article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Intermodal Equipment Safety and Responsibility Act of 2003''. SEC. 2. FINDINGS. Congress makes the following findings: (1) Promoting safety on United States highways is a national priority. The Secretary of Transportation has promulgated the Federal Motor Carrier Safety Regulations to further this purpose. The systematic maintenance, repair, and inspection of equipment traveling on public highways in interstate commerce are an integral part of this safety regime. (2) Intermodal transportation plays a significant role in expanding the United States economy, which depends heavily upon the ability to transport goods by various modes of transportation. (3) Although motor carriers and their drivers often receive trailers, chassis, containers, and other items of intermodal equipment to be transported in interstate commerce, they do not possess the requisite level of control or authority over this intermodal equipment to perform the systematic maintenance, repair, and inspection necessary to ensure compliance with the applicable Federal Motor Carrier Safety Regulations and to ensure the safety of United States highways. (4) As a result of roadside inspections, motor carriers and their drivers are cited and fined for violations of the Federal Motor Carrier Safety Regulations attributable to intermodal equipment that they do not have the opportunity to systematically maintain. These violations negatively affect the safety records of motor carriers. SEC. 3. PURPOSE. The purpose of this Act is to ensure that only those parties that control intermodal equipment transported on public highways in the United States (and thus have the opportunity and authority to systematically maintain, repair, and inspect the intermodal equipment) have legal responsibility for the safety of that equipment as it travels in interstate commerce. SEC. 4. DEFINITIONS. Section 5901 of title 49, United States Code, is amended by adding at the end the following new paragraphs: ``(9) `motor carrier' includes-- ``(A) a motor private carrier, as defined in section 13102 of this title; and ``(B) an agent of a motor carrier. ``(10) `intermodal equipment'-- ``(A) means equipment that is commonly used in the intermodal transportation of freight over public highways as an instrumentality of foreign or interstate commerce; and ``(B) includes a trailer, chassis, container, and any device associated with a trailer, chassis, or container. ``(11) `equipment interchange agreement', with respect to intermodal equipment, means a written document that-- ``(A) is executed by a controller of the equipment, or its agent, and a motor carrier; and ``(B) establishes the responsibilities and liabilities of both parties as they relate to the interchange of the equipment. ``(12) `controller', with respect to intermodal equipment, means any party that has any legal right, title, or interest in the equipment, except that a motor carrier-- ``(A) is not a controller of the equipment solely because it provides or arranges for any part of the intermodal transportation of the equipment; and ``(B) may not be considered a controller of the equipment if authority for systematic maintenance and repairs of the equipment has not been delegated to the motor carrier. ``(13) `interchange', with respect to intermodal equipment, means the act of providing the equipment to a motor carrier for the purpose of transporting the equipment for loading or unloading by any party or repositioning the equipment for the benefit of the equipment controller, except that such term does not mean the leasing of the equipment to a motor carrier for use in the motor carrier's over-the-road freight hauling operations. ``(14) `applicable safety regulations' means the regulations applicable to controllers of intermodal equipment under section 5909 of this title.''. SEC. 5. JURISDICTION OVER EQUIPMENT CONTROLLERS. Chapter 59 of title 49, United States Code, is amended by adding at the end the following new section: ``Sec. 5909. Jurisdiction over equipment controller ``The authority of the Secretary of Transportation to prescribe regulations on commercial motor vehicle safety under section 31136 of this title shall apply to controllers of intermodal equipment that is interchanged or to be interchanged.''. SEC. 6. EQUIPMENT CONTROLLER RESPONSIBILITY. (a) In General.--Chapter 59 of title 49, United States Code, as amended by section 5, is further amended by adding at the end the following new section: ``Sec. 5910. Equipment inspection, repair, and maintenance ``(a) In General.--Notwithstanding any provision of an equipment interchange agreement, a controller of intermodal equipment that is interchanged or to be interchanged-- ``(1) shall be responsible and held liable for the systematic inspection, maintenance, and repair of the equipment; ``(2) shall, each time prior to offering a motor carrier the equipment for interchange, inspect the equipment and provide such maintenance on, and make such repairs to, the equipment to ensure that such equipment complies with all applicable safety regulations at all times; and ``(3) shall not offer intermodal equipment to a motor carrier unless such equipment has been inspected and repaired as necessary to comply with such regulations. ``(b) Reimbursement.-- ``(1) In general.--In the event that a repair of interchanged intermodal equipment is necessary while in a motor carrier's possession in order to comply with applicable safety regulations, the controller of the equipment shall promptly reimburse the motor carrier for the actual expenses that are incurred by the motor carrier for the necessary repair, together with compensation for any loss incurred by the motor carrier by reason of delay in the transportation of the equipment necessitated by the need for the repair. ``(2) Exception.--The controller of intermodal equipment shall not be liable to provide reimbursement or compensation for a repair to a motor carrier under paragraph (1) if the motor carrier's negligence or willful misconduct caused the condition requiring the repair. ``(c) Fines.--The Secretary may prescribe fines against controllers of intermodal equipment for violations of this section.''. SEC. 7. SAFETY COMPLIANCE. (a) In General.--Chapter 59 of title 49, United States Code, as amended by section 6, is further amended by adding at the end the following new section: ``Sec. 5911. Compliance with safety regulations ``(a) Liability of Equipment Controller.--Notwithstanding any provision of an equipment interchange agreement, the controller of intermodal equipment covered by such agreement shall be liable for each violation of applicable safety regulations that is attributable to such equipment and shall pay any fine, penalty, and damages resulting from such violation, except that the controller of such equipment shall not be liable for any such violations that is proximately caused by the negligence or willful misconduct of a motor carrier that is not the controller of such equipment. ``(b) Limitation on Liability of Motor Carrier.--A motor carrier who receives intermodal equipment through interchange may not be held liable for a violation of applicable safety regulations that is attributable to such equipment other than under the circumstances and to the extent provided in subsection (a). ``(c) Limitation on Effect.--No record or report of a violation of applicable safety regulations attributable to interchanged intermodal equipment, whether issued by a Federal, State, or local law enforcement authority, shall have any effect on a motor carrier's overall safety rating or safety status measurement system score, as determined by the Federal Motor Carrier Safety Administration, or on a driving record of a driver for the motor carrier unless such violation was proximately caused by the negligence or willful misconduct of the motor carrier or driver, respectively. ``(d) Procedure for Records Corrections.--The Secretary of Transportation shall prescribe an expedited procedure to correct records or reports of violations that under subsection (c) should not have been adversely affected by a violation of applicable safety regulations.''. (b) Time for Prescribing Records Correction Procedures.--The Secretary shall issue final regulations setting forth the expedited procedures required by section 5910(d) of title 49, United States Code, not later than 180 days after the date of enactment of this Act. SEC. 8. AUTHORITY TO INSPECT. Chapter 59 of title 49, United States Code, as amended by section 7, is further amended by adding at the end the following new section: ``Sec. 5912. Authority to inspect ``(a) Authority.--The Secretary of Transportation is authorized to enter any facility of a controller of intermodal equipment interchanged for use on a public highway in order to inspect the equipment to determine whether the equipment complies with the applicable regulations. ``(b) Inspection Program.--The Secretary shall establish and implement with appropriate staffing an inspection and audit program at facilities of controllers of intermodal equipment in order to make determinations under subsection (a). Inspection of equipment and maintenance records for such equipment at such facility shall take place not less frequently than once every 3 months. ``(c) Non-Complying Equipment.--Any intermodal equipment that is determined under this section as failing to comply with applicable safety regulations shall be placed out of service and may not be used on a public highway until the repairs necessary to bring such equipment into compliance have been completed. Repairs of equipment placed out of service shall be documented in the maintenance records for such equipment.''. SEC. 9. PROHIBITION ON RETALIATION. Chapter 59 of title 49, United States Code, as amended by section 8, is further amended by adding at the end the following new section: ``Sec. 5913. Penalties for retaliation ``(a) Retaliation Prohibited.--A controller of intermodal equipment may not take any action to threaten, coerce, discipline, discriminate, or otherwise retaliate against a motor carrier in response to a request made by the motor carrier for maintenance or repair of equipment intended for interchange in order to comply with the applicable safety regulations. ``(b) Failure To Timely Provide Safe Equipment Deemed To Be Retaliation.--Upon receiving a motor carrier's request for maintenance or repair of intermodal equipment to be picked up by the motor carrier in an interchange of equipment, the controller of intermodal equipment shall be considered to have retaliated against the motor carrier for the purposes of this section if the controller of intermodal equipment fails to provide the motor carrier with the equipment in a condition compliant with the applicable safety regulations within 60 minutes after the motor carrier arrives to pick up the equipment at the place where the equipment is to be picked up. ``(c) Penalty.--A controller of intermodal equipment that violates subsection (a) shall be liable to the United States Government for a civil penalty of up to $10,000 for each violation.''. SEC. 10. DELEGATION OF MAINTENANCE RESPONSIBILITY. Chapter 59 of title 49, United States Code, as amended by section 9, is further amended by adding at the end the following new section: ``Sec. 5914. Maintenance responsibility ``A controller of intermodal equipment may not delegate its responsibility to systematically maintain and repair equipment intended for interchange to a motor carrier or motor carrier agent in an equipment interchange agreement.''. SEC. 11. COMPATIBILITY OF STATE LAWS. (a) In General.--Chapter 59 of title 49, United States Code, as amended by section 10, is further amended by adding at the end the following new section: ``Sec. 5915. Compatibility of State laws ``(a) Preemption Generally.--Except as provided in subsection (b) or as otherwise authorized by Federal law, a law, regulation, order, or other requirement of a State or political subdivision of a State, or of a tribal organization, is preempted if compliance with such law, regulation, order, or other requirement would preclude compliance with a requirement imposed under this chapter. ``(b) Certain Rules not Preempted.--A law, regulation, order, or other requirement of a State or political subdivision of a State, or of a tribal organization, shall not be preempted under subsection (a) if such law, regulation, order, or other requirement is more stringent than, but otherwise compatible with, a requirement under this chapter. ``(c) Tribal Organization Defined.--In this section, the term `tribal organization' has the meaning given such term in section (4)(l) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(l)).''. SEC. 12. REPEAL OF OBSOLETE PROVISION. Section 5907 of title 49, United States Code, is repealed. SEC. 13. CLERICAL AMENDMENTS. The table of sections at the beginning of such chapter is amended-- (1) by striking the item relating to section 5907; and (2) by adding at the end the following: ``5909. Jurisdiction over equipment controller. ``5910. Equipment inspection, repair, and maintenance. ``5911. Compliance with safety regulations. ``5912. Authority to inspect. ``5913. Penalties for retaliation. ``5914. Maintenance responsibility. ``5915. Compatibility of State laws.''. SEC. 14. IMPLEMENTING REGULATIONS. (a) Regulations.--The Secretary of Transportation, after notice and opportunity for comment, shall issue regulations implementing the provisions of this Act. The regulations shall be issued as part of the Federal Motor Carrier Safety Regulations of the Department of Transportation. The implementing regulations shall include-- (1) a requirement to identify controllers of intermodal equipment that is interchanged or intended for interchange in intermodal transportation; (2) a requirement to match such equipment readily to its controller through a unique identifying number; (3) a requirement to ensure that each controller of intermodal equipment maintains a system of maintenance and repair records for such equipment; (4) a requirement to evaluate the compliance of controllers of intermodal equipment with the applicable Federal Motor Carrier Safety Regulations; (5) a provision that prohibits controllers of intermodal equipment that fail to attain satisfactory compliance with such regulations from authorizing the placement of equipment on public highways; (6) a requirement for the Secretary to consider the effect that adequate maintenance facilities may have on safety condition of equipment; (7) a process by which motor carriers and agents of motor carriers may anonymously petition the Federal Motor Carrier Safety Administration to undertake an investigation of a noncompliant controller of intermodal equipment; (8) administrative procedures to resolve disputes arising under the regulations; and (9) the inspection and audit program required under section 5912(b) of title 49, United States Code, as added by section 8. (b) Time for Issuing Regulations.--The regulations required under subsection (a) shall be developed pursuant to a rulemaking proceeding initiated not later than 120 days after the date of the enactment of this Act and shall be issued not later than one year after such date of enactment. (c) Definitions.--For the purposes of this section, the definitions set forth in section 5901 of title 49, United States Code, as amended by section 4, shall apply. SEC. 15. AUTHORIZATION OF APPROPRIATIONS. There is authorized to be appropriated to the Federal Motor Carrier Safety Administration such sums as may be necessary for the establishment and implementation of the inspection program required under section 5912 of title 49, United States Code, as added by section 8. SEC. 16. EFFECTIVE DATE. Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 of this Act and the amendments made by such sections shall take effect 30 days after the date of the enactment of this Act.
summary: Intermodal Equipment Safety and Responsibility Act of 2003 - Subjects controllers of interchangeable intermodal equipment to commercial motor vehicle safety regulation and liability, including systematic inspection, maintenance, and repair requirements. Authorizes the Secretary of Transportation to conduct inspections. Prohibits a controller from retaliating against any motor carrier in response to a request for safety maintenance or repair of equipment intended for interchange, including failing to provide requested safe equipment in a timely fashion. Prohibits controller delegation of this maintenance responsibility. Directs the Secretary to issue implementing regulations as part of the Federal Motor Carrier Safety Regulations.