96315.docx

MEMORANDUM
TO:RON LAW
FROM:WELDON STUTZMAN
DATE:MARCH 15, 1996
RE:SUMMARY OF THE MOTOR CARRIER PROVISION OF THE ICC TERMINATION ACT OF 1995
Section 13101.
This section states the purpose of the ICC Termination Act and contains definitions for the motor carrier provisions contained in Part B.  The purposes of the Act include to insure the development, coordination and preservation of a transportation system that meets the transportation needs of the United States, to oversee the 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; d) allow a variety of price options to meet changing market demands on the diverse requirements of the shipping and traveling public; 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; to oversee transportation by motor carrier of passengers.
Section 13102.  Definitions.
Some of the definitions in this section include the following:  motor carrier; a person providing motor vehicle transportation for compensation; (13) motor private carrier; a person, other than a motor carrier, transporting property by motor vehicle when the transportation is provided by an interstate carrier; the person is the owner, lessee, or bailee of the property being transported; and the property is being transported for sale, lease or rent, or bailment or to further a commercial enterprise; (14) motor vehicle; a vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used on the highway and transportation, or a combination determined by the secretary, but does not include rail vehicles.
Section 13301 - 13304.  Administrative Provisions.
These sections provide specific administrative authority for the secretary of the Department of Transportation, including to issues subpoenas for witnesses, to outline a procedure for taking testimony and depositions, and to provide methods for providing notices to motor carriers.
Section 13501.  General Jurisdiction.
The jurisdiction of the Department of Transportation is over transportation by motor carrier of passengers and property between states or through states, or interstate transportation.
Section 13505 and 13506.
These sections state exemptions to the Department of Transportation’s jurisdiction, including the transportation of property when the property is transported by a person engaged in a business other than transportation and the transportation is within the scope of the primary business of the person.  Some of the other exemptions to the DOT’s authority are similar to exemptions stated in Idaho, including (1) transportation of school children, (2) transportation of a farmers agricultural commodities and products or supplies to the farm, (10) motor vehicle carrying not more than 15 individuals in a single, daily round-trip to commute to and from work, (13) transportation of wood chips.
Section 13521.  Water Carrier Transportation.
Section 13531.  Freight Forwarders Service.
Section 13541.  Authority to Exempt.
This section authorizes the Department of Transportation to exempt persons or specific motor carriers from applications of the provisions of this Act upon a finding that application of provision (1) is not necessary to carry out the transportation policy of the Act, (2) is not needed to protect shippers from the abuse of market power or that the transaction or service is of limited scope, (3) is in the public interest.
Sections 13701 - 13713.
These sections require that rates for certain transportation be reasonable.  These sections related to movement of household goods, movement by or with a water carrier in noncontiguous domestic trade, or rates, rules and classifications made collectively by motor carriers under agreements approved pursuant to section 13703.
Sections 13901 - 13908.  Registration.
DOT will register or provide certification to a motor carrier that is willing and able to comply with (a) the federal law and applicable regulations of the DOT, (b) any safety regulations imposed by DOT and the safety fitness requirements, and (c) the minimum financial responsibility requirement established by DOT.
Section 13902, Subparagraph (b)(3) provides that a motor carrier of passengers registered by the DOT 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.  Paragraph 5 provides that “any intrastate transportation authorized by this subsection shall be treated as transportation subject to jurisdiction under [this Act] until such time as the carrier takes such action as is necessary to establish under the laws of such state rates, rules and practices applicable to such transportation, but in no case later than the 30th day following the date on which the motor carrier of passengers first begins providing transportation entirely in one state under this paragraph.”  
Section 13905.  This section provides process by which the DOT may revoke a certificate.  Subparagraph (d) provides that the secretary of the DOT may revoke a registration after issuing an order to the registrant requiring compliance with applicable laws and regulations and the registrant willfully does not comply with the order for a period of 30 days.  Subparagraph (e) provides that registration may be revoked for failure to comply with safety requirements or the safety fitness requirements.  Under paragraph 2 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.
Section 13906.  Requires the filing of 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 registrant for bodily injury to, or death of, an individual resulting from the negligent operation, maintenance, or use of motor vehicles, or for loss or damage to property.  
Section 13907.  Household goods agents.
Section 13908 requires the secretary of DOT, in cooperation with the states, to issue regulations to replace the current DOT identification number system, the single-state registration system, 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 will 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 DOT as well as information on safety fitness and compliance with required levels of financial responsibility.  The secretary may determine that no state should require insurance filings or collect fees for such filings and thus prevent the state 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.  If so, however, the secretary must make sure that the fees collected by the secretary and distributed to the states will equal the revenue to the state that it obtained during fiscal year 1995.
Section 14101.
This section requires a carrier to provide transportation and service on reasonable request, and provide safe and adequate service, equipment, and facilities.
Section 14102.  Leased Motor Vehicles.
Section 14104.  Household Goods Carrier Operations.
Section 14121 - 14123.  
Requires certain records to be kept, provides authority for the secretary of DOT or an employee to inspect and examine records and property.  Requires financial reports, annual financial and safety reports.
Section 14301 - 14303.  Finance.
Provides for perfecting a security interest in a motor vehicle owned by or in the possession and use of a registered carrier.  A carrier providing transportation may not agree or combine with another carrier to pool or divide traffic or services or any part of their earnings without the approval of the DOT.  Section 14303 requires approval of the DOT for consolidation or merger of motor carriers of passengers registered by the DOT.
Section 14501.  Federal Authority Over Intrastate Transportation.
Provides that no state shall enact or enforce any law or rule relating to scheduling of interstate or intrastate transportation provided by motor carrier of passengers that are certified by the DOT “on an interstate route or relating to the implementation of any change in the rates for such transportation for any charter transportation except to the extent that notice, not in excess of 30 days, of changes in schedules may be required.”  This paragraph does apply to intrastate commuter bus operations.  Subparagraph (c) provides that a state may not enact or enforce a law or rule “related to a price, route, or service of any motor carrier or any motor private carrier with respect to the transportation of property.”  The previously existing limitations on this preemption are retained:  this preemption does not restrict the safety regulatory authority of a state with respect to motor vehicles, the authority 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.  It also does not limit the authority of a state to enact rules or laws relating to uniform cargo liability rules, uniform bills of lading or receipts for property being transported, uniform cargo credit rules, anti-trust immunity for joint line rates or routes, or anti-trust immunity for agent/van line operations.
Section 14503.  Withholding State and Local Income Tax by Certain Carriers.
Subparagraph (c) of this section contains the single-state registration system that is currently in place and transfers it to the DOT.  A registration state may require a carrier to file and maintain evidence of federal registration, file satisfactory proof of required insurance or qualification as a self-insurer, and pay to the state fee amounts in accordance with the fee system.
Section 14701 -14709.  Enforcement, Investigations, Rights, Remedies.
Authorizes DOT to investigate complaints and take appropriate action.  Describes and limits certain legal actions and liabilities that may be brought against motor carriers
Section 14901 - 14914.  Civil and Criminal Penalties.
Provides for civil liability for failure to comply with rules and the law of $500 for each violation and for each additional day the violation continues.  Penalties for violations relating to hazardous materials may total $20,000 for each violation.
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