[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 412 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 412
To amend title 49, United States Code, regarding the collection of
certain payments for shipments via motor common carriers of property
and nonhousehold goods freight forwarders, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 18 (legislative day, January 5), 1993
Mr. Exon (for himself, Mr. Kerrey, Mr. Pressler, Mrs. Kassebaum, Mr.
Danforth, Mr. Hatch, Mr. Dorgan, Mr. Bond, Mr. Pryor, Mr. Burns, Mr.
Gorton, Mr. Lott, and Mr. Packwood) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To amend title 49, United States Code, regarding the collection of
certain payments for shipments via motor common carriers of property
and nonhousehold goods freight forwarders, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Undercharge Equity Act of 1992''.
SEC. 2. DETERMINATIONS OF REASONABLENESS OF CERTAIN RATES.
(a) In General.--Section 10701 of title 49, United States Code, is
amended by adding at the end the following new subsection:
``(f)(1) Subject to paragraph (10) of this subsection, when a claim
is made by a motor carrier of property (other than a household goods
carrier) or by a nonhousehold goods freight forwarder, or by a party
representing such carrier or freight forwarder, regarding the
collection of rates or charges in addition to the rates or charges
originally billed and collected by the carrier or freight forwarder,
the person against whom the claim is made may elect to satisfy such
claim under paragraph (4) or (5) of this subsection, upon showing
that--
``(A) such carrier or forwarder is no longer transporting
property or is transporting property for the purpose of
avoiding the application of this subsection; and
``(B) as to the claim at issue, (i) the person was offered
a transportation rate or charge by the carrier or forwarder
other than the rate or charge legally on file with the
Commission for that shipment, (ii) the person tendered freight
to the carrier or forwarder in reasonable reliance upon the
offered transportation rate or charge, (iii) the carrier or
forwarder did not properly or timely file with the Commission a
tariff providing for such transportation rate or charge or
failed to execute a valid contract for transportation services,
(iv) such transportation rate or charge was billed and
collected by the carrier or forwarder, and (v) the carrier or
forwarder demands additional payment of a higher rate or charge
filed in a tariff.
Satisfaction of the claim under paragraph (4) or (5) of this subsection
shall be binding on the parties, and the parties shall not be subject
to chapter 119 of this title.
``(2) If there is a dispute as to paragraph (1)(A) of this
subsection, such dispute shall be resolved by the court in which the
claim is brought. If there is a dispute as to paragraph (1)(B) (i)
through (v) of this subsection, 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
forwarder.
``(3) In the event that a dispute arises as to the rate or charge
that was legally applicable to the shipment, such dispute shall be
resolved by the Commission within 1 year after the dispute arises.
``(4) A person from whom the additional legally applicable tariff
rate or charge is sought may elect to satisfy such claim if the
shipment weighed 10,000 pounds or less, by payment of 20 percent of the
difference between the carrier's or forwarder's legally applicable
tariff rate or charge and the rate or charge originally billed and
collected.
``(5) A person from whom the additional legally applicable tariff
rate or charge is sought may elect to satisfy such claim if each
shipment weighed more than 10,000 pounds, by payment of 10 percent of
the difference between the carrier's or forwarder's legally applicable
tariff rate or charge and the rate or charge originally billed and
collected.
``(6) Notwithstanding paragraphs (4) and (5) of this subsection,
when a claim is made by a carrier or forwarder described in paragraph
(1)(A) of this subsection, or by a party representing such carrier or
forwarder, regarding the collection of rates or charges in addition to
the rate or charge originally billed and collected by the carrier or
forwarder, and the person against whom the claim is made is a small-
business concern, that person shall not be required to pay the claim
and the claim shall be deemed satisfied. Satisfaction of the claim
under this paragraph shall be binding on the parties, and the parties
shall not be subject to chapter 119 of this title.
``(7) When a person from whom the additional legally applicable
rate or charge is sought does not elect to use the provisions of
paragraph (4), (5), or (6) of this subsection, the person may pursue
all rights and remedies existing under this title.
``(8)(A) When a person proceeds under paragraph (7) of this
subsection to challenge the reasonableness of the legally applicable
rate or charge being claimed by the carrier or forwarder in addition to
the rate or charge originally billed and collected, the person shall
not have to pay any additional compensation to the carrier or forwarder
until the Commission has made a determination (which shall be made
within 1 year after such challenge) as to the reasonableness of the
challenged rate or charge as applied to the shipment of the person
against whom the claim is made. Subject to subparagraph (B) of this
paragraph, the Commission shall require the person to furnish a bond,
issued by a surety company found acceptable by the Secretary of the
Treasury, or to establish an interest bearing escrow account.
``(B) The surety bond or interest bearing escrow account required
under subparagraph (A) of this paragraph shall be set or established in
an amount equal to--
``(i) 20 percent of the amount claimed by the carrier or
forwarder for the additional rate or charge, in the case of a
shipment weighing 10,000 pounds or less; and
``(ii) 10 percent of such claimed amount, in the case of a
shipment weighing more than 10,000 pounds.
``(9) Except as authorized in paragraphs (4), (5), and (6) of this
subsection, nothing in this subsection shall relieve a motor carrier or
freight forwarder of the duty to file and adhere to its rates, rules,
and classifications as required in sections 10761 and 10762 of this
title.
``(10) If a carrier or forwarder or party representing such carrier
or forwarder makes a claim for additional rates or charges as described
in paragraph (1) of this subsection, the person against whom the claim
is made must notify such carrier, forwarder, or party as to the
person's election to proceed under paragraph (2) or (3) of this
subsection. Such notification--
``(A) with respect to a claim made before the date of
enactment of this subsection, shall be not later than the 30th
day after such date of enactment; and
``(B) with respect to any claim not described in
subparagraph (A) of this paragraph, shall be not later than the
60th day after the filing of an answer to a complaint in a
civil action for the collection of such rates or charges, or
not later than the 90th day after the date of enactment of this
subsection, whichever is later.
``(11) In this subsection, `small-business concern' means a person
who would qualify as a small-business concern under the Small Business
Act (15 U.S.C. 631 et seq.).''.
SEC. 3. STATUTE OF LIMITATIONS.
(a) Motor Carrier Charges.--Section 11706(a) of title 49, United
States Code, is amended by striking the period at the end and inserting
in lieu thereof the following: ``; except that a common carrier
providing transportation service subject to the jurisdiction of the
Commission under subchapter II of chapter 105 of this title--
``(1) must begin, within 24 months after the claim accrues,
a civil action to recover charges for such transportation or
service if such transportation or service is provided by the
carrier on or after the date of enactment of this exception and
before the date that is 1 year after such date of enactment;
and
``(2) must begin such a civil action within 18 months after
the claim accrues if such transportation or service is provided
by the carrier on or after the date that is 1 year after such
date of enactment.''.
(b) Motor Carrier Overcharges.--Section 11706(b) of title 49,
United States Code, is amended by striking the period at the end of the
first sentence and inserting in lieu thereof the following: ``; except
that a person must begin within 24 months after the claim accrues a
civil action to recover overcharges from a carrier subject to the
jurisdiction of the Commission under subchapter II of chapter 105 of
this title for transportation or service taking place on or after the
date of enactment of this exception and before the date that is 1 years
after such date of enactment, and for transportation or service taking
place on or after the date that is 1 year following such date of
enactment, a person must begin such a civil action within 18 months
after the claim accrues.''.
(c) Conforming Amendment.--Section 11706(d) of title 49, United
States Code, is amended by striking ``3-year period'' each place it
appears and inserting in lieu thereof ``limitations period''.
SEC. 4. TARIFF RECONCILIATION RULES FOR MOTOR COMMON CARRIERS OF
PROPERTY.
(a) In General.--Chapter 117 of title 49, United States Code, is
amended by adding at the end the following new section:
``Sec. 11712. Tariff reconciliation rules for motor common carriers of
property
``(a) Subject to Interstate Commerce Commission review and
approval, motor carriers subject to the jurisdiction of the Commission
under subchapter II of chapter 105 of this title and shippers may
resolve, by mutual consent, overcharge and undercharge claims resulting
from billing errors or incorrect tariff provisions 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. Resolution of such claims among the parties
shall not subject any party to the penalties of section 11901, 11902,
11903, 11904, or 11914 of this title.
``(b) Nothing in this section shall relieve the motor carrier of
the duty to file and adhere to its rates, rules, and classifications as
required in sections 10761 and 10762, except as provided in subsection
(a) of this section.
``(c) The Commission shall, within 90 days after the date of
enactment of this section, institute a proceeding to establish rules
pursuant to which the tariff requirements of section 10761 and 10762 of
this title shall not apply under circumstances described in subsection
(a) of this section.''.
(b) Conforming Amendment.--The analysis for chapter 117 of title
49, United States Code, is amended by adding at the end the following:
``11712. Tariff reconciliation rules for motor common carriers of
property.''.
SEC. 5. EFFECTIVE DATE; APPLICABILITY.
(a) General Rule.--Except as provided in subsection (b), the
provisions of this Act (including the amendments made by this Act)
shall take effect on the date of enactment of this Act.
(b) Applicability of Section 2.--The amendments made by section 2
shall apply to any proceeding before the Interstate Commerce
Commission, and to any court action, which is pending or commenced on
or after the date of enactment of this Act and which pertains to a
claim arising from transportation shipments tendered any time prior to
the date that is 18 months after such date of enactment. Unless
Congress determines a continuing need for section 2 and enacts
additional legislation, section 2 shall not apply to any such
proceeding which pertains to a claim arising from transportation
shipments tendered on or after the date that is 18 months following
such date of enactment.
(c) Report.--The Interstate Commerce Commission shall submit a
report to Congress, within 1 year after the date of enactment of this
Act, regarding whether there exists a justification for extending the
applicability of section 2 beyond the limitation period specified in
subsection (b).
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