
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC10704]

 
                        TITLE 49--TRANSPORTATION
 
                 SUBTITLE IV--INTERSTATE TRANSPORTATION
 
                              PART A--RAIL
 
                           CHAPTER 107--RATES
 
                     SUBCHAPTER I--GENERAL AUTHORITY
 
Sec. 10704. Authority and criteria: rates, classifications, 
        rules, and practices prescribed by Board
        
    (a)(1) When the Board, after a full hearing, decides that a rate 
charged or collected by a rail carrier for transportation subject to the 
jurisdiction 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 prescribed under this 
subsection, the affected carrier may not publish, charge, or collect a 
different rate and shall adopt the classification and observe the rule 
or practice prescribed by the Board.
    (2) The Board shall maintain and revise as necessary standards and 
procedures for establishing revenue levels for rail carriers providing 
transportation subject to its jurisdiction under this part that are 
adequate, under honest, economical, and efficient management, to cover 
total operating expenses, including depreciation and obsolescence, plus 
a reasonable and economic profit or return (or both) on capital employed 
in the business. The Board shall make an adequate and continuing effort 
to assist 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 depreciation adequate to 
    support prudent capital outlays, assure the repayment of a 
    reasonable level of debt, permit the raising of needed equity 
    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 procedures described in 
paragraph (2), the Board shall annually determine which rail carriers 
are earning 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 complaint pending before the Board.
    (c) In a proceeding to challenge the reasonableness of a rate, the 
Board shall make its determination as to the reasonableness of the 
challenged rate--
        (1) within 9 months after the close of the administrative record 
    if the determination is based upon a stand-alone cost presentation; 
    or
        (2) within 6 months after the close of the administrative record 
    if the determination is based upon the methodology adopted by the 
    Board pursuant to section 10701(d)(3).

    (d) Within 9 months after January 1, 1996, the Board shall establish 
procedures to ensure expeditious handling of challenges to the 
reasonableness of railroad rates. The procedures 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.

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 
810; amended Pub. L. 104-287, Sec. 5(23), Oct. 11, 1996, 110 Stat. 
3390.)


                            Prior Provisions

    A prior section 10704, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1373; 
Pub. L. 96-296, Sec. 13(b), July 1, 1980, 94 Stat. 803; Pub. L. 96-448, 
title II, Sec. 205(b), Oct. 14, 1980, 94 Stat. 1906; Pub. L. 97-261, 
Sec. 9(b), Sept. 20, 1982, 96 Stat. 1109; Pub. L. 99-521, Sec. 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, Sec. 102(a). See sections 10704, 13701, and 15503 of 
this title.


                               Amendments

    1996--Subsec. (d). Pub. L. 104-287 substituted ``January 1, 1996'' 
for ``the effective date of the ICC Termination Act of 1995''.

                  Section Referred to in Other Sections

    This section is referred to in section 10701 of this title.
