[Federal Register: July 16, 1997 (Volume 62, Number 136)]
[Rules and Regulations]
[Page 38035-38036]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy97-21]

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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Part 372

[FHWA Docket No. MC-96-38 and No. FHWA-97-2280]
RIN 2125-AE03


Exemption of Notice Filing Requirements for Agricultural
Cooperative Associations Which Conduct Compensated Transportation
Operations for Nonmembers

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Final rule.

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SUMMARY: This document removes the regulation specifying the notice
filing requirements for agricultural cooperative associations which
conduct compensated transportation operations for nonmembers. These
operations are exempt from regulation if certain statutory limitations
on their scope are observed. Section 103 of the ICC Termination Act of
1995 (ICCTA), Pub. L. 104-88, 109 Stat. 803, removed the requirement
that a notice be filed before initiation of operations under the
exemption.

EFFECTIVE DATE: August 15, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas T. Vining or Ms. Patricia
A. Burke, Office of Motor Carrier Information Analysis, HIA-30, (202)
358-7028, or Ms. Grace Reidy, Office of the Chief Counsel, (202) 366-
0834, Federal Highway Administration, 400 Seventh St., SW., Washington,
DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday
through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: On October 21, 1996, the FHWA published a
proposed rule and a request for comments in the Federal Register (61 FR
54712) on the removal of the regulation specifying the notice filing
requirement for agricultural cooperative associations which conduct
compensated transportation operations for nonmembers. The former
Interstate Commerce Act contained an exemption from ICC regulation at
49 U.S.C. 13506(a)(5) (formerly 49 U.S.C. 10526(a)(5)) for
transportation provided by an agricultural cooperative association for
nonmembers. To qualify for the exemption, the transportation services
for nonmembers were required to be incidental to the cooperative's
primary transportation operations, could not exceed annually 25 percent
of the cooperative's total transportation between any two involved
points, and, as a whole, could not exceed the transportation provided
for the cooperative association and its members. The cooperative was
also required to file a notice with the ICC of its intent to provide
transportation for nonmembers.
    The ICCTA reenacted the substantive exemption for nonmember
transportation services by agricultural cooperatives, but removed the
notice filing requirement. 49 U.S.C. 13506(a)(5). Although the ICCTA
does not prohibit imposition of a notice requirement by the FHWA, which
has assumed responsibility for this regulation pursuant to the ICCTA,
the notice of proposed rulemaking questioned the continuing need for
any required notice.
    The public comment period for the proposed rule closed on December
20, 1996. No comments were submitted, and the proposed rule is adopted.
    The Secretary is granted authority at 49 U.S.C. 13508 to require
agricultural cooperatives to maintain records of transportation
provided for members and nonmembers. Section 13508 makes these records
subject to inspection and imposes specific penalties for reporting and
recordkeeping violations. Regulations at 49 CFR 372.111 delineate the
scope of the required records. The information contained in these
records can be inspected by the FHWA if it ever appears that a
cooperative is performing transportation services for nonmembers which
exceed the scope of the exemption. Moreover, it is unlikely that a
cooperative would have any incentive to conduct unlawful transportation
operations. Under the ICCTA, licensing requirements are now essentially
limited to compliance with safety and insurance standards. A
cooperative could easily obtain operating authority for legitimate
operations.
    In these circumstances, the notice requirement at 49 CFR 372.113 no
longer serves any legitimate purpose. Removal of this regulation, and
the adoption of conforming amendments to 49 CFR 372.111, will eliminate
unnecessary regulatory requirements.

Executive Order 12866 (Regulatory Planning and Review and DOT
Regulatory Policies and Procedures)

    The FHWA has determined that this action is not a significant
regulatory action within the meaning of Executive Order 12866 or
significant within the meaning of Department of Transportation
regulatory policies and procedures. The economic impact of this
rulemaking is minimal; therefore, a full regulatory evaluation is not
required. The rulemaking merely

[[Page 38036]]

eliminates a notice filing requirement which applies to a small number
of transportation entities. Neither the individual nor cumulative
impact of this action is significant.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (Pub. L. 96-354,
5 U.S.C. 601-612), the FHWA has evaluated the effects of this rule on
small entities. Based on the evaluation, the FHWA hereby certifies that
this action will not have a significant economic impact on a
substantial number of small entities. The filing requirement currently
only involves the preparation of a relatively simple notice by a
limited number of transportation entities. Its elimination, while
beneficial, will not have a significant economic impact.

Executive Order 12612 (Federalism Assessment)

    This action was analyzed in accordance with the principles and
criteria contained in Executive Order 12612, and it was determined that
this action does not have sufficient federalism implications to warrant
the preparation of a federalism assessment.

Executive Order 12372 (Intergovernmental Review)

    Catalog of Federal Domestic Assistance Program Number 20.217, Motor
Carrier Safety. The regulations implementing Executive Order 12372
regarding intergovernmental consultation on Federal programs and
activities do not apply to this program.

Paperwork Reduction Act

    This action does not contain a collection of information
requirement for purposes of the Paperwork Reduction Act of 1995, 44
U.S.C. 3501 et seq. On the contrary, it eliminates the requirement that
parties taking advantage of the exemption at 49 U.S.C. 13506(a)(5) file
Form OCP-102 (Office of Management and Budget #3120-0005,
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National Environmental Policy Act

    The agency has analyzed this action for the purpose of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has
determined that this action would not have any effect on the quality of
the environment.

Regulation Identification Number

    A regulation identification number (RIN) is assigned to each
regulatory action listed in the Unified Agenda of Federal Regulations.
The Regulatory Information Service Center publishes the Unified Agenda
in April and October of each year. The RIN number contained in the
heading of this document can be used to cross reference this action
with the Unified Agenda.

List of Subjects in 49 CFR Part 372

    Agricultural commodities, Buses, Commercial zones, Freight
forwarders, Highways and roads, Motor carriers of property, Reporting
and recordkeeping requirements.

    In consideration of the foregoing and under the authority of
section 103 of the ICC Termination Act of 1995, Pub. L. 104-88, 109
Stat 803, and 49 CFR 1.48, the FHWA amends title 49, CFR, Chapter III,
Part 372 as set forth below:

PART 372--EXEMPTIONS, COMMERCIAL ZONES, AND TERMINAL AREAS

    1. The authority citation for Part 372 continues to read as
follows:

    Authority: 49 U.S.C. 13504 and 13506; 49 CFR 1.48.

    2. Section 372.111 is amended in paragraph (a) by removing the
words ``which is required to give notice to the Commission under
Sec. 1047.23'', and in paragraph (b) by removing the words ``and
required to give notice to this Commission under Sec. 1047.23''.

Sec. 372.113  [Removed and reserved]

    3. Section 372.113 is removed and reserved.

    Issued on: July 7, 1997.
Jane F. Garvey,
Acting Administrator for the Federal Highway Administration.
[FR Doc. 97-18682 Filed 7-15-97; 8:45 am]
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