§10707. Investigation and suspension of new rail carrier rates, classifications, rules, and practices

(a) When a new individual or joint rate or individual or joint classification, rule, or practice related to a rate is filed with the Interstate Commerce Commission by a rail carrier providing transportation subject to its jurisdiction under subchapter I of chapter 105 of this title, the Commission may begin a proceeding, on its own initiative or on complaint of an interested party, to determine whether the proposed rate, classification, rule, or practice violates this subtitle. The Commission must give reasonable notice to interested parties before beginning a proceeding under this subsection but may act without allowing an interested party to file an answer or other formal pleading in response to its decision to begin the proceeding.

(b)(1) The Commission must complete a proceeding under this section and make its final decision by the end of the 5th month after the rate, classification, rule, or practice was to become effective, except that if the Commission reports to the Congress by the end of such 5th month that it cannot make a final decision by that time and explains the reason for the delay, it may take an additional 3 months to complete the proceeding and make its final decision. If the Commission does not reach a final decision within the applicable time period, the rate, classification, rule, or practice-

(A) is effective at the end of that time period; or

(B) if already in effect at the end of that time period, remains in effect.

(2) If an interested party has filed a complaint under subsection (a) of this section, the Commission may set aside a rate, classification, rule, or practice, that has become effective under this section if the Commission finds it to be in violation of this chapter.

(c)(1) The Commission may not suspend a proposed rate, classification, rule, or practice during the course of a Commission proceeding under this section unless it appears from the specific facts shown by the verified statement of a person that-

(A) it is substantially likely that the protestant will prevail on the merits;

(B) without suspension, the proposed rate change will cause substantial injury to the protestant or the party represented by the protestant; and

(C) because of the peculiar economic circumstances of the protestant, the provisions of subsection (d) of this section do not protect the protestant.

(2) The burden shall be on the protestant to prove the matters described in paragraph (1)(A), (B), and (C) of this subsection.

(d)(1) If the Commission does not suspend a proposed rate increase under subsection (c) of this section, the Commission shall require the rail carrier to account for all amounts received under the increase until the Commission completes its proceedings under subsection (b) of this section. The accounting shall specify by whom and for whom the amounts are paid. When the Commission takes final action, it shall require the carrier to refund to the person for whom the amounts were paid that part of the increased rate found to be unreasonable, plus interest at a rate equal to the average yield (on the date the statement is filed) of marketable securities of the United States Government having a duration of 90 days.

(2) If a rate is suspended under subsection (c) of this section and any portion of such rate is later found to be reasonable under this subtitle, the carrier shall collect from each person using the transportation to which the rate applies the difference between the original rate and the portion of the suspended rate found to be reasonable for any services performed during the period of suspension, plus interest at a rate equal to the average yield (on the date the statement is filed) of marketable securities of the United States Government having a duration of 90 days, except that this paragraph shall not apply to general rate increases under section 10706 of this title.

(3) If any portion of a proposed rate decrease is suspended under subsection (c) of this section and later found to be reasonable under this subtitle, the rail carrier may refund any part of the portion of the decrease found to comply with this subtitle if the carrier makes the refund available to each shipper who participated in the rate, in accordance with the relative amount of such shipper's traffic transported at such rate.

(4) Notwithstanding the provisions of section 10741 or section 10761 of this title, the Commission shall, by rule, establish standards and procedures permitting a rail carrier to waive the collection of amounts due under this subsection if such amounts are not significant.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1380 ; Pub. L. 96–448, title II, §207, Oct. 14, 1980, 94 Stat. 1907 ; Pub. L. 103–272, §4(j)(21), July 5, 1994, 108 Stat. 1369 .)

Historical and Revision Notes

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
10707(a)	49:15(8)(a) (1st and 2d sentences).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §15(8); added Feb. 5, 1976, Pub. L. 94–210, §202(e)(2), 90 Stat. 36 .
10707(b)–(e)	49:15(8) (less (a) 1st and 2d sentences).

In 49:15(8), the words after the 4th comma in subsection (b), subsections (c) and (d) (last sentence) are omitted from the restatement as executed, effective January 1, 1978.

In subsection (a), the word "schedule" is omitted for consistency. The word "rate" is substituted for "rates, fare, or charge" in view of the definition of "rate" in section 10102 of the revised title. The words "providing transportation subject to its jurisdiction under subchapter I of chapter 105 of this title" are added to conform to the revision. The word "proceeding" is substituted for "hearing" in view of subchapter II of chapter 5 of title 5. The words "to determine whether . . . violates this section" are substituted for "concerning the lawfulness" for consistency.

In subsection (b), the words "may take an additional 3 months" are substituted for "shall be made not later than 10 months after" for consistency.

In subsection (c), the words "Pursuant to subdivision (d)" are omitted as unnecessary. The words "facts required under paragraph (1) (A) and (B) of this subsection" are substituted for "matters set forth in clauses (i) and (ii) of this subdivision" for clarity.

In subsection (d), the words "When any part of a rate decrease is suspended" are substituted for "With respect to any proposed decreased rate, fare, or charge which is suspended" for clarity. The words "comply with this title" are substituted for "lawful" for clarity and consistency.

In subsection (e), the word "reasonable" is substituted for "just and reasonable" for consistency. See the revision note to section 10101 of the revised title.

[Subsections (c) and (d) (last sentence) of 49:15(8), which were omitted from the restatement as executed (see first par. of Historical and Revision Notes above), were amended by Pub. L. 95–607, title IV, §401, Nov. 8, 1978, 92 Stat. 3067 , and later repealed effective July 1, 1980, by Pub. L. 96–258, §3(c), June 3, 1980, 94 Stat. 428 .]

Amendments

1994-Subsec. (d)(2). Pub. L. 103–272, §4(j)(21)(A), substituted "under this subtitle" for "under this title".

Subsec. (d)(3). Pub. L. 103–272, §4(j)(21)(B), substituted "subtitle" for "title" in two places.

1980-Subsec. (b)(1). Pub. L. 96–448, §207(a), changed period within which the Commission must complete a proceeding and make a final decision from end of 7th month after the rate, classification, rule, or practice was to become effective to end of 5th month.

Subsec. (c). Pub. L. 96–448, §207(b), substituted verified statement for verified complaint as the instrument on which specific facts must be shown and protestant for complainant as the party likely to prevail on the merits, suffer substantial injury, and carry the burden of proof and inserted additional requirement for suspension that the protestant, because of peculiar economic circumstances, is not protected by the provisions of subsec. (d) of this section.

Subsec. (d). Pub. L. 96–448, §207(c), designated existing provision as par. (1), designated provision of par. (1) as so designated, relating to refund of any portion of a proposed rate decrease suspend and later found to comply, as par. (3), and added pars. (2) and (4).

Subsec. (e). Pub. L. 96–448, §207(d), struck out subsec. (e) which placed burden of proof on the carrier that the proposed change was reasonable and directed the Commission to specifically consider proof that the proposed rate, classification, rule, or practice will have an adverse effect on the competitive posture of shippers or consignees affected by it and that the Commission give proceedings under this section preference over all other proceedings and make its decision at the earliest practical time.

Effective Date of 1980 Amendment

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.

Section Referred to in Other Sections

This section is referred to in sections 10701a, 10705a, 10707a, 10709, 10711, 11126 of this title.