§10923. Permits of motor and water contract carriers and household goods freight forwarders

(a) Except as provided in this section and section 10930 of this title, the Interstate Commerce Commission shall issue a permit to a person authorizing the person to provide transportation subject to the jurisdiction of the Commission under subchapter II or III of chapter 105 of this title as a motor contract carrier of household goods or passengers or water contract carrier, respectively, or to provide service subject to that jurisdiction under subchapter IV of chapter 105 as a households ¹ goods freight forwarder, if the Commission finds that-

(1) the person is fit, willing, and able-

(A) to provide the transportation or service to be authorized by the permit; and

(B) to comply with this subtitle and regulations of the Commission; and

(2) the transportation or service to be provided under the permit is or will be consistent with the public interest and the transportation policy of section 10101 of this title.

(b)(1) Except as provided in this section and section 10930 of this title, the Commission shall issue a permit to a person authorizing the person to provide transportation subject to the jurisdiction of the Commission under subchapter II of chapter 105 of this title as a motor contract carrier of property other than household goods if the Commission finds that the person is able to comply with-

(A) this subtitle, the regulations of the Commission, and any safety requirements imposed by the Commission,

(B) the safety fitness requirements established by the Secretary of Transportation in consultation with the Commission pursuant to section 31144 of this title, and

(C) the minimum financial responsibility requirements established by the Commission pursuant to section 10927 of this title.

(2) In deciding whether to approve the application of a person for a permit as a motor contract carrier of property other than household goods the Commission shall consider any evidence demonstrating that the applicant is unable to comply with this subtitle, the regulations of the Commission, safety requirements of the Commission, or the safety fitness and minimum financial responsibility requirements of subsection (b)(1).

(3) The Commission shall find any applicant for authority to operate as a motor carrier of property other than household goods under this subsection to be unfit if the applicant does not meet the safety and safety fitness requirements of paragraph (1)(A) or (1)(B) of this subsection and shall deny the application.

(4) A person may protest an application under this subsection to provide transportation only on the ground that the applicant fails or will fail to comply with this subtitle, the regulations of the Commission, safety requirements of the Commission, or the safety fitness or minimum financial responsibility requirements of paragraph (1).

(c)(1) A person must file an application with the Commission for a permit to provide transportation as a contract carrier or to provide service as a households ² goods freight forwarder. The Commission may approve any part of the application or deny the application. The application must-

(A) be under oath;

(B) contain information required by Commission regulations; and

(C) be served on persons designated by the Commission.

(2) The provisions of paragraph (2) of subsection (a) of this section shall not apply to applications under this section for authority to provide transportation as a motor contract carrier of passengers. The requirement that persons issued permits under this section as motor contract carriers of passengers be fit, willing, and able means safety fitness and proof of minimum financial responsibility under section 18 ³ of the Bus Regulatory Reform Act of 1982.

(3) In deciding whether to approve the application of a person for a permit as a motor contract carrier of household goods, the Commission shall consider-

(A) the nature of the transportation proposed to be provided;

(B) the effect that granting the permit would have on the protesting carriers if such grant would endanger or impair their operations to an extent contrary to the public interest;

(C) the effect that denying the permit would have on the person applying for the permit, its shippers, or both; and

(D) the changing character of the requirements of those shippers.

(4) No motor carrier of property may protest an application to provide transportation as a motor contract carrier of household goods filed under this section unless-

(A)(i) it possesses authority to handle, in whole or in part, the traffic for which authority is applied;

(ii) it is willing and able to provide service that meets the reasonable needs of the shippers involved; and

(iii) it has performed service within the scope of the application during the previous 12-month period or has, actively in good faith, solicited service within the scope of the application during such period;

(B) it has pending before the Commission an application filed prior in time to the application being considered for substantially the same traffic; or

(C) the Commission grants leave to intervene upon a showing of other interests that are not contrary to the transportation policy set forth in section 10101(a) of this title.

(5) With respect to applications of persons for permits as motor contract carriers of household goods, the Commission may not make a finding relating to the public interest under subsection (a)(2) of this section which is based upon general findings developed in rulemaking proceedings.

(6) The Commission may not deny any part of an application for a households ⁴ goods freight forwarder permit filed by a corporation controlled by, or under common control with-

(A) a common carrier providing transportation subject to the jurisdiction of the Commission under subchapter I, II, or III of chapter 105 of this title, because of the relationship between the corporation and that carrier; and

(B) a common carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 only because the service to be provided by the corporation will compete with service provided by another households ⁴ goods freight forwarder subject to subchapter IV of that chapter.

(d) Each permit issued to a person-

(1) to provide transportation as a motor contract carrier is subject to section 10927(a) of this title and shall specify the transportation to be provided by the carrier;

(2) to provide transportation as a water contract carrier shall specify the transportation to be provided by the carrier; and

(3) to provide service as a households ⁴ goods freight forwarder shall specify the nature or general description about which the service is to be provided, the area in which, and the areas between which, the service may be provided by the households ⁴ goods freight forwarder.

(e)(1) The Commission may prescribe necessary conditions under which a contract carrier of passengers or household goods or households ⁴ goods freight forwarder provides transportation or service, except that in the case of a motor contract carrier of property, the Commission may not require such carrier to limit its operations to carriage for a particular industry or within a particular geographic area. The Commission may prescribe the conditions when the permit is issued and at any time thereafter.

(2) The permit for a motor contract carrier shall specify necessary conditions, including in the case of a motor contract carrier of passengers, the number of persons, for which the carrier may provide transportation-

(A) to ensure that the carrier provides transportation as a motor contract carrier and within the scope of the permit; and

(B) to carry out requirements established by the Commission under this subtitle.

(3) Subject to the permit and its conditions, a motor contract carrier may substitute or add to its equipment and facilities as requests for its transportation develop. The Commission may not prescribe a condition preventing-

(A) a water contract carrier from substituting or adding contracts within the scope of the permit to satisfy the requirements of business development and public demand; and

(B) a water contract carrier or households ⁴ goods freight forwarder from adding to its equipment and facilities, and transportation or service, as the case may be, within the scope of the permit to satisfy the requirements of business development and public demand.

(f) A motor contract carrier of property may deliver to or receive from a rail carrier a trailer moving in trailer-on-flat-car service at any point on the route of the rail carrier if the motor carrier is authorized to serve the origin and destination points of the traffic.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1410 ; Pub. L. 96–258, §1(9), June 3, 1980, 94 Stat. 426 ; Pub. L. 96–296, §§10(a)(2), (3), 34(b), July 1, 1980, 94 Stat. 799 , 800, 825; Pub. L. 97–261, §13(a), Sept. 20, 1982, 96 Stat. 1114 ; Pub. L. 99–521, §8(a)(1), (2), Oct. 22, 1986, 100 Stat. 2996 ; Pub. L. 103–311, title II, §208, Aug. 26, 1994, 108 Stat. 1687 .)

Historical and Revision Notes
Pub. L. 95–473

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
10923(a), (b)	49:309(b) (1st–3d sentences).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §209(b) (less last proviso); added Aug. 9, 1935, ch. 498, §1, 49 Stat. 553 ; Aug. 22, 1957, Pub. L. 85–163, §2, 71 Stat. 411 .
	49:909(g) (1st and 2d sentences).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §309(g); added Sept. 18, 1940, ch. 722, §201, 54 Stat. 943 .
	49:1010(b), (c) (less 2d sentence, words before semicolon), (d).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §410(b), (c) (less 2d sentence, words before semicolon), (d), (e); added May 16, 1942, ch. 318, §1, 56 Stat. 291 , 293; Aug. 28, 1957, Pub. L. 85–176, §1, 71 Stat. 452 .
10923(c), (d)	49:309(b) (less 1st–3d sentences and last proviso).
	49:909(g) (less 1st and 2d sentences).
	49:1010(e).

The words "provide transportation" are substituted for "perform the service" in 49:309(b) and 49:909(g), and the word "transportation" is substituted for "business" in 49:309(b) and for "operations" in 49:909(g), for consistency and as being more precise because the jurisdictional grant to the Interstate Commerce Commission under subchapters II and III of chapter 105 of the revised title is jurisdiction over transportation.

In the introductory matter of subsection (a), before clause (1), the words "authorizing the person to provide" are inserted for clarity. The words "qualified applicant therefor" in 49:309(b) and 49:1010(c) are omitted as unnecessary in view of the provisions of the section specifying the necessary qualifications of motor contract carriers and freight forwarders. The words "if it appears from the applications or from any hearing held thereon" in 49:309(b) are omitted for consistency and as unnecessary in view of the provisions of the subtitle related to Commission procedures.

In subsection (a)(1), the word "fit" is substituted for "ready" in 49:1010(c) as being more precise and for consistency. The word "properly" is omitted as surplus. The words "to be authorized by the permit" are substituted for "to perform the service proposed" in 49:909(g) and 49:1010(c) for clarity in view of the authority of the Commission to approve only part of an application. The words "requirements, rules" in 49:309(b) and 49:909(g) are omitted as being included in "regulations" and for consistency. The words "comply with this subtitle and regulations of the Commission" are made applicable to 49:1010(c) for consistency and as being necessarily implied in view of section 10321(a) of the revised title giving the Commission general authority to carry out the subtitle.

In subsection (a)(2), the words "is or" are inserted in 49:309(b) and 49:909(g) for consistency.

In subsection (b), the words "shall be in such form and" are omitted as unnecessary in view of section 10321(a) of the revised title giving the Commission general authority to carry out the subtitle.

In subsections (c) and (d), the word "provide" is substituted for "perform" in 49:1010(e) for consistency.

In subsection (c)(1), the words "subject to section 10927(a) of this title" are inserted for clarity.

In subsection (c)(2), the words "consistent with the character of the holder as a contract carrier by water" in 49:909(g) are omitted as unnecessary and for consistency.

In subsection (c)(3), the words "area" and "areas" are substituted for "territory" and "territories", respectively, in 49:1010(e) for consistency. The words "under authority of such permit" in 49:1010(e) are omitted as unnecessary.

In subsection (d), the words "reasonable terms" and "limitations" are omitted as unnecessary. The words "to the exercise of the privileges granted" in 49:1010(e) are omitted as surplus.

Pub. L. 96–258

This amends section 10923(b)(2) to make a technical change to conform to the source provision by setting out the 5 criteria separately.

References in Text

Section 18 of the Bus Regulatory Reform Act of 1982, referred to in subsec. (c)(2), is section 18 of Pub. L. 97–261, of which subsecs. (a) to (g) were formerly set out as a note under section 10927 of this title and subsec. (h) amended section 10927 of this title. Section 18(a)–(g) was repealed and reenacted as section 31138 of this title by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1005 , 1379, the first section of which enacted subtitles II, III, and V to X of this title.

Amendments

1994-Subsec. (a). Pub. L. 103–311, §208(a), inserted "of household goods or passengers" after "motor contract carrier".

Subsec. (b). Pub. L. 103–311, §208(b), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 103–311, §208(b), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).

Subsec. (c)(3), (4). Pub. L. 103–311, §208(c)(1), substituted "motor contract carrier of household goods" for "motor contract carrier of property" in introductory provisions.

Subsec. (c)(5). Pub. L. 103–311, §208(c)(3), substituted "motor contract carriers of household goods" for "motor contract carriers of property".

Pub. L. 103–311, §208(c)(2), redesignated par. (6) as (5) and struck out former par. (5) which read as follows:

"(5)(A) The provisions of paragraph (2) of subsection (a) of this section and paragraph (3) of this subsection shall not apply to applications under this section for authority to provide transportation by motor vehicle of food and other edible products (including edible byproducts but excluding alcoholic beverages and drugs) intended for human consumption, agricultural limestone and other soil conditioners, and agricultural fertilizers if-

"(i) such transportation is provided with the owner of the motor vehicle in such vehicle, except in emergency situations; and

"(ii) after issuance of the permit, such transportation (measured by tonnage) does not exceed, on an annual basis, the transportation provided by the motor vehicle (measured by tonnage) which is exempt from the jurisdiction of the Commission under section 10526(a)(6) of this title and the owner of the motor vehicle certifies to the Commission annually that he is complying with the provisions of this subparagraph and provides to the Commission such information and records as the Commission may require.

"(B) The Commission shall streamline and simplify, to the maximum extent practicable, the process for issuance of permits to which the provisions of subparagraph (A) of this paragraph apply."

Subsec. (c)(6), (7). Pub. L. 103–311, §208(c)(2), redesignated pars. (6) and (7) as (5) and (6), respectively.

Subsec. (d). Pub. L. 103–311, §208(b), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 103–311, §208(b), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).

Subsec. (e)(1). Pub. L. 103–311, §208(d)(1), which directed insertion of "of passengers or household goods" after "contract carrier", was executed by making the insertion after "contract carrier" first time it appears to reflect the probable intent of Congress.

Subsec. (e)(2). Pub. L. 103–311, §208(d)(2), substituted "in the case of a motor contract carrier of passengers, the number of persons," for "each person or class of persons (and, in the case of a motor contract carrier of passengers, the number of persons)".

Subsec. (f). Pub. L. 103–311, §208(b), redesignated subsec. (e) as (f).

1986-Pub. L. 99–521 inserted "household goods" before "freight forwarders" in section catchline, and inserted "households goods" before "freight forwarder" wherever appearing in text.

1982-Subsec. (b)(2). Pub. L. 97–261 substituted provision that par. (2) of subsec. (a) of this section shall not apply to applications under this section for authority to provide transportation as a motor contract carrier of passengers, and that the requirement that persons issued permits under this section as motor contract carriers of passengers be fit, willing, and able means safety fitness and proof of minimum financial responsibility under section 18 of the Bus Regulatory Reform Act of 1982, for provision that in deciding whether to approve the application of a person for a permit as a motor contract carrier of passengers, the Commission would consider the number of shippers to be served by the carrier, the nature of the transportation proposed to be provided, the effect that granting the permit would have on the transportation of carriers protesting the granting of the permit, the effect that denying the permit would have on the person applying for the permit, its shippers, or both, and the changing character of the requirements of those shippers.

1980-Subsec. (b)(2). Pub. L. 96–296, §10(a)(2)(A), inserted "of passengers" after "motor contract carrier".

Pub. L. 96–258, in subpar. (D), substituted "; and" for ", and the changing character of the requirements of those shippers." and added subpar. (E).

Subsec. (b)(3). Pub. L. 96–296, §10(a)(2)(B), added par. (3). Former par. (3) redesignated (7).

Subsec. (b)(4) to (6). Pub. L. 96–296, §10(a)(2)(B), added pars. (4) to (6).

Subsec. (b)(7). Pub. L. 96–296, §10(a)(2)(B), redesignated former par. (3) as (7).

Subsec. (d)(1). Pub. L. 96–296, §10(a)(3)(A), inserted ", except that in the case of a motor contract carrier of property, the Commission may not require such carrier to limit its operations to carriage for a particular industry or within a particular geographic area" after "or service".

Subsec. (d)(2). Pub. L. 96–296, §10(a)(3)(B), substituted "including each person or class of persons (and, in the case of a motor contract carrier of passengers, the number of persons)" for "including each person or number or class of persons".

Subsec. (e). Pub. L. 96–296, §34(b), added subsec. (e).

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–311 effective Jan. 1, 1995, see section 212 of Pub. L. 103–311, set out as a note under section 10101 of this title.

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 Amendment

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.

Section Referred to in Other Sections

This section is referred to in sections 10328, 10528, 10530, 10762, 10922, 10925, 10926, 10927, 11145, 11304, 11506, 11708 of this title.

¹ So in original. Probably should be "household".

² So in original. Probably should be "household".

³ See References in Text note below.

⁴ So in original. Probably should be "household".