§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 that 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 requirements as the Commission may specify by regulation, if discussion of such general increase or decrease is limited to industry average carrier costs and intermodal competitive factors and does not include discussion of individual markets or particular single-line rates or joint rates; and

(ii) publishing of tariffs, filing of independent actions for individual member 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.

(F) After the effective date of this subparagraph, no agreement approved under this subsection may provide for discussion of or voting upon any rate applicable to special or charter transportation proposed by a motor common carrier of passengers. This subparagraph shall not apply to publication of any such rate.

(G) In any proceeding in which a party to such proceeding alleges that a carrier voted, discussed, or agreed on a rate or allowance in violation of this subsection, that party has the burden of showing that the vote, discussion, or agreement occurred. A showing of parallel behavior does not satisfy that burden by itself.

(H) The Commission shall, by regulation, determine reasonable quorum standards to be applied for meetings of organizations established or continued under an agreement approved under this subsection.

(4) Notwithstanding any other provision of this subtitle, before the date on which the antitrust immunity is eliminated for discussion of or voting on single-line rates by paragraph (3)(D) of this subsection, the Commission may not take any action which would, on the basis of the type of carrier service involved (including service by carriers singly or in combination with other carriers), result in the exclusion of one or more motor common carriers of property from discussion or voting under agreements authorized by this subsection on matters concerning rates, allowances, classifications, or divisions, except that before such date, the Commission may issue regulations which take effect on or after such date to carry out the provisions of such paragraph.

(5) Notwithstanding any other provision of this subtitle (other than paragraph (3)(F) of this subsection, relating to special and charter transportation of passengers), before January 1, 1983, the Commission may not take any action which would, on the basis of the type of carrier service involved (including service by carriers singly or in combination with other carriers), result in the exclusion of one or more motor common carriers of passengers from discussion or voting under agreements authorized by this subsection on matters concerning rates, allowances, or divisions, except that before January 1, 1983, the Commission may issue regulations which take effect on or after January 1, 1983, to carry out the provisions of paragraph (3)(E) of this subsection.

(c) A common carrier providing transportation or service subject to the jurisdiction of the Commission under chapter 105 of this title (except a rail carrier or a motor common carrier) that is a party to an agreement of at least 2 carriers related to 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, may 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 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 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.

(d)(1) In this subsection, carriers are classified as follows:

(A) Rail, express, and sleeping car carriers are a class.

(B) Pipeline carriers are a class.

(C) Motor carriers are a class.

(D) Water carriers are a class.

(E) Household goods freight forwarders are a class.

(2) The Commission may not approve an agreement under this section-

(A) between or among carriers of different classes unless, in addition to the finding required under subsection (a), (b), or (c) of this section, the Commission finds that the agreement is limited to matters related to transportation under joint rates or over through routes;

(B) related to a pooling, division, or other matter to which subchapter III of chapter 113 of this title applies; or

(C) establishing a procedure for determination of a matter through joint consideration unless the Commission finds that each party to the agreement has the absolute right under it to take independent action before or after a determination is made under that procedure.

(e) The Commission may require an organization established or continued under an agreement approved under this section to maintain records and submit reports. The Commission, or its delegate, may inspect a record maintained under this section.

(f) The Commission may review an agreement approved under subsection (a), (b), or (c) of this section and shall change the conditions of approval or terminate it when necessary to comply with (1) the public interest and subsection (a), or (2) subsection (b) or (c). The Commission 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 unreasonably hardship.

(g) The Commission may begin a proceeding under this section on its own initiative or on application. Action of the Commission 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), (b), or (c) of this section.

(h) The Commission 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 Commission finds that an agreement or organization does not conform to the requirements of that subsection, it shall end or suspend its approval. The Commission shall report to the President and Congress the results of the review as a part of its annual report under section 10311 of this title.

(i)(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 Commission 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 subtitle and of the transportation policy of section 10101a of this title.

(2) Reports received by the Commission under this subsection shall be published and made available to the public under section 552(a) of title 5.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1377 ; Pub. L. 96–258, §1(7), June 3, 1980, 94 Stat. 426 ; Pub. L. 96–296, §14(a), (c), (d), July 1, 1980, 94 Stat. 803 , 808; Pub. L. 96–448, title II, §219(a)–(e), 224(b), Oct. 14, 1980, 94 Stat. 1926–1929 ; Pub. L. 97–261, §10(a)–(d), Sept. 20, 1982, 96 Stat. 1109 , 1110; Pub. L. 98–216, §2(12), Feb. 14, 1984, 98 Stat. 5 ; Pub. L. 99–521, §7(c), Oct. 22, 1986, 100 Stat. 2995 .)

Historical and Revision Notes
Pub. L. 95–473

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
10706(a)(1) (A)	49:5c(1)(a).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §5b; added Feb. 5, 1976, Pub. L. 94–210, §208(b), 90 Stat. 42 ; Oct. 19, 1976, Pub. L. 94–555, §220(k), 90 Stat. 2630 .
10706(a)(1) (B)	49:5c(5)(a) (last sentence).
10706(a)(2)	49:5c(1)(b), (c), (2), (8).
10706(a)(3) (A)	49:5c(5)(a) (less 1st and last sentences), (11).
10706(a)(3) (B)	49:5c(5)(b) (1st sentence).
10706(a)(3) (C)	49:5c(5)(b) (less 1st sentence).
10706(b)	49:5b (less (3)–(7) and less (10)).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §5a; added June 17, 1948, ch. 491, §1, 62 Stat. 472 ; Feb. 5, 1976, Pub. L. 94–210, §208(a), 90 Stat. 42 .
10706(c)(1)	49:5b(4) (last cl.).
10706(c)(2)	49:5b(4) (less last cl.), (5), (6), 5c(4), (5)(a) (1st sentence).
10706(d)	49:5b(3), 5c(3) (1st and 2d sentences).
10706(e)	49:5b(7), 5c(6)(a).
10706(f)	49:5b(10), 5c(7), (9).
10706(g)	49:5c(3) (last sentence), (6)(b).
10706(h)	49:5c(10).

In this section, the word "rates" is substituted for "rates, fares" because of the definition of "rate" in section 10102 of this title. The words "allowances" and "charges" are retained in view of the context. The word "rules" is substituted for "rules and regulations" for consistency when referring to carriers.

In subsection (a)(1), the words "directly or indirectly" from 49:5c(1)(a) are omitted as surplus, and 49:5c(1)(C) is omitted as unnecessary. The definition of "single-line rate" contained in the text of 49:5c(5)(a) (last sentence) is included for consistency.

In subsection (a)(2), the words "or an agreement with a class of carriers referred to in subsection (c)(1)(B)–(E) of this section" are inserted for clarity in view of the amendment made by section 208(a) of the Railroad Revitalization and Regulatory Reform Act of 1976 that removed rail carriers from 49:5b but did not specifically resolve the question of which section governs intermodal agreements by rail carriers. The words inserted in the revised section require rail carriers that make intermodal agreements to comply with 49:5c to reflect the ambiguity. The words "under such rules and regulations as the Commission shall prescribe" are omitted as unnecessary in view of the general power to prescribe regulations under section 10321 of the revised title. The words "by order" are omitted as surplus. The words "if approval is not prohibited by paragraph (4) or (5)" are omitted as unnecessary in view of the restatement. The words "will further" are substituted for "by reason of furtherance of" for clarity. The word "only" is substituted for "otherwise the application shall be denied" for clarity. The words "may require compliance with conditions necessary to make the agreement further that policy as a condition of approval" are substituted for "approval . . . shall be granted only upon such terms and conditions . . . necessary . . . to enable its approval to be granted in accordance with the standard set forth in this paragraph" for clarity. The 3d sentence restates 49:5c(8) for clarity. The word "written" in 49:5c(2) is omitted as unnecessary in the 4th sentence. 49:5c(2)(v) is omitted as unnecessary because of section 10321 of the revised title giving the Commission the authority to carry out the subtitle and to prescribe regulations.

In subsection (a)(3)(A), the word "organization" is substituted for "conference, bureau, committee, or other organization" as being more inclusive. In subsection (a)(3)(A)(i), 49:5c(5)(a)(i) and (ii) are consolidated to eliminate redundancy. The words "of the same mode" are omitted as surplus since this subsection applies only to rail carriers. The words "under section 10707 of this title" are substituted for "pursuant to section 15(8) of this chapter" to conform to the revised title.

In subsection (a)(3)(B), the words "Subparagraph (A)(i) and (ii) of this paragraph" are substituted for "limitations set forth in subdivision (a) shall not be applicable" for clarity. The word "shippers" is substituted for "shipping public" as being more precise. The words "in writing or otherwise" are omitted as surplus. The words "that are" are substituted for "if such changes are" for clarity. The word "area" is substituted for "territory or territories" as being more precise.

In subsection (b), the definitions of 49:5b(1) are omitted as unnecessary in view of the restatement. The words "under such rules and regulations as the Commission may prescribe" are omitted as unnecessary in view of the general power to prescribe regulations under section 10321 of the revised title. The words "by order" are omitted as surplus. The words "if approval thereof is not prohibited by paragraph (4), (5), or (6) of this section" are omitted as unnecessary in view of the restatement. The words "will further" are substituted for "by reason of furtherance" for clarity. The word "only" is substituted for "otherwise the application shall be denied" for clarity. The words "may require compliance with conditions necessary to make the agreement further that policy as a condition of approval" are substituted for "upon such terms and conditions as the Commission may prescribe as necessary to enable it to grant its approval in accordance with the standard above set forth in this paragraph" for clarity.

In subsection (c)(1), the reference to rail carriers in a class is retained to reflect the ambiguity resulting from the amendment made by section 208(a) of the Railroad Revitalization and Regulatory Reform Act of 1976.

In subsection (c)(2), the words "which it finds" are omitted as unnecessary. The word "absolute" is substituted for "free and unrestrained" as being more appropriate. The words "without fear of any sanction or retaliatory action" are omitted as included in the words "absolute right".

In subsection (d), the word "records" is substituted for "accounts, records, files, and memoranda" to eliminate redundancy and for consistency with other sections of the revised title and with subchapter II of chapter 5 of title 5. The words "or its delegate" are substituted for "its duly authorized representatives" for clarity.

In subsection (e), the words "upon complaint or upon its own initiative without complaint" are omitted in view of subsection (f). The word "review" is substituted for "investigate and determine" in view of the general authority to carry out the subtitle in section 10321 of the revised subtitle. The words "or terms and conditions upon which such approval was granted" are omitted as surplus in view of the restatement. The word "change" is substituted for "modify" for consistency. The words "when necessary to comply with (1) the public interest and subsection (a), or (2) subsection (b)" are substituted for "if it finds such action necessary to insure conformity with such standard . . . to the extent it finds necessary to insure conformity with such standard or to the extent to which it finds such terms and conditions not necessary to insure such conformity" for clarity.

In subsection (f), the text of 49:5b(8) is omitted as surplus in view of subchapter II of chapter 5 of title 5 and subchapter II of chapter 103 of the revised title.

In subsection (g), the words "which the Commission has by order" are omitted as surplus. The word "organization" is substituted for "conference, bureau, committee, or other organization" as being more inclusive. The last sentence of 49:5c(3) is omitted as surplus in view of chapter 103 of the revised title, the authority of the Commission under subsection (d), and the requirement imposed on the Commission under this subsection.

In subsection (h), the last sentence is substituted for 49:5c(10) (last sentence) for clarity and consistency with section 10310(b) of the revised title.

Pub. L. 96–258

This amends section 10706(c)(2) to correct a typographical error.

References in Text

The Sherman Act, referred to in subsec. (a)(2)(A), (4), is act July 2, 1890, ch. 647, 26 Stat. 209 , as amended, which is classified to sections 1 to 7 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1 of Title 15 and Tables.

The Clayton Act, referred to in subsec. (a)(2)(A), (4), is act Oct. 15, 1914, ch. 323, 38 Stat. 730 , as amended, which is classified generally to sections 12, 13, 14 to 19, 20, 21, and 22 to 27 of Title 15 and sections 52 and 53 of Title 29, Labor. For further details and complete classification of this Act to the Code, see References in Text note set out under section 12 of Title 15 and Tables.

The Federal Trade Commission Act, referred to in subsec. (a)(2)(A), (4), is act Sept. 26, 1914, ch. 311, 38 Stat. 717 , as amended, which is classified generally to subchapter I (§41 et seq.) of chapter 2 of Title 15. For complete classification of this Act to the Code, see section 58 of Title 15 and Tables.

Sections 73 and 74 of the Wilson Tariff Act, referred to in subsec. (a)(2)(A), (4), are sections 73 and 74 of act Aug. 27, 1894, ch. 349, 28 Stat. 570 , which enacted sections 8 and 9, respectively, of Title 15.

Act of June 19, 1936, referred to in subsec. (a)(2)(A), (4), is act June 19, 1936, ch. 592, 49 Stat. 1526 , popularly known as the Robinson-Patman Anti-discrimination Act and also as the Robinson-Patman Price Discrimination Act, which enacted sections 13a, 13b, and 21a of Title 15 and amended section 13 of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 13 of Title 15 and Tables.

The effective date of the Staggers Rail Act of 1980, referred to in subsec. (a)(5)(C), probably means Oct. 1, 1980, the general effective date of Pub. L. 96–448. See section 710 of Pub. L. 96–448, set out as an Effective Date of 1980 Amendment note under section 10101 of this title.

The date of enactment of this subsection, referred to in subsec. (b)(3)(B)(ii), is the date of enactment of Pub. L. 96–296, which was approved July 1, 1980.

The date of enactment of the Motor Carrier Act of 1980, referred to in subsec. (b)(3)(C), is the date of enactment of Pub. L. 96–296, which was approved July 1, 1980.

Section 14(b)(4) of the Motor Carrier Act of 1980, referred to in subsec. (b)(3)(D), is section 14(b)(4) of Pub. L. 96–296.

The effective date of this subparagraph, referred to in subsec. (b)(3)(F), is the 60th day after Sept. 20, 1982, see section 31(a) of Pub. L. 97–261, set out as an Effective Date of 1982 Amendment note under section 10101 of this title.

Amendments

1986-Subsec. (a)(2)(A). Pub. L. 99–521, §7(c)(1), substituted "subsection (d)(1)(B)–(E)" for "subsection (c)(1)(B)–(E)".

Subsec. (d)(1)(E). Pub. L. 99–521, §7(c)(2), substituted "Household goods freight" for "Freight".

1984-Subsec. (c). Pub. L. 98–216 substituted "the first section of the Clayton Act (15 U.S.C. 12)" for "section 12 of title 15".

1982-Subsec. (b)(1), (2). Pub. L. 97–261, §10(a), struck out "of property" after "motor common carrier".

Subsec. (b)(3)(B)(i). Pub. L. 97–261, §10(b)(1), substituted ", (D), (E), and (F)" for "and (D)".

Subsec. (b)(3)(B)(iii). Pub. L. 97–261, §10(b)(2), struck out "of property" after "motor carrier".

Subsec. (b)(3)(D). Pub. L. 97–261, §10(b)(3), inserted provision that this subparagraph shall not apply to any single-line rate proposed by a motor common carrier of passengers.

Subsec. (b)(3)(E) to (H). Pub. L. 97–261, §10(b)(4), added subpars. (E) and (F) and redesignated former subpars. (E) and (F) as (G) and (H), respectively.

Subsec. (b)(5). Pub. L. 97–261, §10(c), added par. (5).

Subsec. (c). Pub. L. 97–261, §10(d), struck out "of property" after "motor common carrier".

1980-Subsec. (a)(1)(C). Pub. L. 96–448, §219(a), added subpar. (C).

Subsec. (a)(2)(A). Pub. L. 96–448, §219(b), inserted "publication," after "initiation," and substituted "section 10101a of this title" for "section 10101 of this title".

Subsec. (a)(3)(A). Pub. L. 96–448, §219(c)(1), in cl. (i) inserted provision directing an organization not to permit a rail carrier to discuss single line rates proposed by another carrier and providing that, except for purposes of general rate increases and broad tariff changes, the Commission delay or suspend implementation of this clause if at any time the Commission finds implementation not feasible, designated provision of cl. (i) relating to rates related to a particular interline movement as cl. (ii), and in cl. (ii) as so designated, inserted provision that rail carriers not be permitted to discuss such rates, struck out former cl. (ii), which directed an organization not to permit, or provide for, or establish a procedure for joint consideration or action to protest or seek suspension of a rate or classification filed by a rail carrier under section 10707 of this title when the rate or classification was established by independent action, and added cl. (iii).

Subsec. (a)(3)(B). Pub. L. 96–448, §219(c)(2), substituted in provision preceding cl. (i) "Until January 1, 1984, subparagraph (A)(ii) and (A)(iii) of this paragraph do not" for "Subparagraph (A)(i) and (ii) of this paragraph does not" and in cl. (i) "to cover inflationary cost increases, or general rate decreases, for joint rates" for "or decreases", inserted in cl. (ii) ", except single line rates where subparagraph (A)(i) of this paragraph prohibits the participation of carriers with single line rates" after "apply", and inserted provision after cl. (ii) authorizing the Commission to delay or suspend implementation of the subparagraph if at any time the Commission finds implementation of this subparagraph not feasible.

Subsec. (a)(3)(C). Pub. L. 96–448, §219(c)(3), designated existing provisions as cl. (i) and added cl. (ii).

Subsec. (a)(3)(D). Pub. L. 96–448, §219(c)(4), added subpar. (D).

Subsec. (a)(4). Pub. L. 96–448, §219(d), added par. (4).

Subsec. (a)(5). Pub. L. 96–448, §224(b), added par. (5).

Subsec. (b). Pub. L. 96–296, §14(a), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 96–296, §14(a), (c), redesignated subsec. (b) as (c) and substituted "(except a rail carrier or a motor common carrier of property)" for "(except a rail carrier)". Former subsec. (c) redesignated (d).

Subsec. (c)(2). Pub. L. 96–258 substituted a dash for the period after "section" in provisions preceding subpar. (A).

Subsec. (d). Pub. L. 96–296, §14(a), (d)(1), redesignated subsec. (c) as (d) and substituted in par. (2)(A) "subsection (a), (b), or (c)" for "subsection (a) or (b)". Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 96–296, §14(a), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 96–296, §14(a), (d), redesignated subsec. (e) as (f) and substituted "subsection (a), (b), or (c)" for "subsection (a) or (b)" and "subsection (b) or (c)" for "subsection (b)". Former subsec. (f) redesignated (g).

Subsec. (g). Pub. L. 96–296, §14(a), (d)(1), redesignated subsec. (f) as (g) and substituted "subsection (a), (b), or (c)" for "subsection (a) or (b)". Former subsec. (g) redesignated (h).

Subsec. (h). Pub. L. 96–296, §14(a), redesignated subsec. (g) as (h). Former subsec. (h) redesignated as (i).

Subsec. (i). Pub. L. 96–448, §219(e), substituted in par. (1)(B) "section 10101a of this title" for "section 10101 of this title".

Pub. L. 96–296, §14(a), redesignated subsec. (h) as (i).

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–521 effective 60 days after Oct. 22, 1986, see section 15 of Pub. L. 99–521, set out as a note under section 10102 of this title.

Effective Date of 1982 Amendment

Amendment by Pub. L. 97–261 effective on 60th day after Sept. 20, 1982, see section 31(a) of Pub. L. 97–261, set out as a note under section 10101 of this title.

Effective Date of 1980 Amendments

Amendment by Pub. L. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 10101 of this title.

Amendment by Pub. L. 96–258 effective Oct. 17, 1978, see section 3(d) of Pub. L. 96–258, set out as a note under section 10525 of this title.

Savings Provision

Section 706 of Pub. L. 96–448 provided that: "In the case of any proposal docketed with a rate bureau prior to the effective date of this Act [Oct. 1, 1980] which is or becomes the subject of an application or proceeding before the Interstate Commerce Commission, such application or proceeding shall be determined as if this Act [see Short Title of 1980 Amendment note set out under section 10101 of this title] had not been enacted, and the antitrust immunity provided in section 10706(b) of title 49, United States Code, resulting from approval of such agreement shall continue in effect."

Carrier Organizations Established Before November 19, 1982

Section 10(f) of Pub. L. 97–261 provided that: "Any organization established pursuant to an agreement entered into by motor common carriers of passengers and approved by the Commission prior to the effective date of this subsection [60th day after Sept. 20, 1982] under section 10706(c) of title 49, United States Code, may continue to function pursuant to such agreement until a new or amended agreement is finally disposed of by the Commission under section 10706 of title 49, United States Code, as amended by this section, so long as (1) such new or amended agreement is submitted to the Commission for approval within 120 days of such effective date, and (2) such organization complies with this section (including amendments made by this section and regulations issued under such amendments) during the period such new or amended agreement is being prepared, submitted to, and considered by the Commission."

Elimination of General Rate Increases and Decreases

Section 219(f) of Pub. L. 96–448 prohibited Interstate Commerce Commission from taking any action with respect to elimination of general rate increases or decreases prior to Apr. 1, 1982.

Protection of Rate Bureau Employees

Section 219(g) of Pub. L. 96–448 provided that: "The Interstate Commerce Commission shall require rail carrier members of a rate bureau to provide the employees of such rate bureau who are affected by the amendments made by this section [amending this section] with fair arrangements no less protective of the interests of such employees than those established pursuant to section 11347 of title 49, United States Code. For purposes of this subsection, the term 'employees' does not include any individual serving as president, vice-president, secretary, treasurer, comptroller, counsel, member of the board of directors, or any other person performing such functions."

Lawfulness of Existing Competitive Practices Between Water Carriers and Rail Carriers Unaffected

Section 707 of Pub. L. 96–448 provided that: "With respect to the relationship between water carriers and rail carriers, none of the amendments made by this Act [see Short Title of 1980 Amendment note set out under section 10101 of this title] shall be construed to make lawful (1) any competitive practice that is unfair, destructive, predatory, or otherwise undermines competition and that was unlawful on the effective date of this Act [Oct. 1, 1980], or (2) any other competitive practice that is unfair, destructive, predatory, or otherwise undermines competition."

Motor Carrier Ratemaking Study Commission

Section 14(b) of Pub. L. 96–296, as amended by Pub. L. 97–261, §10(e), Sept. 20, 1982, 96 Stat. 1110 , established the Motor Carrier Ratemaking Study Commission, provided for the Commission's membership, compensation of members, filling of vacancies, staff personnel, and experts and consultants, authorized the Commission to make full and complete investigations and studies of the collective ratemaking process for all rates of motor common carriers of property, including the need or lack of need for continued antitrust immunity therefor and the impact of elimination of such immunity on rate levels and structures and on the Interstate Commerce Commission and its staff, the collective ratemaking process for general rate changes, innovative fare changes, and broad changes in tariff structure of motor common carriers of passengers, including the need or lack of need for continued antitrust immunity therefor and the impact of elimination of such immunity on rate levels and structures and on the Interstate Commerce Commission and its staff, the impact of implementation of the Bus Regulatory Reform Act of 1982, Pub. L. 97–261, Sept. 20, 1982, 96 Stat. 1102 , on persons over the age of 60, including those who reside in rural areas and small communities, and the impact of statutory and administrative reforms on continuation and development of high quality intrastate motor bus services, and directed the Commission to submit to the President and Congress its final report on the collective ratemaking process applicable to motor common carriers of property not later than Jan. 1, 1983, its final report on the collective ratemaking process applicable to motor common carriers of passengers not later than Jan. 1, 1984, and its final report on the impact of the Bus Regulatory Reform Act of 1982 and statutory and administrative reforms on high quality intrastate motor bus services not later than Jan. 1, 1984, with the Commission to cease to exist six months after submission of the last of its final reports.

Continuation of Functions Under Prior Rate Agreement; Submission of New or Amended Rate Agreement and Compliance With Present Provisions

Section 14(e) of Pub. L. 96–296 provided that: "Any organization established pursuant to an agreement approved by the Commission prior to the date of enactment of this Act [July 1, 1980] under section 10706(b) of title 49, United States Code, may continue to function pursuant to such agreement until a new or amended agreement is finally disposed of by the Commission under section 10706 of title 49, United States Code, as amended by this section, so long as (1) such new or amended agreement is submitted to the Commission for approval within 120 days of such date of enactment, and (2) such organization complies with this section (including amendments made by this section [amending this section] and regulations issued under such amendments) during the period such new or amended agreement is being prepared, submitted to, and considered by the Commission."

Section Referred to in Other Sections

This section is referred to in sections 10102, 10505, 10701, 10707, 10707a, 10708, 10721, 11501 of this title.