49 U.S.C. § 10705 — Authority: through routes, joint classi-

Page 424 TITLE 49—TRANSPORTATION § 10704 § 10704. Authority and criteria: rates, classifica- tions, rules, and practices prescribed by Board (a)(1) When the Board, after a full hearing, de- cides that a rate charged or collected by a rail carrier for transportation subject to the juris- diction of the Board under this part, or that a classification, rule, or practice of that carrier, does or will violate this part, the Board may prescribe the maximum rate, classification, rule, or practice to be followed. The Board may order the carrier to stop the violation. When a rate, classification, rule, or practice is pre- scribed under this subsection, the affected car- rier may not publish, charge, or collect a dif- ferent rate and shall adopt the classification and observe the rule or practice prescribed by the Board. (2) The Board shall maintain and revise as nec- essary standards and procedures for establishing revenue levels for rail carriers providing trans- portation subject to its jurisdiction under this part that are adequate, under honest, economi- cal, and efficient management, for the infra- structure and investment needed to meet the present and future demand for rail services and to cover total operating expenses, including de- preciation and obsolescence, plus a reasonable and economic profit or return (or both) on cap- ital employed in the business. The Board shall make an adequate and continuing effort to as- sist those carriers in attaining revenue levels prescribed under this paragraph. Revenue levels established under this paragraph should— (A) provide a flow of net income plus depre- ciation adequate to support prudent capital outlays, assure the repayment of a reasonable level of debt, permit the raising of needed eq- uity capital, and cover the effects of inflation; and (B) attract and retain capital in amounts adequate to provide a sound transportation system in the United States. (3) On the basis of the standards and proce- dures described in paragraph (2), the Board shall annually determine which rail carriers are earn- ing adequate revenues. (b) The Board may begin a proceeding under this section only on complaint. A complaint under subsection (a) of this section must be made under section 11701 of this title, but the proceeding may also be in extension of a com- plaint pending before the Board. (c) In a proceeding to challenge the reason- ableness of a rate, the Board shall make its de- termination as to the reasonableness of the challenged rate— (1) within 9 months after the close of the ad- ministrative record if the determination is based upon a stand-alone cost presentation; or (2) within 6 months after the close of the ad- ministrative record if the determination is based upon the methodology adopted by the Board pursuant to section 10701(d)(3). (d)(1) The Board shall maintain procedures to ensure the expeditious handling of challenges to the reasonableness of railroad rates. The proce- dures shall include appropriate measures for avoiding delay in the discovery and evidentiary phases of such proceedings and exemption or revocation proceedings, including appropriate sanctions for such delay, and for ensuring prompt disposition of motions and interlocutory administrative appeals. (2)(A) Except as provided under subparagraph (B), in a stand-alone cost rate challenge, the Board shall comply with the following timeline: (i) Discovery shall be completed not later than 150 days after the date on which the chal- lenge is initiated. (ii) The development of the evidentiary record shall be completed not later than 155 days after the date on which discovery is com- pleted under clause (i). (iii) The closing brief shall be submitted not later than 60 days after the date on which the development of the evidentiary record is com- pleted under clause (ii). (iv) A final Board decision shall be issued not later than 180 days after the date on which the evidentiary record is completed under clause (ii). (B) The Board may extend a timeline under subparagraph (A) after a request from any party or in the interest of due process. (Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 810; amended Pub. L. 104–287, § 5(23), Oct. 11, 1996, 110 Stat. 3390; Pub. L. 114–110, §§ 11(b), 16, Dec. 18, 2015, 129 Stat. 2233, 2238.) Editorial Notes PRIOR PROVISIONS A prior section 10704, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1373; Pub. L. 96–296, § 13(b), July 1, 1980, 94 Stat. 803; Pub. L. 96–448, title II, § 205(b), Oct. 14, 1980, 94 Stat. 1906; Pub. L. 97–261, § 9(b), Sept. 20, 1982, 96 Stat. 1109; Pub. L. 99–521, § 7(b), Oct. 22, 1986, 100 Stat. 2994, related to authority and criteria for rates, classifications, rules, and practices prescribed by Interstate Commerce Commission, prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). See sections 10704, 13701, and 15503 of this title. AMENDMENTS 2015—Subsec. (a)(2). Pub. L. 114–110, § 16, inserted ‘‘for the infrastructure and investment needed to meet the present and future demand for rail services and’’ after ‘‘management,’’ in introductory provisions. Subsec. (d). Pub. L. 114–110, § 11(b), designated exist- ing provisions as par. (1), substituted ‘‘The Board shall maintain procedures to ensure the expeditious handling of challenges to the reasonableness of railroad rates.’’ for ‘‘Within 9 months after January 1, 1996, the Board shall establish procedures to ensure expeditious han- dling of challenges to the reasonableness of railroad rates.’’, and added par. (2). 1996—Subsec. (d). Pub. L. 104–287 substituted ‘‘Janu- ary 1, 1996’’ for ‘‘the effective date of the ICC Termi- nation Act of 1995’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1996, except as otherwise pro- vided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title. § 10705. Authority: through routes, joint classi- fications, rates, and divisions prescribed by Board (a)(1) The Board may, and shall when it con- siders it desirable in the public interest, pre- Page 425 TITLE 49—TRANSPORTATION § 10706 scribe through routes, joint classifications, joint rates, the division of joint rates, and the condi- tions under which those routes must be oper- ated, for a rail carrier providing transportation subject to the jurisdiction of the Board under this part. (2) The Board may require a rail carrier to in- clude in a through route substantially less than the entire length of its railroad and any inter- mediate railroad operated with it under common management or control if that intermediate railroad lies between the terminals of the through route only when— (A) required under section 10741, 10742, or 11102 of this title; (B) inclusion of those lines would make the through route unreasonably long when com- pared with a practicable alternative through route that could be established; or (C) the Board decides that the proposed through route is needed to provide adequate, and more efficient or economic, transpor- tation. The Board shall give reasonable preference, sub- ject to this subsection, to the rail carrier origi- nating the traffic when prescribing through routes. (b) The Board shall prescribe the division of joint rates to be received by a rail carrier pro- viding transportation subject to its jurisdiction under this part when it decides that a division of joint rates established by the participating car- riers under section 10703 of this title, or under a decision of the Board under subsection (a) of this section, does or will violate section 10701 of this title. (c) If a division of a joint rate prescribed under a decision of the Board is later found to violate section 10701 of this title, the Board may decide what division would have been reasonable and order adjustment to be made retroactive to the date the complaint was filed, the date the order for an investigation was made, or a later date that the Board decides is justified. The Board may make a decision under this subsection ef- fective as part of its original decision. (Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 811.) Editorial Notes PRIOR PROVISIONS Prior sections 10705 and 10705a were omitted in the general amendment of this subtitle by Pub. L. 104–88, § 102(a). Section 10705, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1375; Pub. L. 96–296, § 22(b)–(g), July 1, 1980, 94 Stat. 813; Pub. L. 96–448, title II, § 218, Oct. 14, 1980, 94 Stat. 1925; Pub. L. 97–449, § 5(g)(4), Jan. 12, 1983, 96 Stat. 2443, re- lated to authority for through routes, joint classifica- tions, rates, and divisions prescribed by Interstate Commerce Commission. See sections 10705 and 13701 of this title. Section 10705a, added Pub. L. 96–448, title II, § 217(a)(1), Oct. 14, 1980, 94 Stat. 1916; amended Pub. L. 103–272, § 4(j)(20), July 5, 1994, 108 Stat. 1369, related to joint rate surcharges and cancellations. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1996, except as otherwise pro- vided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title. § 10706. Rate agreements: exemption from anti- trust laws (a)(1) In this subsection— (A) the term ‘‘affiliate’’ means a person con- trolling, controlled by, or under common con- trol or ownership with another person and ‘‘ownership’’ refers to equity holdings in a business entity of at least 5 percent; (B) the term ‘‘single-line rate’’ refers to a rate or allowance proposed by a single rail car- rier that is applicable only over its line and for which the transportation (exclusive of ter- minal services by switching, drayage or other terminal carriers or agencies) can be provided by that carrier; and (C) the term ‘‘practicably participates in the movement’’ shall have such meaning as the Board shall by regulation prescribe. (2)(A) A rail carrier providing transportation subject to the jurisdiction of the Board under this part that is a party to an agreement of at least 2 rail carriers that relates to rates (includ- ing charges between rail carriers and compensa- tion paid or received for the use of facilities and equipment), classifications, divisions, or rules related to them, or procedures for joint consid- eration, initiation, publication, or establish- ment of them, shall apply to the Board for ap- proval of that agreement under this subsection. The Board 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 re- quire compliance with conditions necessary to make the agreement further that policy as a condition of its approval. If the Board approves the agreement, it may be made and carried out under its terms and under the conditions re- quired by the Board, 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 Wil- son Tariff Act (15 U.S.C. 8 and 9), and the Act of June 19, 1936 (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. How- ever, the Board may not approve or continue ap- proval of an agreement when the conditions re- quired by it are not met or if it does not receive a verified statement under subparagraph (B) of this paragraph. (B) The Board may approve an agreement under subparagraph (A) of this paragraph only when the rail carriers applying for approval file a verified statement with the Board. Each state- ment 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 num- ber 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 control- ling any debt, equity, or security interest in it having a value of at least $1,000,000. (3)(A) An organization established or contin- ued under an agreement approved under this subsection shall make a final disposition of a rule or rate docketed with it by the 120th day