§11342. Limitation on pooling and division of transportation or earnings

(a) A common carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I, II, or III of chapter 105 of this title may not agree or combine with another of those carriers to pool or divide traffic or services or any part of their earnings without the approval of the Commission under this section or sections 11124 and 11125 of this title. Except as provided in subsection (b) for agreements or combinations between or among motor common carriers of property, the Commission may approve and authorize the agreement or combination if the carriers involved assent to the pooling or division and the Commission finds that a pooling or division of traffic, services, or earnings-

(1) will be in the interest of better service to the public or of economy of operation; and

(2) will not unreasonably restrain competition.

(b)(1) Any motor common carrier of property may apply to the Commission for approval of an agreement or combination with another motor common carrier of property to pool or divide traffic or any services or any part of their earnings by filing such agreement or combination with the Commission not less than 50 days before its effective date. Prior to the effective date of the agreement or combination, the Commission shall determine whether the agreement or combination is of major transportation importance and whether there is substantial likelihood that the agreement or combination will unduly restrain competition. If the Commission determines that neither of these two factors exists, it shall, prior to such effective date and without a hearing, approve and authorize the agreement or combination, under such rules and regulations as the Commission may issue, and for such consideration between such carriers and upon such terms and conditions as shall be found by the Commission to be just and reasonable. If the Commission determines either that the agreement or combination is of major transportation importance or that there is a substantial likelihood that the agreement or combination will unduly restrain competition, the Commission shall hold a hearing concerning whether the agreement or combination will be in the interest of better service to the public or of economy in operation and whether it will unduly restrain competition and shall suspend operation of such agreement or combination pending such hearing and final decision thereon. After such hearing, the Commission shall indicate to what extent it finds that the agreement or combination will be in the interest of better service to the public or of economy in operation and will not unduly restrain competition and if assented to by all the carriers involved, shall, to that extent, approve and authorize the agreement or combination, under such rules and regulations as the Commission may issue, and for such consideration between such carriers and upon such terms and conditions as shall be found by the Commission to be just and reasonable.

(2) In the case of an application for Commission approval of an agreement or combination between a motor common carrier providing transportation of household goods and its agents to pool or divide traffic or services or any part of their earnings, such agreement or combination shall be presumed to be in the interest of better service to the public and of economy in operation and not to restrain competition unduly if the practices proposed to be carried out under such agreement or combination are the same as or similar to practices carried out under agreements and combinations between motor common carriers providing transportation of household goods to pool or divide traffic or services or any part of their earnings approved by the Commission before the date of enactment of this paragraph.

(3) The Commission shall streamline, simplify, and expedite, to the maximum extent practicable, the process (including, but not limited to, any paperwork) for submission and approval of applications under this section for agreements and combinations between motor common carriers providing transportation of household goods and their agents.

(c) The Commission may impose conditions governing the pooling or division and may approve and authorize payment of a reasonable consideration between the carriers.

(d) This section affects an agreement or combination filed with the Commission before March 19, 1941, to which a water common carrier providing transportation subject to the jurisdiction of the Commission under subchapter III of chapter 105 of this title is a party only when the Commission determines that the agreement or combination does not meet the requirements for approval and authorization under subsection (a) of this section.

(e) The Commission may begin a proceeding under this section on its own initiative or on application.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1434 ; Pub. L. 96–296, §20, July 1, 1980, 94 Stat. 811 ; Pub. L. 96–454, §5(c), Oct. 15, 1980, 94 Stat. 2014 .)

In subsection (a), the words "subchapter I, II, or III of chapter 105 of this title" are substituted for "this chapter, chapter 8, or chapter 12 of this title" to conform to the revised title. The words "upon specific approval by order of the Commission" are omitted as unnecessary in view of the restatement and subchapter II of chapter 5 of title 5. The words "under this section or sections 11124 and 11125 of this title" are substituted for "as in this section provided, and except as provided in paragraph (16) of section 1 of this title" to conform to the revision of 49:1(16) and 5. The words "may not agree or combine" are substituted for "it shall be unlawful . . . to enter into any contract, agreement, or combination" for clarity and as being more inclusive. The words "gross or net" are omitted as surplus. The words "by order" are omitted as unnecessary in view of subchapter II of chapter 5 of title 5. The words "Provided, That" are omitted as surplus. The words "the Commission finds" are substituted for "whenever the Commission is of opinion" for clarity. The word "unreasonably" is substituted for "unduly" for clarity.

In subsection (b), the words "The Commission may impose conditions governing the pooling or division" are substituted for "to the extent indicated by the Commission . . . under such rules and regulations, . . . and upon such terms and conditions, as shall be found by the Commission to be just and reasonable in the premises" for clarity and consistency in view of subchapter II of chapter 5 of title 5. The words "may approve and authorize payment of a reasonable consideration between the carriers" are substituted for "and for such consideration as between such carriers" for clarity.

In subsection (c), the words "Provided further, That" are omitted as surplus. The words "This section affects an agreement or combination filed with the Commission before March 19, 1941 only" are substituted for "any contract, agreement, or combination . . . relating to the pooling or division of traffic, service, or earnings, or any portion thereof, lawfully existing on September 18, 1940, if filed with the Commission within six months after such date, shall continue to be lawful" for clarity and to eliminate obsolete language. The words "when the Commission determines that the agreement or combination does not meet the requirements for approval and authorization under subsection (a) of this section" are substituted for "except to the extent that the Commission . . . may find and by order declare that such contract, agreement, or combination is not in the interest of better service to the public or of economy in operation, or that it will unduly restrain competition" for clarity and consistency.

In subsection (d), the word "proceeding" is substituted for "hearing" for consistency in view of subchapter II of chapter 103 of the revised title and subchapter II of chapter 5 of title 5.

References in Text

The date of enactment of this paragraph, referred to in subsec. (b)(2), is the date of enactment of Pub. L. 96–454, which was approved Oct. 15, 1980.

Amendments

1980-Subsec. (a). Pub. L. 96–296, §20(a), substituted "Except as provided in subsection (b) for agreements or combinations between or among motor common carriers of property, the Commission may" for "The Commission may".

Subsec. (b). Pub. L. 96–454 designated existing provisions as par. (1) and added pars. (2) and (3).

Pub. L. 96–296, §20(b), added subsec. (b). Former subsec. (b) redesignated (c).

Subsecs. (c) to (e). Pub. L. 96–296, §20(b), redesignated former subsecs. (b) to (d) as (c) to (e), respectively.

Section Referred to in Other Sections

This section is referred to in sections 11351, 11914 of this title.