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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-282

======================================================================



 
               REAL INTERSTATE DRIVER EQUITY ACT OF 2001

                                _______
                                

 November 13, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, 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 Transportation and Infrastructure, to whom 
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, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Real Interstate Driver Equity Act of 
2001''.

SEC. 2. REGULATION OF INTERSTATE PRE-ARRANGED GROUND TRANSPORTATION 
                    SERVICE.

  Section 14501 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(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) travel from one State, including 
                        intermediate stops, to a destination in another 
                        State; or
                          ``(ii) travel from one State, including one 
                        or more intermediate stops in another State, to 
                        a destination in the original State.
          ``(2) 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 that any 
                individual operating a vehicle providing prearranged 
                ground transportation service originating in the State 
                or political subdivision have submitted to a criminal 
                background investigation of the records of the State in 
                which the operator is domiciled, by the motor carrier 
                providing such service or by the State or political 
                subdivision by which the operator is licensed to 
                provide such service, as a condition of providing such 
                service.''.

SEC. 3. DEFINITIONS.

  (a) In General.--Section 13102 of title 49, United States Code, is 
amended--
          (1) by redesignating paragraphs (17), (18), (19), (20), (21), 
        and (22) as paragraphs (18), (19), (21), (22), (23), and (24), 
        respectively;
          (2) by inserting after paragraph (16) the following:
          ``(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).''; and
          (3) by inserting after paragraph (19) (as so redesignated) 
        the following:
          ``(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.''.
  (b) Conforming Amendments.--
          (1) Motor carrier transportation.--Section 13506(a)(2) of 
        title 49, United States Code, is amended to read as follows:
          ``(2) a motor vehicle providing taxicab service;''.
          (2) Minimum financial responsibility.--Section 31138(e)(2) of 
        such title is amended to read as follows:
          ``(2) providing taxicab service (as defined in section 
        13102);''.

                          Purpose and Summary

    Both the 106th and 107th Congress worked to address a 
regulatory situation where for-hire vehicles could be regulated 
by multiple local jurisdictions while operating in pre-arranged 
interstate commerce. H.R. 2546, the Real Interstate Driver 
Equity Act of 2001 amends Federal transportation law to 
prohibit a State or political subdivision and interstate agency 
of two or more States from enacting or enforcing any law, rule, 
or regulation requiring a license or fee on account that a 
motor vehicle is providing pre-arranged interstate ground 
transportation service.
    Section two of H.R. 2546 clarifies that a state or local 
government or an interstate agency may not regulate pre-
arranged interstate ground transportation provided by carriers 
that meet all applicable vehicle and intrastate passenger 
transportation licensing requirements under state law. Further, 
the carriers (taxicab, airport shuttle, black car, sedan and 
limousine) must be providing interstate transportation in 
accordance with the Interstate Commerce Act.
    This bill would not prohibit airport, train, or bus 
terminal operators from providing preferential access or 
facilities to one or more transportation provider. In addition, 
a state or local government cannot be prohibited from requiring 
a criminal background investigation prior to any driver picking 
up passengers within its jurisdiction for interstate 
transportation. The Committee expects that drivers providing 
interstate transportation will not be treated in a 
discriminatory fashion.
    Interstate ground transportation includes any trip in which 
one or more passengers are picked up in one state and taken to 
any intermediate or final destination in another state. This 
bill prohibits the intermediate jurisdiction from requiring 
licenses or other permits involving pre-arranged ground 
transportation where one or more passengers expect to conduct 
personal or business activities before continuing their trip 
outside the intermediate jurisdiction.
    A destination is an intermediate destination only if the 
driver does not perform any service for an additional passenger 
or group of passengers while waiting to transport the first 
passenger or passengers to the next destination and ultimately 
to reach their final destination outside the intermediate 
jurisdiction. In addition, an airport shuttle is providing 
interstate ground transportation when it transports unrelated 
passengers at multiple locations within one state while 
traveling to, or from, an airport within another state. 
Intrastate stops should not affect the interstate nature of 
each individual arrangement, provided that no passenger's trip 
starts and ends within the same state.
    Section three of H.R. 2546 clarifies the extent of the 
taxicab service exemption from regulation by the Department of 
Transportation. Taxicab service is defined by reference to 
local law and functional characteristics. The bill would 
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).

                    Hearings and Legislative History

    The Committee on Transportation and Infrastructure did not 
hold hearings on this bill.

                        Committee Consideration

    On November 7, 2001, the Subcommittee on Highways and 
Transit was discharged from further consideration H.R. 2546. On 
November 7, 2001, the Full Committee met in open markup session 
and approved H.R. 2546, as amended, by voice vote.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto.
    Congressman Thomas Petri of Wisconsin offered an amendment 
that would protect the right of a State or political 
subdivision of a State to require a criminal background 
investigation of the records of the State in which a carrier of 
a for-hire vehicle is domiciled. The amendment passed by voice 
vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held no oversight 
hearings.

         Statement of General Performance Goals and Objectives

    The objective of this bill is to prohibit a State or 
political subdivision and interstate agency of two or more 
States from enacting or enforcing any law, rule, or regulation 
requiring a license or fee on account that a motor vehicle is 
providing pre-arranged ground transportation service.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2564 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 9, 2001.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, 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.

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 in order to 
provide interstate service. CBO estimates that H.R. 2546 would 
not have a significant effect on the federal budget because the 
bill would not expand the regulatory or enforcement authorities 
of federal agencies. This bill 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 ($56 million in 2001, adjusted 
annually for inflation). This bill contains no new private-
sector mandates as defined in UMRA.
    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.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

                        Committee Correspondence

                          House of Representatives,
                          Committee on Energy and Commerce,
                                 Washington, DC, November 13, 2001.
Hon. Don Young,
Chairman, Committee on Transportation,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Young: I am writing with regard to H.R. 2546, 
the Real Interstate Driver Equity Act of 2001. As you know, 
Rule X of the Rules of the House of Representatives grants the 
Committee on Energy and Commerce jurisdiction over interstate 
commerce. H.R. 2546 deals in significant part with such 
matters, and is therefore within the jurisdiction of my 
Committee.
    I recognize your desire to bring this legislation before 
the House in an expeditious manner. Accordingly, I will not 
exercise my Committee's right to a referral. By agreeing to 
waive its consideration of the bill, however, the Energy and 
Commerce Committee does not waive its jurisdiction over H.R. 
2546. In addition, the Energy and Commerce Committee reserves 
its authority to seek conferees on any provisions of the bill 
that are within its jurisdiction during any House-Senate 
conference that may be convened on this legislation. I ask for 
your commitment to support any request by the Commerce 
Committee for conferees on H.R. 2546 or similar legislation.
    I request that you include this letter as a part of the 
Committee's report on H.R. 2546 and as part of the Record 
during consideration of the legislation on the House floor.
    Thank you for your attention to these matters.
            Sincerely,
                                     W.J. ``Billy'' Tauzin,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                 Washington, DC, November 13, 2001.
Hon. W.J. (Billy) Tauzin,
Chairman, Committee on Energy and Commerce,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Tauzin: Thank you for your letter of November 
13, 2001, regarding H.R. 2546, the ``Real Interstate Driver 
Equity Act of 2001'' and for your willingness to waive 
consideration of provisions in the bill that are under your 
committee's jurisdiction under House Rules.
    I agree that your waiving consideration of relevant 
provisions of H.R. 2546 does not waive your committee's 
jurisdiction over the bill. I also acknowledge your right to 
seek conferees on any provisions that are within your 
committee's jurisdiction during any House-Senate conference on 
H.R. 2546 or similar legislation, and would support your 
request for conferees on such provisions.
    Your letter and this response will be included in the 
record during floor consideration of the bill.
    Thank you for your cooperation in this matter.
            Sincerely,
                                                 Don Young,
                                                          Chairman.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *



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) * * *

           *       *       *       *       *       *       *

          (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) * * *

           *       *       *       *       *       *       *

          [(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) * * *
          [(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;

           *       *       *       *       *       *       *


CHAPTER 145--FEDERAL-STATE RELATIONS

           *       *       *       *       *       *       *


Sec. 14501. Federal authority over intrastate transportation

  (a) * * *

           *       *       *       *       *       *       *

  (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 inwhich the motor carrier 
is domiciled or registered to do business; and
                  (C) is providing such service pursuant to a 
                contract for--
                          (i) travel from one State, including 
                        intermediate stops, to a destination in 
                        another State; or
                          (ii) travel from one State, including 
                        one or more intermediate stops in 
                        another State, to a destination in the 
                        original State.
          (2) 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 
                that any individual operating a vehicle 
                providing prearranged ground transportation 
                service originating in the State or political 
                subdivision have submitted to a criminal 
                background investigation of the records of the 
                State in which the operator is domiciled, by 
                the motor carrier providing such service or by 
                the State or political subdivision by which the 
                operator is licensed to provide such service, 
                as a condition of providing such service.

           *       *       *       *       *       *       *


SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

           *       *       *       *       *       *       *


PART B--COMMERCIAL

           *       *       *       *       *       *       *


SUBCHAPTER III--SAFETY REGULATION

           *       *       *       *       *       *       *


Sec. 31138. Minimum financial responsibility for transporting 
                    passengers

  (a) * * *

           *       *       *       *       *       *       *

  (e) Nonapplication.--This section does not apply to a motor 
vehicle--
          (1) * * *
          [(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);

           *       *       *       *       *       *       *