.
  [(b) A designation under subsection (a) of this section shall 
be in writing and filed with the Commission. A motor carrier or 
broker providing transportation under a certificate or permit 
issued under this subtitle shall also file the designation with 
the authority of each State in which it operates having 
jurisdiction to regulate transportation by motor vehicle in 
intrastate commerce on the highways of that State. The 
designation may be changed at any time in the same manner as 
originally made.
  [(c) Except as otherwise provided, notices of the Commission 
shall be served as follows:
  [(1) A notice of the Commission to a rail, express, sleeping 
car, or pipeline carrier is 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 Commission 
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 Secretary of the Commission.
  [(2) A notice to a motor carrier or broker is served 
personally or by mail on the motor carrier or broker or its 
designated agent. Service by mail on the designated agent is 
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 or broker does not 
have a designated agent, service may be made by posting a copy 
of the notice in the office of the secretary or clerk of the 
authority having jurisdiction to regulate transportation by 
motor vehicle in intrastate commerce on the highways of the 
State in which the carrier or broker maintains headquarters and 
in the office of the Secretary of the Commission.
  [(3) A notice to a water carrier or household goods freight 
forwarder is served personally or by mail on the water carrier 
or household goods freight forwarder or its designated agent. 
Service by mail on the designated agent is 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 notice is served. If 
a water carrier or household goods freight forwarder does not 
have a designated agent, service may be made by posting the 
notice in the office of the Secretary of the Commission.
  [(d) In a proceeding involving the lawfulness of 
classifications, rates, or practices of (1) a rail, express, 
sleeping car, or pipeline carrier that has not designated an 
agent under this section, or (2) a household goods freight 
forwarder, service of notice of the Commission on an attorney 
in fact who filed the tariff for the carrier constitutes 
service of notice on the carrier.
  [(e) In a proceeding involving the lawfulness of 
classifications, rates, or practices--  
          [(1) service of notice of the suspension of a tariff 
        on an attorney in fact of a carrier or broker, except a 
        freight forwarder, constitutes service of notice on the 
        carrier or broker if that attorney filed the tariff 
        and, if the carrier is a water carrier, the notice 
        specifies the classifications, rates, or practices 
        involved; and  
          [(2) service of notice of the suspension of a joint 
        tariff or schedule on a carrier or a broker, except a 
        freight forwarder, that filed that tariff or schedule 
        to which another carrier or broker is a party and, if 
        the carrier is a water carrier, the notice specifies 
        the classifications, rates, or practices involved, 
        constitutes service of notice on all carriers or 
        brokers that are parties to the joint tariff.
Service of notice under this subsection may be made by mail on 
that attorney or carrier at the address shown in the tariff.

[Sec. 10330. Service of process in court proceedings

  [(a) A common carrier providing transportation subject to the 
jurisdiction of the Interstate Commerce Commission under 
subchapter I of chapter 105 of this title 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 Secretary of the Commission.
  [(b) A motor carrier or broker providing transportation 
subject to the jurisdiction of the Commission under subchapter 
II of chapter 105 of this title, 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 Commission and with the 
authority of each State in which the motor carrier or broker 
operates having jurisdiction to regulate transportation by 
motor vehicle in intrastate commerce on the highways of that 
State. If a designation under this subsection is not made, 
service may be made on any agent of the carrier or broker 
within that State.
  [(c) A designation under this section may be changed at any 
time in the same manner as originally made.

                     [SUBCHAPTER III--JOINT BOARDS

[Sec. 10341. Jurisdiction

  [(a) The Interstate Commerce Commission may refer a matter 
related to motor carriers providing, or brokers for, 
transportation subject to the jurisdiction of the Commission 
under subchapter II of chapter 105 of this title, to a joint 
board established under section 10342 of this title for action. 
When the operation of a motor carrier or broker involves not 
more than 3 States, the Commission shall refer the following 
matters to a joint board for action when an opportunity for a 
proceeding is required or when the Commission finds that it is 
desirable:  
          [(1) an application for a certificate, permit, or 
        license.  
          [(2) a suspension, change, or revocation of a 
        certificate, permit, or license.  
          [(3) an application for approval and authorization of 
        a consolidation, merger, or acquisition of control or 
        of an operating contract.  
          [(4) a complaint about a violation by a motor carrier 
        or broker of a requirement established under section 
        10321(a), 10525, 11101(b), or 11142(b) of this title.  
          [(5) a complaint about rates of motor carriers or 
        practices of brokers.
  [(b) Notwithstanding subsection (a) of this section, if the 
Commission is prevented by legal proceedings from referring a 
matter to a joint board, the Commission may determine the 
matter under subchapter II of this chapter.

[Sec. 10342. Establishment

  [(a) The Interstate Commerce Commission may establish and 
abolish joint boards as necessary to carry out section 10341 of 
this title. Except as provided in this section, a joint board 
is composed of a member from each State in which transportation 
subject to the jurisdiction of the Commission under subchapter 
II of chapter 105 of this title is, or is proposed to be, 
provided. The Commission may appoint an individual nominated 
under subsection (b) of this section as a member of a joint 
board.
  [(b) The member of a joint board from a State shall be 
nominated by the State authority having jurisdiction to 
regulate intrastate transportation by motor vehicle on the 
highways of that State. If there is no such authority in that 
State or if that authority does not nominate a member when 
requested by the Commission, the chief executive officer of the 
State may nominate the member. If both that State authority and 
the chief executive officer of that State do not nominate a 
member when requested, the board is constituted without a 
member from that State if the Commission has appointed members 
for at least 2 other States to the board.
  [(c) When a matter required to be referred to a joint board 
involves the operation of a motor carrier in or through a place 
outside the United States, if only one State is involved or if 
only one State nominates an individual to be a member of the 
joint board, that State may nominate and the Commission may 
appoint not more than 3 members to the board.
  [(d) A substitution in the membership of a joint board may be 
made at any time in the same manner as an initial nomination 
and appointment under this section.

[Sec. 10343. Powers

  [(a) When conducting a proceeding involving a matter referred 
under section 10341 of this title, a joint board may make an 
initial decision under section 10322 of this title. Subchapter 
II of this chapter applies to an initial decision of a joint 
board. However, a joint board may report to the Interstate 
Commerce Commission its conclusions on evidence received 
without making an initial decision. When a joint board makes a 
report instead of an initial decision, the Commission shall 
decide the matter. The Commission may consider the conclusions 
of the joint board in making its decision.
  [(b) A joint board may make an initial decision or report of 
its conclusions only by a majority vote. However, if only one 
member of the board participates in the proceeding, that member 
shall make the initial decision alone.
  [(c) When a member of a joint board does not participate in a 
proceeding referred to that board, after notice of the 
proceeding, the State from which that member was appointed 
waives its right to act in that proceeding. The waiver does not 
affect the duty or power of remaining members of the board to 
continue the proceeding and make an initial decision.
  [(d) In addition to decisions made under subsection (a) of 
this section, the Commission shall decide a matter referred to 
a joint board when--  
          [(1) the authority of each State from which a member 
        of the board may be appointed waives action on a matter 
        referred to that board;  
          [(2) a joint board does not act, or cannot agree, on 
        a matter referred to it in 45 days after the matter is 
        referred to it (or in another period authorized by the 
        Commission); or  
          [(3) a member is nominated for only one State, except 
        as provided in section 10342(c) of this title.

[Sec. 10344. Administration

  [(a) Meetings and procedures of joint boards shall be 
conducted under regulations of the Interstate Commerce 
Commission. The Commission may designate an employee appointed 
under section 3105 of title 5 to advise and assist a joint 
board.
  [(b) When practicable and when directed by the Commission, a 
proceeding involving a matter referred to a joint board shall 
be held at a place in the United States that is convenient to 
the parties to the proceeding.
  [(c) The members of joint boards and employees designated to 
advise and assist them under subsection (a) of this section may 
administer oaths, subpena witnesses and the production of 
records, and take depositions under section 10321 of this title 
related to matter referred to the boards.
  [(d) When carrying out this subtitle, members of joint boards 
shall receive an allowance for travel and subsistence expenses 
as the Commission shall provide.
  [(e) A member of a joint board may not have a pecuniary 
interest in, hold an official relation to, or own securities 
of, a carrier providing transportation by any mode.
  [(f) The Administrator of General Services shall assign space 
and facilities in the Interstate Commerce Commission building 
not required by the Commission for the use of the national 
organization of the State commissions and their 
representatives. The space and facilities shall be available 
for the use of joint boards and for members and representatives 
of those boards cooperating with the Commission or with another 
department, agency, or instrumentality of the United States 
Government. If suitable space is not available in the 
Interstate Commerce Commission building, the Administrator 
shall assign space in another building in convenient proximity 
to it.

             [SUBCHAPTER IV--RAIL SERVICES PLANNING OFFICE

[Sec. 10361. Organization

  [The Rail Services Planning Office is an office in the 
Interstate Commerce Commission.

[Sec. 10362. Duties

  [(a) In this section--  
          [(1) ``avoidable costs of providing transportation'', 
        ``reasonable management fee'', ``reasonable return on 
        the value'', and ``revenue attributable to the rail 
        properties'' have the same meanings as they have when 
        used in section 304 of the Regional Rail Reorganization 
        Act of 1973 (45 U.S.C. 744).   
          [(2) ``avoidable cost of providing rail freight 
        transportation'' has the same meaning as it has when 
        used in section 10905(b)(2)(A) of this title.
  [(b) The Rail Services Planning Office shall--  
          [(1) assist the Interstate Commerce Commission in 
        studying and evaluating proposals, submitted to the 
        Commission under subchapter III of chapter 113 of this 
        title for a merger, consolidation, unification, or 
        coordination project, joint use of tracks or other 
        facilities, or acquisition or sale of assets involving 
        a rail carrier subject to this subtitle;
          [(2) assist the Commission in developing, with 
        respect to economic relation of transportation, 
        policies likely to result in a more competitive, 
        energy-efficient, and coordinated transportation system 
        using each mode of transportation to its maximum 
        advantage to meet the transportation needs of the 
        United States;  
          [(3) assist States and local and regional 
        transportation authorities in deciding whether to 
        provide rail transportation continuation subsidies to 
        continue in operation particular rail properties, by 
        establishing criteria for determining whether 
        particular rail properties are suitable for rail 
        transportation continuation subsidies;  
          [(4) conduct continuously an analysis of the national 
        rail transportation needs, evaluate the policies, 
        plans, and programs of the Commission on the basis of 
        the analysis, and advise the Commission of the results 
        of the evaluation;  
          [(5) prescribe regulations that contain standards for 
        the computation of subsidies for rail passenger 
        transportation (except passenger transportation 
        compensation disputes subject to the jurisdiction of 
        the Commission under sections 24308(a) and 24903(c)(2) 
        of this title) that are consistent with the 
        compensation principles described in the final system 
        plan established under the Regional Rail Reorganization 
        Act of 1973 (45 U.S.C. 701 et seq.) and that avoid 
        cross-subsidization among commuter, intercity, and 
        freight rail transportation;
          [(6) maintain, and from time to time revise and 
        republish after a proceeding under section 553 of title 
        5, standards for determining the revenue attributable 
        to the rail properties, the avoidable costs of 
        providing transportation, a reasonable return on the 
        value, and a reasonable management fee;  
          [(7) maintain regulations that--
                  [(A) develop an accounting system permitting 
                the collection and publication by profitable 
                rail carriers providing transportation over 
                lines scheduled for abandonment, of information 
                necessary for an accurate determination of the 
                attributable revenues, avoidable costs, and 
                operations of light density lines as operating 
                and economic units; and
                  [(B) determine the avoidable cost of 
                providing rail freight transportation; and  
          [(8) carry out other duties conferred on the Office 
        by law.
  [(c) The criteria referred to in subsection (b)(3) of this 
section shall provide that rail properties are suitable for 
rail transportation continuation subsidies if the cost of the 
required subsidy to the taxpayers for the properties each year 
is less than--  
          [(1) the cost of termination of rail transportation 
        over the properties measured by increased fuel 
        consumption and operational costs for alternative modes 
        of transportation;  
          [(2) the cost to the gross national product in terms 
        of reduced output of goods and services;  
          [(3) the cost of relocating or assisting, through 
        unemployment, retraining, and welfare benefits, 
        individuals and firms adversely affected if the rail 
        transportation is terminated; and
          [(4) the cost to the environment measured by damage 
        caused by increased pollution.
  [(d) The Office may at any time revise and republish the 
standards and regulations required by this section to 
incorporate changes made necessary by the accounting system 
developed under subsection (b)(7) of this section.

[Sec. 10363. Director

  [(a) The Director is the head of the Rail Services Planning 
Office and is responsible for administering and carrying out 
the duties of the Office.
  [(b) The Director is appointed for a term of 6 years by the 
Chairman of the Interstate Commerce Commission with the 
concurrence of at least 5 members of the Commission. The 
Director may be removed by the Commission only for cause.
  [(c) The Director is appointed without regard to those 
provisions of title 5 governing appointments in the competitive 
service and is paid without regard to chapter 51 and subchapter 
III of chapter 53 of title 5. However, the annual rate of basic 
pay of the Director may not exceed the maximum rate payable 
under section 5376 of title 5.
  [(d) The Director is subject to the direction of, and shall 
report to, a Commissioner or the Chairman, as designated by the 
Chairman.

[Sec. 10364. Powers

  [(a) With the concurrence of the Commissioner designated 
under section 10363(d) of this title or, if the Director of the 
Rail Services Planning Office and the Commissioner disagree 
(and that Commissioner is not the Chairman), with the 
concurrence of the Chairman of the Commission, the Director may 
enter into agreements or other transactions necessary to carry 
out the duties of the Office. The transactions may be entered 
into with any person, including a governmental authority, and 
without regard to section 3709 of the Revised Statutes (41 
U.S.C. 5).
  [(b) On written request of the Director for assistance, each 
department, agency, and instrumentality of the United States 
Government shall consider the request, and may furnish 
assistance the Director considers necessary to carry out the 
duties of the Office. Assistance may be furnished on a 
reimbursable or nonreimbursable basis. Assistance includes the 
transfer of an officer or employee, with the consent, and 
without prejudice to the position and rating, of the officer or 
employee.

              [SUBCHAPTER V--OFFICE OF RAIL PUBLIC COUNSEL

[Sec. 10381. Organization

  [The Office of Rail Public Counsel is an independent office 
affiliated with the Interstate Commerce Commission.

[Sec. 10382. Duties; standing

  [(a) The Office of Rail Public Counsel--
          [(1) may petition the Interstate Commerce Commission 
        to begin a proceeding on a matter within the 
        jurisdiction of the Commission involving a rail carrier 
        subject to this subtitle;
          [(2) may seek judicial review of Commission action on 
        a matter involving a rail carrier providing 
        transportation subject to this subtitle, to the extent, 
        and on the same basis, that a person may seek judicial 
        review;
          [(3) shall solicit, study, evaluate, and present 
        before an informal or formal proceeding of the 
        Commission, the views of those communities and users of 
        rail transportation affected by a proceeding begun by, 
        or pending before, the Commission, when the Director of 
        the Office determines, for whatever reason (such as 
        size or location), that any such community or user 
        might not otherwise be represented adequately at the 
        proceeding;
          [(4) shall--
                  [(A) before the Commission and other 
                departments, agencies, and instrumentalities of 
                the United States Government when the policies 
                and activities of any such department, agency, 
                or instrumentality affect rail transportation 
                subject to the jurisdiction of the Commission, 
                evaluate and represent the public interest in 
                safe, efficient, reliable, and economical rail 
                transportation; and
                  [(B) assist in constructively representing 
                that public interest by other means;
          [(5) shall present the views of users, the general 
        public, affected communities, and, when appropriate, 
        providers of rail transportation in proceedings of 
        departments, agencies, and instrumentalities of the 
        United States Government related to--
                  [(A) the impact of energy proposals and 
                actions on rail transportation; and
                  [(B) whether transportation policy is 
                consistent with the energy policies of the 
                United States Government;
          [(6) in carrying out its duties under clauses (1)-(5) 
        of this subsection, shall assist the Commission in 
        developing a public interest record in proceedings 
        before the Commission; and
          [(7) shall carry out other duties conferred on the 
        Office by law.
  [(b) The Office has standing as a party to any informal or 
formal proceeding that is pending or begun before the 
Commission involving a rail carrier providing transportation 
subject to this subtitle.

[Sec. 10383. Director

  [(a) The Director is the head of the Office of Rail Public 
Counsel and is responsible for administering and carrying out 
the duties of the Office.
  [(b) The Director is appointed by the President, by and with 
the advice and consent of the Senate, for a term of 4 years.
  [(c) The Director is paid without regard to chapter 51 and 
subchapter III of chapter 53 of title 5. However, the annual 
rate of basic pay of the Director may not exceed the maximum 
rate payable under section 5376 of title 5.

[Sec. 10384. Office staff

  [The Director of the Office of Rail Public Counsel may--
          [(1) appoint and fix the pay of employees of the 
        Office; and
          [(2) procure under section 3109 of title 5 the 
        temporary or intermittent services of experts and 
        consultants.

[Sec. 10385. Powers

  [(a) Without regard to section 3709 of the Revised Statutes 
(41 U.S.C. 5), the Director of the Office of Rail Public 
Counsel may enter into agreements or other transactions 
necessary to carry out the duties of the Office.
  [(b) On request of the Director for information, each 
department, agency, and instrumentality of the United States 
Government may furnish the information requested.

[Sec. 10386. Reports

  [The Director of the Office of Rail Public Counsel shall 
submit each month to the Chairman of the Interstate Commerce 
Commission a report on the activities of the Office for the 
preceding month. In its annual report to Congress, the 
Commission shall include its evaluation and recommendations 
with respect to the activities, accomplishments, and 
shortcomings of the Office.

[Sec. 10387. Budget requests and estimates

  [The Office of Rail Public Counsel shall submit its budget 
requests and budget estimates concurrently to Congress and to 
the President.

[Sec. 10388. Authorization of appropriations

  [There is authorized to be appropriated to the Office of Rail 
Public Counsel to carry out this subchapter not to exceed 
$1,200,000 for the fiscal year ending September 30, 1980.

                       [CHAPTER 105--JURISDICTION

     [SUBCHAPTER I--RAIL, RAIL-WATER, EXPRESS, AND PIPELINE CARRIER 
                             TRANSPORTATION

[Sec.

[10501.  General jurisdiction.
[10502.  Express carrier transportation.
[10503.  Railroad and water transportation connections and rates.
[10504.  Exempt rail mass transportation.
[10505.  Authority to exempt rail carrier and motor carrier 
          transportation.

              [SUBCHAPTER II--MOTOR CARRIER TRANSPORTATION

[10521.  General jurisdiction.
[10522.  Exempt transportation between Alaska and other States.
[10523.  Exempt motor vehicle transportation in terminal areas.
[10524.  Transportation furthering a primary business.
[10525.  Exempt motor carrier transportation entirely in one State.
[10526.  Miscellaneous motor carrier transportation exemptions.
[10527.  Written contracts pertaining to certain interstate movements by 
          motor vehicle.
[10528.  Mixed loads of regulated and unregulated property.
[10529.  Limited authority over cooperative associations.
[10530.  Certificates of registration for certain foreign carriers.
[10531.  Mass transportation exemption.

              [SUBCHAPTER III--WATER CARRIER TRANSPORTATION

[10541.  General jurisdiction.
[10542.  Exempt bulk transportation.
[10543.  Exempt incidental water transportation.
[10544.  Miscellaneous water carrier transportation exemptions.

                [SUBCHAPTER IV--FREIGHT FORWARDER SERVICE

[10561.  General jurisdiction.
[10562.  Repealed.

    [SUBCHAPTER I--RAIL, RAIL-WATER, EXPRESS, AND PIPELINE CARRIER 
                             TRANSPORTATION

[Sec. 10501. General jurisdiction

  [(a) Subject to this chapter and other law, the Interstate 
Commerce Commission has jurisdiction over transportation--
          [(1) by rail carrier, express carrier, sleeping car 
        carrier, water common carrier, and pipeline carrier 
        that is--
                  [(A) only by railroad;
                  [(B) by railroad and water, when the 
                transportation is under common control, 
                management, or arrangement for a continuous 
                carriage or shipment; or
                  [(C) by pipeline or by pipeline and railroad 
                or water when transporting a commodity other 
                than water, gas, or oil; and
          [(2) to the extent such jurisdiction is not limited 
        by subsection (b) of this section or the extent the 
        transportation is in the United States and is between a 
        place in--
                  [(A) a State and a place in another State;
                  [(B) the District of Columbia and another 
                place in the District of Columbia;
                  [(C) a State and a place in a territory or 
                possession of the United States;
                  [(D) a territory or possession of the United 
                States and a place in another such territory or 
                possession;
                  [(E) a territory or possession of the United 
                States and another place in the same territory 
                or possession;
                  [(F) the United States and another place in 
                the United States through a foreign country; or
                  [(G) the United States and a place in a 
                foreign country.
  [(b) The Commission does not have jurisdiction under 
subsection (a) of this section over--
          [(1) the transportation of passengers or 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 subtitle; or
          [(2) transportation by a water common carrier when 
        that transportation would be subject to this subchapter 
        only because the water common carrier absorbs, out of 
        its port-to-port water rates or out of its proportional 
        through rates, a switching, terminal, lighterage, care 
        rental, trackage, handling, or other charge by a rail 
        carrier for services in the switching, drayage, 
        lighterage, or corporate limits of a port terminal or 
        district.
  [(c) This subtitle 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 Commission under this subchapter unless 
(1) the transportation is deemed to be subject to the 
jurisdiction of the Commission pursuant to section 
11501(b)(4)(B) of this title, or (2) the State requirement is 
inconsistent with an order of the Commission issued under this 
subtitle or is prohibited under this subtitle.
  [(d) The jurisdiction of the Commission and of State 
authorities (to the extent such authorities are authorized to 
administer the standards and procedures of this subtitle 
pursuant to this section and section 11501(b) of this title) 
over transportation by rail carriers, and the remedies provided 
in this subtitle with respect to the rates, classifications, 
rules, and practices of such carriers, is exclusive.

[Sec. 10502. Express carrier transportation

  [The Interstate Commerce Commission has jurisdiction under 
this subchapter, and not under subchapter II or III of this 
chapter, over transportation of an express carrier--
          [(1) by motor vehicle, to the extent the 
        transportation was subject to the jurisdiction of the 
        Commission on September 18, 1940, under part I of the 
        Interstate Commerce Act (24 Stat. 379), as amended; and
          [(2) by water in providing express transportation.

[Sec. 10503. Railroad and water transportation connections and rates

  [(a) When a rail carrier and a water common carrier may or do 
provide jointly, transportation, not entirely in one State from 
a place in the United States to another place in the United 
States, even if part of the transportation is outside the 
United States, the Interstate Commerce Commission has the 
following jurisdiction over that transportation:
          [(1) To establish a physical connection between the 
        railroad lines of the rail carrier and the dock at 
        which an interchange is to be made, the Commission 
        may--
                  [(A) require the rail carrier to make a 
                suitable connection between its lines and 
                tracks that have been constructed from the dock 
                to the limits of the railroad right-of-way;
                  [(B) subject to the same restrictions on 
                findings of public convenience and necessity 
                and other matters that are imposed on 
                construction under sections 10901, 10902, and 
                10907 of this title, require the rail carrier 
                or water common carrier, or both, to construct 
                to the dock at least one track connecting with 
                the lines of the rail carrier;
                  [(C) determine and prescribe the conditions 
                under which a connecting track is to be 
                operated; and
                  [(D) in the construction or operation of the 
                track, determine the sum to be paid to, or by, 
                either carrier.
          [(2) The Commission may--
                  [(A) prescribe proportional rates, maximum 
                proportional rates, minimum proportional rates, 
                or maximum and minimum proportional rates, of a 
                rail carrier to and from the ports to which the 
                passengers or property is transported by the 
                water common carrier; and
                  [(B) determine the passengers, property, 
                vessels, and on which conditions those rates 
                apply.
        In this paragraph, ``proportional rates'' means those 
        rates that differ from the corresponding local rates to 
        and from a port and apply only to passengers or 
        property brought to the port or carried from the port 
        by a water common carrier.
  [(b) The Commission may act under this section only after a 
full hearing. An order entered as the result of an action may 
be conditioned on giving security for the payment of an amount 
of money or the discharge of an obligation that is required to 
be paid or discharged under that order.

[Sec. 10504. Exempt mass transportation

  [(a) In this section--
          [(1) ``local governmental authority''--
                  [(A) has the same meaning given that term by 
                section 5302(a) of this title; and
                  [(B) includes a person or entity that 
                contracts with the local governmental authority 
                to provide transportation services.
          [(2) ``mass transportation'' means transportation 
        services described in section 5302(a) of this title 
        that are provided by rail.
  [(b) The Interstate Commerce Commission does not have 
jurisdiction under this subtitle over mass transportation 
provided by a local governmental authority if--
          [(1) the Commission would have jurisdiction but for 
        this section; and
          [(2) the fares of the local governmental authority, 
        or its authority to apply to the Commission for changes 
        in those fares, is subject to the approval or 
        disapproval of the chief executive officer of the State 
        in which the transportation is provided.
  [(c) Notwithstanding subsection (b) of this section, a local 
governmental authority, described in subsection (b), is subject 
to applicable laws of the United States related to--
          [(1) safety;
          [(2) the representation of employees for collective 
        bargaining; and
          [(3) employment retirement, annuity, and unemployment 
        systems or other provisions related to dealings between 
        employees and employers.

[Sec. 10505. Authority to exempt rail carrier and motor carrier 
                    transportation

  [(a) In a matter related to a rail carrier providing 
transportation, or a motor carrier providing transportation of 
property other than household goods, or in non-contiguous 
domestic trade, subject to the jurisdiction of the Interstate 
Commerce Commission under this subchapter, the Commission shall 
exempt a person, class of persons, or a transaction or service 
when the Commission finds that the application of a provision 
of this subtitle--
          [(1) is not necessary to carry out the transportation 
        policy of section 10101 or section 10101a of this 
        title; and
          [(2) either (A) the transaction or service is of 
        limited scope, or (B) the application of a provision of 
        this subtitle is not needed to protect shippers from 
        the abuse of market power.
  [(b) The Commission 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.
  [(c) The Commission may specify the period of time during 
which an exemption granted under this section is effective.
  [(d) The Commission may revoke an exemption, to the extent it 
specifies, when it finds that application of a provision of 
this subtitle to the person, class, or transportation is 
necessary to carry out the transportation policy of section 
10101 or section 10101a of this title.
  [(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 11707 of this title. 
Nothing in this subsection or section 11707 of this title shall 
prevent rail carriers from offering alternative terms nor give 
the Commission the authority to require any specific level of 
rates or services based upon the provisions of section 11707 of 
this title.
  [(f) The Commission may exercise its authority under this 
section to exempt transportation that is provided by a rail 
carrier, or a motor carrier providing transportation of 
property other than household goods, or in non-contiguous 
domestic trade, as a part of a continuous intermodal movement.
  [(g) The Commission may not exercise its authority under this 
section (1) to authorize intermodal ownership that is otherwise 
prohibited by this title, (2) to relieve a carrier of its 
obligation to protect the interests of employees as required by 
this subtitle, (3) to relieve a motor carrier of property or 
other person from the application or enforcement of the 
provisions of sections 10706, 10761, 10762, 10927, and 11707 of 
this title, or (4) to exempt a motor carrier of property from 
the application of, and compliance with, any law, rule, 
regulation, standard, or order pertaining to cargo loss and 
damage; insurance; antitrust immunity for joint line rates and 
routes, classification of commodities (including uniform 
packaging rules), uniform bills of lading, or standardized 
mileage guides; or safety fitness.

              [SUBCHAPTER II--MOTOR CARRIER TRANSPORTATION

[Sec. 10521. General jurisdiction

  [(a) Subject to this chapter and other law, the Interstate 
Commerce Commission has jurisdiction over transportation by 
motor carrier and the procurement of that transportation, 
except by a freight forwarder (other than a household goods 
freight forwarder), 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.
  [(b) This subtitle does not--
          [(1) except as provided in sections 10922(c)(2), 
        10935, 10936, 11501(e), and 11501(h) of this title, 
        affect the power of a State to regulate intrastate 
        transportation provided by a motor carrier;
          [(2) except as provided in sections 10922(c)(2), and 
        11501(e), authorize the Commission to prescribe or 
        regulate a rate for intrastate transportation provided 
        by a motor carrier;
          [(3) except as provided in section 10922(c)(2), of 
        this title, allow a motor carrier to provide intrastate 
        transportation on the highways of a State; or
          [(4) except as provided in section 11504(b) of this 
        title, affect the taxation power of a State over a 
        motor carrier.

[Sec. 10522. 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 
10521 of this title is provided in a foreign country--
          [(1) the Interstate Commerce Commission does not have 
        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 
        subtitle related to rates and practices applicable to 
        the transportation.

[Sec. 10523. Exempt motor vehicle transportation in terminal areas

  [(a)(1) The Interstate Commerce Commission does not have 
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 the 
                jurisdiction of the Commission under subchapter 
                I of this chapter;
                  [(ii) a water carrier subject to the 
                jurisdiction of the Commission under subchapter 
                III of this chapter; or
                  [(iii) a household goods freight forwarder 
                subject to the jurisdiction of the Commission 
                under subchapter IV of this chapter; and
          [(C) is incidental to transportation provided by the 
        carrier or service provided by the household goods 
        freight forwarder that is subject to the jurisdiction 
        of the Commission under any of those subchapters.
  [(2) Transportation exempt from the jurisdiction of the 
Commission under paragraph (1) of this subsection is subject to 
the jurisdiction of the Commission under subchapter I of this 
chapter when provided by such a rail carrier, under subchapter 
III of this chapter when provided by such a water carrier, and 
under subchapter IV of this chapter when provided by such a 
household goods freight forwarder.
  [(b)(1) Except to the extent provided in paragraph (2) of 
this subsection, the Commission does not have 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 or express carrier 
                subject to the jurisdiction of the Commission 
                under subchapter I of this chapter;
                  [(ii) a motor carrier subject to the 
                jurisdiction of the Commission under this 
                subchapter;
                  [(iii) a water carrier subject to the 
                jurisdiction of the Commission under subchapter 
                II of this chapter; or
                  [(iv) a household goods freight forwarder 
                subject to the jurisdiction of the Commission 
                under subchapter IV of this chapter.
  [(2) Transportation exempt from the jurisdiction of the 
Commission under paragraph (1) of this subsection is considered 
transportation provided by the carrier or service provided by 
the household goods freight forwarder for whom the 
transportation was provided and is subject to the jurisdiction 
of the Commission under subchapter I of this chapter when 
provided for such a rail carrier or express carrier, under this 
subchapter when provided for such a motor carrier, under 
subchapter III of this chapter when provided for such a water 
carrier, and under subchapter IV of this chapter when provided 
for such a household goods freight forwarder.

[Sec. 10524. Transportation furthering a primary business

  [(a) The Interstate Commerce Commission does not have 
jurisdiction under this subchapter 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) The Commission does not have jurisdiction under this 
subchapter 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 
if--
          [(1) the parent corporation notifies the Commission 
        of its intent or one of its subsidiaries' intent to 
        provide the transportation;
          [(2) the notice contains a list of participating 
        subsidiaries and an affidavit that the parent 
        corporation owns directly or indirectly a 100 percent 
        interest in each of the subsidiaries;
          [(3) the Commission publishes the notice in the 
        Federal Register within 30 days of receipt; and
          [(4) a copy of the notice is carried in the cab of 
        all vehicles conducting the transportation.
  [(c) In this section, ``corporate family'' means a group of 
corporations consisting of a parent corporation and all 
subsidiaries in which the parent corporation owns directly or 
indirectly a 100 percent interest.

[Sec. 10525. Exempt motor carrier transportation entirely in one State

  [(a) The Interstate Commerce Commission shall exempt 
transportation of a motor carrier subject to the jurisdiction 
of the Commission under this subchapter from compliance with 
this subtitle when--
          [(1) the motor carrier provides transportation 
        entirely in one State; and
          [(2) the Commission finds that the nature or quantity 
        of transportation provided by the motor carrier does 
        not substantially affect or impair uniform regulation 
        by the Commission of motor carrier transportation in 
        carrying out the transportation policy of section 10101 
        of this title.
  [(b) The Commission may begin a proceeding under this section 
on its own initiative or on application of a motor carrier, a 
State authority having jurisdiction to regulate intrastate 
transportation by motor vehicle on the highways of that State, 
or an interested party. An application must be under oath and 
must contain information required by Commission regulation. The 
Commission may exempt the transportation by motor carrier or 
class of motor carriers. When an exemption is granted, the 
Commission shall issue a certificate of exemption describing 
the conditions required by the public interest under which the 
certificate is issued.
  [(c) When an application for exemption is accompanied by a 
certificate of the authority of the State in which the 
applicant provides transportation stating the finding of the 
State authority that the applicant is entitled to a certificate 
of exemption under this section, the exemption is effective on 
the 60th day after the application is filed with the Commission 
unless the Commission denies the application before that date. 
If not denied before that date, the exemption remains effective 
until the Commission thereafter denies or revokes it.
  [(d) The Commission may revoke any part of an exemption 
granted under this section when it finds that the nature or 
quantity of the transportation by the motor carrier or class of 
motor carriers affects or impairs, or is likely substantially 
to affect or impair uniform regulation by the Commission of 
motor carrier transportation in carrying out the transportation 
policy of section 10101 of this title. If the exemption is 
revoked, the Commission shall restore without further 
proceedings the authority any such motor carrier had to provide 
transportation subject to the jurisdiction of the Commission 
under this subchapter at the time the exemption was effective.
  [(e) Notwithstanding the provisions of this section, the 
Commission has no jurisdiction under this subchapter over 
transportation, except transportation of household goods, by a 
motor carrier operating solely within the State of Hawaii. The 
State of Hawaii may regulate transportation exempt from the 
jurisdiction of the Commission under this subsection and, to 
the extent provided by a motor carrier operating solely within 
the State of Hawaii, transportation exempt from the 
jurisdiction of the Commission under section 10523 of this 
title.
  [(f) State regulation of the operations of a motor carrier 
covered by an exemption under this section is not a burden on 
interstate or foreign commerce.

[Sec. 10526. Miscellaneous motor carrier transportation exemptions

  [(a) The Interstate Commerce Commission does not have 
jurisdiction under this subchapter 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 common 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 
                        cooperative association or federation 
                        and necessary for its effective 
                        performance;
                          [(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
                          [(iii) shall be provided only after 
                        the cooperative association or 
                        federation notifies the Commission of 
                        its intent to provide the 
                        transportation; 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 of 
        Transportation) 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;
          [(13) transportation of wood chips;
          [(14) brokers for motor carriers of passengers, 
        except as provided in section 10924(f) of this title; 
        or
          [(15) transportation of broken, crushed, or powdered 
        glass.
  [(b) Except to the extent the Commission finds it necessary 
to exercise jurisdiction to carry out the transportation policy 
of section 10101 of this title, the Commission does not have 
jurisdiction under this subchapter 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 the jurisdiction of the Commission 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 certificate or permit issued, 
        under this subtitle; or
          [(3) the emergency towing of an accidentally wrecked 
        or disabled motor vehicle.

[Sec. 10527. Written contracts pertaining to certain interstate 
                    movements by motor vehicle

  [(a) Notwithstanding the provisions of section 10526(a)(6) of 
this title, the Interstate Commerce Commission, in cooperation 
with the Secretary of Agriculture, shall, where appropriate, 
require by regulation the use of written contracts for the 
interstate movement by motor vehicle of property described in 
such section and for brokerage services to be provided in 
connection with the interstate movement of such property.
  [(b) A written contract between an owner or operator of a 
motor vehicle and a broker, shipper of property, or receiver of 
property which is required to be used by the Commission under 
this section shall specify the arrangements, including 
compensation, with respect to loading and unloading of the 
property transported under such contract. Whenever the shipper 
or receiver of the property transported under such contract 
requires that the operator of the vehicle load or unload any 
part of the property onto or from the vehicle contrary to any 
provision of such contract, the shipper or receiver shall 
compensate the owner or operator of the vehicle for all costs 
associated with loading or unloading that part of the property. 
Any person who knowingly violates the preceding sentence is 
liable to the United States Government for a civil penalty of 
not more than $10,000 for each violation.
  [(c) The Commission shall prescribe, by regulation, the 
minimum requirements and conditions of written contracts 
required to be used under this section.

[Sec. 10528. Mixed loads of regulated and unregulated property

  [A motor carrier of property providing transportation exempt 
from the jurisdiction of the Commission under paragraph (6), 
(8), (11), (12), or (13) of section 10526(a) of this title 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 certificate issued under section 10922(b) of 
this title or under a permit issued under section 10923 of this 
title. 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 certificate or permit.

[Sec. 10529. Limited authority over cooperative associations

  [(a) Notwithstanding section 10526(a)(5) of this title, 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 which is required to 
notify the Commission under such section 10526(a)(5) shall 
prepare and maintain such records relating to transportation 
provided by such association or federation, in such form, as 
the Commission may require by regulation to carry out the 
provisions of such section 10526(a)(5). The Commission or an 
employee designated by the Commission, may on demand and 
display of proper credentials--
          [(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) Notwithstanding section 10526(a)(5) of this title, the 
Commission may require a cooperative association or federation 
of cooperative associations described in subsection (a) of this 
section to file reports with the Commission containing answers 
to questions about transportation provided by such association 
or federation.
  [(c) The Commission may bring a civil action to enforce 
subsections (a) and (b) of this section or a regulation or 
order of the Commission issued under this section, when 
violated by a cooperative association or federation of 
cooperative associations described in subsection (a).
  [(d)(1) A person required to make a report to the Commission, 
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 by the Commission, is 
liable to the United States Government 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) Trial in a civil action under paragraph (1) of this 
subsection 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) 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) A person required to make a report to the Commission, 
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 the Commission requires the question 
to be answered, (3) willfully does not maintain that record in 
the form and manner prescribed by the Commission, (4) knowingly 
and willfully falsifies, destroys, mutilates, or changes that 
report or record, (5) knowingly and willfully files a false 
report or record with the Commission under this section, (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 of the Commission issued under this 
section, shall be fined not more than $5,000.

[Sec. 10530. Certificates of registration for certain foreign carriers

  [(a) In this section--
          [(2) ``foreign motor carrier'' means a person 
        (including a motor carrier of property but excluding a 
        motor private carrier)--
                  [(A)(i) which is domiciled in a contiguous 
                foreign country; or
                  [(ii) which is owned or controlled by persons 
                of a contiguous foreign country and is not 
                domiciled in the United States; and
                  [(B) in the case of a person which is not a 
                motor carrier of property, which provides 
                interstate transportation of property 
                (including exempt items) by motor vehicle under 
                an agreement or contract entered into with a 
                motor carrier of property (other than a motor 
                private carrier or a motor carrier of property 
                described in subparagraph (A)).
          [(3) ``foreign motor private carrier'' means a person 
        (including a motor private carrier but excluding a 
        motor carrier of property)--
                  [(A)(i) which is domiciled in a contiguous 
                foreign country; or
                  [(ii) which is owned or controlled by persons 
                of a contiguous foreign country and is not 
                domiciled in the United States; and
                  [(B) in the case of a person which is not a 
                motor private carrier, which provides 
                interstate transportation of property 
                (including exempt items) 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)).
  [(b) Certification Requirement.--
          [(1) For foreign motor carriers.--Except as provided 
        in this section and sections 10922 and 10923, no 
        foreign motor carrier may provide interstate 
        transportation of property (including exempt items) by 
        motor vehicle unless the Commission has issued to such 
        person a certificate of registration under this 
        section, or a certificate or permit under subchapter II 
        of chapter 109, authorizing such person to provide such 
        transportation.
          [(2) For foreign motor carriers.--Except as provided 
        in this section, no foreign motor private carrier may 
        provide interstate transportation of property 
        (including exempt items) by motor vehicle unless the 
        Commission has issued to the carrier a certificate of 
        registration under this section authorizing the carrier 
        to provide such transportation.
  [(c) Without regard to subchapter II of chapter 103 of this 
title and subchapter II of chapter 5 of title 5, the Commission 
shall issue a certificate of registration to any foreign motor 
carrier authorizing the carrier to provide interstate 
transportation of property (including exempt items) by motor 
vehicle, and to any foreign motor private carrier authorizing 
the carrier to provide interstate transportation of property 
(including exempt items) in by motor vehicle, if--
          [(1) the Commission finds that the carrier is fit, 
        willing, and able--
                  [(A) to provide the transportation to be 
                authorized by the certificate; and
                  [(B) to comply with this subtitle and 
                regulations of the Commission; and
          [(2) the carrier demonstrates to the satisfaction of 
        the Commission that the carrier has paid (or will pay 
        in a timely manner) all taxes imposed by section 4481 
        of the Internal Revenue Code of 1954 on any motor 
        vehicle which such carrier operated in the United 
        States in the most recent taxable period (as such term 
        is defined under section 4482(c) of such Code).
  [(d) A foreign motor carrier and a foreign motor private 
carrier must file an application with the Commission for a 
certificate of registration under this section to provide 
interstate transportation by motor vehicle. The Commission may 
approve any part of the application or deny the application. 
The application must--
          [(1) be under oath;
          [(2) contain such information as the Commission may 
        require by regulation; and
          [(3) be filed with the Commission at such times as 
        the Commission may require by regulation.
  [(e) The requirement that foreign motor carriers and foreign 
motor private carriers issued certificates of registration 
under this section be fit, willing, and able means--
          [(1) safety fitness; and
          [(2) proof of minimum financial responsibility--
                  [(A) under section 30 of the Motor Carrier 
                Act of 1980, and
                  [(B) under the laws of the States in which 
                the carrier is operating,
to the extent applicable.
  [(f) Each certificate of registration issued under this 
section shall specify the transportation to be provided under 
the certificate.
  [(g)\1\ Identification.--
          [(1) In vehicle.--Any motor vehicle which is used by 
        a foreign motor carrier or by a foreign motor private 
        carrier to provide interstate transportation of 
        property (including exempt items) by motor vehicle 
        under a certificate issued under this section or 
        section 10922 or under a permit issued under section 
        10923 shall have a copy of such certificate or permit, 
        as the case may be, in such motor vehicle at any time 
        such vehicle is being used to provide such 
        transportation.
          [(2) Denial of entry.--The Commission, the Secretary 
        of Transportation, and the Secretary of the Treasury 
        shall deny entry into the United States of any motor 
        vehicle in which there is not a copy of the certificate 
        or permit required to be in such vehicle by paragraph 
        (1) of this subsection.
  [(h) When a certificate of registration is issued under this 
section, the Commission may prescribe such conditions on the 
transportation to be provided under the certificate as may be 
necessary to carry out the objectives of this section.
  [(i)(1) Subject to paragraph (3) of this subsection, this 
section shall not apply with respect to any contiguous foreign 
country with respect to which a moratorium is not in effect 
under section 10922(l) of this title on the effective date of 
this section.
  [(2) The President of the United States may waive the 
requirements of this section with respect to any contiguous 
foreign country if the President determines that such waiver is 
in the national interest and notifies, in writing, the Congress 
of such waiver before the date on which such waiver is to take 
effect. In any case in which the requirements of this section 
apply with respect to a continguous foreign country which 
substantially prohibits grants of authority to persons from the 
United States to provide transportation by motor vehicle for 
compensation in such foreign country, such waiver shall not 
take effect before the 60th day following the date on which the 
Congress is notifed of such waiver.
  [(3) The President of the United States may, by order, make 
the requirements of this section applicable with respect to any 
contiguous foreign country if--
          [(A) the President determines that making such 
        requirements so applicable is in the national interest; 
        and
          [(B) the President--
                  [(i) notifies, in writing, the Congress of 
                the issuance of such order; and
                  [(ii) has published a copy of such order in 
                the Federal Register;
        at least 30 days before such order takes effect.

[Sec. 10531. Mass transportation exemption

  [(a) Definitions.--The definitions in section 5302(a) of this 
title apply to this section.
  [(b) Petition for Granting Exemptions.--A State or local 
governmental authority may petition the Interstate Commerce 
Commission for an exemption from the jurisdiction of the 
Commission under this subchapter for mass transportation the 
authority provides or has provided to it by contract. Not later 
than 180 days after the Commission receives a petition and 
after notice and a reasonable opportunity for a proceeding, the 
Commission shall exempt the State, local governmental 
authority, or contractor unless the Commission finds that--
          [(1) the public interest would not be served by an 
        exemption;
          [(2) the exemption would result in an unreasonable 
        burden on interstate or foreign commerce; or
          [(3) a State or local governmental authority may not 
        regulate the mass transportation to be exempt under 
        this section.
  [(c) Application of Other Laws.--All applicable laws of the 
United States related to safety and to representation of 
employees for collective bargaining purposes, retirement, 
annuities, and unemployment systems, and all other laws related 
to employee-employer relations, apply to a State or local 
governmental authority that was granted, or whose contractor 
was granted, an exemption under this section.
  [(d) Changing and Revoking Exemptions.--The Commission may 
change or revoke an exemption if it finds that new evidence, 
material error, or changed circumstances exist that materially 
affect the original order. The Commission may act on its own 
initiative or on application of an interested party.

             [SUBCHAPTER III--WATER CARRIER TRANSPORTATION

[Sec. 10541. General jurisdiction

  [(a) Subject to this chapter and other law, the Interstate 
Commerce Commission has 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 rail carrier or 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 Commission only has 
        jurisdiction over that part of the transportation 
        provided--
                  [(A) by rail carrier or 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 rail 
        carrier or 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 rail 
                carrier or 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) If transportation by a carrier would be subject to the 
jurisdiction of the Commission under both subsection (a) of 
this section and subchapter I of this chapter, then that 
transportation is subject to the jurisdiction of the Commission 
under subsection (a) of this section. However, that 
transportation is also subject to the jurisdiction of the 
Commission under subchapter I of this chapter to the extent 
that this subtitle imposes requirements on transportation by 
carriers subject to the jurisdiction of the Commission under 
subchapter I that are not imposed on transportation by carriers 
subject to the jurisdiction of the Commission under subsection 
(a) of this section.
  [(c) This subtitle does not--
          [(1) affect the power of a State to regulate 
        intrastate transportation provided by a water carrier; 
        or
          [(2) authorize the Commission to prescribe or 
        regulate a rate for intrastate transportation by a 
        water carrier.

[Sec. 10542. Exempt bulk transportation

  [(a)(1) The Interstate Commerce Commission does not have 
jurisdiction under this subchapter over transportation by a 
water carrier of commodities in bulk that, under an existing 
custom of the trade in the handling and transportation of 
commodities in bulk as of June 1, 1939--
          [(A) are loaded and carried without wrappers or 
        containers; and
          [(B) are received and delivered by the carrier 
        without transportation mark or count.
  [(2) This subsection does not apply to transportation subject 
to the Intercoastal Shipping Act, 1933 (46 App. U.S.C. 843 et 
seq.) on September 18, 1940.
  [(b) The Commission does not have jurisdiction under this 
subchapter over transportation by a water contract carrier of 
commodities in bulk in a non-oceangoing vessel on a normal 
voyage during which--
          [(1) the cargo space of the vessel is used for 
        carrying not more than 3 commodities in bulk; and
          [(2) the vessel passes in or through waters that are 
        international for navigational purposes by a treaty to 
        which the United States is a party.
  [(c) The Commission does not have jurisdiction under this 
subchapter over transportation by water carrier of liquid 
cargoes in bulk in a tank vessel--
          [(1) designed exclusively for transporting such a 
        cargo; and
          [(2) having a certificate of inspection issued under 
        part B of subtitle II of title 46 endorsed to show that 
        the vessel complies with chapter 37 of title 46.

[Sec. 10543. Exempt incidental water transportation

  [(a)(1) The Interstate Commerce Commission does not have 
jurisdiction under this subchapter when the transportation--
          [(A)(i) is provided in a terminal area and is a 
        transfer, collection, or delivery; or
          [(ii) is flotage, car ferrying, lighterage, or 
        towage;
          [(B) is provided by--
                  [(i) a rail carrier subject to the 
                jurisdiction of the Commission under subchapter 
                I of this chapter; or
                  [(ii) a motor carrier subject to the 
                jurisdiction of the Commission under subchapter 
                II of this chapter; and
          [(C) is incidental to transportation provided by the 
        carrier subject to the jurisdiction of the Commission 
        under either of those subchapters.
  [(2) Transportation exempt from the jurisdiction of the 
Commission under paragraph (1) of this subsection is subject to 
the jurisdiction of the Commission under subchapter I of this 
chapter when provided by such a rail carrier and under 
subchapter II of this chapter when provided by such a motor 
carrier.
  [(b)(1) Except to the extent provided in paragraph (2) of 
this subsection, the Commission does not have jurisdiction 
under this subchapter over transportation by water when the 
transportation--
          [(A)(i) is provided in a terminal area and is a 
        transfer, collection, or delivery; or
          [(ii) is flotage, car ferrying, lighterage, or 
        towage; and
          [(B) is provided by a person as an agent or under 
        other arrangement for--
                  [(i) a rail carrier or express carrier 
                subject to the jurisdiction of the Commission 
                under subchapter I of this chapter;
                  [(ii) a motor carrier subject to the 
                jurisdiction of the Commission under subchapter 
                II of this chapter; or
                  [(iii) a water carrier subject to the 
                jurisdiction of the Commission under this 
                subchapter.
  [(2) Transportation exempt from the jurisdiction of the 
Commission under paragraph (1) of this subsection is considered 
transportation provided by the carrier for whom the 
transportation was provided and is subject to the jurisdiction 
of the Commission under subchapter I of this chapter when 
provided for such a rail carrier or express carrier, under 
subchapter II of this chapter when provided for such a motor 
carrier, and under this subchapter when provided for such a 
water carrier.

[Sec. 10544. Miscellaneous water carrier transportation exemptions

  [(a) Except to the extent the Interstate Commerce Commission 
finds it necessary to exercise jurisdiction to carry out the 
transportation policy of section 10101 of this title, the 
Commission does not have jurisdiction under this subchapter 
over transportation by water carrier when the transportation is 
provided--
          [(1) entirely in one harbor or between places in 
        contiguous harbors, other than transportation under 
        common control, management, or arrangement for a 
        continuous carriage or shipment to or from a place 
        outside the limits of the harbor or the contiguous 
        harbors;
          [(2) by a vessel of not more than 100 tons carrying 
        capacity or 100 indicated horsepower;
          [(3) by a vessel carrying only passengers and 
        equipped to carry not more than 16 passengers;
          [(4) by a ferry;
          [(5) by a water carrier transporting equipment of 
        contractors used, or to be used, in construction or 
        repair for the water carrier; or
          [(6) to carry out salvage operations.
  [(b) The Commission may exempt from its jurisdiction under 
this subchapter the transportation of passengers between places 
in the United States through a foreign port when the Commission 
finds its jurisdiction is not necessary to carry out the 
transportation policy of section 10101 of this title. The 
Commission may begin a proceeding under this subsection on its 
own initiative or on application of an interested party.
  [(c) The Commission shall exempt from its jurisdiction under 
this subchapter the transportation of commodities by water 
contract carrier when the Commission finds that the 
transportation is not actually and substantially competitive 
with transportation provided by a carrier subject to the 
jurisdiction of the Commission under subchapter I or II of this 
chapter because of the inherent nature of the commodities 
transported, their requirement of special equipment, or their 
shipment in bulk. The Commission may prescribe conditions 
applicable to an exemption under this subsection. The 
Commission may begin a proceeding under this subsection on 
application of a water contract carrier.
  [(d)(1) The Commission does not have jurisdiction under this 
subtitle over transportation by a water common carrier provided 
between the 48 contiguous States or the District of Columbia, 
and Alaska if, before January 3, 1959--
          [(A) the carrier provided that transportation, was 
        also a motor common carrier, and has continued to 
        provide the transportation since before that date; and
          [(B) the transportation was subject to the Shipping 
        Act, 1916 (46 App. U.S.C. 801 et seq.) or the 
        Intercoastal Shipping Act, 1933 (46 App. U.S.C. 843 et 
        seq.).
  [(2) The transportation remains subject to the jurisdiction 
of the Federal Maritime Commission.
  [(e) The Commission shall exempt the transportation of 
property on a vessel furnished by a water contract carrier to a 
person not a carrier providing transportation or service 
subject to the jurisdiction of the Commission under this 
subtitle when the person uses the vessel to transport its own 
property and the Commission finds its jurisdiction is not 
necessary to carry out the transportation policy of section 
10101 of this title. The Commission may begin a proceeding 
under this section on its own initiative or on application of 
an interested party. The Commission may exempt the 
transportation by person or class of persons. The Commission 
shall specify the period of time during which the exemption is 
effective. The Commission may revoke the exemption when it 
finds that its jurisdiction over the transportation of the 
property is necessary to carry out the transportation policy of 
section 10101. The Commission may deny or revoke an exemption 
only after an opportunity for a proceeding.
  [(f)(1) The Commission shall exempt the transportation of 
property by a water carrier under this subchapter when the 
Commission finds that the carrier is transporting only the 
property of a person owning substantially all of the voting 
stock of the carrier. When an exemption is granted, the 
Commission shall issue a certificate of exemption. The 
Commission may begin a proceeding under this subsection on its 
own initiative or on application of an interested party.
  [(2) The Commission may revoke an exemption granted under 
this subsection when it finds the water carrier is no longer 
entitled to the exemption. If the exemption is revoked, the 
Commission shall restore without further proceedings the 
authority the water carrier had to provide transportation 
subject to the jurisdiction of the Commission under this 
subchapter at the time the exemption became effective.

               [SUBCHAPTER IV--FREIGHT FORWARDER SERVICE

[Sec. 10561. General jurisdiction

  [(a) Subject to this chapter and other law, the Interstate 
Commerce Commission has jurisdiction over service that a 
household goods freight forwarder--
          [(1) undertakes to provide; or
          [(2) is authorized or required under this subtitle to 
        provide; to the extent transportation is provided in 
        the United States and is between--
                  [(A) a place in a State and a place in 
                another State, even if part of the 
                transportation is outside the United States;
                  [(B) a place in a State and another place in 
                the same State through a place outside the 
                State; or
                  [(C) a place in the United States and a place 
                outside the United States.
  [(b) The Commission does not have jurisdiction under 
subsection (a) of this section over service undertaken by a 
household goods freight forwarder using transportation--
          [(1) of an air carrier subject to part A of subtitle 
        VII of this title; or
          [(2) by motor vehicle exempt under section 
        10526(a)(8) of this title.

              [CHAPTER 107--RATES, TARIFFS, AND VALUATIONS

                    [SUBCHAPTER I--GENERAL AUTHORITY

[Sec.
[10701.  Standards for rates, classifications, through routes, rules, 
          and practices.
[10701a.  Standards for rates for rail carriers.
[10702.  Authority for carriers to establish rates, classifications, 
          rules, and practices.
[10703.  Authority for carriers to establish through routes.
[10704.  Authority and criteria: rates, classifications, rules, and 
          practices prescribed by Interstate Commerce Commission.
[10705.  Authority: through routes, joint classifications, rates, and 
          divisions prescribed by Interstate Commerce Commission.
[10705a.  Joint rate surcharges and cancellations.
[10706.  Rate agreements: exemption from antitrust laws.
[10707.  Investigation and suspension of new rail carrier rates, 
          classifications, rules, and practices.
[10707a.  Zone of rail carrier rate flexibility.
[10708.  Investigation and suspension of new nonrail carrier rates, 
          classifications, rules, and practices.
[10709.  Determination of market dominance in rail carrier rate 
          proceedings.
[10710.  Elimination of discrimination against recyclable materials.
[10711.  Effect of certain sections on rail rates and practices.
[10712.  Inflation-based rate increases.
[10713.  Contracts.

                  [SUBCHAPTER II--SPECIAL CIRCUMSTANCES

[10721.  Government traffic.
[10722.  Special passenger rates.
[10723.  Charitable purposes.
[10724.  Emergency rates.
[10725.  Special freight forwarder rates.
[10726.  Long and short haul transportation.
[10728.  Separate rates for distinct rail services.
[10730.  Rates and liability based on value.
[10731.  Investigation of discriminatory rail rates for transportation 
          of recyclable or recycled materials.
[10732.  Food and grocery transportation.
[10733.  Rates for transportation of recyclable materials.
[10734.  Car utilization.
[10734.  Household goods rates--estimates; guarantees of service.

                      [SUBCHAPTER III--LIMITATIONS

[10741.  Prohibitions against discrimination by common carriers.
[10742.  Facilities for interchange of traffic.
[10743.  Payment of rates.
[10744.  Liability for payment of rates.
[10745.  Continuous carriage of freight.
[10746.  Transportation of commodities manufactured or produced by a 
          rail carrier.
[10747.  Transportation services or facilities furnished by shipper.
[10748.  Transportation of livestock by rail carrier.
[10749.  Exchange of services and limitation on use of common carriers 
          by household goods freight forwarders.
[10750.  Demurrage charges.
[10751.  Business entertainment expenses.

                   [SUBCHAPTER IV--TARIFFS AND TRAFFIC

[10761.  Transportation prohibited without tariff.
[10762.  General tariff requirements.
[10763.  Designation of certain routes by shippers or Interstate 
          Commerce Commission.
[10764.  Arrangements between carriers: copy to be filed with Interstate 
          Commerce Commission.
[10765.  Water transportation under arrangements with certain other 
          carriers.
[10766.  Freight forwarder traffic agreements.
[10767.  Billing and collecting practices.

                  [SUBCHAPTER V--VALUATION OF PROPERTY

[10781.  Investigation and report by Interstate Commerce Commission.
[10782.  Requirements for establishing value.
[10783.  Cooperation and assistance of carriers.
[10784.  Revision of property valuations.
[10785.  Finality of valuation: notice, protest, and review.
[10786.  Applicability.

                    [SUBCHAPTER I--GENERAL AUTHORITY

[Sec. 10701. Standards for rates, classifications, through routes, 
                    rules, and practices

  [(a) A rate (other than a rail rate), classification, rule, 
or practice related to transportation or service provided by a 
carrier subject to the jurisdiction of the Interstate Commerce 
Commission under chapter 105 of this title must be reasonable. 
A through route established by such a carrier (including a rail 
carrier) must be reasonable. Divisions of joint rates by those 
carriers (including rail carriers) must be made without 
unreasonable discrimination against a participating carrier and 
must be reasonable.
  [(c) A common carrier providing transportation subject to the 
jurisdiction of the Commission under subchapter I or III of 
chapter 105 of this title may not discriminate in its rates 
against a connecting line of another carrier providing 
transportation subject to the jurisdiction of the Commission 
under either of those subchapters or unreasonably discriminate 
against that line in the distribution of traffic that is not 
routed specifically by the shipper.
  [(d) In a proceeding to determine whether a rate for 
transportation or service provided by a common carrier subject 
to the jurisdiction of the Commission under subchapter II, III, 
or IV of chapter 105 of this title complies with subsection (a) 
of this section, the good will, earning power, or certificate 
or permit under which that carrier is operating may not be 
considered or admitted as evidence of the value of the property 
of that carrier. When the carrier receives a certificate or 
permit under chapter 109 of this title, it is considered to 
have agreed to this subsection for itself and for all 
transferees of that certificate or permit.
  [(e) Except as provided in subsection (f), in proceedings to 
determine the reasonableness of rate levels for a motor carrier 
or group of motor carriers, or in proceedings to determine the 
reasonableness of a territorial rate structure where rates are 
proposed through agreements authorized by section 10706(b) of 
this title, the Commission shall authorize revenue levels that 
are adequate under honest, economical, and efficient management 
to cover total operating expenses, including the operation of 
leased equipment and depreciation, plus a reasonable profit. 
The standards and procedures adopted by the Commission under 
this subsection shall allow the carriers to achieve revenue 
levels that will 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, attract and retain capital in 
amounts adequate to provide a sound motor carrier 
transportation system in the United States, and take into 
account reasonable estimated or foreseeable future costs. Any 
complaint brought against a motor carrier (other than a carrier 
described in subsection (f)(1)(A)) by a person (other than a 
motor carrier) for unreasonably high rates for past or future 
transportation shall be determined under this subsection.
  [(f) Procedures for Resolving Claims Involving Unfiled, 
Negotiated Transportation 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 the 
        jurisdiction of the Commission under subchapter II of 
        chapter 105 of this title, 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 paragraph (2), (3), or (4) of 
        this subsection, 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 subsection; 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 with the Commission 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 Commission 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.
        If there is a dispute as to the showing under 
        subparagraph (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 subparagraph (B), such 
        dispute shall be resolved by the Commission. Pending 
        the resolution of any such dispute, the person shall 
        not have to pay any additional compensation to the 
        carrier or freight forwarder. Satisfaction of the claim 
        under paragraph (2), (3), or (4) of this subsection 
        shall be binding on the parties, and the parties shall 
        not be subject to chapter 119 of this title.
          [(2) 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 Commission.
          [(3) 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 Commission.
          [(4) Claims involving public warehousemen.--
        Notwithstanding paragraphs (2) and (3), 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 Commission.
          [(5) 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 
        paragraph (2), (3), or (4), the person may pursue all 
        rights and remedies existing under this title.
          [(6) 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 described in paragraph (1) 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 Commission 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.
          [(7) Limitation on statutory construction.--Except as 
        authorized in paragraphs (2), (3), (4), and (9) of this 
        subsection, nothing in this subsection shall relieve a 
        motor common carrier of the duty to file and adhere to 
        its rates, rules, and classifications as required in 
        sections 10761 and 10762 of this title.
          [(8) Notification of election.--
                  [(A) General rule.--A person must notify the 
                carrier or freight forwarder as to its election 
                to proceed under paragraph (2), (3), or (4). 
                Except as provided in subparagraphs (B), (C), 
                and (D), such election may be made at any time.
                  [(B) Demands for payment initially made after 
                date of enactment.--If the carrier or freight 
                forwarder or party representing such carrier or 
                freight forwarder initially demands the payment 
                of additional freight charges after the date of 
                the enactment of this subsection and notifies 
                the person from whom additional freight charges 
                are sought of the provisions of paragraphs (1) 
                through (7) at the time of the making of such 
                initial demand, the election must be made not 
                later than the later of--
                          [(i) 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
                          [(ii) the 90th day following the date 
                        of the enactment of this subsection.
                  [(C) Pending suits for collection made before 
                or on date of enactment.--If the carrier or 
                freight forwarder or party representing such 
                carrier or freight forwarder has filed, before 
                or on the date of the enactment of this 
                subsection, a suit for the collection of 
                additional freight charges and notifies the 
                person from whom additional freight charges are 
                sought of the provisions of paragraphs (1) 
                through (7), the election must be made not 
                later than the 90th day following the date on 
                which such notification is received.
                  [(D) Demands for payment made before or on 
                date of enactment.--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 or on the date of the 
                enactment of this subsection and notifies the 
                person from whom additional freight charges are 
                sought of the provisions of paragraphs (1) 
                through (7), the election must be made not 
                later than the later of--
                          [(i) 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
                          [(ii) the 90th day following the date 
                        of the enactment of this subsection.
          [(9) Claims involving small-business concerns, 
        charitable organizations, and recyclable materials.--
        Notwithstanding paragraphs (2), (3), and (4), 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, as defined in section 
                10733.a

[Sec. 10701a. Standards for rates for rail carriers

  [(a) Except as provided in subsection (b) or (c) of this 
section and unless a rate is prohibited by a provision of this 
title, a rail carrier providing transporation subject to the 
jurisdiction of the Interstate Commerce Commission under 
subchapter I of chapter 105 of this title may establish any 
rate for transportation or other service provided by the 
carrier.
  [(b)(1) If the Commission determines, under section 10709 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.
  [(2) In any proceeding to determine the reasonableness of a 
rate described in paragraph (1) of this subsection--
          [(A) the shipper challenging such rate shall have the 
        burden of proving that such rate is not reasonable if--
                  [(i) such rate (I) is authorized under 
                section 10707a of this title, and (II) results 
                in a revenue-variable cost percentage for the 
                transportation to which the rate applies that 
                is less than the lesser of the percentages 
                described in clauses (i) and (ii) of section 
                10707a(e)(2)(A) of this title; or
                  [(ii) such rate does not meet the description 
                set forth in clause (i) of this subparagraph, 
                but the Commission does not begin an 
                investigation proceeding under section 10707 of 
                this title to determine whether such rate is 
                reasonable; and
          [(B) the rail carrier establishing the challenged 
        rate shall have the burden of proving that such rate is 
        reasonable if--
                  [(i) such rate (I) is greater than that 
                authorized under section 10707a of this title, 
                or (II) results in a revenue-variable cost 
                percentage for the transportation to which the 
                rate applies that is equal to or greater than 
                the lesser of the percentages described in 
                clauses (i) and (ii) of section 10707a(e)(2)(A) 
                of this title; and
                  [(ii) the Commission begins an investigation 
                proceeding under section 10707 of this title to 
                determine whether such rate is reasonable.
  [(3) In determining whether a rate established by a rail 
carrier is reasonable for purposes of this section, the 
Commission shall recognize the policy of this subtitle that 
rail carriers shall earn adequate revenues, as established by 
the Commission under section 10704(a)(2) of this title.
  [(c)(1) A rate for transportation or other service provided 
by a rail carrier subject to the jurisdiction of the Commission 
under subchapter I of chapter 105 of this title may not be 
established below a reasonable minimum. Any rate for 
transportation by such a rail carrier that does not contribute 
to the going concern value of such carrier is presumed to be 
not reasonable. A rate that contributes to the going concern 
value of such carrier is conclusively presumed not to be below 
a reasonable minimum.
  [(2) A rate for transportation by a rail carrier that equals 
or exceeds the variable cost of providing the transportation is 
conclusively presumed to contribute to the going concern value 
of such rail carrier.
  [(3)(A) Upon the filing of a complaint alleging that a rate 
is in violation of this subsection, the Commission shall take 
final action thereon by the 90th day after the date such 
complaint is filed.
  [(B) If the Commission determines, based on the record after 
opportunity for a hearing, that a rate is in violation of this 
subsection, the Commission shall order such rate to be raised, 
but only to the minimum level required by this subsection. The 
complainant shall have the burden of proving that such rate is 
in violation of this subsection.
  [(4)(A) For purposes of this subsection, variable costs shall 
be determined under formulas or procedures prescribed or 
certified by the Commission.
  [(B) In the determination of variable costs for purposes of 
minimum rate regulation, the Commission shall, on application 
of the rail carrier proposing the rate, determine only the 
costs of such carrier and only those costs of the specific 
service in question unless the specific information is not 
available. The Commission may not include in such variable 
costs an expense that does not vary directly with the level of 
transportation provided under the proposed rate.

[Sec. 10702. Authority for carriers to establish rates, 
                    classifications, rules, and practices

  [(a) A common carrier providing transportation or service 
subject to the jurisdiction of the Interstate Commerce 
Commission under chapter 105 of this title shall establish--
          [(1) rates, including divisions of joint rates, and 
        classifications for transportation and service it may 
        provide under this subtitle; and
          [(2) rules and practices on matters related to that 
        transportation or service, including rules and 
        practices on--
                  [(A) issuing tickets, receipts, bills of 
                lading, and manifests;
                  [(B) carrying of baggage;
                  [(C) the manner and method of presenting, 
                marking, packing, and delivering property for 
                transportation; and
                  [(D) facilities for transportation.
  [(b) A contract carrier, except a motor contract carrier of 
property, providing transportation subject to the jurisdiction 
of the Commission under chapter 105 of this title shall 
establish, and file with the Commission, actual and minimum 
rates for the transportation it may provide under this subtitle 
and rules and practices related to those rates. However, this 
subsection does not require a motor contract carrier to 
maintain the same rates and rules related to those rates for 
the same transportation provided to shippers served by it. The 
Commission may grant relief from this subsection when relief is 
consistent with the public interest and the transportation 
policy of section 10101 of this title. The Commission may begin 
a proceeding under this subsection on application of a contract 
carrier or group of contract carriers or on its own initiative 
for a water contract carrier or group of water contract 
carriers.
  [(c) Contracts of Carriage for Motor Contract Carriers.--
          [(1) General rule.--A motor contract carrier 
        providing transportation subject to the jurisdiction of 
        the Commission under subchapter II of chapter 105 of 
        this title shall enter into a written agreement, 
        separate from the bill of lading or receipt, for each 
        contract for the provision of transportation subject to 
        such jurisdiction which is entered into after the 90th 
        day following the date of the enactment of this 
        subsection.
          [(2) Minimum content requirements.--The written 
        agreement shall, at a minimum--
                  [(A) identify the parties thereto;
                  [(B) commit the shipper to tender and the 
                carrier to transport a series of shipments;
                  [(C) contain the contract rate or rates for 
                the transportation service to be or being 
                provided; and
                  [(D)(i) state that it provides for the 
                assignment of motor vehicles for a continuing 
                period of time for the exclusive use of the 
                shipper; or
                  [(ii) state that it provides that the service 
                is designed to meet the distinct needs of the 
                shipper.
          [(3) Retention by carrier.--All written agreements 
        entered into by a motor contract carrier under 
        paragraph (1) shall be retained by the carrier while in 
        effect and for a minimum period of 3 years thereafter 
        and shall be made available to the Commission upon 
        request.
          [(4) Random audits by commission.--The Commission 
        shall conduct periodic random audits to ensure that 
        motor contract carriers are complying with this 
        subsection and are adhering to the rates set forth in 
        their agreements.

[Sec. 10703. Authority for carriers to establish through routes

  [(a) A carrier providing transportation subject to the 
jurisdiction of the Interstate Commerce Commission under 
chapter 105 of this title shall establish through routes as 
follows:
          [(1) Rail, express, sleeping car, and pipeline 
        carriers shall establish through routes with each other 
        and shall establish rates and classifications 
        applicable to those routes.
          [(2) Rail and water common carriers shall establish 
        through routes with each other and shall establish 
        rates and classifications applicable to those routes.
          [(3) A motor common carrier of passengers shall 
        establish through routes with other carriers of the 
        same type and shall establish individual and joint 
        rates applicable to them.
          [(4)(A) A motor common carrier of property may 
        establish through routes and joint rates and 
        classifications applicable to them with other carriers 
        of the same type, with rail and express carriers, and 
        with water common carriers, including those referred to 
        in subparagraph (D) of this paragraph.
          [(B) A motor common carrier of passengers may 
        establish through routes and joint rates applicable to 
        them with rail carriers or water common carriers, 
        including those referred to in subparagraph (D) of this 
        paragraph, or both.
          [(C) Water common carriers shall establish through 
        routes with each other and shall establish rates and 
        classifications applicable to those routes and may 
        establish--
                  [(i) through routes and rates and 
                classifications applicable to them with motor 
                common carriers; and
                  [(ii) through routes and joint rates and 
                classifications applicable to them with water 
                common carriers referred to in subparagraph 
                (D)(ii) of this paragraph.
          [(D) A through route or joint rate or classification 
        authorized to be established with a carrier referred to 
        in this subparagraph may be established with a water 
        common carrier providing transportation subject to--
                  [(i) the jurisdiction of the Commission under 
                subchapter III of chapter 105 of this title; or
                  [(ii) section 1 of the Shipping Act, 1916 (46 
                App. U.S.C. 801) or the Intercoastal Shipping 
                Act, 1933 (46 App. U.S.C. 843 et. seq.) 
                (including persons holding themselves out to 
                transport goods by water but not owning or 
                operating vessels) and providing transportation 
                of property between Alaska or Hawaii and the 
                other 48 States.
        A through route and a rate, classification, rule, or 
        practice related to a through route with a water common 
        carrier referred to in this subparagraph is subject to 
        the provisions of this subtitle governing the type of 
        carrier establishing the rate, classification, rule, or 
        practice.
          [(E) A household goods freight forwarder may enter 
        into contracts with a rail carrier or with a water 
        common carrier providing transportation subject to the 
        Shipping Act, 1916 (46 App. U.S.C. 801 et seq.) or the 
        Intercoastal Shipping Act, 1933 (46 App. U.S.C. 843 et 
        seq.). Not later than 180 days after the date of 
        enactment of this subparagraph, the Commission shall 
        promulgate regulations implementing the provisions of 
        this subparagraph.
  [(b) A carrier providing transportation subject to the 
jurisdiction of the Commission under subchapter I or III of 
chapter 105 of this title that establishes a through route with 
another carrier under this section shall establish rules for 
its operation and provide--
          [(1) reasonable facilities for operating the through 
        route; and
          [(2) reasonable compensation to persons entitled to 
        compensation for services related to the through route.

[Sec. 10704. Authority and criteria: rates, classifications, rules, and 
                    practices prescribed by Interstate Commerce 
                    Commission

  [(a)(1) When the Interstate Commerce Commission, after a full 
hearing, decides that a rate charged or collected by a carrier 
for transportation subject to the jurisdiction of the 
Commission under subchapter I, II (insofar as motor carriers of 
property are concerned), of chapter 105 of this title, or that 
a classification, rule, or practice of that carrier, does or 
will violate this subtitle, the Commission may prescribe the 
rate (including a maximum or minimum rate, or both), 
classification, rule, or practice to be followed. The 
Commission 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 Commission.
  [(2) The Commission shall maintain and revise as necessary 
standards and procedures for establishing revenue levels for 
rail carriers providing transportation subject to its 
jurisdiction under that subchapter 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 Commission shall make an 
adequate and continuing effort to assist those carriers in 
attaining revenue levels prescribed under this paragraph. 
However, a rate, classification, rule, or practice of a rail 
carrier may be maintained at a particular level to protect the 
traffic of another carrier or mode of transportation only if 
the Commission finds that the rate or classification, or rule 
or practice related to it, reduces or would reduce the going 
concern value of the carrier charging the rate. 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) The Commission shall conclude a proceeding under 
paragraph (2) of this subsection within 180 days after the 
effective date of the Staggers Rail Act of 1980 and thereafter 
as necessary.
  [(4) On the basis of the standards and procedures under 
paragraph (2) of this subsection, the Commission shall, within 
180 days after the effective date of the Staggers Rail Act of 
1980 and on an annual basis thereafter, determine which rail 
carriers are earning adequate revenues.
  [(b)(1) When the Commission decides that a rate charged or 
collected by--
          [(A) a motor common carrier for providing 
        transportation subject to its jurisdiction under 
        subchapter II of chapter 105 of this title by itself, 
        with another motor common carrier, with a rail, 
        express, or water common carrier, or any of them;
          [(B) a water common carrier for providing 
        transportation subject to its jurisdiction under 
        subchapter III of chapter 105 of this title; or
          [(C) a household goods freight forwarder for 
        providing service subject to its jurisdiction under 
        subchapter IV of chapter 105 of this title;
or that a classification, rule, or practice of that carrier, 
does or will violate this chapter, the Commission shall 
prescribe the rate (including a maximum or minimum rate, or 
both), classification, rule, or practice to be followed.
  [(2)(A) When prescribing a rate, classification, rule, or 
practice for transportation or service by common carriers other 
than by rail carrier, the Commission shall consider, among 
other factors, the effect of the prescribed rate, 
classification, rule, or practice on the movement of traffic by 
that carrier.
  [(B) When prescribing a rate, classification, rule, or 
practice for transportation or service by common carriers other 
than by rail carrier or motor carrier, the Commission shall 
consider, among other factors, the need for revenues that are 
sufficient, under honest, economical, and efficient management, 
to let the carrier provide that transportation or service.
  [(3) If the carrier is a motor or water common carrier or a 
household goods freight forwarder, the Commission shall also 
consider the need, in the public interest, of adequate and 
efficient transportation or service by that carrier at the 
lowest costs consistent with providing that transportation or 
service.
  [(4) If the carrier is a motor common carrier or a household 
goods freight forwarder, the Commission shall also consider the 
inherent advantages of transportation by motor common carrier 
or the inherent nature of household goods freight forwarding, 
respectively.
  [(c)(1) When the Commission finds that a minimum rate of a 
contract carrier for transportation subject to the jurisdiction 
of the Commission under subchapter II or III of chapter 105 of 
this title, or a rule or practice related to the rate or the 
value of the service under it, violates this chapter or the 
transportation policy of section 10101 of this title, the 
Commission may prescribe the minimum rate, rule, or practice 
for the carrier that is desirable in the public interest and 
will promote that policy. In prescribing the rate, the 
Commission may not give a motor or water contract carrier an 
advantage or preference in competition with a motor or water 
common carrier, respectively, if an advantage or preference is 
unreasonable or inconsistent with the public interest and the 
transportation policy of section 10101 of this title.
  [(2) When prescribing a minimum rate, or rule or practice 
related to a rate, for a contract carrier, the Commission shall 
consider--
          [(A) the cost of the transportation provided by the 
        carrier; and
          [(B) the effect of a prescribed minimum rate, or rule 
        or practice, on the movement of traffic by that 
        carrier.
  [(d) In a proceeding involving competition between carriers 
of different modes of transportation subject to this subtitle, 
except rail carriers, the Commission, in determining whether a 
rate is less than a reasonable minimum rate, shall consider the 
facts and circumstances involved in moving the traffic by the 
mode of carrier to which the rate is applicable. Subject to the 
transportation policy of section 10101 of this title, rates of 
a carrier may not be maintained at a particular level to 
protect the traffic of another mode of transportation.
  [(e) In a proceeding involving a proposed increase or 
decrease in rail carrier rates, the Commission shall 
specifically consider allegations that the increase or decrease 
would (1) change the rate relationships between commodities, 
ports, places, regions, areas, or other particular descriptions 
of traffic (without regard to previous Commission consideration 
or approval of those relationships), and (2) have a significant 
adverse effect on the competitive position of shippers or 
consignees served by the rail carrier proposing the increase or 
decrease. The Commission shall investigate to determine whether 
the change or effect violates this subtitle when it finds that 
those allegations are substantially supported on the record. 
The investigation may be made either before or after the 
proposed increase or decrease becomes effective and either in 
that proceeding or in another proceeding.
  [(f) The Commission may begin a proceeding under this section 
on its own initiative or 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 Commission. A complaint under 
subsection (c) of this section must contain a full statement of 
the facts and the reasons for the complaint and must be made 
under oath.

[Sec. 10705. Authority: through routes, joint classifications, rates, 
                    and divisions prescribed by Interstate Commerce 
                    Commission

  [(a)(1) The Interstate Commerce Commission may, and shall 
when it considers it desirable in the public interest, 
prescribe through routes, joint classifications, joint rates 
(including maximum or minimum rates or both), the division of 
joint rates, and the conditions under which those routes must 
be operated, for a common carrier providing transportation 
subject to the jurisdiction of the Commission under subchapter 
I, II (except a motor common carrier of property), or III of 
chapter 105 of this title. When one of the carriers on a 
through route is a water carrier, the Commission shall 
prescribe a differential between an all-rail rate and a joint 
rate related to the water carrier if the differential is 
justified.
  [(2) The Commission 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--
          [(A) required under section 10741-10744 or 11103 of 
        this title;
          [(B) one of the carriers is a water carrier;
          [(C) inclusion of those lines would make the through 
        route unreasonably long when compared with a 
        practicable alternative through route that could be 
        established; or
          [(D) the Commission decides that the proposed through 
        route is needed to provide adequate, and more efficient 
        or economic, transportation.
The Commission shall give reasonable preference, subject to 
this subsection, to the rail carrier originating the traffic 
when prescribing through routes.
  [(3) The Commission may not prescribe--
          [(A) a through route, classification, practice, or 
        rate between a street electric passenger railway not 
        engaged in the general business of transporting freight 
        in addition to its passenger and express business and 
        (i) a rail carrier of a different character, or (ii) a 
        water common carrier; or
          [(B) a through route or joint rate applicable to it 
        to assist a participating carrier to meet its financial 
        needs.
  [(b)(1) The Interstate Commerce Commission may, and shall 
when it considers it desirable in the public interest, 
prescribe through routes, joint classifications, joint rates 
(including maximum or minimum rates or both), the division of 
joint rates, and the conditions under which those routes must 
be operated, for a motor common carrier of property providing 
transportation subject to the jurisdiction of the Commission 
under subchapter II of chapter 105 of this title with another 
such carrier or with a water common carrier of property.
  [(2) The Commission may not require a motor common carrier of 
property, without its consent, to include in a through route 
substantially less than the entire length of its route and the 
route of any intermediate carrier which is operated in 
conjunction and under common management or control with such 
motor common carrier of property which lies between the termini 
of such proposed through routes (A) unless inclusion of such 
routes would make the through route unreasonably circuitous as 
compared with another practicable through route which could 
otherwise be established, or (B) unless the Commission finds 
that the through route proposed to be established is needed in 
order to provide adequate, more efficient, or more economic 
transportation. In prescribing through routes the Commission 
shall, so far as is consistent with the public interest, and 
subject to the preceding sentence, give reasonable preference 
to the carrier which originates the traffic.
  [(c) The Commission shall prescribe the division of joint 
rates to be received by a carrier providing transportation 
subject to its jurisdiction under chapter 105 of this title 
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 Commission under subsection (a) or 
(b) of this section, does or will violate section 10701 of this 
title. When prescribing the division of joint rates of a rail 
carrier, water carrier, or motor common carrier of property 
under this subsection, the Commission shall consider--
          [(1) the efficiency with which the carriers concerned 
        are operated;
          [(2) the amount of revenue required by the carriers 
        to pay their operating expenses and taxes and receive a 
        fair return on the property held and used for 
        transportation;
          [(3) the importance of the transportation to the 
        public;
          [(4) whether a particular participating carrier is an 
        originating, intermediate, or delivering line; and
          [(5) other circumstances that ordinarily, without 
        regard to the mileage traveled, entitle one carrier to 
        a different proportion of a rate than another carrier.
  [(d) If a division of a joint rate prescribed under a 
decision of the Commission is later found to violate section 
10701 of this title, the Commission 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 
Commission decides is justified. The Commission may make a 
decision under this paragraph effective as part of its original 
decision.
  [(e) When the Commission suspends, for investigation, a rail 
or water common carrier tariff that would cancel a through 
route, joint rate, or classification without the consent of all 
carriers that are parties to it or without authorization of the 
Commission, the carrier proposing the cancellation has the 
burden of proving that cancellation is consistent with the 
public interest without regard to subsection (a)(2) of this 
section. In determining whether a cancellation involving a rail 
carrier is consistent with the public interest, the Commission 
shall, to the extent applicable--
          [(1) compare the distance traveled and the average 
        transportation time and expense required using (A) the 
        through route, and (B) alternative routes, between the 
        places served by the through route;
          [(2) consider any reduction in energy consumption 
        that may result from cancellation; and
          [(3) consider the overall impact of cancellation on 
        the shippers and carriers that are affected by it.
  [(f)(1) The Commission may begin a proceeding under 
subsection (a) or (b) of this section on its own initiative or 
on complaint. The Commission must complete all evidentiary 
proceedings to adjust the division of joint rates for 
transportation by a rail carrier within 9 months after the 
complaint is filed if the proceeding is brought on complaint or 
within 18 months after the commencement of a proceeding on the 
initiative of the Commission. The Commission must take final 
action by the 180th day after completion of the evidentiary 
proceedings, except that--
          [(A) when the proceeding involves a railroad in 
        reorganization or a contention that the divisions at 
        issue do not cover the variable costs of handling the 
        traffic, the Commission shall give the proceedings 
        preference over all other proceedings and shall take 
        final action at the earliest practicable time, which in 
        no event may exceed 100 days after the completion of 
        the evidentiary proceedings; and
          [(B) in all cases other than those specified in 
        subparagraph (A) of this subparagraph, the Commission 
        may decide to extend such a proceeding to permit its 
        fair and expeditious completion, but whenever the 
        Commission decides to extend a proceeding pursuant to 
        this clause, it must report its reasons to Congress.
  [(2) When a carrier begins a proceeding to adjust the 
division of joint rates for transportation by a rail carrier 
under this section by filing a complaint with the Commission, 
the carrier must also file all of the evidence in support of 
its position with the complaint and, during the course of the 
proceeding may only file rebuttal or reply evidence unless 
otherwise ordered by the Commission.
  [(3) When the Commission receives a notice of intent to begin 
a proceeding to adjust the division of joint rates for 
transportation by a rail carrier under this section, the 
Commission shall allow the party filing the notice the same 
right to discovery that a party would have on filing a 
complaint under this section.
  [(g) When there is a shortage of equipment, congestion of 
traffic, or other emergency declared by the Commission, it may 
prescribe temporary through routes that are desirable in the 
public interest on its own initiative or on application without 
regard to subsection (f) of this section, subchapter II of 
chapter 103 of this title, and subchapter II of chapter 5 of 
title 5.
  [(h) Any motor common carrier of property who is a party to a 
through route and joint rate, whether established by such 
carrier under section 10703 of this title or prescribed by the 
Commission under subsection (b) of this section, shall promptly 
pay divisions or make interline settlements, as the case may 
be, with other carriers which are parties to such through route 
and joint rate. In the event of undue delinquency in the 
settlement of such divisions or interline settlements, such 
through routes and joint rates may be suspended or canceled 
under rules prescribed by the Commission.

[Sec. 10705a. Joint rate surcharges and cancellations

  [(a)(1)(A) Except as provided in subparagraph (B) of this 
paragraph, a rail carrier providing transportation subject to 
the jurisdiction of the Interstate Commerce Commission under 
subchapter I of chapter 105 of this title may publish and apply 
a surcharge increasing or decreasing the through charge 
applicable to any movement between points designated by the 
surcharging carrier subject to a joint rate. Such a surcharge 
may be applied without the concurrence of the other carriers 
that are party in such joint rate.
  [(B) A carrier earning adequate revenues, as determined under 
section 10704(a)(2) of this title, may not apply such a 
surcharge to any movement on a line operated by such carrier 
which carried more than 3,000,000 gross ton miles of traffic 
per mile in the preceding calendar year.
  [(C) Any surcharge applied pursuant to this subsection must 
be applied in equal dollar amounts to the movement subject to 
the surcharge over all routes between the points designated by 
the surcharging carrier which such carrier participates in 
under the joint rate involved, and when the surcharge increases 
the through charges, under any of such carriers single line 
rates between the same points.
  [(2)(A) Whenever a rail carrier applies a surcharge 
increasing a through charge pursuant to paragraph (1) of this 
subsection, any other rail carrier that participates in any 
movement subject to such surcharge may cancel the application 
of such surcharge to any route participated in by such other 
carrier, if such carrier makes the demonstration described in 
subparagraph (B) of this paragraph.
  [(B) A rail carrier may cancel the application of a surcharge 
under this paragraph if such carrier demonstrates to the 
Commission that the surcharging carrier's share of the 
revenues, at the time the surcharge was filed with the 
Commission, from its participation in the movement over the 
route involved would have been equal to or greater than 110 
percent of its variable cost of providing service over such 
route, under either--
          [(i) the applicable joint rate in effect at the time 
        the surcharge was filed with the Commission, without 
        the surcharge;
          [(ii) a new rate division increasing the share of the 
        surcharging carrier;
          [(iii) a new higher lawful rate published by the 
        canceling carrier; or
          [(iv) a new, lesser surcharge which shall be 
        prescribed by the Commission upon and in conformity 
        with the request of the carrier proposing to cancel the 
        surcharge. Any such prescribed surcharge shall in 
        conjunction with the surcharging carrier's division of 
        the joint rate in effect on the date the original 
        surcharge was filed with the Commission, provide the 
        carrier proposing the original surcharge revenues equal 
        to or greater than 110 percent of such surcharging 
        carrier's variable cost of providing service over such 
        route.
  [(C)(i) The canceling tariff shall only become effective if 
the rail carrier proposing to cancel the application of the 
surcharge makes the demonstration described in subparagraph (B) 
of this paragraph.
  [(ii) If the demonstration described in clause (i) of this 
subparagraph is made on the basis of the applicable joint rate 
in effect at the time the surcharge was filed with the 
Commission, without the surcharge, the tariff shall become 
effective on one day's notice after such determination is made.
  [(iii) If the demonstration described in clause (i) of this 
subparagraph is made on the basis of a new rate, division, or 
surcharge prescribed pursuant to subpargraph (B)(iv) of this 
paragraph, the tariff shall become effective on the date such 
new rate, division, or surcharge becomes effective.
  [(D) The remedy available to a rail carrier canceling the 
application of a surcharge under this paragraph shall be in 
addition to any other remedy available to such carrier under 
this chapter.
  [(3)(A) The Commission may cancel the application of a 
surcharge to a route to which such surcharge applies if a 
shipper moving traffic over such route demonstrates to the 
Commission that--
          [(i) there is no competitive alternative to such 
        route for the movement of the traffic involved that is 
        not subject to such surcharge; and
          [(ii) the surcharging carrier's share of the revenues 
        from its participation in the movement over the route 
        to which such surcharge applies, under the applicable 
        joint rate in effect at the time the surcharge was 
        filed with the Commission, with the surcharge, would be 
        greater than 110 percent of its variable cost of 
        providing service over such route.
  [(B) If the Commission cancels the application of a surcharge 
to a particular route pursuant to subparagraph (A) of this 
paragraph, the Commission shall determine the level of 
surcharge which, in conjunction with the surcharging carrier's 
division of the joint rate in effect at the time the surcharge 
was filed with the Commission, would equal 110 percent of the 
surcharging carrier's variable cost of providing service over 
such route, and shall authorize such carrier immediately to 
apply such a surcharge without any further proceedings under 
this subsection.
  [(4) A rail carrier may not apply a surcharge under this 
subsection unless, for the one-year period preceding the 
surcharge, such carrier has concurred in all rate increases of 
general applicability applicable to the joint rate to which 
such surcharge applies and agreed to by all other carriers that 
are party to such joint rate.
  [(5) A rail carrier may not apply a surcharge under this 
subsection increasing a through charge applicable to a 
particular movement more than once each calendar year.
  [(6) Notwithstanding any other provision of this subsection, 
a rail carrier may, by tariff, reduce the total charges 
applicable to a movement over any specific joint line or single 
line route or routes in which such carrier participates, if 
such reduction does not lower the total charges applicable to 
such movement to a level that is less than the lowest total 
charges applicable to the same movement over a competing route. 
Any such reduction may be made without the concurrence of any 
other rail carrier, and shall be borne solely by the carrier 
reducing the charge. Nothing in this paragraph shall be 
construed to limit the right of a carrier to reduce rates over 
routes not in direct competition between the same points with 
routes to which it has applied a surcharge.
  [(b)(1) Notwithstanding subsection (a) of this section--
          [(A) a rail carrier not earning adequate revenues, as 
        determined under section 10704(a)(2) of this title, may 
        publish and apply a surcharge applicable to traffic 
        originating or terminating upon any of its lines that 
        carried less than 3,000,000 gross ton miles of traffic 
        per mile in the most recent calendar year for which 
        traffic data is available; and
          [(B) a rail carrier earning adequate revenues, as so 
        determined, may publish and apply a surcharge 
        applicable to traffic originating or terminating upon 
        any of its lines that carried less than 1,000,000 gross 
        ton miles of traffic per mile in such most recent 
        calendar year.
Such a surcharge may be applied without the concurrence of any 
rail carrier. Any such surcharge may be allocated, subject to 
the provisions of paragraph (4) of this subsection, in 
different amounts among different movements between different 
origins and destinations, and shall accrue solely to the 
surcharging carrier.
  [(2) A rail carrier may apply a surcharge under this 
subsection if, prior to the application of such surcharge, that 
portion of the charges applicable to traffic to and from the 
line to which the surcharge applies and accruing to the 
surcharging carrier does not provide such carrier revenues 
adequate to cover--
          [(A) 110 percent of such carrier's variable cost of 
        transporting the traffic involved to or from such line; 
        plus
          [(B) 100 percent of such carrier's reasonably 
        expected costs of continuing to operate such line, 
        which shall include all costs necessary to sustain 
        service on the line.
The Commission shall, within 120 days after the effective date 
of the Staggers Rail Act of 1980, complete a proceeding to 
define the term ``reasonably expected costs'' as used in 
subparagraph (B) of this paragraph. In the interim, the term 
shall be construed in accordance with Rail Services Planning 
Office subsidy standards.
  [(3)(A) Upon petition of a shipper located upon a line to 
which a surcharge under this subsection is applied, the 
Commission may cancel the application of a surcharge under this 
subsection if such shipper demonstrates to the Commission that, 
after application of the surcharge, the surcharging carrier's 
revenues from all traffic originating or terminating upon the 
line to which the surcharge applies exceed 110 percent of such 
carrier's variable cost of transporting all traffic to or from 
such line plus such carrier's reasonably expected costs of 
continuing to operate such line.
  [(B)(i) A rail carrier's revenue from all traffic originating 
or terminating upon a line shall be presumed to exceed 110 
percent of its variable cost of transporting all traffic to or 
from such line plus its reasonably expected costs of continuing 
to operate such line if the complaining shipper demonstrates 
that the carrier is earning revenues from all traffic 
originating or terminating upon such line that result in a 
revenue-variable cost percentage that is equal to or greater 
than the revenue-variable cost percentage applicable in that 
year under section 10709(d) of this title.
  [(ii) A surcharging carrier may rebut the presumption set 
forth in clause (i) of this subparagraph by demonstrating to 
the Commission that its reasonably expected costs for operating 
the line to which the surcharge applies exceed the percentage 
of variable cost set forth in such clause (i).
  [(C) Upon a finding by the Commission that application of the 
surcharge will produce revenues in excess of 110 percent of the 
surcharging carrier's variable cost of transporting traffic to 
or from the line plus its reasonably expected costs of 
operating the line, the Commission shall determine the level of 
surcharge which would produce revenues equal to such figure and 
shall authorize such carrier immediately to apply such 
surcharges as will generate such revenues without any further 
proceedings, subject only to the right of a shipper to proceed 
under paragraph (4) of this subsection.
  [(4)(A) A rail carrier may not apply a surcharge under this 
subsection that results in any shipper being required to bear 
more than a reasonable proportion of the reasonably expected 
costs of continuing to operate the line to which such surcharge 
applies.
  [(B) Upon complaint of a shipper, the Commission shall 
determine whether the shipper is being required to bear more 
than a reasonable proportion of the costs described in 
subparagraph (A) of this paragraph.
  [(C) If the Commission finds that a complaining shipper is 
being required to bear more than a reasonable proportion of the 
costs described in subparagraph (A) of this paragraph, the 
Commission may reallocate the surcharge among the traffic 
originating or terminating on the line to which the surcharge 
applies, but may not order relief which would result in the 
surcharging carrier earning revenues less than those which the 
carrier would have earned had the surcharge been applied as 
filed.
  [(5) A shipper may, in a single complaint, seek relief under 
paragraphs (3) and (4) of this subsection. In any such 
complaint, the Commission shall first determine the right to 
relief under paragraph (3) and shall grant such relief as is 
appropriate under such paragraph.
  [(6) In any proceeding brought before the Commission 
challenging the application or amount of a surcharge under this 
subsection, whether the surcharge is claimed to violate this 
subsection or some other provision of this chapter, the 
Commission shall not suspend the application of any such 
surcharge unless the person filing the verified statement 
required by section 10707(c) of this title, in addition to the 
matters required by such section, also makes the demonstration 
required by paragraph (3)(A) of this subsection. If the 
demonstration required by such paragraph (3)(A) is made, the 
Commission may suspend the application of only so much of the 
surcharge as will produce revenues in excess of the amount so 
demonstrated.
  [(c)(1) Notwithstanding any other provision of this title, 
any prior agreement in effect on the effective date of the 
Staggers Rail Act of 1980, or any requirement of the 
Commission, a rail carrier may cancel the application of a 
joint rate to a through route in which it participates, without 
the concurrence of any other rail carrier that is a party to 
such joint rate, unless another rail carrier that participates 
in such through route or a shipper that has no competitive 
alternative to such route makes the demonstration described in 
paragraph (2) of this subsection.
  [(2) The application of a joint rate to a through route may 
not be canceled under this subsection if a rail carrier that 
participates in such through route or a shipper that has no 
competition alternative to such route from an origin or 
destination served by such route demonstrates to the Commission 
that the canceling carrier's share of the revenues, under the 
joint rate in effect at the time the application of the joint 
rate is canceled, is equal to or greater than--
          [(A) 110 percent of the canceling carrier's variable 
        cost of providing service over such route; or
          [(B) such lesser percent of the canceling carrier's 
        variable cost as such carrier earns over a competing 
        through route to which application of the joint rate 
        has not been canceled, or over a competing single line 
        route.
  [(3) When a complaining party is unable to make the 
demonstration required by paragraph (2) of this subsection, the 
Commission may suspend the tariff canceling the joint rate only 
if--
          [(A) a complaining carrier publishes a new rate 
        division or a new higher lawful rate which increases 
        the canceling carrier's share of the revenues over such 
        route to the amount calculated under paragraph (2)(A) 
        or (2)(B) of this subsection, whichever is less; or
          [(B) a complaining carrier or shipper petitions the 
        Commission and the Commission imposes a surcharge, in 
        conformity with such petition, upon the joint rate 
        which will accrue solely to the canceling carrier and 
        which, in conjunction with the canceling carrier's 
        division of the joint rate in effect on the date the 
        tariff canceling the joint rate was filed, will provide 
        the canceling carrier revenues equal to or greater than 
        110 percent of its variable cost of providing service 
        over such route.
Unless a new rate, division, or surcharge described in this 
paragraph becomes effective within 120 days after the proposed 
effective date of the rate cancellation, the canceling tariff 
shall, nevertheless, become effective.
  [(4) If the demonstration described in paragraph (2) is made 
or a new rate, division, or surcharge described in paragraph 
(3) becomes effective, the tariff canceling the joint rate 
shall be considered by the Commission in accordance with 
section 10705 of this title. The existing joint rate or the new 
rate, division, or surcharge, shall remain in effect during the 
pendency of the Commission's consideration.
  [(5) Whenever the application of a joint rate to a through 
route is canceled under this subsection and a rate other than a 
joint rate is or has been published by the canceling carrier to 
apply to such route, such rate shall thereafter apply in lieu 
of all other rates (except joint rates subsequently agreed to 
by such carrier) and any through rate of which such rate is a 
factor shall divide as the separate factors of such rate are 
made.
  [(6) Nothing in this subsection shall be construed to limit 
the authority of the Commission under section 10705(a) of this 
title to prescribe joint rates which provide a rail carrier 
participating in such joint rate revenues equal to or greater 
than 110 percent of its variable cost of providing service over 
each route to which such rate applies.
  [(d)(1) Except as provided in paragraph (2) of this 
subsection, any increase or decrease in revenue resulting from 
the application of a surcharge under subsection (a) of this 
section, or from the cancellation of the application of a joint 
rate under subsection (c) of this section, shall accrue solely 
to or be borne solely by the carrier applying the surcharge or 
canceling the application of the joint rate, as the case may 
be.
  [(2) Whenever a class III rail carrier which participates in 
a through route to which a surcharge has been applied under 
subsection (a) of this section by a carrier operating in the 
same rate territory as such class III carrier demonstrates to 
the Commission that the application of such surcharge to such 
route provides, in the absence of any increase in the joint 
rate in effect on the date the surcharge was filed with the 
Commission, revenues from traffic moving over such route to 
such surcharging carrier in excess of 110 percent of its 
variable costs over such route, such surcharging carrier shall, 
from the date of such demonstration, share those revenues from 
such route, from the surcharge and the applicable joint rate in 
effect on the date the surcharge was filed with the Commission, 
in excess of 110 percent of its variable costs with all class 
III rail carriers in the same rate territory participating in 
such route, on the basis of their existing divisions of the 
joint rate to which the surcharge applies.
  [(e)(1) Except as provided in paragraph (2) of this 
subsection, whenever a rail carrier proposes to apply a 
surcharge under subsection (a) of this section or to cancel the 
application of a joint rate under subsection (c) of this 
section and other rail carrier subsequently agrees to a new 
rate division or a new lawful rate that increases the 
surcharging or canceling carrier's share of the total through 
charges for a movement over a particular through route subject 
to a joint rate, such other rail carrier shall also agree to 
any other new rate division and new lawful rate--
          [(A) that is proposed within 120 days after the date 
        of the first agreement; and
          [(B) that increases the surcharging or canceling 
        carrier's share of the total through charges for 
        movements over a competing through route subject to 
        such joint rate.
  [(2) A rail carrier shall not be required to agree under this 
subsection to any proposed new division or new rate which 
would--
          [(A) reduce such carrier's share of the total through 
        charges for a movement over any through route to less 
        than (i) 110 percent of its variable costs of providing 
        service over such route, or (ii) such lesser percent of 
        its variable costs as such carrier earns from such 
        movement over a competing through route with respect to 
        which such carrier has agreed to a new division or 
        rate;
          [(B) increase the surcharging or canceling carrier's 
        share of the total through charges for a movement over 
        any through route to an amount in excess of 110 percent 
        of its variable costs of providing service over such 
        route;
          [(C) reduce such carrier's share of the total through 
        charges for a movement over any through route by a 
        dollar amount in excess of the greatest dollar 
        reduction which such carrier has agreed to make, for 
        purposes of increasing the surcharging or canceling 
        carrier's share, to its share of the total through 
        charges for a movement over any competing through 
        route; or
          [(D) reduce such carrier's share of the total through 
        charges for a movement over any through route in an 
        amount in excess of such carrier's pro rata share 
        (based on established divisions for movements over such 
        route) of the increase of the surcharging or canceling 
        carrier's share of the total through charges for 
        movements over such route.
  [(f) A rail carrier applying a surcharge or canceling the 
application of a joint rate under this section shall file a 
tariff with the Commission in accordance with section 10762 of 
this title. Such a tariff may not become effective until the 
expiration of the 45-day period (or such longer period as the 
filing carrier specifies) beginning on the date such tariff is 
filed.
  [(g)(1) Any rail rate to which a surcharge is applied under 
this section shall be subject to section 10701a and 10709 of 
this title, and any such surcharge shall constitute a rate 
increase for purposes of such sections.
  [(2) For purposes of rate regulation under section 10701a of 
this title--
          [(A) only the rail carrier proposing a surcharge 
        under this section shall be required to defend such 
        surcharge; and
          [(B) the reasonableness of the surcharge and the 
        revenues received by the rail carrier proposing the 
        surcharge under the joint rate to which the surcharge 
        applies shall be determined without regard to amount 
        received and services performed by other rail carriers 
        that are party to such joint rate.
  [(3) Except as provided in subsection (i), (j), or (k) of 
this section, if the application of a surcharge or the 
cancellation of the application of a joint rate under this 
section is found to constitute a violation of any provision of 
this subtitle, such violation shall not be ordered remedied in 
any manner which--
          [(A) requires the carrier applying a surcharge under 
        subsection (a) of this section or canceling the 
        application of a joint rate under subsection (c) of 
        this section to provide service over any route under a 
        rate that provides revenues to such carrier that are 
        less than 110 percent of its variable costs of 
        providing such service; or
          [(B) which requires the carrier applying a surcharge 
        under subsection (b) of this section to provide service 
        over the route to which such surcharge applies in a 
        manner that provides revenues to such carrier that are 
        less than 110 percent of such carrier's variable cost 
        of transporting the traffic involved to or from the 
        line to which the surcharge applies, plus such 
        carrier's reasonably expected costs of providing 
        service over such line.
  [(h) Within 5 days after the request of a rail carrier 
participating in a joint rate subject to a surcharge or 
cancellation under this section, a shipper moving traffic over 
a route to which such surcharge or cancellation applies, or an 
affected port, the Commission shall make available to such 
carrier, shipper, or port the Commission's determination of the 
variable costs and revenues, over the route or routes to which 
the surcharge or cancellation applies, of the carrier applying 
the surcharge or canceling the application of the joint rate.
  [(i)(1) Whenever a class III rail carrier, in a protest filed 
with the Commission, makes a prima facie showing that the 
application of a surcharge under subsection (a) of this section 
or the cancellation of the application of a joint rate under 
subsection (c) of this section will have an adverse effect on 
competition, the Commission shall investigate such protest. If, 
on the basis of such investigation, the Commission finds that 
the protested surcharge or cancellation is or is intended to be 
anticompetitive, the Commission shall, within 30 days after the 
date such protest is filed, enter an order rescinding such 
surcharge or cancellation, and may, on presentation of an 
adequate record, prescribe new joint rates or divisions of 
joint rates.
  [(2) No order prescribed under this subsection shall require 
a carrier to provide service over any route under a rate which 
provides revenues less than 110 percent of the variable cost of 
providing such service unless the Commission determines that 
the public interest requires a lesser revenue to variable cost 
ratio to avoid anticompetitive action and to preserve service 
on the route involved.
  [(j)(1) Any class III rail carrier which originates or 
terminates traffic subject to the application of a surcharge 
under subsection (a) of this section or the cancellation of the 
application of a joint rate under subsection (c) of this 
section may protest such surcharge or cancellation whenever--
          [(A) such surcharge or cancellation affects the sole 
        remaining route available to that carrier for that 
        traffic; and
          [(B)(i) such carrier demonstrates that alternative 
        transportation is available or that a shipper dependent 
        on that carrier will suffer significant market loss 
        because of such surcharge or cancellation; or
          [(ii) such surcharge or cancellation, alone or when 
        considered in conjunction with other surcharges or 
        cancellations affecting the carrier, is likely to 
        unduly impair a carrier's ability to earn an adequate 
        rate of return.
  [(2)(A) The Commission may, after an investigation on the 
basis of a protest under this subsection, prescribe a lesser 
surcharge or a different division of the joint rate. The 
Commission shall grant the surcharging or canceling carrier 
revenues not less than 110 percent of its variable cost of the 
movement involved, unless it determines that the public 
interest requires a lesser revenue to available cost ratio to 
preserve service on the route involved. Any action by the 
Commission based on a protest under this subsection shall be 
taken within 30 days after the date such protest is filed.
  [(B) If the Commission prescribes a different division of a 
joint rate under this paragraph, the Commission shall, upon 
petition of the surcharging or canceling carrier or the 
protesting class III rail carrier, reopen the proceeding in 
which such division was prescribed to reconsider whether such 
prescribed division is reasonable. If, on the basis of such 
reconsideration, the Commission determines that such division 
is not reasonable, it shall prescribe a new, reasonable 
division of the joint rate to which the surcharge or 
cancellation applied.
  [(k)(1) Upon the complaint of a class III rail carrier which 
originates or terminates traffic subject to the application of 
a surcharge under subsection (a) of this section or the 
cancellation of the application of a joint rate under 
subsection (c) of this section that such surcharge or 
cancellation will result in differences or greater differences 
in rates, including any surcharges, for the traffic to which 
the surcharge or cancellation applies over different routes in 
which the surcharging or canceling carrier participates--
          [(A) from a single origin point to destination points 
        within a 75 mile direct radius from the destination 
        point on such class III rail carrier; or
          [(B) to a single destination point from origin points 
        within a 75 mile direct radius from the origin point on 
        such class III rail carrier,
the Commission shall investigate such complaint and shall, 
within 30 days after the date such complaint is filed, take 
such actions, including rescinding surcharges or cancellations 
or prescribing new joint rates or surcharges, as it determines 
are required to eliminate such differences in rates, unless it 
finds that such actions are not warranted by the public 
interest in ensuring effective competition among rail carriers 
or in the preservation of rail service on the route involved.
  [(2) No action taken by the Commission under this subsection 
shall require a carrier to provide service over any route under 
a rate which provides a revenue to variable cost ratio over 
such route less than that provided under the joint rate to 
which the surcharge or cancellation was applied or less than 
110 percent, whichever is greater, unless the Commission 
determines that the public interest in ensuring effective 
competition among rail carriers or in preserving service over 
such route warrants requiring the surcharging or canceling 
carrier to provide service at a lesser revenue to variable cost 
ratio.
  [(3) Notwithstanding subsection (m)(1) of this section, if in 
a proceeding under this subsection or under subsection (i) or 
(j) of this section, the Commission considers whether to 
require the revenues of a carrier applying a surcharge under 
subsection (a) of this section or canceling the application of 
a joint rate under subsection (c) of this section to be less 
than 110 percent of its variable costs (as calculated using the 
Commission's Rail Form A cost finding methodology), such 
surcharging or canceling carrier may prove its actual variable 
costs on the basis of evidence other than unadjusted costs 
calculated using such Rail Form A cost finding methodology. 
Such evidence shall be prepared in accordance with generally 
accepted accounting principles.
  [(l) Whenever the application of a joint rate to a through 
route is canceled under subsection (c) of this section, the 
Commission shall, upon petition by a class II or III rail 
carrier participating in such route, prescribe a new 
compensatory through rate or rates over such route within 30 
days after the date such petition is filed.
  [(m) For purposes of this section--
          [(1) variable costs for a class I rail carrier shall 
        be determined only by using such carrier's unadjusted 
        costs, calculated using the Commission's Rail Form A 
        cost finding methodology (or an alternative methodology 
        adopted by the Commission in lieu thereof) and indexed 
        quarterly to account for current wage and price levels 
        in the region in which the carrier operates;
          [(2) variable costs for a rail carrier other than 
        class I shall be presumed to be the average variable 
        costs of all class I rail carriers in the region in 
        which such carrier operates (as determined under 
        paragraph (1) of this subsection) unless a rail carrier 
        rebuts such presumption with other proof of variable 
        costs; and
          [(3) at the option of a carrier applying a surcharge 
        or canceling the application of a joint rate under this 
        section, revenue share may be determined by reference 
        to past revenue settlements actually made in the most 
        recent calendar year by connecting lines.
  [(n) Surcharges applied under subsection (a) or (c) of this 
section and cancellations under subsection (c) of this section 
shall not be subject to the provisions of section 
10726(a)(1)(B) of this title.
  [(o) The Special Counsel of the Commission may, consistent 
with the rail transportation policy in section 10101a of this 
title, provide assistance to class III rail carriers and small 
businesses in preparing actions under this section.
  [(p)(1) The authority to apply a surcharge under subsection 
(a) of this section, and (except as provided in paragraph (2)) 
the authority to cancel such a surcharge, shall expire 3 years 
after the effective date of the Staggers Rail Act of 1980 
unless extended for one additional year by the Commission upon 
petition of any rail carrier and for good cause shown.
  [(2) Any surcharge lawfully applied under subsection (a) of 
this section shall remain in effect in accordance with its 
terms following the expiration of the provisions of this 
section. Any such surcharge applied during the 45-day period 
immediately preceding the date of the expiration of the 
provisions of this section shall, notwithstanding such 
expiration, be subject to cancellation under subsection (a)(2) 
or (a)(3) of this section during the 45-day period beginning on 
the date such surcharge is applied.

[Sec. 10706. Rate agreements: exemption from antitrust laws

  [(a)(1) In this subsection--
          [(A) ``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) ``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.
          [(C) ``Practicably participates in the movement'' 
        shall have such meaning as the Commission shall by 
        regulation prescribe.
  [(2)(A) A rail carrier providing transportation subject to 
the jurisdiction of the Interstate Commerce Commission under 
subchapter I of chapter 105 of this title that is a party to an 
agreement of at least 2 rail carriers or an agreement with a 
class of carriers referred to in subsection (d)(1) (B)-(E) of 
this section, 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 Commission for approval of that agreement under this 
subsection. The Commission shall approve the agreement only 
when it finds that the making and carrying out of the agreement 
will further the transportation policy of section 10101a 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 Commission approves the agreement, it may be 
made and carried out under its terms and under the conditions 
required by the Commission, 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 73 and 
74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of 
June 19, 1936, as amended (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 Commission 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 Commission may approve an agreement under 
subparagraph (A) of this paragraph only when the carriers 
applying for approval file a verified statement with the 
Commission. 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 tariff 
        changes only, if the Commission 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 that 
        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. This 
        clause shall take effect on January 1, 1984, or on such 
        earlier date as the Commission determines. If the 
        Commission 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) Until January 1, 1984, subparagraph (A)(ii) and (A)(iii) 
of this paragraph do not apply to--
          [(i) general rate increases to cover inflationary 
        cost increases, or general rate decreases, for joint 
        rates if the agreement gives shippers, under specified 
        procedures, at least 15 days notice of the proposal and 
        an opportunity to present comments on it before a 
        tariff containing the increases or decreases is filed 
        with the Commission; or
          [(ii) broad tariff changes that are of at least 
        substantially general application throughout the area 
        where the changes will apply, except single line rates 
        where subparagraph (A)(i) of this paragraph prohibits 
        the participation of carriers with single line rates.
If the Commission finds at any time that the implementation of 
this subparagraph is not feasible, it may delay or suspend such 
implementation in whole or in part.
  [(C)(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 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 carrier and one or more other 
carriers, or of any rate or other action 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 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 clause (I) or (II) are satisfied 
before allowing the introduction of any such evidence.
  [(D) 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 Commission 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 Commission 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, as amended (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 Commission 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 Commission 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 
Commission under subchapter I of chapter 105 of this title, for 
use by such rail carriers of rolling stock owned or leased by 
such shippers, the shippers shall apply to the Commission for 
approval of that agreement under this paragraph. The Commission 
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 10101a of this title 
and may require compliance with conditions necessary to make 
the agreement further that policy as a condition of approval. 
If the Commission approves the agreement, it may be made and 
carried out under its terms and under the terms required by the 
Commission, 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 
Commission 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 Commission 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 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 Commission. The 
Commission 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 Commission.
  [(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)(1) In this subsection, ``single-line rate'' refers to a 
rate, charge, or allowance proposed by a single motor common 
carrier that is applicable only over its line and for which the 
transportation can be provided by that carrier.
  [(2) As provided by this subsection, a motor common carrier 
providing transportation or service subject to the jurisdiction 
of the Commission under subchapter II of chapter 105 of this 
title may enter into an agreement with one or more such 
carriers concerning rates (including charges between carriers 
and compensation paid or received for the use of facilities and 
equipment), allowances, classifications, divisions, or rules 
related to them, or procedures for joint consideration, 
initiation, or establishment of them. Such agreement may be 
submitted to the Commission for approval by any carrier or 
carriers which are parties to such agreement and shall be 
approved by the Commission upon a finding that the agreement 
fulfills each requirement of this subsection, unless the 
Commission finds that such agreement is inconsistent with the 
transportation policy set forth in section 10101(a) of this 
title. The Commission may require compliance with reasonable 
conditions consistent with this subtitle to assure that the 
agreement furthers such transportation policy. If the 
Commission approves the agreement, it may be made and carried 
out under its terms and under the conditions required by the 
Commission, 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.
  [(3) Agreements submitted to the Commission under this 
subsection may be approved by the Commission only if each of 
the following conditions are met:
          [(A) Each carrier which is a party to an agreement 
        must file with the Commission a verified statement that 
        specifies its name, mailing address, and telephone 
        number of its main office; the names of each of its 
        affiliates; the names, addresses, and affiliates of 
        each of its officers and directors; the names, 
        addresses, and affiliates 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. In this subparagraph, ``affiliate'' means a 
        person controlling, controlled by, or under common 
        control or ownership with another person and 
        ``ownership'' means equity holdings in a business 
        entity of at least 5 percent.
          [(B) Any organization established or continued under 
        an agreement approved under this subsection must comply 
        with the following requirements:
                  [(i) subject to the provisions of 
                subparagraphs (C), (D), (E), and (F) of this 
                paragraph, (I) the organization may allow any 
                member carrier to discuss any rate proposal 
                docketed, but (II) after January 1, 1981, only 
                those carriers with authority to participate in 
                the transportation to which the rate proposal 
                applies may vote upon such rate proposal;
                  [(ii) the organization may not interfere with 
                each carrier's right of independent action and 
                may not change or cancel any rate established 
                by independent action after the date of 
                enactment of this subsection, other than a 
                general increase or broad rate restructuring, 
                except that changes in such rates may be 
                effected, with the consent of the carrier or 
                carriers that initiated the independent action, 
                for the purpose of tariff simplification, 
                removal of discrimination, or elimination of 
                obsolete items;
                  [(iii) the organization may not file a 
                protest or complaint with the Commission 
                against any tariff item published by or for the 
                account of any motor carrier;
                  [(iv) the organization may not permit one of 
                its employees or any employee committee to 
                docket or act upon any proposal effecting a 
                change in any tariff item published by or for 
                the account of any of its member carriers;
                  [(v) upon request, the organization must 
                divulge to any person the name of the proponent 
                of a rule or rate docketed with it, must admit 
                any person to any meeting at which rates or 
                rules will be discussed or voted upon, and must 
                divulge to any person the vote cast by any 
                member carrier on any proposal before the 
                organization;
                  [(vi) the organization may not allow a 
                carrier to vote for one or more other carriers 
                without specific written authority from the 
                carrier being represented; and
                  [(vii) the organization shall make a final 
                disposition of a rule or rate docketed with it 
                by the 120th day after the proposal is 
                docketed, except that if unusual circumstances 
                require, the organization may extend such 
                period, subject to review by the Commission.
          [(C) No agreement approved under this subsection may 
        provide for discussion of or voting on rates to which 
        the provisions of section 10708(d) or 10730(b) of this 
        title apply, except that rates established or filed 
        under section 10730 of this title before the date of 
        enactment of the Motor Carrier Act of 1980 or changes 
        with respect to such rates may be discussed or voted on 
        under agreements approved under this subsection until 
        January 1, 1984.
          [(D) No agreement approved under this subsection may 
        provide for discussion of or voting upon single-line 
        rates on or after January 1, 1984, except that such 
        date shall be July 1, 1984, if the Motor Carrier 
        Ratemaking Study Commission does not submit its final 
        report under section 14(b)(4) of the Motor Carrier Act 
        of 1980 on or before January 1, 1983. This subparagraph 
        shall not apply to any single-line rate proposed by a 
        motor common carrier of passengers. This subparagraph 
        and subparagraph (B)(i)(II) of this paragraph shall not 
        apply to the following:
                  [(i) general rate increases or decreases if 
                the agreement gives shippers, under specified 
                procedures, at least 15 days' notice of the 
                proposal and an opportunity to present comments 
                on it before a tariff containing the increases 
                or decreases is filed with the Commission and 
                if discussion of such increases or decreases is 
                limited to industry average carrier costs and, 
                after the date of elimination of the antitrust 
                immunity by this subparagraph, does not include 
                discussion of individual markets or particular 
                single-line rates;
                  [(ii) changes in commodity classifications;
                  [(iii) changes in tariff structures if 
                discussion of such changes is limited to 
                industry average carrier costs and, after the 
                date of elimination of antitrust immunity by 
                this subparagraph, does not include discussion 
                of individual markets or particular single-line 
                rates;
                  [(iv) publishing of tariffs, filing of 
                independent actions for individual members 
                carriers, providing of support services for 
                members, and changes in rules or regulations 
                which are of at least substantially general 
                application throughout the area in which such 
                changes will apply.
          [(E) On and after January 1, 1983, no agreement 
        approved under this subsection may provide for 
        discussion of or voting upon any single-line rate 
        proposed by a motor common carrier of passengers. On 
        and after January 1, 1984, no agreement approved under 
        this subsection may provide for discussion of or voting 
        upon any joint rate proposed by one or more motor 
        common carriers of passengers. This subparagraph shall 
        not apply to any rate applicable to special or charter 
        transportation. This subparagraph and subparagraph 
        (B)(i)(II) of this paragraph shall not apply to the 
        following:
                  [(i) any general rate increase or decrease, 
                broad change in tariff structure, or 
                promotional or innovative fare change, as 
                defined by the Commission and subject to such 
                notice require