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preempt the States' economic regulation of motor carriers. The
FAAAA amended 49 U.S.C. sec. 11501 by adding subsection (h),
which provided generally that a State may not enact or enforce a
law, regulation, or other provision having the force and effect
of law related to a price, route, or service of any motor carrier
or any private motor carrier with respect to the transportation
of property.
Before the FAAAA, motor carriers engaged in the
transportation of goods within the States of Washington and
Oregon were required by each State to possess an operating
authority for each route traveled within that State. The holder
of the operating authority had the right to transport goods over
only the particular route specified in that authority.
A motor carrier that wanted an operating authority could
obtain one by applying to the State. However, a motor carrier
already holding an operating authority had the right to intervene
and oppose another motor carrier's application for a new
operating authority. This right was used to significantly limit
competition within the industry, which provided economic benefit
to the motor carriers holding operating authorities.
Instead of applying to the State for a new operating
authority, a motor carrier could purchase an operating authority
from the motor carrier to whom it had been issued. Petitioner
paid $520,677 to purchase operating authorities from other motor
carriers for various specific routes.
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Last modified: May 25, 2011