[Senate Report 107-237]
[From the U.S. Government Publishing Office]
Calendar No. 546
107th Congress Report
SENATE
2d Session 107-237
_______________________________________________________________________
REAL INTERSTATE DRIVER EQUITY ACT
OF 2001
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
H.R. 2546
August 1, 2002.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
99-010 WASHINGTON : 2002
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred seventh congress
second session
ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West TED STEVENS, Alaska
Virginia CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon SAM BROWNBACK, Kansas
MAX CLELAND, Georgia GORDON SMITH, Oregon
BARBARA BOXER, California PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri GEORGE ALLEN, Virginia
BILL NELSON, Florida
Kevin D. Kayes, Staff Director
Moses Boyd, Chief Counsel
Gregg Elias, General Counsel
Jeanne Bumpus, Republican Staff Director and General Counsel
Ann Begeman, Republican Deputy Staff Director
Calendar No. 546
107th Congress Report
SENATE
2d Session 107-237
======================================================================
REAL INTERSTATE DRIVER EQUITY ACT OF 2001
_______
August 1, 2002.--Ordered to be printed
_______
Mr. Hollings, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany H.R. 2546]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (H.R. 2546) to amend title 49,
United States Code, to prohibit States from requiring a license
or fee on account of the fact that a motor vehicle is providing
interstate pre-arranged ground transportation service, and for
other purposes, having considered the same, reports favorably
thereon with amendments and recommends that the bill as amended
do pass.
Purpose of the Bill
The purpose of this bill, as reported, is to prohibit a
State, a political subdivision of a State, or an interstate
agency of two or more States, other than the home licensing
State, from enacting or enforcing any law, rule, or regulation
requiring a license or fee on a motor vehicle that is providing
prearranged interstate ground transportation service.
Background and Needs
Limousines, airport shuttles, executive sedans, black
cars, and some taxicabs provide pre-arranged ground
transportation services. Often in many metropolitan regions,
not all points along a trip's route, including the origin,
intermediate stops, and destination, are located in the same
State. Currently, if a taxicab or limousine provides pre-
arranged interstate service, a State or municipality in which
the service operator is not licensed may require registration
or licensing fees and may enforce these requirements through
fines and vehicle impoundment. In short, these for-hire
vehicles are subject not only to the laws and regulations of
the State in which they are licensed or domiciled, but also to
certain requirements that may be imposed by other States or
municipalities in which fares originate or intermediate stops
are made.
The Taxicab, Limousine, and Paratransit Association
(TLPA) estimates that there are 18,600 companies in the United
States that provide local, for-hire passenger transportation
services using taxicabs, black cars, airport shuttles,
executive sedans, or limousines. Limousines and taxicabs make
up the largest portion of the for-hire passenger vehicle
industry. According to TLPA, the companies that provide for-
hire passenger transportation services operate a total of
293,000 vehicles and transport over 2 billion passengers each
year. Of these, 10,000 limousine companies operate some 83,000
vehicles and transport over 400 million passengers per year,
and 6,300 taxicab companies operate approximately 171,000
taxicabs and transport 1.4 billion passengers per year.
Limousine companies serve metropolitan areas nationwide
with a heavy concentration of service in the northeast.
According to TLPA, New York City alone has 5,700 limousines.
Most limousine companies operate a small number of limousine
vehicles, and the 50 largest limousine companies in the country
have a combined fleet of only 6,500 vehicles. Typically,
limousine services that are licensed by a State as a
``limousine'' operate relatively new luxury model vehicles and
charge the customer based on time. These vehicles include
limousines, luxury vans, luxury buses, and executive sedans.
TLPA refers to the limousine industry as a $4 billion-a-year
business.
Taxicabs, which are typically licensed by a municipality
as a ``taxicab,'' charge the customer primarily based on
distance traveled, and are generally brightly colored vehicles
with the company name prominently displayed on the exterior.
The average fleet size for these companies is just under 27
taxicab vehicles per company. The annual gross revenue of the
United States taxicab industry is estimated to be approximately
$10 billion.
The Constitution grants the Federal government the
authority to regulate interstate commerce, including interstate
passenger transportation by motor carrier. As such, an operator
performing interstate passenger transportation by motor carrier
must obtain interstate operating authority from the United
States Department of Transportation. Licensing of businesses
providing intrastate transportation by limousines or taxicabs
is performed largely by individual States. Limousines are
typically licensed and regulated by State agencies; taxicabs
are usually licensed and regulated at the municipal level. This
has led to situations where a taxicab or limousine service
operating intrastate as part of an interstate movement is
required to comply with licensing requirements of the various
States in and through which it operates. For example, some
cities require that the pick up of any passenger within city
limits for pre-arranged ground transportation service to a
point in another State occur only by a for-hire vehicle
licensed in the city. Another such restriction may be a
requirement for the driver to be licensed in the State in which
the trip originates.
H.R. 2546 would amend Federal transportation law to
clarify that no State or political subdivision of a State,
other than the home licensing State, may require a license or
fee of a motor car-rier or driver providing pre-arranged ground
transportation service beginning in one State and ending in
another, or beginning and ending in the same State with
intermediate stops in or routing through another State. This
limited exercise of Federal preemption authority is intended to
allow operators of ground transportation services to provide
interstate service under certain conditions without having to
comply with licensing requirements of each State on the
interstate trip. These conditions are: (1) the trip must be
pre-arranged; and (2) the driver must comply with permissible
criminal background check or drug testing requirements of any
jurisdiction where pickups are made along the interstate trip
which would otherwise require such measures as a prerequisite
to obtaining a license in that State or municipality.
Legislative History
H.R. 2546, introduced by Rep. Roy Blunt (R-MO) on July
18, 2001, with 21 co-sponsors, passed the House of
Representatives by voice vote under suspension of the rules on
November 13, 2001. It was referred to the Senate on November
14, 2001, and, upon receipt in the Senate, was read twice and
referred to the Committee on Commerce, Science, and
Transportation.
On April 18, 2002, the Committee on Commerce, Science,
and Transportation ordered H.R. 2546 to be reported favorably
with amendments. The amendments were offered by Senators Ernest
F. Hollings and John McCain, and provided three changes: (1) to
add a definition of ``intermediate stop''; (2) to clarify the
definition of transportation by motor carrier to distinguish it
from part of certain combined air/ground intermodal movements;
and (3) to clarify that this legislation does not prevent a
State from enforcing in a non-discriminatory manner drug and
alcohol testing requirements on drivers of motor carriers
operating in pre-arranged interstate commerce.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 1, 2002.
Hon. Ernest F. Hollings,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2546, the Real
Interstate Driver Equity Act of 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Rachel
Milberg (for federal costs), and Susan Sieg Tompkins (for state
and local costs).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director.)
Enclosure.
Congressional Budget Office Cost Estimate
H.R. 2546--Real Interstate Driver Equity Act of 2001
H.R. 2546 would prohibit states from requiring limousine or
shuttle operators to obtain a license or pay a fee to provide
interstate service. CBO estimates that H.R. 2546 would not have
a significant effect on the federal budget because the act
would not expand the regulatory or enforcement authorities of
federal agencies. The legislation would not affect direct
spending or receipts; therefore, pay-as-you-go procedures would
not apply.
Prohibiting state and local governments from requiring
certain licenses and fees would be an intergovernmental mandate
as defined in the Unfunded Mandates Reform Act (UMRA). CBO
estimates that the cost of this mandate, primarily lost
revenues from fees and penalties, would be well below the
threshold established in UMRA ($58 million in 2002, adjusted
annually for inflation). This act contains no new private-
sector mandates as defined in UMRA.
On November 9, 2001, CBO transmitted a cost estimate for
H.R. 2546 as ordered reported by the House Committee on
Transportation and Infrastructure on November 7, 2002. CBO
estimates that neither version of the legislation would have a
significant effect on the federal budget, and that both
versions contain an intergovernmental mandate with costs below
the UMRA threshold.
The CBO staff contacts for this estimate are Rachel Milberg
(for federal costs), and Susan Sieg Tompkins (for the state and
local costs). This estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
The legislation would have no further effect on the number
or types of individuals and businesses regulated, the economic
impact of such regulation, the personal privacy of affected
individuals, or the paperwork required from such individuals
and businesses.
Summary of Major Provisions
The bill, as amended, would relieve certain motor carriers
providing pre-arranged interstate transportation service from
complying with licensing requirements imposed by States other
than its home licensing State. The legislation also would
clarify that it does not: (1) subject taxicab service to
regulation under chapter 135 or section 31138; (2) prohibit or
restrict an airport, train, or bus terminal operator from
contracting to provide preferential access or facilities to one
or more providers of pre-arranged ground transportation; or (3)
restrict the right of a State to require pre-licensing drug
testing or background investigations of individuals operating
vehicles providing prearranged ground transportation service
originating in that State.
The Committee envisions that, in order to minimize
administrative burdens, drivers will have in their possession
official copies of their criminal background check before
providing pre-arranged interstate transportation in a
jurisdiction which requires such criminal background checks as
a prerequisite to obtaining a license. This would allow local
law enforcement authorities to be provided with immediate
documentation upon request. The Committee also envisions the
same approach would be followed with respect to jurisdictions
which require drug testing of drivers. The driver would be
expected to have in his or her possession documentation of
passage of a drug test prior to providing pre-arranged
interstate service within that jurisdiction.
Section-by-section Analysis
Section 1. Short title.
This Act may be cited as the ``Real Interstate Driver
Equity Act of 2001.''
Section 2. Regulation of interstate pre-arranged ground transportation
service.
This section would clarify that a State or local government
or an interstate agency may not regulate pre-arranged
interstate ground transportation provided by a motor carrier of
passengers that meets all applicable Federal registration
requirements for the interstate transportation of passengers
and all applicable vehicle and intrastate passenger
transportation licensing requirements of the carrier's home
State under State law.
The bill would not prohibit airport, train, or bus terminal
operators from providing preferential access or facilities to
one or more transportation providers. In addition, a State or
local government would not be restricted from requiring, in a
non-discriminatory manner, a drug test or criminal background
investigation as a condition of picking up passengers in their
jurisdiction for an interstate trip.
Interstate ground transportation includes any trip in which
one or more passengers are picked up in one State and
transported to an intermediate or final stop in another State.
The bill prohibits a jurisdiction in a State different than the
State in which the carrier is licensed from requiring other
licenses or permits for pre-arranged interstate ground
transportation.
A stop is an intermediate stop only if the driver does not
perform any service for any other person while waiting to
resume transport of the first passenger or passengers. In
addition, an airport shuttle is providing interstate ground
transportation when it transports unrelated passengers at
multiple locations while traveling to or from an airport so
long as at least one stop is in a State other than the one in
which the airport is located.
Section 3. Definitions.
Pre-arranged ground transportation service is defined as
transportation of passengers, arranged in advance, and provided
in a motor vehicle with a seating capacity not exceeding 15
passengers, including the driver. This section would clarify
the extent of the taxicab service exemption from regulation by
the United States Department of Transportation. Taxicab service
is defined by reference to local law and functional
characteristics. The bill would amend existing law to increase
the vehicle size from six passengers to eight passengers
(including the driver), to conform to the commercial motor
vehicle safety provisions of the Transportation Equity Act for
the 21st Century (P.L. 105-178).
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
material is printed in italic, existing law in which no change
is proposed is shown in roman):
TITLE 49. TRANSPORTATION
SUBTITLE IV. INTERSTATE TRANSPORTATION
PART B. MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS
CHAPTER 131. GENERAL PROVISIONS
Sec. 13102. Definitions In this part, the following definitions shall
apply:
(1) Board.--The term ``Board'' means the Surface
Transportation Board.
(2) Broker.--The term ``broker'' means a person,
other than a motor carrier or an employee or agent of a
motor carrier, that as a principal or agent sells,
offers for sale, negotiates for, or holds itself out by
solicitation, advertisement, or otherwise as selling,
providing, or arranging for, transportation by motor
carrier for compensation.
(3) Carrier.--The term ``carrier'' means a motor
carrier, a water carrier, and a freight forwarder.
(4) Contract carriage.--The term ``contract
carriage'' means--
(A) for transportation provided before
January 1, 1996, service provided pursuant to a
permit issued under section 10923, as in effect
on December 31, 1995; and
(B) for transportation provided after
December 31, 1995, service provided under an
agreement entered into under section 14101(b).
(5) Control.--The term ``control'', when referring to
a relationship between persons, includes actual
control, legal control, and the power to exercise
control, through or by--
(A) common directors, officers, stockholders,
a voting trust, or a holding or investment
company, or
(B) any other means.
(6) Foreign motor carrier.--The term ``foreign motor
carrier'' means a person (including a motor carrier of
property but excluding a motor private carrier)--
(A)(i) that is domiciled in a contiguous
foreign country; or
(ii) that is owned or controlled by persons
of a contiguous foreign country; and
(B) in the case of a person that is not a
motor carrier of property, that provides
interstate transportation of property by motor
vehicle under an agreement or contract entered
into with a motor carrier of property (other
than a motor private carrier or a motor carrier
of property described in subparagraph (A)).
(7) Foreign motor private carrier.--The term
``foreign motor private carrier'' means a person
(including a motor private carrier but excluding a
motor carrier of property)--
(A)(i) that is domiciled in a contiguous
foreign country; or
(ii) that is owned or controlled by persons
of a contiguous foreign country; and
(B) in the case of a person that is not a
motor private carrier, that provides interstate
transportation of property by motor vehicle
under an agreement or contract entered into
with a person (other than a motor carrier of
property or a motor private carrier described
in subparagraph (A)).
(8) Freight forwarder.--The term ``freight
forwarder'' means a person holding itself out to the
general public (other than as a pipeline, rail, motor,
or water carrier) to provide transportation of property
for compensation and in the ordinary course of its
business--
(A) assembles and consolidates, or provides
for assembling and consolidating, shipments and
performs or provides for break-bulk and
distribution operations of the shipments;
(B) assumes responsibility for the
transportation from the place of receipt to the
place of destination; and
(C) uses for any part of the transportation a
carrier subject to jurisdiction under this
subtitle. The term does not include a person
using transportation of an air carrier subject
to part A of subtitle VII.
(9) Highway.--The term ``highway'' means a road,
highway, street, and way in a State.
(10) Household goods.--The term ``household goods'',
as used in connection with transportation, means
personal effects and property used or to be used in a
dwelling, when a part of the equipment or supply of
such dwelling, and similar property if the
transportation of such effects or property is--
(A) arranged and paid for by the householder,
except such term does not include property
moving from a factory or store, other than
property that the householder has purchased
with the intent to use in his or her dwelling
and is transported at the request of, and the
transportation charges are paid to the carrier
by, the householder; or
(B) arranged and paid for by another party.
(11) Household goods freight forwarder.--The term
``household goods freight forwarder'' means a freight
forwarder of one or more of the following items:
household goods, unaccompanied baggage, or used
automobiles.
(12) Motor carrier.--The term ``motor carrier'' means
a person providing motor vehicle transportation for
compensation.
(13) Motor private carrier.--The term ``motor private
carrier'' means a person, other than a motor carrier,
transporting property by motor vehicle when--
(A) the transportation is as provided in
section 13501 of this title;
(B) the person is the owner, lessee, or
bailee of the property being transported; and
(C) the property is being transported for
sale, lease, rent, or bailment or to further a
commercial enterprise.
(14) Motor vehicle.--The term ``motor vehicle'' means
a vehicle, machine, tractor, trailer, or semitrailer
propelled or drawn by mechanical power and used on a
highway in transportation, or a combination determined
by the Secretary, but does not include a vehicle,
locomotive, or car operated only on a rail, or a
trolley bus operated by electric power from a fixed
overhead wire, and providing local passenger
transportation similar to street-railway service.
(15) Noncontiguous domestic trade.--The term
``noncontiguous domestic trade'' means transportation
subject to jurisdiction under chapter 135 involving
traffic originating in or destined to Alaska, Hawaii,
or a territory or possession of the United States.
(16) Person.--The term ``person'', in addition to its
meaning under section 1 of title 1, includes a trustee,
receiver, assignee, or personal representative of a
person.
(17) Pre-arranged ground transportation service.--The
term ``pre-arranged ground transportation service''
means transportation for a passenger (or a group of
passengers) that is arranged in advance (or is operated
on a regular route or between specified points) and is
provided in a motor vehicle with a seating capacity not
exceeding 15 passengers (including the driver).
[(17)] (18) Secretary.--The term ``Secretary'' means
the Secretary of Transportation.
[(18)] (19) State.--The term ``State'' means the 50
States of the United States and the District of
Columbia.
(20) Taxicab service.--The term ``taxicab service''
means passenger transportation in a motor vehicle
having a capacity of not more than 8 passengers
(including the driver), not operated on a regular route
or between specified places, and that--
(A) is licensed as a taxicab by a State or a
local jurisdiction; or
(B) is offered by a person that--
(i) provides local transportation for
a fare determined (except with respect
to transportation to or from airports)
primarily on the basis of the distance
traveled; and
(ii) does not primarily provide
transportation to or from airports.
[(19)] (21) Transportation.--The term
``transportation'' includes--
(A) a motor vehicle, vessel, warehouse,
wharf, pier, dock, yard, property, facility,
instrumentality, or equipment of any kind
related to the movement of passengers or
property, or both, regardless of ownership or
an agreement concerning use; and
(B) services related to that movement,
including arranging for, receipt, delivery,
elevation, transfer in transit, refrigeration,
icing, ventilation, storage, handling, packing,
unpacking, and interchange of passengers and
property.
[(20)] (22) United states.--The term ``United
States'' means the States of the United States and the
District of Columbia.
[(21)] (23) Vessel.--The term ``vessel'' means a
watercraft or other artificial contrivance that is
used, is capable of being used, or is intended to be
used, as a means of transportation by water.
[(22)] (24) Water carrier.--The term ``water
carrier'' means a person providing water transportation
for compensation.
* * * * * * *
CHAPTER 135. JURISDICTION
Sec. 13506. Miscellaneous motor carrier transportation exemptions
(a) In General.--Neither the Secretary nor the Board has
jurisdiction under this part over--
(1) a motor vehicle transporting only school children
and teachers to or from school;
[(2) a motor vehicle providing taxicab service and
having a capacity of not more than 6 passengers and not
operated on a regular route or between specified
places;]
(2) a motor vehicle providing taxicab service;
(3) a motor vehicle owned or operated by or for a
hotel and only transporting hotel patrons between the
hotel and the local station of a carrier;
(4) a motor vehicle controlled and operated by a
farmer and transporting--
(A) the farmer's agricultural or
horticultural commodities and products; or
(B) supplies to the farm of the farmer;
(5) a motor vehicle controlled and operated by a
cooperative association (as defined by section 15(a) of
the Agricultural Marketing Act (12 U.S.C. 1141j(a))) or
by a federation of cooperative associations if the
federation has no greater power or purposes than a
cooperative association, except that if the cooperative
association or federation provides transportation for
compensation between a place in a State and a place in
another State, or between a place in a State and
another place in the same State through another State--
(A) for a nonmember that is not a farmer,
cooperative association, federation, or the
United States Government, the transportation
(except for transportation otherwise exempt
under this subchapter)--
(i) shall be limited to
transportation incidental to the
primary transportation operation of the
cooperative association or federation
and necessary for its effective
performance; and
(ii) may not exceed in each fiscal
year 25 percent of the total
transportation of the cooperative
association or federation between those
places, measured by tonnage; and
(B) the transportation for all nonmembers may
not exceed in each fiscal year, measured by
tonnage, the total transportation between those
places for the cooperative association or
federation and its members during that fiscal
year;
(6) transportation by motor vehicle of--
(A) ordinary livestock;
(B) agricultural or horticultural commodities
(other than manufactured products thereof);
(C) commodities listed as exempt in the
Commodity List incorporated in ruling numbered
107, March 19, 1958, Bureau of Motor Carriers,
Interstate Commerce Commission, other than
frozen fruits, frozen berries, frozen
vegetables, cocoa beans, coffee beans, tea,
bananas, or hemp, or wool imported from a
foreign country, wool tops and noils, or wool
waste (carded, spun, woven, or knitted);
(D) cooked or uncooked fish, whether breaded
or not, or frozen or fresh shellfish, or
byproducts thereof not intended for human
consumption, other than fish or shellfish that
have been treated for preserving, such as
canned, smoked, pickled, spiced, corned, or
kippered products; and
(E) livestock and poultry feed and
agricultural seeds and plants, if such products
(excluding products otherwise exempt under this
paragraph) are transported to a site of
agricultural production or to a business
enterprise engaged in the sale to agricultural
producers of goods used in agricultural
production;
(7) a motor vehicle used only to distribute
newspapers;
(8)(A) transportation of passengers by motor vehicle
incidental to transportation by aircraft;
(B) transportation of property (including baggage) by
motor vehicle as part of a continuous movement which,
prior or subsequent to such part of the continuous
movement, has been or will be transported by an air
carrier or (to the extent so agreed by the United
States and approved by the Secretary) by a foreign air
carrier; or
(C) transportation of property by motor vehicle in
lieu of transportation by aircraft because of adverse
weather conditions or mechanical failure of the
aircraft or other causes due to circumstances beyond
the control of the carrier or shipper;
(9) the operation of a motor vehicle in a national
park or national monument;
(10) a motor vehicle carrying not more than 15
individuals in a single, daily roundtrip to commute to
and from work;
(11) transportation of used pallets and used empty
shipping containers (including intermodal cargo
containers), and other used shipping devices (other
than containers or devices used in the transportation
of motor vehicles or parts of motor vehicles);
(12) transportation of natural, crushed, vesicular
rock to be used for decorative purposes;
(13) transportation of wood chips;
(14) brokers for motor carriers of passengers, except
as provided in section 13904(d); or
(15) transportation of broken, crushed, or powdered
glass.
(b) Exempt Unless Otherwise Necessary.--Except to the extent
the Secretary or Board, as applicable, finds it necessary to
exercise jurisdiction to carry out the transportation policy of
section 13101, neither the Secretary nor the Board has
jurisdiction under this part over--
(1) transportation provided entirely in a
municipality, in contiguous municipalities, or in a
zone that is adjacent to, and commercially a part of,
the municipality or municipalities, except--
(A) when the transportation is under common
control, management, or arrangement for a
continuous carriage or shipment to or from a
place outside the municipality, municipalities,
or zone; or
(B) that in transporting passengers over a
route between a place in a State and a place in
another State, or between a place in a State
and another place in the same State through
another State, the transportation is exempt
from jurisdiction under this part only if the
motor carrier operating the motor vehicle also
is lawfully providing intrastate transportation
of passengers over the entire route under the
laws of each State through which the route
runs;
(2) transportation by motor vehicle provided
casually, occasionally, or reciprocally but not as a
regular occupation or business, except when a broker or
other person sells or offers for sale passenger
transportation provided by a person authorized to
transport passengers by motor vehicle under an
application pending, or registration issued, under this
part; or
(3) the emergency towing of an accidentally wrecked
or disabled motor vehicle.
* * * * * * *
CHAPTER 145. FEDERAL-STATE RELATIONS
Sec. 14501. Federal authority over intrastate transportation
(a) Motor Carriers of Passengers.--
(1) Limitation on state law.--No State or political
subdivision thereof and no interstate agency or other
political agency of 2 or more States shall enact or
enforce any law, rule, regulation, standard, or other
provision having the force and effect of law relating
to--
(A) scheduling of interstate or intrastate
transportation (including discontinuance or
reduction in the level of service) provided by
a motor carrier of passengers subject to
jurisdiction under subchapter I of chapter 135
of this title on an interstate route;
(B) the implementation of any change in the
rates for such transportation or for any
charter transportation except to the extent
that notice, not in excess of 30 days, of
changes in schedules may be required; or
(C) the authority to provide intrastate or
interstate charter bus transportation.
This paragraph shall not apply to intrastate commuter
bus operations, or to intrastate bus transportation of
any nature in the State of Hawaii.
(2) Matters not covered.--Paragraph (1) 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 authority of a State to regulate carriers with
regard to minimum amounts of financial responsibility
relating to insurance requirements and self-insurance
authorization.
(b) Freight Forwarders and Brokers.--
(1) General rule.--Subject to paragraph (2) of this
subsection, no State or political subdivision thereof
and no intrastate agency or other political agency of 2
or more States shall enact or enforce any law, rule,
regulation, standard, or other provision having the
force and effect of law relating to intrastate rates,
intrastate routes, or intrastate services of any
freight forwarder or broker.
(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.
(c) Motor Carriers of Property.--
(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)) or any motor private carrier,
broker, or freight forwarder 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;
(B) does not apply to the transportation of
household goods; and
(C) does not apply to the authority of a
State or a political subdivision of a State to
enact or enforce a law, regulation, or other
provision relating to the price of for-hire
motor vehicle transportation by a tow truck, if
such transportation is performed without the
prior consent or authorization of the owner or
operator of the motor vehicle.
(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,
(iv) antitrust immunity for joint
line rates or routes, classifications,
mileage guides, and pooling, or
(v) antitrust immunity for agent-van
line operations (as set forth in
section 13907), 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
part or a regulation issued by the
Secretary or the Board under this part;
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.
(4) Nonapplicability to hawaii.--This subsection
shall not apply with respect to the State of Hawaii.
(d) Pre-Arranged Ground Transportation.--
(1) In general.--No State or political subdivision
thereof and no interstate agency or other political
agency of 2 or more States shall enact or enforce any
law, rule, regulation, standard or other provision
having the force and effect of law requiring a license
or fee on account of the fact that a motor vehicle is
providing pre-arranged ground transportation service if
the motor carrier providing such service--
(A) meets all applicable registration
requirements under chapter 139 for the
interstate transportation of passengers;
(B) meets all applicable vehicle and
intrastate passenger licensing requirements of
the State or States in which the motor carrier
is domiciled or registered to do business; and
(C) is providing such service pursuant to a
contract for--
(i) transportation by the motor
carrier from one State, including
intermediate stops, to a destination in
another State; or
(ii) transportation by the motor
carrier from one State, including
intermediate stops in another State, to
a destination in the original State.
(2) Intermediate stop defined.--In this section, the
term ``intermediate stop'', with respect to
transportation by a motor carrier, means a pause in the
transportation in order for one or more passengers to
engage in personal or business activity, but only if
the driver providing the transportation to such
passenger or passengers does not, before resuming the
transportation of such passenger (or at least 1 of such
passengers), provide transportation to any other person
not included among the passengers being transported
when the pause began.
(3) Matters not covered.--Nothing in this subsection
shall be construed--
(A) as subjecting taxicab service to
regulation under chapter 135 or section 31138;
(B) as prohibiting or restricting an airport,
train, or bus terminal operator from
contracting to provide preferential access or
facilities to one or more providers of pre-
arranged ground transportation service; and
(C) as restricting the right of any State or
political subdivision of a State to require, in
a nondiscriminatory manner, that any individual
operating a vehicle providing prearranged
ground transportation service originating in
the State or political subdivision have
submitted to pre-licensing drug testing or a
criminal background investigation of the
records of the State in which the operator is
domiciled, by the State or political
subdivision by which the operator is licensed
to provide such service, or by the motor
carrier providing such service, as a condition
of providing such service.
* * * * * * *
SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS
PART B. COMMERCIAL
CHAPTER 311. COMMERCIAL MOTOR VEHICLE SAFETY
Sec. 31138. Minimum financial responsibility for transporting
passengers
(a) General Requirement.--The Secretary of Transportation
shall prescribe regulations to require minimum levels of
financial responsibility sufficient to satisfy liability
amounts established by the Secretary covering public liability
and property damage for the transportation of passengers for
compensation by motor vehicle in the United States between a
place in a State and--
(1) a place in another State;
(2) another place in the same State through a place
outside of that State; or
(3) a place outside the United States.
(b) Minimum Amounts.--The level of financial responsibility
established under subsection (a) of this section for a motor
vehicle with a seating capacity of--
(1) at least 16 passengers shall be at least
$5,000,000; and
(2) not more than 15 passengers shall be at least
$1,500,000.
(c) Evidence of Financial Responsibility.--
(1) Subject to paragraph (2) of this subsection,
financial responsibility may be established by evidence
of one or a combination of the following if acceptable
to the Secretary of Transportation:
(A) insurance, including high self-retention.
(B) a guarantee.
(C) a surety bond issued by a bonding company
authorized to do business in the United States.
(2) A person domiciled in a country contiguous to the
United States and providing transportation to which a
minimum level of financial responsibility under this
section applies shall have evidence of financial
responsibility in the motor vehicle when the person is
providing the transportation. If evidence of financial
responsibility is not in the vehicle, the Secretary of
Transportation and the Secretary of the Treasury shall
deny entry of the vehicle into the United States.
(3) A motor carrier may obtain the required amount of
financial responsibility from more than one source
provided the cumulative amount is equal to the minimum
requirements of this section.
(d) Civil Penalty.--
(1) If, after notice and an opportunity for a
hearing, the Secretary of Transportation finds that a
person (except an employee acting without knowledge)
has knowingly violated this section or a regulation
prescribed under this section, the person is liable to
the United States Government for a civil penalty of not
more than $10,000 for each violation. A separate
violation occurs for each day the violation continues
(2) The Secretary of Transportation shall impose the
penalty by written notice. In determining the amount of
the penalty, the Secretary shall consider--
(A) the nature, circumstances, extent, and
gravity of the violation;
(B) with respect to the violator, the degree
of culpability, any history of prior
violations, the ability to pay, and any effect
on the ability to continue doing business; and
(C) other matters that justice requires.
(3) The Secretary of Transportation may compromise
the penalty before referring the matter to the Attorney
General for collection.
(4) The Attorney General shall bring a civil action
in an appropriate district court of the United States
to collect a penalty referred to the Attorney General
for collection under this subsection.
(5) The amount of the penalty may be deducted from
amounts the Government owes the person. An amount
collected under this section shall be deposited in the
Treasury as miscellaneous receipts.
(e) Nonapplication.--This section does not apply to a motor
vehicle--
(1) transporting only school children and teachers to
or from school;
[(2) providing taxicab service, having a seating
capacity of not more than 6 passengers, and not being
operated on a regular route or between specified
places;]
(2) providing taxicab service (as defined in section
13102);
(3) carrying not more than 15 individuals in a
single, daily round trip to and from work; or
(4) providing transportation service within a transit
service area under an agreement with a Federal, State,
or local government funded, in whole or in part, with a
grant under section 5307, 5310, or 5311, including
transportation designed and carried out to meet the
special needs of elderly individuals and individuals
with disabilities; except that, in any case in which
the transit service area is located in more than 1
State, the minimum level of financial responsibility
for such motor vehicle will be at least the highest
level required for any of such States.