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HR 1070 IH

To amend title 49, United States Code, relating to improving transportation and security of household goods, and for other purposes.

March 4, 2003

Mr. PETRI (for himself, Mr. LIPINSKI, Mr. MICA, Mr. REHBERG, Mr. KLECZKA, Mr. BAKER, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. BROWN of South Carolina, Mr. LATOURETTE, Mr. HONDA, Mr. BURGESS, and Mr. BAIRD) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

To amend title 49, United States Code, relating to improving transportation and security of household goods, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Securing Consumers' Assurance in Moving Act of 2003'.

SEC. 2. FINDINGS.

Congress finds the following:

(1) There are approximately 1,500,000 interstate household moves every year and, while the vast majority of these interstate moves are completed successfully, consumer complaints have been increasing since the Interstate Commerce Commission was abolished in 1996 and oversight of the household goods industry was transferred to the Department of Transportation.

(2) While the overwhelming majority of household goods carriers are honest and operate within the law, there appears to be a growing criminal element that is exploiting a perceived void in Federal and State enforcement efforts and who prey upon consumers.

(3) The movement of an individual's household goods is unique from the movement of a commercial shipment. A consumer may utilize a moving company once or twice in his or her lifetime and entrust virtually all of his or her worldly goods to a mover.

(4) Current Federal regulations allow for a household goods carrier found to be in violation of Federal law to be subject to civil penalties but provide no remedy for consumers who have been harmed by fraudulent or deceptive trade practices of a household goods mover.

(5) Various courts have interpreted the `Carmack' amendment, related to a carrier's liability in loss and damage claims, to preclude States from pursuing any actions against interstate household goods carriers, including the application of consumer protection laws against fraudulent movers.

(6) Federal resources are inadequate to properly police or deter, on a nationwide basis, those movers who willfully violate Federal regulations governing the household goods industry and knowingly prey on consumers who are in a vulnerable position. It is appropriate that a Federal-State partnership be created to enhance enforcement tools against fraudulent moving companies.

(7) The Department of Transportation should provide greater information to consumers and review current consumer protection regulations, including insurance and loss and damage remedies relating to individual household goods moves, in order to recommend modifications to current Federal law and regulations relating to rights and liabilities of both consumers and household goods carriers.

SEC. 3. FEDERAL-STATE RELATIONS RELATING TO TRANSPORTATION OF HOUSEHOLD GOODS.

(a) NONPREEMPTION OF INTRASTATE TRANSPORTATION OF HOUSEHOLD GOODS- Section 14501(c)(2)(B) of title 49, United States Code, is amended by inserting `intrastate' before `transportation'.

(b) ENFORCEMENT OF CONSUMER PROTECTION WITH RESPECT TO INTERSTATE HOUSEHOLD GOODS CARRIERS- Chapter 145 of title 49, United States Code, is amended by adding at the end the following:

`Sec. 14506. Enforcement of consumer protection with respect to interstate household goods carriers

`(a) IN GENERAL- Notwithstanding any other provision of this title, an individual or a State or political subdivision of a State may enforce a consumer protection law, regulation, or other provision (having the force of law) of such State or political subdivision with respect to the interstate transportation of household goods as defined in section 13102(a)(10)(A).

`(b) PRIOR NOTIFICATION- Before taking any action to enforce a consumer protection law, regulation, or other provision of a State relating to interstate transportation of household goods as defined in section 13102(a)(10)(A) with respect to a motor carrier providing such transportation, the State or a political subdivision of

a State shall notify, in writing, the Secretary of Transportation of its intention to enforce such law, regulation, or other provision with respect to such carrier; except that, if it is not feasible for the State or political subdivision to provide the prior notification, the State or political subdivision shall provide the notification, in writing, immediately upon instituting such action.

`(c) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this section shall be construed as authorizing a State or political subdivision of a State to bring an enforcement action under a consumer protection law, regulation, or other provision of the State relating to interstate transportation of household goods as defined in section 13102(a)(10)(A) with respect to an activity that is inconsistent with Federal laws and regulations relating to interstate transportation of household goods.'.

(c) CONFORMING AMENDMENT- The analysis for chapter 145 of such title is amended by adding at the end the following:

`14506. Enforcement of consumer protection with respect to interstate household goods carriers.'.

SEC. 4. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.

(a) IN GENERAL- Not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall establish a working group of State attorneys general, State consumer protection administrators, and Federal and local law enforcement officials for the purpose of developing practices and procedures to enhance the Federal-State partnership in enforcement efforts, exchange of information, and coordination of enforcement efforts with respect to interstate transportation of household goods and making legislative and regulatory recommendations to the Secretary concerning such enforcement efforts.

(b) CONSULTATION- In carrying out subsection (a), the working group shall consult with industries involved in the transportation of household goods.

SEC. 5. CIVIL AND CRIMINAL PENALTY FOR HOLDING HOUSEHOLD GOODS HOSTAGE.

(a) IN GENERAL- Chapter 149 of title 49, United States Code, is amended by adding at the end the following:

`Sec. 14915. Holding household goods hostage

`(a) HOLDING HOUSEHOLD GOODS HOSTAGE DEFINED- For purposes of this section, the term `holding household goods hostage' means the knowing and willful failure to deliver to, or unload at, the destination of a shipment of household goods which is subject to jurisdiction under subchapter I or III of chapter 135, for which charges have been estimated by the motor carrier providing transportation of such goods, and for which the maximum amount required to be paid at the time of delivery under regulations issued by the Secretary is 110 percent of such estimated charges.

`(b) CIVIL PENALTY- Whoever is found holding a household goods shipment hostage is liable to the United States for a civil penalty of not less than $10,000. If such person is a carrier or broker, the Secretary of Transportation may suspend for a period of not less than 6 months the registration of such carrier or broker under chapter 139.

`(c) CRIMINAL PENALTY- Whoever has been convicted of holding household goods hostage shall be fined under title 18 or imprisoned not more than 2 years, or both.'.

(b) CONFORMING AMENDMENT- The analysis for such chapter is amended by adding at the end the following:

`14915. Holding household goods hostage.'.

SEC. 6. CONSUMER HANDBOOK ON DOT WEB SITE.

Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall take such action as may be necessary to ensure that publication OCE 100 of the Department of Transportation, entitled `Your Rights and Responsibilities When You Move', is prominently displayed, and available in language that is readily understandable by the general public, on the Web site of the Department of Transportation.

SEC. 7. DISPLAY OF INFORMATION ON HOUSEHOLD GOODS TRANSPORTATION RELATED WEB SITES.

Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall modify the regulations contained in part 375 of title 49, Code of Federal Regulations, to require a motor carrier or broker that is subject to such regulations and that establishes and maintains a Web site to prominently display on the Web site--

(1) the Department of Transportation number of the motor carrier or broker;

(2) the OCE 100 publication referred to in section 6; and

(3) in the case of a broker, a list of all motor carriers providing transportation of household goods used by the broker and a statement that the broker is not a motor carrier providing transportation of household goods.

SEC. 8. CONSUMER COMPLAINT DATA BASE.

(a) ESTABLISHMENT OF SYSTEM- Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall--

(1) establish a system for filing and logging consumer complaints relating to motor carriers providing transportation of household goods and for compiling complaint information gathered by the States with regard to such carriers, a database of the complaints, and a procedure for the public to have access to the database and for carriers to challenge information in the database; and

(2) issue regulations requiring motor carriers of household goods to submit on a semi-annual basis reports summarizing--

(A) the number and general category of complaints lodged by consumers;

(B) the number of claims filed for loss and damage, including the aggregate amount of claims; and

(C) the number of claims resolved during the reporting period and the aggregate amount of claims paid by the carrier.

(b) USE OF INFORMATION- In determining which motor carriers providing transportation of household goods should be subject to a commercial investigation, the Secretary of Transportation shall consider information in the data base established under subsection (a).

SEC. 9. INSURANCE REGULATIONS.

(a) REVIEW- Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall undertake a review of the current Federal regulations regarding insurance coverage provided by motor carriers providing transportation of household goods and revise such regulations in order to provide enhanced protection for shippers in the case of loss or damage as determined necessary.

(b) DETERMINATIONS- The review shall include, but not be limited to, a determination of--

(1) whether the current regulations provide adequate protection for shippers;

(2) whether an individual shipper should purchase insurance as opposed to the carrier; and

(3) whether there are abuses of the current regulations that leave the shipper unprotected in loss and damage claims.

SEC. 10. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS BROKERS.

Section 14901(d) of title 49, United States Code, is amended--

(1) by striking `If a carrier' and inserting the following:

`(1) IN GENERAL- If a carrier'; and

(2) by adding at the end the following:

`(2) ESTIMATE OF BROKER WITHOUT CARRIER AGREEMENT- If a broker for transportation of household goods subject to jurisdiction under subchapter I of chapter 135 makes an estimate of the cost of transporting any such goods before entering into an agreement with a carrier to provide transportation of household goods subject to such jurisdiction, the broker is liable to the United States for a civil penalty of not less than $10,000 for each violation.

`(3) UNAUTHORIZED TRANSPORTATION- If a person provides transportation of household goods subject to jurisdiction under subchapter I of chapter 135 or provides broker services for such transportation without being registered under chapter 139 to provide such transportation or services as a motor carrier or broker, as the case may be, such person is liable to the United States for a civil penalty of not less than $25,000 for each violation.'.

SEC. 11. PROGRESS REPORT.

Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall transmit to Congress a report on the progress being made in implementing this Act.

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