49 U.S.C. § 13709 — Procedures for resolving claims involv-

Page 481 TITLE 49—TRANSPORTATION § 13709 subparagraph (A) that is equal to the per- centage of the weight of that portion of the shipment delivered to the total weight of the shipment. (C) POST-CONTRACT SERVICES.—Subpara- graph (A) does not apply to additional serv- ices requested by a shipper after the con- tract of service is executed that were not in- cluded in the estimate. (D) IMPRACTICABLE OPERATIONS.—Subpara- graph (A) does not apply to impracticable operations, as defined by the applicable car- rier tariff, except that the charges collected at delivery for such operations shall not ex- ceed 15 percent of all other charges due at delivery. Any remaining charges due shall be paid within 30 days after the carrier presents its freight bill. (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 873; amended Pub. L. 109–59, title IV, § 4203, Aug. 10, 2005, 119 Stat. 1752.) Editorial Notes PRIOR PROVISIONS Provisions similar to those in this section were con- tained in section 10743 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). AMENDMENTS 2005—Subsec. (b)(3). Pub. L. 109–59 added par. (3). 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. § 13708. Billing and collecting practices (a) DISCLOSURE.—A motor carrier subject to jurisdiction under subchapter I of chapter 135 shall disclose, when a document is presented or electronically transmitted for payment to the person responsible directly to the motor carrier for payment or agent of such responsible person, the actual rates, charges, or allowances for any transportation service and shall also disclose, at such time, whether and to whom any allowance or reduction in charges is made. (b) FALSE OR MISLEADING INFORMATION.—No person may cause a motor carrier to present false or misleading information on a document about the actual rate, charge, or allowance to any party to the transaction. (c) ALLOWANCES FOR SERVICES.—When the ac- tual rate, charge, or allowance is dependent upon the performance of a service by a party to the transportation arrangement, such as ten- dering a volume of freight over a stated period of time, the motor carrier shall indicate in any document presented for payment to the person responsible directly to the motor carrier that a reduction, allowance, or other adjustment may apply. (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 873.) Editorial Notes PRIOR PROVISIONS Provisions similar to those in this section were con- tained in section 10767 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). 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. § 13709. Procedures for resolving claims involv- ing unfiled, negotiated transportation rates (a) TRANSPORTATION PROVIDED AT RATES OTHER THAN LEGAL TARIFF RATES.— (1) IN GENERAL.—When a claim is made by a motor carrier of property (other than a house- hold goods carrier) providing transportation subject to jurisdiction under subchapter II of chapter 105 (as in effect on December 31, 1995) or subchapter I of chapter 135, by a freight for- warder (other than a household goods freight forwarder), or by a party representing such a carrier or freight forwarder regarding the col- lection of rates or charges for such transpor- tation in addition to those originally billed and collected by the carrier or freight for- warder for such transportation, the person against whom the claim is made may elect to satisfy the claim under the provisions of sub- section (b), (c), or (d), upon showing that— (A) the carrier or freight forwarder is no longer transporting property or is trans- porting property for the purpose of avoiding the application of this section; and (B) with respect to the claim— (i) the person was offered a transpor- tation rate by the carrier or freight for- warder other than that legally on file at the time with the Board or with the Inter- state Commerce Commission, as required, for the transportation service; (ii) the person tendered freight to the carrier or freight forwarder in reasonable reliance upon the offered transportation rate; (iii) the carrier or freight forwarder did not properly or timely file with the Board or with the Interstate Commerce Commis- sion, as required, a tariff providing for such transportation rate or failed to enter into an agreement for contract carriage; (iv) such transportation rate was billed and collected by the carrier or freight for- warder; and (v) the carrier or freight forwarder de- mands additional payment of a higher rate filed in a tariff. (2) FORUM.—If there is a dispute as to the showing under paragraph (1)(A), such dispute shall be resolved by the court in which the claim is brought. If there is a dispute as to the showing under paragraph (1)(B), such dispute shall be resolved by the Board. Pending the resolution of any such dispute, the person shall not have to pay any additional com- pensation to the carrier or freight forwarder. (3) EFFECT OF SATISFACTION OF CLAIMS.—Sat- isfaction of the claim under subsection (b), (c), Page 482 TITLE 49—TRANSPORTATION § 13709 or (d) shall be binding on the parties, and the parties shall not be subject to chapter 119 of this title, as such chapter was in effect on De- cember 31, 1995, or chapter 149. (b) CLAIMS INVOLVING SHIPMENTS WEIGHING 10,000 POUNDS OR LESS.—A person from whom the additional legally applicable and effective tariff rate or charges are sought may elect to satisfy the claim if the shipments each weighed 10,000 pounds or less, by payment of 20 percent of the difference between the carrier’s applicable and effective tariff rate and the rate originally billed and paid. In the event that a dispute arises as to the rate that was legally applicable to the shipment, such dispute shall be resolved by the Board. (c) CLAIMS INVOLVING SHIPMENTS WEIGHING MORE THAN 10,000 POUNDS.—A person from whom the additional legally applicable and effective tariff rate or charges are sought may elect to satisfy the claim if the shipments each weighed more than 10,000 pounds, by payment of 15 per- cent of the difference between the carrier’s ap- plicable and effective tariff rate and the rate originally billed and paid. In the event that a dispute arises as to the rate that was legally ap- plicable to the shipment, such dispute shall be resolved by the Board. (d) CLAIMS INVOLVING PUBLIC WAREHOUSE- MEN.—Notwithstanding subsections (b) and (c), a person from whom the additional legally appli- cable and effective tariff rate or charges are sought may elect to satisfy the claim by pay- ment of 5 percent of the difference between the carrier’s applicable and effective tariff rate and the rate originally billed and paid if such person is a public warehouseman. In the event that a dispute arises as to the rate that was legally ap- plicable to the shipment, such dispute shall be resolved by the Board. (e) EFFECTS OF ELECTION.—When a person from whom additional legally applicable freight rates or charges are sought does not elect to use the provisions of subsection (b), (c) or (d), the person may pursue all rights and remedies existing under this part or, for transportation provided before January 1, 1996, all rights and remedies that existed under this title on December 31, 1995. (f) STAY OF ADDITIONAL COMPENSATION.—When a person proceeds under this section to chal- lenge the reasonableness of the legally applica- ble freight rate or charges being claimed by a carrier or freight forwarder in addition to those already billed and collected, the person shall not have to pay any additional compensation to the carrier or freight forwarder until the Board has made a determination as to the reasonableness of the challenged rate as applied to the freight of the person against whom the claim is made. (g) NOTIFICATION OF ELECTION.— (1) GENERAL RULE.—A person must notify the carrier or freight forwarder as to its election to proceed under subsection (b), (c), or (d). Ex- cept as provided in paragraphs (2), (3), and (4), such election may be made at any time. (2) DEMANDS FOR PAYMENT INITIALLY MADE AFTER DECEMBER 3, 1993.—If the carrier or freight forwarder or party representing such carrier or freight forwarder initially demands the payment of additional freight charges after December 3, 1993, and notifies the person from whom additional freight charges are sought of the provisions of subsections (a) through (f) at the time of the making of such initial demand, the election must be made not later than the later of— (A) the 60th day following the filing of an answer to a suit for the collection of such additional legally applicable freight rate or charges, or (B) March 5, 1994. (3) PENDING SUITS FOR COLLECTION MADE BE- FORE DECEMBER 4, 1993.—If the carrier or freight forwarder or party representing such carrier or freight forwarder has filed, before December 4, 1993, a suit for the collection of additional freight charges and notifies the person from whom additional freight charges are sought of the provisions of subsections (a) through (f), the election must be made not later than the 90th day following the date on which such no- tification is received. (4) DEMANDS FOR PAYMENT MADE BEFORE DE- CEMBER 4, 1993.—If the carrier or freight for- warder or party representing such carrier or freight forwarder has demanded the payment of additional freight charges, and has not filed a suit for the collection of such additional freight charges, before December 4, 1993, and notifies the person from whom additional freight charges are sought of the provisions of subsections (a) through (f), the election must be made not later than the later of— (A) the 60th day following the filing of an answer to a suit for the collection of such additional legally applicable freight rate or charges, or (B) March 5, 1994. (h) CLAIMS INVOLVING SMALL-BUSINESS CON- CERNS, CHARITABLE ORGANIZATIONS, AND RE- CYCLABLE MATERIALS.— (1) IN GENERAL.—Notwithstanding sub- sections (b), (c), and (d), a person from whom the additional legally applicable and effective tariff rate or charges are sought shall not be liable for the difference between the carrier’s applicable and effective tariff rate and the rate originally billed and paid— (A) if such person qualifies as a small-busi- ness concern under the Small Business Act (15 U.S.C. 631 et seq.), (B) if such person is an organization which is described in section 501(c)(3) of the Inter- nal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, or (C) if the cargo involved in the claim is re- cyclable materials. (2) RECYCLABLE MATERIALS DEFINED.—In this subsection, the term ‘‘recyclable materials’’ means waste products for recycling or reuse in the furtherance of recognized pollution con- trol programs. (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 874; amended Pub. L. 104–287, § 5(29), Oct. 11, 1996, 110 Stat. 3391.) HISTORICAL AND REVISION NOTES PUB. L. 104–287, § 5(29)(A) This amends 49:13709(a)(1) and (3) for clarity and con- sistency. Page 483 TITLE 49—TRANSPORTATION § 13710 PUB. L. 104–287, § 5(29)(B) This amends 49:13709(e) by setting out the effective date for 49:13709 and for clarity and consistency. Editorial Notes REFERENCES IN TEXT Subchapter II of chapter 105, referred to in subsec. (a)(1), was omitted in the general amendment of this subtitle by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804, effective Jan. 1, 1996. Chapter 119, referred to in subsec. (a)(3), was omitted and a new chapter 119 enacted in the general amend- ment of this subtitle by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804, 849, effective Jan. 1, 1996. The Small Business Act, referred to in subsec. (h)(1)(A), is Pub. L. 85–536, § 2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§ 631 et seq.) of Title 15, Commerce and Trade. For com- plete classification of this Act to the Code, see Short Title note set out under section 631 of Title 15 and Ta- bles. Section 501 of the Internal Revenue Code of 1986, re- ferred to in subsec. (h)(1)(B), is classified to section 501 of Title 26, Internal Revenue Code. PRIOR PROVISIONS Provisions similar to those in this section were con- tained in section 10701 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). AMENDMENTS 1996—Subsec. (a)(1), (3). Pub. L. 104–287, § 5(29)(A), sub- stituted ‘‘December 31, 1995’’ for ‘‘the day before the ef- fective date of this section’’. Subsec. (e). Pub. L. 104–287, § 5(29)(B), substituted ‘‘January 1, 1996’’ for ‘‘the effective date of this sec- tion’’ and ‘‘December 31, 1995’’ for ‘‘the day before such effective date’’. 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. ABOLITION OF INTERSTATE COMMERCE COMMISSION Interstate Commerce Commission abolished by sec- tion 101 of Pub. L. 104–88, set out as a note under sec- tion 1301 of this title. § 13710. Additional billing and collecting prac- tices (a) MISCELLANEOUS PROVISIONS.— (1) INFORMATION RELATING TO BASIS OF RATE.—A motor carrier of property (other than a motor carrier providing transportation in noncontiguous domestic trade) shall provide to the shipper, on request of the shipper, a written or electronic copy of the rate, classi- fication, rules, and practices, upon which any rate applicable to its shipment or agreed to between the shipper and carrier is based. (2) REASONABLENESS OF RATES; COLLECTING ADDITIONAL CHARGES.—When the applicability or reasonableness of the rates and related pro- visions billed by a motor carrier is challenged by the person paying the freight charges, the Board shall determine whether such rates and provisions are reasonable under section 13701 or applicable based on the record before it. (3) BILLING DISPUTES.— (A) INITIATED BY MOTOR CARRIERS.—In those cases where a motor carrier (other than a motor carrier providing transpor- tation of household goods or in noncontig- uous domestic trade) seeks to collect charges in addition to those billed and col- lected which are contested by the payor, the carrier may request that the Board deter- mine whether any additional charges over those billed and collected must be paid. A carrier must issue any bill for charges in ad- dition to those originally billed within 180 days of the receipt of the original bill in order to have the right to collect such charges. (B) INITIATED BY SHIPPERS.—If a shipper seeks to contest the charges originally billed or additional charges subsequently billed, the shipper may request that the Board de- termine whether the charges billed must be paid. A shipper must contest the original bill or subsequent bill within 180 days of re- ceipt of the bill in order to have the right to contest such charges. (4) VOIDING OF CERTAIN TARIFFS.—Any tariff on file with the Interstate Commerce Commis- sion on August 26, 1994, and not required to be filed after that date is null and void beginning on that date. Any tariff on file with the Inter- state Commerce Commission on January 1, 1996, and not required to be filed after that date is null and void beginning on that date. (b) RESOLUTION OF DISPUTES OVER STATUS OF COMMON CARRIER OR CONTRACT CARRIER.—If a motor carrier (other than a motor carrier pro- viding transportation of household goods) that was subject to jurisdiction under subchapter II of chapter 105, as in effect on December 31, 1995, and that had authority to provide transpor- tation as both a motor common carrier and a motor contract carrier and a dispute arises as to whether certain transportation that was pro- vided prior to January 1, 1996, was provided in its common carrier or contract carrier capacity and the parties are not able to resolve the dis- pute consensually, the Board shall resolve the dispute. (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 876; amended Pub. L. 104–287, § 5(30), Oct. 11, 1996, 110 Stat. 3391.) HISTORICAL AND REVISION NOTES PUB. L. 104–287, § 5(30)(A) This sets out the effective date of 49:13710. PUB. L. 104–287, § 5(30)(B) This amends 49:13710(b) by setting out the effective date for 49:13710 and for clarity and consistency. Editorial Notes REFERENCES IN TEXT Subchapter II of chapter 105, referred to in subsec. (b), was omitted in the general amendment of this sub- title by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804, effective Jan. 1, 1996. PRIOR PROVISIONS Provisions similar to those in this section were con- tained in sections 10762 and 11101 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).