1994 US Code
Title 49 - TRANSPORTATION
SUBTITLE IV - INTERSTATE COMMERCE
CHAPTER 115 - FEDERAL-STATE RELATIONS
Sec. 11501 - Interstate Commerce Commission authority over intrastate transportation

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§11501. Interstate Commerce Commission authority over intrastate transportation

(a) The Interstate Commerce Commission shall prescribe the rate, classification, rule, or practice for transportation or service provided by a household goods freight forwarder subject to the jurisdiction of the Commission under subchapter IV of chapter 105 of this title when the Commission finds that a rate, classification, rule, or practice of a State causes—

(1) between persons or localities in intrastate commerce and in interstate and foreign commerce, unreasonable discrimination against those persons or localities in interstate or foreign commerce; or

(2) unreasonable discrimination against or imposes an unreasonable burden on interstate or foreign commerce.

(b)(1) A State authority may only exercise jurisdiction over intrastate transportation provided by a rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title if such State authority exercises such jurisdiction exclusively in accordance with the provisions of this subtitle.

(2) Within 120 days after the effective date of the Staggers Rail Act of 1980, each State authority exercising jurisdiction over intrastate rates, classifications, rules, and practices for intrastate transportation described in paragraph (1) of this subsection shall submit to the Commission the standards and procedures (including timing requirements) used by such State authority in exercising such jurisdiction.

(3)(A) Within 90 days after receipt of the intrastate regulatory rate standards and procedures of a State authority under paragraph (2) of this subsection, the Commission shall certify such State authority for purposes of this subsection if the Commission determines that such standards and procedures are in accordance with the standards and procedures applicable to regulation of rail carriers by the Commission under this subtitle. If the Commission determines that such standards and procedures are not in such accordance, it shall deny certification to such State authority, and such State authority may resubmit new standards and procedures to the Commission for review in accordance with this subsection.

(B) The standards and procedures existing in each State on the effective date of the Staggers Rail Act of 1980 for the exercise of jurisdiction over intrastate rail rates, classifications, rules, and practices shall be deemed to be certified by the Commission from that date until the date an initial determination is made by the Commission under subparagraph (A) of this paragraph.

(4)(A) Any State authority which is certified by the Commission under this subsection may use its standards and procedures in exercising jurisdiction over intrastate rail rates, classifications, rules, and practices during the 5-year period commencing on the date of such certification. Any State authority which is denied certification or which does not seek certification may not exercise any jurisdiction over intrastate rates, classifications, rules, and practices until it receives certification under this subsection.

(B) Any intrastate transportation provided by a rail carrier in a State which may not exercise jurisdiction over an intrastate rate, classification, rule, or practice of that carrier due to a denial of certification under this subsection shall be deemed to be transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title.

(5)(A) Certification of a State authority under this subsection is valid for the 5-year period beginning on the date of such certification. Prior to the expiration of such 5-year period, the State authority shall resubmit its intrastate regulatory standards procedures to the Commission for subsequent certification in accordance with this subsection.

(B) During any 5-year certification period, a State may not change its certified standards and procedures without notifying and receiving express approval from the Commission.

(6) Notwithstanding any other provision of this subtitle, a State authority may not exercise any jurisdiction over general rate increases under section 10706 of this title, inflation-based rate increases under section 10712 of this title, or fuel adjustment surcharges approved by the Commission.

(c) Any rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title may petition the Commission to review the decision of any State authority, in any administrative proceeding in which the lawfulness of an intrastate rate, classification, rule, or practice is determined, on the grounds that the standards and procedures applied by the State were not in accordance with the provisions of this subtitle. The Commission shall take final action on any such petition within 30 days after the date it is received. If the Commission determines that the standards and procedures were not in accordance with the provisions of this subtitle, its order shall determine and authorize the carrier to establish the appropriate rate, classification, rule, or practice.

(d)(1) The Commission has exclusive authority to prescribe an intrastate rate for transportation provided by a rail carrier subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title when—

(A) a rail carrier files with an appropriate State authority a change in an intrastate rate, or a change in a classification, rule, or practice that has the effect of changing an intrastate rate, that adjusts the rate to the rate charged on similar traffic moving in interstate or foreign commerce; and

(B) the State authority does not act finally on the change by the 120th day after it was filed.

(2) When a rail carrier files an application with the Commission under this subsection, the Commission shall prescribe the intrastate rate under the standards of subsection (a) of this section and chapter 107 of this title. Notice of the application shall be served on the State authority.

(e) No State or political subdivision thereof and no interstate agency or other political agency of two or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to scheduling of interstate or intrastate transportation provided by motor common carrier of passengers subject to the jurisdiction of the Commission under subchapter II of chapter 105 of this title on an authorized interstate route or relating to the implementation of any reduction in the rates for such transportation except to the extent that notice, not in excess of 30 days, of changes in schedules may be required. This subsection shall not apply to intrastate commuter bus operations.

(f) The Commission may take action (1) under this section only after a full hearing, or (2) with respect to a rate, rule, or practice of a motor common carrier of passengers, in accordance with the procedures established by the Commission under subsection (e)(3)(B) 1 of this section. Action of the Commission under this section supersedes State law or action taken under State law in conflict with the action of the Commission.

(g) Preemption of State Regulation of Freight Forwarders.—

(1) General rule.—Subject to paragraph (2) of this subsection, no State or political subdivision thereof and no interstate agency or other political agency of two or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to interstate rates, interstate routes, or interstate services of any freight forwarder.

(2) Continuation of hawaii's authority.—Nothing in this subsection and the amendments made by the Surface Freight Forwarder Deregulation Act of 1986 shall be construed to affect the authority of the State of Hawaii to continue to regulate a motor carrier operating within the State of Hawaii.

(h) Preemption of State Economic Regulation of Motor Carriers.—

(1) General rule.—Except as provided in paragraphs (2) and (3), a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier (other than a carrier affiliated with a direct air carrier covered by section 41713(b)(4) of this title) or any motor private carrier with respect to the transportation of property.

(2) Matters not covered.—Paragraph (1)—

(A) shall not restrict the safety regulatory authority of a State with respect to motor vehicles, the authority of a State to impose highway route controls or limitations based on the size or weight of the motor vehicle or the hazardous nature of the cargo, or the authority of a State to regulate motor carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization; and

(B) does not apply to the transportation of household goods.

(3) State standard transportation practices.—

(A) Continuation.—Paragraph (1) shall not affect any authority of a State, political subdivision of a State, or political authority of 2 or more States to enact or enforce a law, regulation, or other provision, with respect to the intrastate transportation of property by motor carriers, related to—

(i) uniform cargo liability rules,

(ii) uniform bills of lading or receipts for property being transported,

(iii) uniform cargo credit rules, or

(iv) antitrust immunity for joint line rates or routes, classifications and mileage guides,

if such law, regulation, or provision meets the requirements of subparagraph (B).

(B) Requirements.—A law, regulation, or provision of a State, political subdivision, or political authority meets the requirements of this subparagraph if—

(i) the law, regulation, or provision covers the same subject matter as, and compliance with such law, regulation, or provision is no more burdensome than compliance with, a provision of this subtitle or a regulation issued by the Interstate Commerce Commission or the Secretary of Transportation under this subtitle; and

(ii) the law, regulation, or provision only applies to a carrier upon request of such carrier.

(C) Election.—Notwithstanding any other provision of law, a carrier affiliated with a direct air carrier through common controlling ownership may elect to be subject to a law, regulation, or provision of a State, political subdivision, or political authority under this paragraph.

(Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1444; Pub. L. 96–448, title II, §214(a)–(c)(1), Oct. 14, 1980, 94 Stat. 1913, 1915; Pub. L. 97–261, §17(a), Sept. 20, 1982, 96 Stat. 1117; Pub. L. 99–521, §11(a), Oct. 22, 1986, 100 Stat. 2997; Pub. L. 103–272, §4(j)(34), July 5, 1994, 108 Stat. 1370; Pub. L. 103–305, title VI, §601(c), Aug. 23, 1994, 108 Stat. 1606; Pub. L. 103–311, title II, §211(b)(2), Aug. 26, 1994, 108 Stat. 1689.)

Historical and Revision Notes

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
11501(a)	49:13(4) (less 1st–10th words in 1st sentence and less last sentence).	Feb. 4, 1887, ch. 104, 24 Stat. 383, §13(4); Feb. 28, 1920, ch. 91, §416, 41 Stat. 484; Aug. 12, 1958, Pub. L. 85–625, §4, 72 Stat. 570; Feb. 5, 1976, Pub. L. 94–210, §210, 90 Stat. 46.
	49:1006(f) (4th sentence less 1st–10th words).	Feb. 4, 1887, ch. 104, 24 Stat. 379, §406(f) (4th and last sentences); added May 16, 1942, ch. 318, §1, 56 Stat. 288.
11501(b)	49:13(5) (1st, 2d, and 3d sentences).	Feb. 4, 1887, ch. 104, 24 Stat. 379, §13(5); added Feb. 5, 1976, Pub. L. 94–210, §210, 90 Stat. 46; Oct. 19, 1976, Pub. L. 94–555, §220(l), 90 Stat. 2630.
11501(c)	49:13(4) (1st–10th words in 1st sentence and last sentence). 49:13(5) (less 1st, 2d, and 3d sentences). 49:1006(f) (1st–10th words in 4th sentence and last sentence).

The section consolidates and restates the source provisions for clarity. The word “rate” is substituted for “rate, fare, or charge” in view of the definition of “rate” in section 10102 of this title.

In subsection (a)(1), the word “rule” is substituted for “regulation” for consistency when referring to carriers. The word “unreasonable” is substituted for “undue, unreasonable, or unjust” for consistency. The words “discrimination against” are substituted for “advantage, preference, or prejudice” for consistency. See the revision note to section 10101 of the revised title. The words “which is hereby forbidden and declared to be unlawful” are omitted as surplus. The words “in such manner as, in its judgment, will remove such” are omitted as surplus. The words “on the one hand” and “on the other hand” are omitted as surplus. The words “maximum or minimum, or maximum and minimum” are omitted as surplus.

In subsection (a)(2), the words “or their results” are substituted for “results thereof” for clarity. The word “operating” is inserted for clarity. The words “entirely in” are substituted for “wholly within” for clarity.

In subsection (b)(1), the word “prescribe” is substituted for “determine and prescribe” to eliminate redundancy. The words “State authority” are substituted for “administrative or regulatory body of a State” for consistency. The word “has” is substituted for “shall have” for clarity. The word “when” is substituted for “if” for clarity. The words “rail carrier” are substituted for “carrier by railroad” for clarity and consistency. The words “that adjusts” are substituted for “for the purpose of adjusting” for clarity. The word “by” is substituted for “within” for clarity. The words “does not act” are substituted for “has not . . . acted” for clarity.

In subsection (b)(2), the words “determine and” are omitted to eliminate redundancy. The word “intrastate” is added for clarity. The words “under . . . of subsection (a) of this section” are substituted for “according to . . . set forth in paragraph (4) of this section” to conform to the revised title. The words “thereafter to be charged” are omitted as unnecessary.

In subsection (c), the last sentence is substituted for 49:13(4) (last sentence), (5) (4th sentence), and 1006(f) (last sentence) for clarity.

References in Text

The effective date of the Staggers Rail Act of 1980, referred to in subsec. (b)(2) and (3)(B), probably means Oct. 1, 1980, the general effective date of Pub. L. 96–448. See section 710 of Pub. L. 96–448, set out as an Effective Date of 1980 Amendment note under section 10101 of this title.

Subsection (e)(3)(B) of this section, referred to in subsec. (f), was repealed by Pub. L. 103–311, title II, §211(b)(2)(A), Aug. 26, 1994, 108 Stat. 1689.

The Surface Freight Forwarder Deregulation Act of 1986, referred to in subsec. (g)(2), is Pub. L. 99–521, Oct. 22, 1986, 100 Stat. 2993. For complete classification of this Act to the Code, see Short Title of 1986 Amendment note set out under section 10101 of this title and Tables.

Amendments

1994—Subsec. (b)(3)(A). Pub. L. 103–272 substituted “subtitle” for “title”.

Subsec. (e). Pub. L. 103–311 struck out pars. (1) to (4) and (6), redesignated par. (5) as entire subsection, and substituted “subsection” for “paragraph”. Prior to amendment, pars. (1) to (4) and (6) related to authority of Interstate Commerce Commission to prescribe rates, rules, or practices relating to intrastate commerce where applicable State regulation was discriminatory against interstate or foreign commerce, criteria for such rates, rules, or practices, procedures for applications and complaints relating thereto, and predatory practices.

Subsec. (h). Pub. L. 103–305 added subsec. (h).

1986—Subsec. (a). Pub. L. 99–521, §11(a)(1), substituted “household goods freight forwarder” for “carrier”.

Subsec. (g). Pub. L. 99–521, §11(a)(2), added subsec. (g).

1982—Subsecs. (e), (f). Pub. L. 97–261, §17(a), added subsec. (e), redesignated former subsec. (e) as (f) and designated provision relating to a full hearing as cl. (1) and added cl. (2).

1980—Subsec. (a). Pub. L. 96–448, §214(a), struck out par. (2) which authorized the Commission to make a finding under this subsection without separating interstate and intrastate property, revenues, and expenses, and without considering the total operations, or their results, of a carrier or group of carriers operating entirely in one State, substituted “(a)” for “(a)(1)” and “subchapter IV” for “subchapter I or IV”, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively.

Subsecs. (b), (c). Pub. L. 96–448, §214(b), added subsecs. (b) and (c). Former subsecs. (b) and (c) redesignated (d) and (e), respectively.

Subsec. (d). Pub. L. 96–448, §214(b), (c)(1), redesignated former subsec. (b) as (d), and in par. (2) of subsec. (d) as so redesignated, inserted “and chapter 107 of this title”.

Subsec. (e). Pub. L. 96–448, §214(b), redesignated former subsec. (c) as (e).

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–305 effective Jan. 1, 1995, except that with respect to State of Hawaii, effective on last day of 3-year period beginning Aug. 23, 1994, see section 601(d) of Pub. L. 103–305, set out as a note under section 10521 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. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 10101 of this title.

Preemption of Intrastate Transportation of Property

Section 601(a) of Pub. L. 103–305 provided that: “Congress finds and declares that—

“(1) the regulation of intrastate transportation of property by the States has—

“(A) imposed an unreasonable burden on interstate commerce;

“(B) impeded the free flow of trade, traffic, and transportation of interstate commerce; and

“(C) placed an unreasonable cost on the American consumers; and

“(2) certain aspects of the State regulatory process should be preempted.”

Cooperation With States; Revision of Standards and Procedures by States; Commission Report

Section 17(c)–(e) of Pub. L. 97–261 provided that:

“(c) The Interstate Commerce Commission, in consultation with each national association representing State departments, agencies, and instrumentalities having jurisdiction over motor common carrier transportation of passengers, shall cooperate with each such department, agency, or instrumentality of a State for the purpose of establishing standards and procedures (including timing requirements) for rates, rules, and practices applicable to intrastate transportation provided by motor common carriers of passengers who provide transportation subject to the jurisdiction of the Commission under subchapter II of chapter 105 of subtitle IV of title 49, United States Code, which are—

“(1) to the extent feasible, uniform among the States; and

“(2) consistent with the standards and procedures established by the Interstate Commerce Commission under such subtitle for regulation of interstate transportation provided by motor common carriers of passengers.

“(d) It is the sense of Congress that each State should revise its standards and procedures (including timing requirements) for rates, rules, and practices applicable to intrastate transportation provided by motor common carriers of passengers to conform such standards and procedures to the standards and procedures for rates, rules, and practices applicable to interstate transportation provided by motor carriers of passengers not later than 2 years after the effective date of this section [the 60th day after Sept. 20, 1982].

“(e) Not later than 30 months after the effective date of this section [the 60th day after Sept. 20, 1982], the Interstate Commerce Commission shall report to the Congress on the results of its efforts to establish uniform standards and procedures applicable to motor common carrier of passengers rates, rules, and practices.”

Section Referred to in Other Sections

This section is referred to in sections 10321, 10322, 10501, 10521, 11126 of this title.

1 See References in Text note below.