
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: 49USC10706]

 
                        TITLE 49--TRANSPORTATION
 
                 SUBTITLE IV--INTERSTATE TRANSPORTATION
 
                              PART A--RAIL
 
                           CHAPTER 107--RATES
 
                     SUBCHAPTER I--GENERAL AUTHORITY
 
Sec. 10706. Rate agreements: exemption from antitrust laws

    (a)(1) In this subsection--
        (A) the term ``affiliate'' means a person controlling, 
    controlled by, or under common control 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 carrier that is applicable only over its 
    line and for which the transportation (exclusive of terminal 
    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 (including 
charges between rail carriers and compensation paid or received for the 
use of facilities and equipment), classifications, divisions, or rules 
related to them, or procedures for joint consideration, initiation, 
publication, or establishment of them, shall apply to the Board for 
approval 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 require 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 required 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 Wilson 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. However, the Board may not approve or continue approval of an 
agreement when the conditions required 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 statement 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 number 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 controlling 
    any debt, equity, or security interest in it having a value of at 
    least $1,000,000.

    (3)(A) An organization established or continued under an agreement 
approved under this subsection shall make a final disposition of a rule 
or rate docketed with it by the 120th day after the proposal is 
docketed. Such an organization may not--
        (i) permit a rail carrier to discuss, to participate in 
    agreements related to, or to vote on single-line rates proposed by 
    another rail carrier, except that for purposes of general rate 
    increases and broad changes in rates, classifications, rules, and 
    practices only, if the Board finds at any time that the 
    implementation of this clause is not feasible, it may delay or 
    suspend such implementation in whole or in part;
        (ii) permit a rail carrier to discuss, to participate in 
    agreements related to, or to vote on rates related to a particular 
    interline movement unless that rail carrier practicably participates 
    in the movement; or
        (iii) if there are interline movements over two or more routes 
    between the same end points, permit a carrier to discuss, to 
    participate in agreements related to, or to vote on rates except 
    with a carrier which forms part of a particular single route. If the 
    Board finds at any time that the implementation of this clause is 
    not feasible, it may delay or suspend such implementation in whole 
    or in part.

    (B)(i) In any proceeding in which a party alleges that a rail 
carrier voted or agreed on a rate or allowance in violation of this 
subsection, that party has the burden of showing that the vote or 
agreement occurred. A showing of parallel behavior does not satisfy that 
burden by itself.
    (ii) In any proceeding in which it is alleged that a carrier was a 
party to an agreement, conspiracy, or combination in violation of a 
Federal law cited in subsection (a)(2)(A) of this section or of any 
similar State law, proof of an agreement, conspiracy, or combination may 
not be inferred from evidence that two or more rail carriers acted 
together with respect to an interline rate or related matter and that a 
party to such action took similar action with respect to a rate or 
related matter on another route or traffic. In any proceeding in which 
such a violation is alleged, evidence of a discussion or agreement 
between or among such rail carrier and one or more other rail carriers, 
or of any rate or other action resulting from such discussion or 
agreement, shall not be admissible if the discussion or agreement--
        (I) was in accordance with an agreement approved under paragraph 
    (2) of this subsection; or
        (II) concerned an interline movement of the rail carrier, and 
    the discussion or agreement would not, considered by itself, violate 
    the laws referred to in the first sentence of this clause.

In any proceeding before a jury, the court shall determine whether the 
requirements of subclause (I) or (II) are satisfied before allowing the 
introduction of any such evidence.
    (C) An organization described in subparagraph (A) of this paragraph 
shall provide that transcripts or sound recordings be made of all 
meetings, that records of votes be made, and that such transcripts or 
recordings and voting records be submitted to the Board and made 
available to other Federal agencies in connection with their statutory 
responsibilities over rate bureaus, except that such material shall be 
kept confidential and shall not be subject to disclosure under section 
552 of title 5, United States Code.
    (4) Notwithstanding any other provision of this subsection, one or 
more rail carriers may enter into an agreement, without obtaining prior 
Board approval, that provides solely for compilation, publication, and 
other distribution of rates in effect or to become effective. 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 Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of 
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) shall not apply to parties 
and other persons with respect to making or carrying out such agreement. 
However, the Board may, upon application or on its own initiative, 
investigate whether the parties to such an agreement have exceeded its 
scope, and upon a finding that they have, the Board may issue such 
orders as are necessary, including an order dissolving the agreement, to 
ensure that actions taken pursuant to the agreement are limited as 
provided in this paragraph.
    (5)(A) Whenever two or more shippers enter into an agreement to 
discuss among themselves that relates to the amount of compensation such 
shippers propose to be paid by rail carriers providing transportation 
subject to the jurisdiction of the Board under this part, for use by 
such rail carriers of rolling stock owned or leased by such shippers, 
the shippers shall apply to the Board for approval of that agreement 
under this paragraph. The Board shall approve the agreement only when it 
finds that the making and carrying out of the agreement will further the 
transportation policy set forth in section 10101 of this title and may 
require compliance with conditions necessary to make the agreement 
further that policy as a condition of approval. If the Board approves 
the agreement, it may be made and carried out under its terms and under 
the terms required by the Board, and the antitrust laws set forth in 
paragraph (2) of this subsection do not apply to parties and other 
persons with respect to making or carrying out the agreement. The Board 
shall approve or disapprove an agreement under this paragraph within one 
year after the date application for approval of such agreement is made.
    (B) If the Board approves an agreement described in subparagraph (A) 
of this paragraph and the shippers entering into such agreement and the 
rail carriers proposing to use rolling stock owned or leased by such 
shippers, under payment by such carriers or under a published allowance, 
are unable to agree upon the amount of compensation to be paid for the 
use of such rolling stock, any party directly involved in the 
negotiations may require that the matter be settled by submitting the 
issues in dispute to the Board. The Board shall render a binding 
decision, based upon a standard of reasonableness and after taking into 
consideration any past precedents on the subject matter of the 
negotiations, no later than 90 days after the date of the submission of 
the dispute to the Board.
    (C) Nothing in this paragraph shall be construed to change the law 
in effect prior to October 1, 1980, with respect to the obligation of 
rail carriers to utilize rolling stock owned or leased by shippers.
    (b) The Board may require an organization established or continued 
under an agreement approved under this section to maintain records and 
submit reports. The Board may inspect a record maintained under this 
section.
    (c) The Board may review an agreement approved under subsection (a) 
of this section and shall change the conditions of approval or terminate 
it when necessary to comply with the public interest and subsection (a). 
The Board shall postpone the effective date of a change of an agreement 
under this subsection for whatever period it determines to be reasonably 
necessary to avoid unreasonable hardship.
    (d) The Board may begin a proceeding under this section on its own 
initiative or on application. Action of the Board under this section--
        (1) approving an agreement;
        (2) denying, ending, or changing approval;
        (3) prescribing the conditions on which approval is granted; or
        (4) changing those conditions,

has effect only as related to application of the antitrust laws referred 
to in subsection (a) of this section.
    (e)(1) The Federal Trade Commission, in consultation with the 
Antitrust Division of the Department of Justice, shall prepare 
periodically an assessment of, and shall report to the Board on--
        (A) possible anticompetitive features of--
            (i) agreements approved or submitted for approval under 
        subsection (a) of this section; and
            (ii) an organization operating under those agreements; and

        (B) possible ways to alleviate or end an anticompetitive 
    feature, effect, or aspect in a manner that will further the goals 
    of this part and of the transportation policy of section 10101 of 
    this title.

    (2) Reports received by the Board under this subsection shall be 
published and made available to the public under section 552(a) of title 
5.

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 
812; amended Pub. L. 104-287, Sec. 5(24), Oct. 11, 1996, 110 Stat. 
3390.)

                       References in Text

    The Sherman Act, referred to in subsec. (a)(2)(A), (4), is act July 
2, 1890, ch. 647, 26 Stat. 209, as amended, which is classified to 
sections 1 to 7 of Title 15, Commerce and Trade. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1 of Title 15 and Tables.
    The Clayton Act, referred to in subsec. (a)(2)(A), (4), is act Oct. 
15, 1914, ch. 323, 38 Stat. 730, as amended, which is classified 
generally to sections 12, 13, 14 to 19, 20, 21, and 22 to 27 of Title 15 
and sections 52 and 53 of Title 29, Labor. For further details and 
complete classification of this Act to the Code, see References in Text 
note set out under section 12 of Title 15 and Tables.
    The Federal Trade Commission Act, referred to in subsec. (a)(2)(A), 
(4), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is 
classified generally to subchapter I (Sec. 41 et seq.) of chapter 2 of 
Title 15. For complete classification of this Act to the Code, see 
section 58 of Title 15 and Tables.
    Sections 73 and 74 of the Wilson Tariff Act, referred to in subsec. 
(a)(2)(A), (4), are sections 73 and 74 of act Aug. 27, 1894, ch. 349, 28 
Stat. 570, which enacted sections 8 and 9, respectively, of Title 15.
    Act of June 19, 1936, referred to in subsec. (a)(2)(A), (4), is act 
June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as the Robinson-
Patman Anti-discrimination Act and also as the Robinson-Patman Price 
Discrimination Act, which enacted sections 13a, 13b, and 21a of Title 15 
and amended section 13 of Title 15. For complete classification of this 
Act to the Code, see Short Title note set out under section 13 of Title 
15 and Tables.


                            Prior Provisions

    A prior section 10706, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1377; 
Pub. L. 96-258, Sec. 1(7), June 3, 1980, 94 Stat. 426; Pub. L. 96-296, 
Sec. 14(a), (c), (d), July 1, 1980, 94 Stat. 803, 808; Pub. L. 96-448, 
title II, Sec. 219(a)-(e), 224(b), Oct. 14, 1980, 94 Stat. 1926-1929; 
Pub. L. 97-261, Sec. 10(a)-(d), Sept. 20, 1982, 96 Stat. 1109, 1110; 
Pub. L. 98-216, Sec. 2(12), Feb. 14, 1984, 98 Stat. 5; Pub. L. 99-521, 
Sec. 7(c), Oct. 22, 1986, 100 Stat. 2995, related to exemption from 
antitrust laws of rate agreements, prior to the general amendment of 
this subtitle by Pub. L. 104-88, Sec. 102(a). See sections 10706 and 
13703 of this title.


                               Amendments

    1996--Subsec. (a)(5)(C). Pub. L. 104-287 substituted ``October 1, 
1980,'' for ``the effective date of the Staggers Rail Act of 1980''.
