|
Federal Register: May 19, 2005 (Volume 70, Number 96)]
[Proposed Rules]
[Page 28989-29060]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my05-36] [[Page 28989]] ----------------------------------------------------------------------- Part II Department of Transportation ----------------------------------------------------------------------- Federal Motor Carrier Safety Administration ----------------------------------------------------------------------- 49 CFR Parts 360, 365 et al. Unified Registration System; Proposed Rule [[Page 28990]] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Parts 360, 365, 366, 368, 387 and 390
[Docket No. FMCSA-97-2349]
RIN 2126-AA22 Unified Registration System AGENCY: Federal Motor Carrier Safety Administration (FMCSA), Department
of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM); request for comments. ----------------------------------------------------------------------- SUMMARY: FMCSA proposes a revised registration system. The Unified
Registration System would apply to every motor carrier, freight
forwarder and broker required to register with DOT under 49 CFR 390.19
or 49 U.S.C. 13901, except Mexico-domiciled motor carriers registering
to operate between Mexico and points in the United States beyond border
commercial zones along the U.S.-Mexico international border. The
entities covered by this system would be required to register with
FMCSA and periodically update registration information provided on a
newly proposed registration form. This proposal applies to entities
that are already subject to FMCSA Commercial Regulations, the Federal
Motor Carrier Safety Regulations (FMCSRs), or the Hazardous Material
Regulations (HMRs). This action is being taken in response to section 103 of the ICC
Termination Act of 1995 (ICCTA), which, among other things, requires
the Secretary of Transportation (Secretary) to propose regulations to
replace four current identification and registration systems with a
single, on-line, Federal system. The purpose of this proposal is to
consolidate and simplify current Federal registration processes and to
increase public accessibility to data about interstate motor carriers,
property brokers, and freight forwarders. FMCSA proposes to charge
registration fees that will enable FMCSA to recoup costs associated
with processing registration applications and administrative filings
and maintaining this system. DATES: You must submit comments on or before August 17, 2005. ADDRESSES: You may submit comments, identified by DOT DMS Docket Number
FMCSA-97-2349, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
Agency Web Site: http://dms.dot.gov. Follow the instructions for submitting comments on the DOT electronic docket site. Fax: 1-202-493-2251.
Mail: Docket Management Facility; U.S. Department of
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401,
Washington, DC 20590-0001. Hand Delivery: Room PL-401 on the plaza level of the
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. Instructions: All submissions received must include the agency name
and docket number or Regulatory Identification Number (RIN) for this
rule. All comments received will be posted without change to http://dms.dot.gov
, including any personal information provided. For detailed instructions on submitting comments and additional information on the
rulemaking process, see the ``Public Participation'' heading of the
SUPPLEMENTARY INFORMATION section of this document. For a summary of
DOT's Privacy Act Statement or information on how to obtain a complete
copy of DOT's Privacy Act Statement please see the ``Privacy Act''
heading under Rulemaking Analyses and Notices. Docket: For access to the docket to read background documents or
comments received, go to http://dms.dot.gov at any time or to Room PL- 401 on the plaza level of the Nassif Building, 400 Seventh Street, SW.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Schultz, Jr., Office of
Bus and Truck Standards and Operations, (202) 366-4001, Federal Motor
Carrier Safety Administration, Department of Transportation, 400
Seventh Street, SW., Washington, DC 20590. SUPPLEMENTARY INFORMATION: Public Participation: The DMS is available 24 hours each day, 365
days each year. You can get electronic submission and retrieval help
and guidelines under the ``help'' section of the DMS Web site. If you
want us to notify you that we received your comments, please include a
self-addressed, stamped envelope or postcard or print the
acknowledgement page that appears after submitting comments on-line. Comments received after the comment closing date will be included
in the docket, and we will consider late comments to the extent
practicable. FMCSA may, however, issue a final rule at any time after
the close of the comment period. Preamble Table of Contents The following is an outline of the preamble. I. Legal Basis
II. Introduction
III. Pre-ICCTA Background
IV. Summary of the Advance Notice of Proposed Rulemaking
V. Congressionally Mandated Policy Issues
A. Funding for State Enforcement of Motor Carrier Safety
Regulations
B. Single State Registration System
C. Public Safety; Efficient Delivery of Transportation Services
D. Registration of Private Motor Carriers and Exempt For-hire
Motor Carriers
VI. The Proposed Replacement System
A. Registration
B. USDOT Numbers
C. Transfer of Operating Authority
D. Biennial Update Requirement
E. Proposed User Fees for the New System
F. Registration Fees
G. General Fee Policy Changes and Revised Fees
H. Financial Responsibility
1. Bodily Injury and Property Damage Insurance (BI&PD)
Requirement
2. Cargo Insurance Requirement
3. Insurance Filings by Insurers, Surety Companies and Financial
Institutions
4. Self-Insurance
I. Designation of Process Agents
J. Administrative Filings
K. Cancellation and Reinstatement of USDOT Numbers
L. The New Application Form
M. Multi-Phase Application Process
VII. Special Transit Operation Provisions
VIII. Systems Under Consideration for Merger with the New Unified
Registration System
A. Registration for Certain Mexico-Domiciled Motor Carriers
B. Hazardous Materials Safety Permit Application Process
C. Hazardous Materials Cargo Tank Registration Process
IX. Performance and Registration Information Systems Management
Program (PRISM)
X. Regulatory Evaluation of the Unified Registration System NPRM
Summary of Benefits and Costs
A. Background and Summary
B. Costs
1. New Registration Fees for Private and Exempt For-Hire
Carriers
2. New Process Agent Filings Required by FMCSA
3. New Requirement and Fee for Insurance Representatives of
Exempt For-Hire Carriers and Private Carriers of Hazardous Materials
to File Proof of Liability Insurance
4. New Requirement and Fee for Requiring Private Hazmat and
Exempt For-Hire Carriers to File Reinstatement Requests
5. Eliminating Transfers of Operating Authority
6. Revising Other FMCSA Fees
7. Total Costs of URS NPRM
C. Benefits
1. Cost Savings from Streamlined New Entrant Registration
Process [[Page 28991]] 2. Safety Benefits from Process Agent Designation Filing
Requirement
3. Cost Savings from Eliminating Cargo Insurance Filing
Requirement
4. Total Benefits
5. Net Benefits from URS NPRM
XI. Appendix to the Preamble--Proposed Form MCSA-1 and Instructions
XII. Rulemaking Analyses and Notices
List of Subjects I. Legal Basis for the Rule The ICC Termination Act of 1995 [Pub. L. 104-88, December 29, 1995,
109 Stat. 888] (ICCTA) created a new 49 U.S.C. 13908 directing ``[t]he
Secretary, in cooperation with the States, and after notice and
opportunity for public comment,'' * * * to ``issue regulations to
replace the current Department of Transportation identification number
system, the single State registration system under section 14504, the
registration system contained in this chapter, and the financial
responsibility information system under section 13906 with a single,
on-line, Federal system. The new system shall serve as a clearinghouse
and depository of information on and identification of all foreign and
domestic motor carriers, brokers, and freight forwarders, and others
required to register with the Department as well as information on
safety fitness and compliance with required levels of financial
responsibility. In issuing the regulations, the Secretary shall
consider whether or not to integrate the requirements of section 13304
into the new system and may integrate such requirements into the new
system.'' Title 49 U.S.C. 13908(c) also authorized the Secretary to
``establish, under section 9701 of title 31, a fee system for
registration and filing evidence of financial responsibility under the
new system under subsection (a). Fees collected under the fee system
shall cover the costs of operating and upgrading the registration,
including all personnel costs associated with the system.'' Congress
specified the rule must address: Funding for State enforcement of motor carrier safety
regulations
A determination of whether the existing Single State
Registration System (SSRS) is duplicative and burdensome;
The justification and need for collecting the statutory
SSRS fee under 49 U.S.C. 14504(c)(2)(B)(iv);
The public safety;
The efficient delivery of transportation services; and
How and under what conditions to extend the registration
system to private motor carriers and exempt for-hire motor carriers. This NPRM proposes a unified registration system and as such is well
within the authority of the 1996 Act. The policy issues are addressed
in the preamble under section V--Congressionally Mandated Policy
Issues. Today's NPRM is concerned with Sec. 13908, the registration of
motor carriers, brokers and freight forwarders. FMCSA proposes a new
Federal on-line registration system for every motor carrier, freight
forwarder and broker required to register with DOT under 49 CFR 390.19
or 49 U.S.C. 13901, except Mexico-domiciled motor carriers registering
to operate between Mexico and points in the United States beyond border
commercial zones along the U.S.-Mexico international border. Title 49
CFR 390.19 concerns the safety registration of all for-hire and private
motor carriers, while 49 U.S.C. 13901 covers non-exempt for-hire motor
carriers, freight forwarders and brokers. The registration systems for
Mexico-domiciled carriers requesting to operate between Mexico and
points in the United States beyond border commercial zones along the
U.S.-Mexico international border, as well as Hazardous Materials Safety
Permits and Hazardous Materials Cargo Tanks, are discussed in greater
detail under section VIII--Systems under Consideration for Merger with
the New Unified Registration System. FMCSA would integrate three of the four systems stipulated under 49
U.S.C. 13908(a) into a new unified system. Also as directed by that
statutory provision, we have considered integration of the fourth
system, the Single State Registration System (SSRS) under section
14504. We find that registration and financial responsibility
compliance information currently generated by the SSRS is fully
duplicated by the information collected under the proposed Unified
Registration System and we preliminarily endorse the concept of
integrating this fourth system under this rule. We have not proposed
elimination of the SSRS at this time, however, because we require
additional information to determine whether we can meet the conditions
prescribed by Congress for merger and elimination of SSRS under section
13908(d). That provision directs that before we can propose elimination
of the SSRS, we must ensure that: (1) Fees collected and distributed to
the States under the new Unified Registration System will be sufficient
to provide each SSRS-participating State with at least a level of
revenue commensurate with what the State received from SSRS fees in
fiscal year 1995; and (2) all States would receive a minimum
apportionment from the distribution of fees collected under the
proposed Unified Registration System. As amplified in the subsequent
``Single State Registration System'' discussion, we specifically seek
public comment on fee structures or alternative measures that would
permit full integration of the SSRS into the Unified Registration
System and, in turn, would allow elimination of the SSRS program, while
preserving the reimbursement and apportionment levels mandated by 49
U.S.C. 13908(d). We also seek public comment on the advisability of
recommending legislative change in a report to Congress under 49 U.S.C.
13908(e)(3) in order to create greater latitude for incorporating the
SSRS program into the Unified Registration System proposed here. The new system would incorporate the section 13304 requirement for
a motor carrier, freight forwarder, or broker to designate an agent(s)
for service of process for each State in which it intends to operate.
Under the existing system, only non-exempt for-hire carriers must make
such filings. The NPRM would extend the requirement to all registrants,
including exempt for-hire and private carriers. Title 49 U.S.C. 503
grants authority to extend the process agent filing requirement to
private carriers. When FMCSA (then FHWA) solicited comment on whether
to compel private carriers to make such filings, the public responded
that exempt for-hire and private carriers should be subject to the same
process agent filing requirement as non-exempt for-hire motor carriers,
brokers, and freight forwarders (see the advance notice of proposed
rulemaking (ANPRM) titled Motor Carrier Replacement Information/
Replacement System published August 26, 1996 at 61 FR 43816). FMCSA
believes extending the requirement to exempt for-hire and private
carriers would ensure the agency and the public are able to contact a
carrier when necessary. Title 31 U.S.C. 9701 establishes general authority for agencies to
``charge for a service or thing of value provided by the agency.''
Accordingly, FMCSA proposes to charge registration fees that will
enable the agency to recoup costs associated with processing
registration applications and administrative filings. All applicants,
except certain FTA grantees and State sub-grantees, would pay a $200
registration fee and pay for certain administrative filings. The Motor Carrier Safety Act of 1984 requires the Secretary to
prescribe regulations on commercial motor vehicle safety. The
regulations shall [[Page 28992]] prescribe minimum safety standards for commercial motor vehicles
(CMVs). At a minimum, the regulations shall ensure that (1) CMVs are
maintained, equipped, loaded, and operated safely; (2) the
responsibilities imposed on operators of CMVs do not impair their
ability to operate the vehicles safely; (3) the physical condition of
operators of CMVs is adequate to enable them to operate the vehicles
safely; and (4) the operation of CMVs does not have a deleterious
effect on the physical condition of the operators (49 U.S.C. 31136(a)). This NPRM is intended to streamline the registration process and
ensure that FMCSA can more efficiently track CMVs and ensure their safe
operation. As such, it implements the section 31136(a)(1) mandate that
FMCSA's regulations ensure that CMVs are maintained and operated
safely. The Unified Registration System imposes no operational
responsibilities on drivers. Therefore, this proposed regulation would
not impair a driver's ability to operate vehicles safely (section
31136(a)(2)), would not impact the physical condition of drivers
(section 31136(a)(3)), and would not have a deleterious effect on the
physical condition of drivers (section 31136(a)(4)). Accordingly, FMCSA
has addressed the statutory mandate of section 31136(a) and finds that
the proposed regulation is fully responsive to this mandate. II. Introduction As noted, FMCSA proposes a unified registration system, as required
by section 103 of ICCTA. Section 103, codified as 49 U.S.C. 13908,
directs the Secretary of Transportation to issue a rule to replace the
following four systems with a ``single, on-line, Federal system:''
(1) The current Department of Transportation identification number
system (49 CFR part 390);
(2) The Single State Registration System (SSRS) under 49 U.S.C.
14504 (49 CFR part 367);
(3) The registration system under 49 U.S.C. 13901-13905 (49 CFR
part 365); and
(4) The financial responsibility information system under 49 U.S.C.
13906 (49 CFR part 387). A detailed discussion of these systems appears in the 1996 ANPRM. The
ANPRM is also available in the docket for this rule; access to the
docket is explained above in ADDRESSES.
The proposed replacement system would identify and house
information about all interstate motor carriers, brokers and freight
forwarders, and others that must register with the Department of
Transportation. It would also be a depository for information on safety
fitness and compliance with financial responsibility requirements. III. Pre-ICCTA Background The Motor Carrier Act of 1935 [Pub. L. 74-255, 47 Stat. 543] placed
regulatory authority over the motor carrier industry with the
Interstate Commerce Commission (ICC). ICC was responsible for issuing
operating authority and permits and administering matters related to
insurance, safety, and enforcement as they applied to non-exempt for-
hire common and contract motor carriers.\1\ ICC exercised safety
oversight over all for-hire and private motor carriers, but its
economic oversight encompassed only non-exempt for-hire motor carriers. --------------------------------------------------------------------------- \1\ The Motor Carrier Act and subsequent legislation created
numerous exemptions to ICC jurisdiction based upon the commodity
transported (e.g., fresh produce and other agricultural products) or
circumstances underlying the transportation (e.g., property or
passengers having a prior or subsequent movement by air carrier).
These exemptions were retained in chapter 139 of ICCTA. For purposes
of this document, the term ``non-exempt'' or ``exempt'' for-hire
carrier refers to whether the carrier is subject to the chapter 139
registration requirements. --------------------------------------------------------------------------- In 1967, the Department of Transportation (DOT) was created and
responsibility for motor carrier safety activities was transferred from
ICC to the Bureau of Motor Carrier Safety within FHWA. The Bureau of
Motor Carrier Safety subsequently became the Office of Motor Carriers.
FHWA required all interstate motor carriers engaged in interstate or
foreign commerce to obtain a USDOT identification number from the
agency for safety oversight purposes (53 FR 18042, May 19, 1988).
Affected parties included for-hire motor carriers subject to ICC
economic oversight, as well as motor carriers exempt from ICC
jurisdiction (such as private carriers and exempt for-hire motor
carriers). ICC continued to regulate non-exempt for-hire interstate and
foreign motor carriers of property and passengers, issuing certificates
of public convenience and necessity (for common carriers), permits (for
contract carriers and freight forwarders \2\), or licenses (for
property brokers). These entities were assigned an MC or MX number as
evidence of ICC authority/licensure, except freight forwarders who
received FF numbers. Motor carriers, property brokers and freight
forwarders were subject to financial responsibility filing requirements
as a condition for receipt and retention of operating authority. ICC
maintained an up-to-date, automated insurance monitoring system to
validate compliance with the financial responsibility requirements. --------------------------------------------------------------------------- \2\ Following deregulation of the freight forwarding industry in
1986, only freight forwarders of household goods had to be licensed
by the ICC. ICCTA subsequently reinstated the registration
requirement for all freight forwarders. --------------------------------------------------------------------------- ICCTA eliminated ICC, and transferred certain ICC regulatory
responsibilities to the DOT. The savings provision in section 204 of
ICCTA preserved all effective ICC regulations, rules and decisions
until the Secretary finds modification of these documents is warranted,
thereby preserving the status quo. FHWA gave public notice of the
effectiveness of these ICC documents in 61 FR 14372, April 1, 1996. IV. Summary of the Advance Notice of Proposed Rulemaking On August 26, 1996, FMCSA (then FHWA) published an ANPRM (61 FR
43816) announcing plans to create a single, on-line Federal
registration system. The ANPRM provided an historical overview to
support why a replacement system is necessary, included a description
of the four systems to be replaced, and posed specific questions for
comment. FMCSA received 104 comments to the docket that may be viewed on the
Internet by visiting http://dms.dot.gov/search digits of the docket number in the heading of this document. FMCSA has
analyzed the comments to the ANPRM and taken them into consideration in
the formulation of this notice. Most of the commenters supported the proposal of a single, on-line
system with the following features:
1. Fees assessed on all applicants and based solely upon the actual
costs to operate the system;
2. A requirement to register with a single governmental entity;
3. Elimination of the SSRS and a reimbursement of lost revenue for
fees to impacted States;
4. A requirement that all registrants file proof of financial
responsibility; and
5. A requirement that all registrants file a designation of persons
upon whom court process may be served (designation of agents for
service of process). Several commenters suggested that FMCSA achieve complete regulatory
uniformity for all entities under its jurisdiction by either
eliminating requirements or broadening their applicability to all
entities. Some responded that all carriers should be required to
provide similar information in the new registration system. For
example, some recommended that FMCSA should require all motor [[Page 28993]] carriers to file evidence of insurance while others wanted FMCSA to
remove the existing insurance filing requirement. Although FMCSA has considered these suggestions, we cannot propose
or implement them in a rulemaking proceeding without first obtaining
legal authority through statutory change. Section 13908(e)(3) directs
the Secretary to transmit to Congress a report on any findings of this
rule and the changes the DOT decides to implement, together with
recommendations for any proposed legislative changes. FMCSA plans in
that report to address policies it wishes to adopt in response to the
1996 ANPRM comments which require statutory change. FMCSA has incorporated several of the ANPRM responses in
formulating today's proposal. In response to public comment, the USDOT
Number would replace the MC, MX, and FF numbers, and all motor carriers
under FMCSA jurisdiction would be required to file a process agent
designation with FMCSA. V. Congressionally Mandated Policy Issues Congress directed the Secretary to address the following policy
issues in this rule:
(1) Funding for State enforcement of motor carrier safety
regulations;
(2) A determination of whether the existing SSRS is duplicative and
burdensome;
(3) The justification and need for collecting the statutory SSRS
fee under 49 U.S.C. 14504(c)(2)(B)(iv);
(4) The public safety;
(5) The efficient delivery of transportation services; and
(6) How and under what conditions to extend the registration system
to private motor carriers and exempt for-hire motor carriers. A. Funding for State Enforcement of Motor Carrier Safety Regulations FMCSA believes that funds provided by the Motor Carrier Safety
Improvement Act of 1999 [Pub. L. 106-159, December 9, 1999, 113 Stat.
1764] (MCSIA) and the Transportation Equity Act for the 21st Century
[Pub. L. 105-178, June 9, 1998, 112 Stat. 418] (TEA-21) adequately
satisfied congressional concerns regarding funding for State
enforcement of motor carrier safety regulations. Total funding for
State enforcement activities through the FMCSA Motor Carrier Safety
Assistance Program (MCSAP) has increased substantially since 1995 and
is summarized below. ----------------------------------------------------------------
Amount in
Fiscal year millions
---------------------------------------------------------------------
1995..................................................... $74
1996..................................................... 77
1997..................................................... 78
1998..................................................... 79
1999..................................................... 90
2000..................................................... 90
2001..................................................... 155
2002..................................................... 160
2003..................................................... 165
---------------------------------------------------------------------Although Congress has not yet passed a new surface transportation
reauthorization bill for years beyond 2003, FMCSA anticipates Congress
will do so and that the legislation will adequately address funding for
the State enforcement of Federal Motor Carrier Safety Regulations. B. Single State Registration System Under the Single State Registration System (SSRS), currently
conducted by 38 States in accord with the requirements of 49 U.S.C.
14504, interstate, for-hire motor carriers are required to register
annually with one State and provide evidence to the State of Federal
registration under 49 U.S.C. chapter 139. In addition to filing and
maintaining evidence of Federal registration, motor carriers are
required annually to: (1) File satisfactory proof of required insurance
or qualification as a self-insurer; (2) pay required fees directly to
the SSRS base State; and (3) file the name of a local agent for service
of process. Congress designated the SSRS among those programs that we
should consider for inclusion in the Unified Registration System under
13908(a), but further provided in 49 U.S.C. 13908(d) that before we can
propose elimination of the SSRS, we must be able to ensure that: (1)
Registration fees collected under the proposed Unified Registration
System and distributed to the States each fiscal year would be
sufficient to provide each SSRS-participating State with at least as
much revenue as it received from SSRS fees in fiscal 1995 [49 U.S.C.
13908(d)(1)]; and (2) all States would receive a minimum apportionment
from the distribution of fees collected under the proposed Unified
Registration System. Comments received in response to the ANPRM suggest strongly that
the existing SSRS is both duplicative and burdensome when assessed
against current Federal registration and licensing requirements and
particularly when evaluated under the proposed Unified Registration
System. The essential information collected through SSRS (evidence of
registration by interstate, for-hire carriers and proof of their
compliance with financial responsibility requirements) already is
available to all States through the FMCSA Licensing and Insurance
database and will remain so under the Unified Registration System
proposed here. In fact, SSRS participating States currently tap into
the Licensing and Insurance database to download verifications of
carriers' financial responsibility. It appears that the only information collected by the SSRS that is
not currently available to FMCSA and would not be collected through
Form MCSA-1 filings is the operational distribution of vehicles among
States where registered carriers perform their interstate service.
Because operational distribution data is collected solely for the
purpose of apportioning SSRS registration fees among participating
States, it is essentially an informational by-product of the SSRS fee
collection system, and clearly provides neither safety nor compliance
information to State users. The proposed Unified Registration System would generate the same
registration and financial responsibility information captured by the
SSRS and, thus, integrates the operational and compliance features of
the SSRS. Continuation of the SSRS in tandem with the Unified
Registration System proposed here would therefore appear to be
duplicative. In view of the relative ease and universality with which
the registration and financial responsibility compliance information
can be accessed by the States through the FMCSA databases, the SSRS
requirement that carriers maintain copies of their SSRS registration
receipts in each vehicle also would appear to be unnecessarily
burdensome. Although some participating SSRS States may support safety
or transportation efficiency initiatives with revenues generated by the
SSRS fee system prescribed under 49 U.S.C. 14504(c)(2)(B)(iv), there is
no requirement that they do so. Indeed, comments in response to the
ANPRM suggest that SSRS revenues are as likely as not to find their way
into States' general funds where they may be applied to any
programmatic purpose. Accordingly, when assessed in light of relevant factors prescribed
at 49 U.S.C. 13908(b), the SSRS appears to be a viable candidate for
integration with the other three systems proposed for unification.
Moreover, the SSRS could for all practical purposes be considered
already fully integrated under this proposal, inasmuch as all
information critical to the SSRS would be captured under Form MCSA-1
and available to [[Page 28994]] States through the on-line databases maintained by the FMCSA. Despite these considerations, we cannot at this time propose
elimination of the SSRS. To be consistent with the 49 U.S.C. 13908(d)
criteria for eliminating the SSRS program, the FMCSA would need to
reimburse from Unified Registration System fees an annual amount
totaling approximately $96 million to the 38 States currently
participating in the SSRS and would further need to ensure availability
of additional funds for distribution as a minimum apportionment among
all States. Financing the required levels of State reimbursement would
result in fees approximating $2300 per carrier, an expense that we
believe would be unreasonably burdensome. The FMCSA specifically seeks public comment on the implications of
this fee-based reimbursement to States as a means of preserving their
SSRS-generated revenues and allowing for the required minimum
apportionment, were the SSRS program to be eliminated. In addition, we
seek public comment on alternative means by which we might ensure the
required annual reimbursement and minimum apportionment levels under a
fee assessment schedule different from that proposed here. Comments to
the ANPRM, for example, mentioned, but did not necessarily endorse, the
concept of imposing additional fees on insurers or assessing unified
registration fees on other than a flat rate per carrier basis--such as
per vehicle fees, a graduated rate based on fleet size, or a total
carrier revenue basis. We would welcome comments on the viability of
these and other alternatives as a means of fully integrating SSRS into
the Unified Registration System, eliminating the SSRS program as
presently observed by participating States, and still preserving the
reimbursement and apportionment obligations imposed by 49 U.S.C.
13908(d). Upon evaluation of the comments received in response to this issue,
we will consider whether to recommend in a report to Congress under 49
U.S.C. 13908(e)(3) legislative changes to eliminate (1) the SSRS
program as prescribed under 49 U.S.C. 14504; and/or (2) the
reimbursement and apportionment requirements of 49 U.S.C. 13908(d). It
is our preliminary conclusion, based on comments submitted in response
to the ANPRM and upon our assessment of a viable fee structure for the
Unified Registration System, that all informational benefits of the
existing SSRS program are fully captured by the rule proposed here and
that reasonable registration fees associated with the proposed system
could not sustain the reimbursement and apportionment requirements of
the present statute. We encourage commentors to address specifically
the policy and legislative implications of this preliminary conclusion. C. Public Safety; Efficient Delivery of Transportation Services FMCSA believes the proposals in this rule address public safety and
the efficient delivery of transportation services as intended by
Congress. FMCSA has established a requirement under 49 CFR 390.19 for
interstate carriers operating in the U.S. to update their information
biennially and proposes to continue that requirement in this rule. The
effectiveness and usefulness of FMCSA safety-related initiatives such
as the Motor Carrier Safety Status Measurement System (SafeStat) and
the Performance and Registration Information Systems Management Program
(PRISM) are directly linked to the accurate and efficient collection
and reporting of motor carrier safety data. Timely and accurate safety
information has multiple benefits--it enables FMCSA to: (1) Track
safety performance trends; (2) develop more effective driver and
vehicle safety programs; (3) monitor the safety status of individual
carriers; (4) ensure carrier compliance with FMCSRs; and (5) track any
changes in the motor carrier industry that may affect carrier safety. D. Registration of Private Motor Carriers and Exempt For-Hire Motor
Carriers FMCSA has carefully considered the extent to which the registration
process should include private motor carriers and exempt for-hire motor
carriers. This rule proposes to extend the public liability insurance
filing requirements to private carriers of hazardous materials and
exempt for-hire motor carriers. FMCSA does not propose to extend the
insurance filing requirement to private carriers of non-hazardous
commodities because there is currently no statutory authority to do so.
Additionally, FMCSA proposes to require all motor carriers to file a
process agent designation with FMCSA as a condition for registration.
FMCSA believes there is an inherent crash risk in all interstate
commercial motor vehicle operations due to the vehicle miles traveled
and exposure to other vehicles on the highway. Accordingly, this rule
proposes that most carriers, except private carriers of non-hazardous
materials, be required to provide proof of financial responsibility and
that all carriers be equally accessible for service of legal process.
Expanding these filing requirements would result in greater safety
benefits to the general public and enhance the ability to easily obtain
motor carrier information when necessary. Motor carriers conducting operations in interstate commerce have
been required to file the MCS-150 prior to commencing operations since
July 2000, pursuant to ICCTA and 49 CFR 390.19. Shortly after receipt
of a completed MCS-150, FMCSA assigns a USDOT Number to the motor
carrier and notifies it of the number assigned. All safety performance
data on each motor carrier are linked to the USDOT Number. This
includes roadside inspection data, crash data, and safety and
compliance review information. The USDOT Number is used to link data
together to produce summaries or reports on specific motor carriers. VI. The Proposed Replacement System A. Registration FMCSA intends to create a unified registration process consistent
with ICCTA requirements. All private or for-hire motor carriers
transporting property or passengers in interstate commerce in the U.S.
would be required to register with FMCSA except Mexico-domiciled motor
carriers registering to operate between Mexico and points in the United
States beyond border commercial zones along the U.S.-Mexico
international border. Requiring these entities to register allows FMCSA
to have a more complete census of motor carriers under its
jurisdiction. This information could then be shared with other Federal
and State regulatory agencies, as well as the general public, which
would aid in promoting safety. The majority of comments to the ANPRM in
this docket support the creation of a more simplified registration
system that includes the universe of motor carriers subject to FMCSA
jurisdiction. FMCSA also proposes that property brokers and freight forwarders be
included in the unified system because ICCTA requires us to register
them and ensure that they maintain the necessary evidence of financial
responsibility. The proposed registration system would simplify the registration
process for motor carriers in that motor carriers would only be
required to complete one form, proposed Form MCSA-1--FMCSA Registration
Form (USDOT Number Application). Under the current system, there are
six forms, with most carriers being required to file at least two of
the six. Motor carriers will no longer have to decide which form(s) to [[Page 28995]] complete, hoping to complete the correct form(s) on the initial
application. This proposal encourages continued use of electronic filing because
it significantly reduces processing time for registration applications
and related documents. Currently, motor carriers and other applicants
have the option of using the Safety and Fitness Electronic Records
System (SAFER) on-line site to apply for operating authority, obtain a
USDOT Number and make safety certifications. Applicants pay
registration fees and civil forfeiture fines by credit card using an
electronic link from SAFER to the U.S. Department of Treasury's on-line
financial management service (Pay.Gov). Electronic filing reduces
current paper-based processing time by between 2 to 4 weeks (based on
the additional time required for applications to reach FMCSA by mail
and to manually process them.) If this notice is promulgated as a final rule, the new integrated
on-line application process would replace the existing electronic
options for filing applications for operating authority, a USDOT Number
and related documents. FMCSA believes the proposed on-line registration
system would significantly reduce application-processing time. An
applicant would not need to determine the appropriate application to
file, and the on-line replacement system would feature a built-in
error-checking feature to alert the applicant when incorrect
information has been entered, prompting for valid information. This
quality control feature would decrease time spent by agency employees
contacting applicants to correct the application. Incomplete
applications would automatically be rejected by the system. As a
result, application processing would be more efficient for both
customers and FMCSA. FMCSA proposes an on-line application process because: (1) More
than 70 percent of motor carriers in the United States now have
Internet access, with the trend clearly increasing; (2) there is
widespread public access to computers and the Internet in public
libraries, Internet cafes, or other commercial establishments; (3)
automated error-checking would result in more accurate information
about the applicant; (4) on-line filing would allow USDOT Numbers to be
issued in a more timely manner, and (5) electronic filing is more cost-
effective for FMCSA compared to manually processing applications. Although FMCSA would not mandate electronic filing of registration
applications and related documents at this time, we invite comments and
suggestions regarding the following issues: (1) What would be the impact (benefits or hardships) on applicants
of a mandatory on-line filing requirement?
(2) Should FMCSA immediately require on-line filing or should there
be a phase-in period for mandatory on-line filing? If so, how long
should the phase-in period be? Current registration procedures in 49 U.S.C. 13902 allow anyone to
oppose a request for permanent operating authority by non-exempt for-
hire motor carriers, property brokers, and freight forwarders, provided
the protest is based upon the applicant's failure to comply with: (1)
The registration procedures; (2) applicable DOT regulations, including
the FMCSRs and the HMRs; (3) the safety fitness standards; and/or (4)
financial responsibility requirements. This proposed Unified
Registration System would continue to allow protests for applications
covered under section 13902, but would not extend the right of protest
to applications for registration filed by private motor carriers or
exempt for-hire motor carriers. Information on opposing a registration
is under proposed 49 CFR part 360, subpart B of this proposal. B. USDOT Numbers The current registration systems administered by FMCSA use four
identification numbers: the USDOT Number, which most motor carriers
subject to FMCSA jurisdiction are required to obtain, the Motor Carrier
(MC) number, which is assigned to non-exempt for-hire motor carriers
and brokers registering under chapter 139; the FF number which is
assigned to freight forwarders; and the MX number, which is assigned to
Mexico-domiciled carriers operating in the U.S. border commercial
zones. FMCSA proposes to discontinue issuance of MC, MX and FF numbers and
to phase out the use of current MC, MX and FF numbers within 2 years of
the effective date of a final rule. The USDOT Number would become the
sole identification number for all entities registered by DOT. This
approach is prudent and simple because all registered motor carriers
have a USDOT Number and because 16 States have elected to use the USDOT
numbering system for registering intrastate motor carriers and their
vehicles. Pursuant to 49 CFR 390.21, motor carriers would not need to
remove the obsolete numbers from their vehicles. FMCSA would issue a USDOT Number with a distinctive suffix to any
Mexico-domiciled carrier granted registration. This unique USDOT Number
would display on the side of the vehicle pursuant to the CMV marking
requirement under 49 CFR 390.21, and would meet DOT's obligation under
section 350(a)(4) of the 2002 Department of Transportation
Appropriations Act [Pub. L. 107-87, Title III, section 350, Dec. 18,
2001, 115 Stat. 864] by allowing FMCSA to distinguish Mexico-domiciled
motor carriers authorized to conduct operations beyond the border
commercial zones from those authorized for only within-zone operations. C. Transfer of Operating Authority As stated above, FMCSA now assigns a unique USDOT Number to each
corporation, partnership or individual proprietorship that is
responsible for the safety of interstate motor carrier operations.
FMCSA also assigns unique USDOT Numbers to subsidiary corporations.
Generally speaking, USDOT Numbers are assigned to one carrier and
remain assigned to that carrier. Motor carriers that obtain a USDOT
Number under 49 CFR 390.19, but are not required to register with FMCSA
under 49 U.S.C. Chapter 139, are encouraged but not required to notify
the agency when changes in ownership occur. Motor carriers that
register under section 13901 are however subject to notification
requirements. Current part 365, subpart D permits for-hire motor carriers,
brokers and freight forwarders that register under chapter 139 to
merge, transfer or lease their operating authority (identified by MC or
FF numbers), and establishes procedures for agency approval of these
transactions. These entities are required to file transfer applications
with FMCSA and pay a $300 fee. ICCTA removed the provisions governing transfers of operating
authority by repealing former 49 U.S.C. 10926. As a result, FMCSA (then
FHWA) proposed removing the transfer regulations in a February 13,
1998, NPRM (63 FR 7362). In response to this proposal, the
Distribution & LTL Carriers Association (DLTL),the Transportation
Lawyers Association (TLA),Landstar System,Inc.,the American Bus Association (ABA),
and Federal Express Corporation argued that disallowing transfer of registration
would subject motor carriers to a more expensive registration process when ownership
changes occur--a cost without a corresponding safety benefit. Most of these additional
costs would result from having to change MC numbers on vehicles. DLTL contended [[Page 28996]] that continuing to allow transfers would ``assist * * * in keeping
track of the existing applicant universe and calculating new
entrants.'' TLA, Landstar, and ABA commented about the costs and
burdens resulting from elimination of transfer approval, but did not
provide specific figures. On May 16, 2001, FMCSA published a notice in the Federal Register
(66 FR 27059) announcing the withdrawal of the February 1998 NPRM with
the intention of addressing the transfer issue in today's rulemaking
action. FMCSA proposes to remove regulations in 49 CFR part 365, subpart D
that govern the transfer of operating authority. As a result of this
action, MC numbers would no longer be subject to transfer. Although
commenters to the February 1998 NPRM were concerned about the cost of
re-marking vehicles with new MC numbers if transfers were not allowed,
FMCSA has discontinued use of the MC number to identify vehicles and
now requires all FMCSA regulated motor carriers to mark their
commercial motor vehicles with their USDOT Number and the legal or
``doing business as'' name of the business entity that owns the motor
carrier. See the final rule entitled Federal Motor Carrier Safety
Regulations, General; Commercial Motor Vehicle Marking, published in
the June 2, 2000, Federal Register at 65 FR 352387. Furthermore, as
discussed above, FMCSA proposes to issue only a USDOT Number and
discontinue use of MC, MX and FF numbers. Unlike chapter 139 certificates and permits, which have
traditionally been considered transferable motor carrier assets, a
USDOT Number is a unique identifier used to monitor a carrier's safety
performance. As such, the USDOT Number never has been subject to
transfer. In order to preserve the sanctity of the number as an
identifier of each entity's operational profile and safety history, the
proposed rule preserves the prohibition on transfers. The proposed rule would continue to permit retention of the
existing USDOT Number in instances where there is a change in legal
name, form of business, or address, provided that there is no change in
the ownership, management, or control of the involved entity.
Circumstances in which retention of the USDOT Number would be
permissible include: (1) A change in the legal name of a sole
proprietorship, corporation, or partnership: (2) a change in the trade
name or assumed name of an entity; and (3) a change in the form of a
business, such as the incorporation of a partnership or sole
proprietorship. We specifically invite commenting parties to identify
additional instances in which FMCSA might permit retention of a USDOT
Number following structural, practical, or ministerial changes to a
registered entity. To ensure the continuing relevance and viability of the USDOT
Number as a unique identifier and repository for safety data associated
with a particular entity, the proposed rule would require all entities
requesting a change in legal name, form of business, or address to: (1)
File a revised From MCSA-1 within 20 days of the precipitating change;
and (2) submit a certification accompanying the revised Form MCSA-1
confirming that there has been no change in the ownership, management,
or control of the entity holding the involved USDOT Number. This
prescribed process would allow FMCSA to monitor more closely and in a
timely manner informational changes affecting all entities holding
USDOT Numbers. The proposed 20-day notification period would impose a
time limit for submitting changes in key information for the first time
on most registrants and would abbreviate the 45-day notification period
currently applicable to Mexico-domiciled carriers operating in border
commercial zones under 49 CFR 368.4. The 20-day notification period
would apply to all carriers, including Mexico-domiciled carriers
operating in border commercial zones. D. Biennial Update Requirement Under current Sec. 390.19, carriers are required to file Form MCS-
150, Motor Carrier Identification Report biennially, as provided by
section 217 of MCSIA. Carriers now file Form MCS-150 on-line, by mail
or by fax without a fee. The registration updates provide valuable
information about carriers and their fleets, and provide useful data
for assessing safety performance. This rule proposes to replace Form
MCS-150 with the MCSA-1, which contains a section specifically
developed for the biennial update. The requirement to update
identification information would be removed from Sec. 390.19, re-
designated as Sec. 360.25 and made applicable to all entities under
FMCSA jurisdiction, including passenger and property carriers, freight
forwarders, and property brokers, except Mexico-domiciled motor
carriers registering to operate between Mexico and points in the United
States beyond border commercial zones along the U.S.-Mexico
international border. This rule also proposes at Sec. 360.25 that
notice of changes to key identifying information, such as changes in
the legal name, form of business, or address be filed with FMCSA within
20 days of the change. This requirement is also a critical component of
the goal of obtaining and maintaining accurate, current and timely
information, as required by section 217 of MCSIA. States participating in the joint Federal-State PRISM program check
motor carriers' MCS-150 ``date of last update'' in FMCSA information
systems as part of their annual International Registration Plan (IRP)
license plate renewal processes. If the motor carrier's MCS-150 data
will exceed 24 months old before the end of the license plate
registration period, the State requires them to update their MCS-150
data as a condition for receiving their IRP license plate. This
approach ensures that motor carriers who obtain IRP license plates in
PRISM states cannot let their MCS-150 data expire. FMSCA has determined
that motor carriers who update their MCS-150 data in this manner
already meet the periodic filing requirement of the current 49 CFR
390.19 and would require no additional filing with FMCSA. Such carriers
would need to continue to comply with the Sec. 360.25 requirement to
file accurate information. The PRISM process is discussed in more
detail later in this document. E. Proposed User Fees for the New System This rule proposes revised and new fees to maintain the information
systems necessary to accurately identify motor carriers, brokers, and
freight forwarders operating in interstate commerce. Until this rule,
FMCSA had not proposed a fee schedule for recouping costs associated
with its increased responsibilities for maintaining complete and
accurate information on entities it regulates. Title 49 U.S.C. 13908 specifically directs the Secretary to create
and implement a unified on-line registration system that captures
information about the identification, safety fitness, and financial
responsibility of registered entities. Section 13908(c) grants the
Secretary discretion to establish a fee system that covers the costs of
this registration system. In accordance with section 13908(c), FMCSA proposes separate fees
to cover a number of distinct, but related, activities associated with
registration. (The full breakout of proposed fees is discussed in the
section entitled ``Regulatory Evaluation of the Unified Registration
System (URS) NPRM: Summary of Benefits and Costs'' and in the full
Regulatory Evaluation that has been placed in the public docket.) The
principle underlying the assignment of [[Page 28997]] the proposed user fees is that the users would pay only for costs that
they incur. F. Registration Fees Currently, non-exempt for-hire motor carriers, freight forwarders
and brokers initially seeking operating authority under 49 U.S.C.
chapter 139 pay a $300 filing fee. However, private carriers and exempt
for-hire carriers are not subject to a filing fee when requesting a
USDOT Number under 49 CFR part 390. As proposed in this NPRM, all
entities under FMCSA jurisdiction would pay a $200 registration fee at
the time the application is filed. G. General Fee Policy Changes and Revised Fees In addition to the $200 initial registration fees, FMCSA is
proposing changes to a number of other licensing and insurance fees.
The section in this notice entitled ``Regulatory Evaluation of the
Unified Registration System (URS) NPRM: Summary of Benefits and Costs''
includes a detailed explanation and complete list of the proposed
licensing and insurance filing fee changes. FMCSA has changed the fee scale in various ways in an effort to
administer system costs more equitably among users. Certain fees would
be entirely eliminated. Currently, for example, carriers that are
subject to chapter 139 registration requirements must pay a $14 fee for
name change requests. Yet private and exempt for-hire carriers that are
not subject to chapter 139 registration requirements are not charged
for making name changes. Under this proposal, the name change fee would
be eliminated for all registrants. Other fees would change and be made applicable to a broader scope
of carriers. Currently, only those carriers that are subject to the
chapter 139 registration requirements must pay an $80 fee to reinstate
operating authority that has been revoked (voluntarily or
involuntarily). FMCSA proposes to increase to $100 the reinstatement
fee for chapter 139 registrants. Additionally, a reinstatement fee
would be made applicable to private and exempt for-hire motor carriers.
If a private or exempt for-hire motor carrier failed to comply with
financial responsibility or process agent filing requirements, FMCSA
would de-activate its USDOT Number and charge a $100 reinstatement fee
to reactivate the USDOT Number. The $100 fee would compensate the
agency for expenses related to processing reinstatement requests. Based on our experience in reinstating chapter 139 operating
authority, the reinstatement process often involves substantial FMCSA
staff time. Usually, the carriers have to be contacted several times
before the appropriate information is obtained to conclude the
reinstatement process. We believe the same would be true for private
and exempt for-hire carriers seeking reinstatement. H. Financial Responsibility 1. Bodily Injury and Property Damage Insurance(BI&PD) Requirement
The Motor Carrier Act of 1980 [Pub. L. 96-296, 94 Stat. 820]
prescribed for safety reasons minimum levels of financial
responsibility for certain motor carrier classifications. The motor
carrier classifications include: For-hire interstate motor carriers of
property in vehicles with a gross vehicle weight rating (GVWR) in
excess of 10,000 lbs. (including ICC-exempt); private and for-hire
interstate motor carriers of certain hazardous materials; and
interstate and intrastate carriers of hazardous materials in bulk. In
1982, the Bus Regulatory Reform Act of 1982 [Pub. L. 97-261, 96 Stat.
1120] granted FMCSA (then FHWA) authority to regulate the levels of
financial responsibility covering for-hire motor carriers of passengers
operating in interstate commerce. These carriers are not currently
required to provide proof of insurance or other financial
responsibility as a condition for receiving a USDOT Number. Instead,
FMCSA verifies financial responsibility as a part of its compliance
review process. The actual review of financial responsibility requires
that an enforcement official ensure that there is at the motor
carrier's place of business a valid endorsement (Form MCS-90 or Form
MCS-82), or valid authorization to self-insure that indicates that the
carrier possesses the required financial responsibility coverage
meeting the minimum prescribed limits. For-hire motor carriers, brokers and freight forwarders that are
subject to the chapter 139 registration requirements must file evidence
of BI &PD insurance with FMCSA on prescribed forms as a precondition to
receiving and holding authorities and permits. Their financial
responsibility requirements take the form of certificates of insurance,
surety bonds, proof of qualifications as a self-insurer, endorsements,
or trust agreements. FMCSA proposes at Sec. 360.9 to continue the filing requirement
for these carriers and extend its applicability to exempt for-hire
motor carriers, including passenger carriers, and private interstate
motor carriers transporting hazardous materials. These carriers are
already required by statute (49 U.S.C. 31138 and 31139) and regulations
(49 CFR part 387) to obtain and maintain BI &PD insurance. This rule
would merely require the filing of evidence of financial responsibility
with FMCSA. Motor carriers transporting hazardous materials in intrastate
commerce are similarly required by statute and regulations to obtain
and maintain BI &PD insurance. The requirement to file evidence of
financial responsibility with FMCSA would not extend to them. They
would continue to maintain proof of the required financial
responsibility at the motor carrier's principal place of business as
required under 49 CFR 387.7(d)(1). The proposed filing requirement would provide the public with
assurances that all for-hire motor carriers, and private carriers
transporting hazardous materials in interstate commerce, have the
financial means to compensate members of the public for injuries or
damages caused by their negligence. These filings would also increase
public accessibility to insurance information and would enable FMCSA to
more effectively track insurance cancellations. Under the current
system, FMCSA receives a notice of cancellation only if the carrier is
registered under chapter 139. A carrier not subject to the chapter 139
requirements could lose its insurance coverage, but FMCSA would
generally not be made aware unless the fact was discovered during a
compliance review of the carrier. The proposed extension of the BI &PD
insurance filing to all carriers subject to the Motor Carrier Act of
1980 and Bus Regulatory Reform Act of 1982 insurance requirements
would, therefore, better enable FMCSA to identify and bring into
compliance uninsured motor carriers or remove them from the public
highways. 2. Cargo Insurance Requirement
Title 49 U.S.C. 13906(a)(3) authorizes the Secretary to require
motor carriers to file evidence of cargo insurance to cover loss or
damage to property transported by them. Under current 49 CFR
387.303(c), non-exempt for-hire common carriers of property and freight
forwarders are required to maintain cargo insurance of $5,000 per
vehicle, and $10,000 per occurrence, and file evidence of this
insurance with FMCSA. Under the proposed revised Sec. 387.303(c),
FMCSA would require only motor carriers and freight forwarders engaged
in transportation of household goods to maintain and file [[Page 28998]] evidence of cargo insurance with the agency. Penalties for failure to
comply would remain the same. There does not appear to be a need to require non-exempt for-hire
motor carriers of property to maintain cargo insurance since these
carriers typically have cargo insurance well above FMCSA limits because
their shipper clients generally require it as a condition of doing
business. Where motor carriers of property and freight forwarders deal
directly with individual members of the public, such as in the
transportation of household goods, the agency believes it is in the
public interest to continue to require cargo insurance. FMCSA has found
that shippers of household goods tend to be less knowledgeable about
the regulations than most shippers of other types of property, and
therefore need the protection afforded by the current regulatory
scheme. Therefore, FMCSA proposes to retain the requirement that
household goods carriers and freight forwarders of household goods
obtain and file minimum levels of cargo insurance, as provided by part
387. FMCSA requests comments about its proposal to eliminate the cargo
insurance requirement for non-exempt for-hire carriers of property and
freight forwarders. 3. Insurance Filings by Insurers, Surety Companies and Financial
Institutions FMCSA proposes to require all insurers, surety companies, and
financial institutions to file evidence of insurance using the web-
based (HTML) format. FMCSA currently accepts insurance filings in three
formats: paper filings, electronic (ASCII) filings, and web-based
(HTML) filings. The current paper-based insurance system is very labor
intensive. On August 15, 2001, FMCSA began allowing Internet filings. FMCSA
also allows the public to access carrier licensing and insurance
information through the Internet by selecting keyword ``L &I System'' at
http://www.fmcsa.dot.gov. With the implementation of the registration and financial
responsibility filing requirements of 49 U.S.C. 13906 and 13908, FMCSA
will have the capability and financial resources to improve the
accuracy and timeliness of insurance application processing. Accordingly, FMCSA proposes to require all carriers, property
brokers, and freight forwarders subject to 49 CFR part 387 to have
their insurers use Internet filings to file the necessary evidence of
surety bonds, trust fund agreements, bodily injury and property damage
insurance, household goods cargo insurance, and notices of
cancellations. We believe web-based filings will promote efficiencies
for FMCSA, insurers, sureties, financial institutions, and the public.
FMCSA seeks comment on whether the proposed mandatory web-based filing
would be a significant burden on small insurers, surety companies, and
financial institutions. FMCSA also invites comments, ideas and
suggestions regarding a potential phase-in approach as opposed to
immediate mandatory on-line filing. FMCSA invites comments on any
anticipated hardships that mandatory on-line filing may cause. 4. Self-Insurance Existing regulations provide a motor carrier with the option to
meet its financial responsibility obligations through self-insurance,
but only with FMCSA approval following review of the carrier's
financial health and safety rating. Risks for which a carrier may self-
insure include bodily injury and property damage liability (BI &PD), as
well as cargo liability. The self-insurance program is specifically
authorized by statute (49 U.S.C. 13906, 31138, and 31139), and is also
apparently beneficial to the industry. Comments filed in response to
FMCSA's (then FHWA) August 26, 1996 Unified Registration System ANPRM
strongly favored retaining the self-insurance program. On May 5, 1999, FMCSA separately proposed procedural changes to the
self-insurance process for for-hire motor carriers (see Qualifications
of Motor Carriers to Self-Insure Their Operations and Fees to Support
the Approval and Compliance Process at 66 FR 24123). Specifically,
FMCSA would have reevaluated the security and collateral requirements
of any self-insured carrier that fails to generate from operations,
after payment of all expenses except annual self-insurance claims
expenses, twice the level of cash needed to pay the self-insurance
claims. An additional application fee of $2,500 would be assessed to
cover carrier requests for any modifications and alterations to self-
insurance authorizations that required a reevaluation of the carrier's
financial condition. FMCSA had also proposed to reduce the fee for
processing the initial application for authority to self-insure from
$4,200 to $3,000 for an economic cost savings of $1,200. The NPRM
proposed implementing additional procedures necessary for motor
carriers to establish billing accounts to pay all insurance-related
fees required by the agency. Finally, a carrier would be charged a fee
to cover FMCSA's cost for analyzing quarterly and annual reports to
monitor the carrier's ongoing financial health and claims history. A
carrier would be charged a single annual fee of $2,600 to file four
quarterly reports and its annual report. FMCSA received a total of 12 comments in response to the 1999 NPRM.
None of the commenters agreed with the proposed self-insurance fees.
They believed the proposed fees were unreasonable and that the agency
had not provided adequate information to justify the proposed fees.
Some made the point that most participants in the self-insurance
program are part of carrier groups and that assessing fees based on
individual carriers would be burdensome. Commenters also stated it
would be unfair to impose additional reporting requirements for all
self-insured carriers. Some recommended that the additional reporting
requirements should apply only to those self-insured motor carriers
that the agency identified as having specific financial problems. Because the issue of self-insurance falls within the scope of
financial responsibility, and the financial responsibility information
system is one of the four systems being merged into the proposed new
Unified Registration System, FMCSA believes it is prudent to consider
revisions to the self-insurance regulations within the context of the
Unified Registration System. Therefore, the agency will withdraw the
1999 self-insurance NPRM in a separate withdrawal notice. The self-
insurance issues set forth in the 1999 NPRM and public comments
regarding that action are being addressed in today's proposed action. Today's action would rescind the 1999 proposal that FMCSA use only
the criteria that self-insured carriers must generate, after certain
expenses, twice the level of cash needed to pay self-insurance claims
when determining whether a carrier would become subject to adjustments
in collateral or security requirements. The proposal was in response to
agency concerns that the public be adequately protected against
uncompensated losses. The process of demonstrating whether a carrier has established and
will maintain an insurance program that will protect the public as
effectively as commercial coverage is complex. It is based upon a wide
range of variables that do not conform to a one-size-fits-all standard.
The 1999 proposed standard did not in itself take into account other
aspects of a carrier's financial condition that are traditionally used
to determine a company's financial strength. FMCSA now believes it
should continue its current practice of adjusting collateral [[Page 28999]] and security requirements on a case-by-case basis. Likewise, the agency would not impose a fee for a request to modify
one's self-insurance authorization if the request resulted in the need
to reevaluate the carrier's financial condition. FMCSA now recognizes
such requests are rare (less than two requests per year). FMCSA currently approves individual, and not group (also known as
``self-insurance pools'') self-insurance requests. That policy would
remain unchanged under this proposal. Current procedures require all motor carriers approved to self-
insure against BI &PD and cargo liability to file four quarterly reports
and one annual report per year. (Under this proposal, only motor
carriers and freight forwarders of household goods would retain the
cargo insurance filing requirement. FMCSA seeks comment on whether to
continue the option of self-insuring for cargo insurance.) FMCSA uses
these quarterly and annual reports to monitor the financial health of
self-insured carriers and ensure that each motor carrier continues to
meet the financial requirements of the program. The quarterly reports
are due within 60 days of the end of the quarter and generally must
cover the periods defined in Table 1: Table 1
---------------------------------------------------------------------
Quarter Period covered
---------------------------------------------------------------------
1............................. January 1-March 31.
2............................. April 1-June 30.
3............................. July 1-September 30.
4............................. October 1-December 31.
---------------------------------------------------------------------The annual report is a summary of information included in the four
preceding quarterly reports, and is due not later than 90 days after
the end of each annual reporting year (December 31) or the end of
March. FMCSA proposes changes to self-insurance quarterly and annual
report filing fees, as authorized under 49 U.S.C. 13908(c). Self-
insured carriers would be assessed $500 for each quarterly report
filing. There would be no fee for filing the annual report. The annual
cost for these filings would total $2,000, a $600 reduction from the
1999 NPRM proposal of $2,600. In developing the new fees for quarterly filings, the agency
consulted the private contractor that reviews the quarterly reports on
behalf of the agency, The Meridian Group. Data submitted by The
Meridian Group indicates that the contractor incurs an average of $520
in costs to review each simple quarterly report filing. (Rounding to
the nearest $50 in accordance with existing Sec. 360.5, FMCSA adjusted
the cost to $500) The proposed $500 fee would assist in recouping labor
costs associated with reviewing the quarterly filings. The agency
proposes no fees for annual report filings. Currently, the self-insurance program is not self-supporting but is
subsidized by other licensing fees. The proposal to retain the $4,200
initial application fee and to assess a new quarterly filing fee would
bring the program closer to the goal of being entirely self-supporting.
The Regulatory Evaluation for this rule provides a more detailed
explanation to support fees regarding self-insurance. FMCSA seeks
comment regarding these proposed self-insurance fees. Finally, the 1999 proposal to require additional procedures for
motor carriers to establish billing accounts to pay all insurance-
related fees required by FMCSA would be superceded by procedures under
subpart E to 49 CFR part 360 in this proposal. I. Designation of Process Agents Today's action proposes to include private and exempt for-hire
motor carriers among those that must file process agent information
with FMCSA. Current regulations require only those entities that must register
under chapter 139 to designate a process agent by filing Form BOC-3--
Designation of Agents--Motor Carriers, Brokers and Freight Forwarders
with FMCSA. Chapter 139 registrants generally include non-exempt for-
hire motor carriers, property brokers and freight forwarders. A motor
carrier (including a private carrier) that operates in the United
States in the course of transportation between points in a foreign
country must also file the BOC-3. Motor carriers, property brokers and
freight forwarders may only change the designation of process agent by
filing a new designation with FMCSA. This requirement ensures a valid,
up-to-date designation is on file at all times during which an entity
is subject to, in whole or in part, the designation requirement under
Sec. 360.605. A carrier may use a commercial or blanket service of process agent
company or it may designate an individual employee or relative who
resides in the State(s) in which the carrier operates to serve as its
process agent. The process agent must be U.S.-domiciled. If a State
official is designated, evidence of the official's willingness to serve
as process agent must be provided to FMCSA. Today's action retains the requirement for the fiduciary of a motor
carrier, property broker or freight forwarder to designate a process
agent as of the moment of succession. Title 49 CFR 387.319(a) defines a
fiduciary as ``any person authorized by law to collect and preserve
property of incapacitated, financially disabled, bankrupt, or deceased
holders of operating rights and assignees of such holders.'' FMCSA provides public access to process agent information on the
Internet and by telephone. The public uses the information when seeking
compensation for losses resulting from a crash involving a commercial
motor vehicle. The information enables them to serve lawsuits on the
correct party in any State in which the motor carrier, broker or
freight forwarder operates. FMCSA uses the information to serve notices
for enforcement actions such as out-of-service orders and other
administrative proceedings. Pursuant to 49 U.S.C. 503, FMCSA is empowered to also require
private carriers to designate process agents and to file those
designations with the Secretary of Transportation. It was not until the
publication of the August 26, 1996 ANPRM that the agency asked whether
all private carriers should be compelled to make such filings.
Commenters urged that private and exempt for-hire motor carriers be
subject to the same process agent filing requirements as non-exempt
for-hire motor carriers, brokers and freight forwarders. Based upon those comments, FMCSA proposes to maintain the current
requirements in effect for designation of process agents and to extend
them to private and exempt for-hire motor carriers. J. Administrative Filings FMCSA further proposes to increase to 90 days the maximum time
allowed an applicant to submit proof of insurance and process agents
before its application is dismissed. Under existing procedures, an
applicant is allotted 20 days from the application date to complete the
filings. If the filings are not made within 20 days, the agency may
grant one 60-day grace period before taking action. As a result,
applicants may be given up to 80 days to satisfy insurance and process
agent filing requirements. FMCSA believes that a 90-day filing period for these administrative
filings more realistically reflects the actual time necessary to
arrange insurance and process agent coverage. Therefore, this NPRM
would require the administrative filings within 90 days after
submission [[Page 29000]] of the Form MCSA-1, with no further grace periods. If either the
insurance or process agent filings were not completed within this 90-
day period, the agency would dismiss the registration request. FMCSA
requests comments on the proposed 90-day time frame for making
administrative filings. In addition, FMCSA proposes that any registered entities that are
not presently required to file evidence of insurance or designation of
process agent be allowed 180 days from the date the final rule takes
effect to make the required filings. For example, exempt for-hire
carriers and private interstate motor carriers transporting hazardous
materials are already required to maintain minimum levels of financial
responsibility, but they have not been required to file evidence of
that coverage with FMCSA. Many registered carriers have never been
required to file a designation of agent for service of process. This
proposal would provide these entities 180 days after the rule becomes
final to make the filings. If registered entities failed to make the
required filings timely, their registration would be revoked. The extended insurance filing period for existing motor carriers
would have no bearing on revocation procedures for lapses in insurance
coverage. Insurance companies only report lapses in coverage for motor
carriers for which they have already made insurance filings. Carriers
impacted by the 180-day extension would have never had evidence of
financial responsibility filed on their behalf. FMCSA believes this extended grace period would enable the agency
to efficiently process the anticipated 300,000+ filings in this
category as well as provide registrants with adequate time to comply
with the new filing requirements. K. Cancellation and Reinstatement of USDOT Numbers Under existing procedures, if a motor carrier whose operations are
authorized under chapter 139 wishes to voluntarily cancel its operating
authority, it must submit a notarized Form OCE-46--Voluntary Revocation
Request or electronically file its request. Although not required, many
of these carriers use the Form OCE-46 to notify the agency that they
are ceasing operations. FMCSA proposes to replace the voluntary
revocation request procedure with the simpler procedure now used by
motor carriers requesting to discontinue use of a USDOT Number.
Carriers would be required to mail or electronically submit to FMCSA a
cancellation request and certification statement under Sec. 360.701.
Use of the Form OCE-46 and its associated complex processing
requirements would be discontinued. Proposed Sec. 360.705 clarifies that FMCSA would deactivate a
carrier's USDOT Number if it fails to comply with the financial
responsibility and process agent filing requirements. A carrier may not
operate in interstate commerce without an active USDOT Number. Under
proposed Sec. 360.707, carriers may reactivate their USDOT Numbers
within 2 years of being marked inactive by making the necessary
filings, paying a reactivation fee, and re-completing the requirements
of the New Entrant Safety Assurance Program (unless they have
previously completed the new entrant requirements). FMCSA believes
carriers that have been inactive for more than 2 years are functionally
equivalent to new entrants and should be required to demonstrate that
they have the necessary basic safety management controls in place
before being allowed to resume interstate operations. Therefore, we
propose requiring such carriers to file Form MCSA-1 to reactivate the
previously-issued USDOT Number and complete the new entrant safety
assurance program in part 385. We invite comments on whether the 2-year
threshold for re-completing the New Entrant Safety Assurance Program is
appropriate or if it should be lowered. L. The New Application Form FMCSA proposes to combine the data elements now captured on several
different licensing, registration and certification forms into a
single, new application form called the Form MCSA-1--FMCSA Registration
Form (USDOT Number Application). The Form MCSA-1 would replace the
forms and certifications listed below: 1. Motor Carrier Identification Report (Application for USDOT
Number), Form MCS-150;
2. Application for Motor Property Carrier and Broker Authority,
Form OP-1;
3. Application for Motor Passenger Carrier Authority, Form OP-1(P);
4. Application for Freight Forwarder Authority, Form OP-1(FF);
5. Safety Certification for Applications for USDOT Number,
Form MCS-150A; and
6. Application for Mexican Certificate of Registration for Foreign
Motor Carriers and Foreign Motor Private Carriers Under 49 U.S.C.
13902, Form OP-2. Proposed Form MCSA-1 is included as an appendix to this preamble
for public review and comment. The proposed form would capture all of
the information and certifications required under relevant statutes,
including ICCTA and MCSIA. The agency believes that use of one
comprehensive form would streamline the application process and reduce
the paperwork burden for all affected entities. Every motor carrier,
freight forwarder or broker required to register with DOT under 49 CFR
390.19 or 49 U.S.C. 13901, except Mexico-domiciled motor carriers
registering to operate between Mexico and points in the United States
beyond border commercial zones along the U.S.-Mexico international
border, would use the same proposed form to register with FMCSA. The proposed form has eliminated fields that captured duplicative
information common to the applications for operating authority and the
motor carrier identification report. This would reduce the preparation
time for those entities that were required to complete both forms.
Additionally, FMCSA has attempted to group similar information requests
and categories within the same sections on the proposed form. Further,
the form is designed to have applicants complete only those areas of
the form that are relevant to the type of operation for which they
would register. For example, certain applicants are instructed to skip
safety-related questions and other sections that do not apply to them. Comments submitted to the ANPRM suggested that FMCSA, when
considering any new registration system, collect only information
necessary to ensure public safety. FMCSA believes that it is necessary
to include on the proposed Form MCSA-1 fields regarding the
identification of carrier and cargo classification type. Capturing this
information would continue to benefit Federal and State regulatory
agencies, as well as other interested parties, and allow tracking of
trends among various transportation categories and cargo classification
types. Tracking industry trends and practices would continue to aid in
the design of better driver and vehicle safety-related programs.
Therefore, this proposal retains motor carrier designation and cargo
type categories that are currently included on the OP-1, OP-2, and MCS-
150 forms. The MCSA-1 would solicit certain revenue data about applicants.
FMCSA and the Bureau of Transportation Statistics (BTS) have discussed
the benefits of collecting revenue data from registrants. Each believes
that collecting gross annual operating revenue on the same form as
safety and equipment data would allow analyses of safety/financial
inter-relationships and improve [[Page 29001]] compliance rates for requirements of both agencies. For example, MCSA-1
revenue data would provide the first public sector financial data on
new carriers that are not yet subject to FMCSA financial reporting
regulations (formerly BTS) (49 CFR part 1420). Broad revenue data would
help FMCSA gain a better understanding of distribution of the motor
carrier industry by revenue size, particularly the number of small
entities within the industry. Such information would help the agency to
more effectively evaluate the impacts of its regulations on small
carriers, and provide the basis for studying the relationship between
financial performance and safety performance within the industry. In view of congressional and agency concerns regarding
transportation of household goods, FMCSA has also proposed including on
the new MCSA-1 information under the Household Goods Arbitration
section of the current OP-1 form. That form requires household goods
applicants to provide information regarding their program for
arbitrating loss and damage claims and to certify that their tariffs
are available for review upon request. The agency believes that this
would continue to provide important information for assisting consumers
with household goods movement complaints. Under this proposal, FMCSA plans to design, integrate and implement
information systems and technology that would allow real time
processing of registration applications. FMCSA and its predecessor
agencies have routinely made motor carrier safety-related information
available to the general public, as well as other regulatory agencies.
FMCSA collects and maintains information on interstate motor carriers,
vehicles and drivers. Four basic types of information are collected:
Census information that identifies and describes each motor carrier
operation; safety inspection records conducted on carrier vehicles and
drivers; crash reports; and records of administrative and judicial
enforcement actions. These data are maintained by FMCSA on the
following systems: Motor Carrier Management Information System (MCMIS). MCMIS
is FMCSA's central repository for safety data on motor carriers,
vehicles, and drivers. Licensing and Insurance System (L&I). The L&I system is
FMCSA's system for issuing carrier operating authority, recording
insurance coverage, and maintaining process agents. Motor Carrier Safety Status Measurement System (SafeStat).
SafeStat, a FMCSA safety-performance indexing algorithm, uses data from
MCMIS records to score and rank motor carriers by their safety
performance as a pointer system for enforcement. Safety and Fitness Electronic Records System (SAFER).
SAFER is FMCSA's safety data exchange system. It provides snapshots of
a motor carrier's safety performance, registration, and permit status,
and provides a platform for the exchange of these data between Federal
and State agencies. FMCSA plans to continue working closely with its Federal, State and
local partners to ensure that all carrier registration and safety
information databases and systems are integrated to the greatest extent
possible. FMCSA intends to design a system that utilizes one web portal
with links to other FMCSA databases, as suggested by many of the
comments to the ANPRM. The agency believes this would reduce the
aggregate cost of operating these systems, increase their value in
saving lives and reducing injuries, and facilitate access by interested
parties. M. Multi-Phase Application Process Under the proposed new requirements, an applicant would request an
application package by accessing the FMCSA website, http://www.fmcsa.dot.gov,
or by contacting FMCSA headquarters or Division
offices located in each State by mail, fax or telephone. FMCSA strongly
recommends that applicants use the electronic on-line application
procedure since it has built-in edit checks and quick lists for easy,
accurate completion. The proposed application package would include the
following: 1. Educational and technical assistance material regarding the
safety and operational requirements of the FMCSRs and the HMRs, if
applicable. 2. Application form MCSA-1, along with instructions. The educational and technical assistance package would consist of
material designed to assist the applicant in complying with the FMCSRs
and HMRs, if applicable, and in establishing good safety management
practices. It would include information on driver qualifications;
controlled substances and alcohol use testing; commercial driver
licenses; minimum levels of financial responsibility; crash reports;
requirements applicable to the driving of motor vehicles; vehicle
inspection, repair and maintenance; hours of service and records of
duty status of drivers; and requirements applicable to the
transportation of hazardous materials. After FMCSA receives an MCSA-1 application, it would process the
application in multiple phases. Step one would involve initial
screening of the application. FMCSA would assign a temporary number to
track the application through the registration process. The applicant's
insurer, surety company, or financial institution would use the
tracking number to file evidence of financial responsibility that must
accompany the application. An applicant's process service agent would
use the number to make Form BOC-3 (designation of process agent)
filings. FMCSA would review the application for completeness and
accuracy; ensure that financial responsibility and process agent
filings are received in a timely manner; and make necessary non-
material corrections. If the application is rejected during this stage,
the registration filing fees would not be refunded. The agency would
not refund registration fees under any circumstances. If a motor carrier's application passed the initial screening, it
would enter step two--provisional registration. FMCSA would issue
provisional registration and assign a USDOT Number. A motor carrier
applicant would not be allowed to begin operations until FMCSA had
granted provisional registration. Under the proposed process, registration for non-Mexico-domiciled
carriers would only become permanent if the applicant satisfactorily
completes the new entrant safety assurance process set forth in 49 CFR
part 385. The agency announced the new entrant safety assurance process
in an Interim final rule (IFR) on May 13, 2002 (at 67 FR 31978, titled
New Entrant Safety Assurance Process. The new entrant safety assurance
process implements section 210 of MCSIA by requiring new entrants to
successfully complete a safety review within 18 months after receiving
their USDOT Numbers. Registrations for Mexico-domiciled motor carriers operating
exclusively within the border commercial zones are not subject to the
new entrant safety assurance process but must satisfactorily complete
the safety monitoring system codified at 49 CFR 385.101 et seq. The special procedures under step two(a) of the multi-phase
application process would delay the issuance of a provisional
registration to motor carriers that are subject to the protest
provisions under U.S.C. 13902. Section 13902 requires FMCSA to allow a
time period for persons to oppose an application for registration.
FMCSA would publish notification of the registration application in the
on-line FMCSA [[Page 29002]] Register. Anyone may protest the application for registration, provided
the protest is based upon the applicant's failure to comply with: (1)
The registration procedures; (2) applicable DOT regulations, including
the FMCSRs and the HMRs; (3) the safety fitness standards; and/or (4)
financial responsibility requirements. Freight forwarders and brokers are not issued provisional
registration. If their registration application is not successfully
opposed, their registration is permanent when FMCSA issues it at the
conclusion of the publication and protest process. Section 13902 does not authorize anyone to protest the registration
application of a Mexico-domiciled motor carrier seeking to operate only
within the border commercial zones, exempt for-hire motor carriers, or
private motor carriers. For this reason, step two(a) would not apply to
these carrier types. FMCSA would not entertain protests against their
registration applications or publish notification of them in the FMCSA
Register. In step three, FMCSA would issue permanent registration if the
motor carrier had successfully completed the applicable monitoring
program and the registration application was not successfully opposed. FMCSA seeks comment regarding the proposed form and registration
process discussed in this NPRM. VII. Special Transit Operation Provisions ICCTA amended the financial responsibility provisions of 49 U.S.C.
31138(e) by adding a new subsection (4). This provision applies to
passenger service provided within a transit service area under an
agreement with a Federal, State, or local government, funded, in whole
or in part, with a grant under 49 U.S.C. 5307, 5310, or 5311. Where the
transit service area is located in more than one State, in lieu of the
minimum Federal levels of financial responsibility required of motor
passenger carrier registrants generally, such transit operators
(hereinafter identified as ``Federal Transit Administration (FTA)
grantees'' or ``transit service providers'') are permitted to maintain
as their minimum financial responsibility obligation the highest level
of insurance required by any of the States in which they operate. FTA grantees operating in interstate transit service areas that
exceed commercial zone limits generally provide service of a nature
that does not conform with any of the statutory exemptions that might
otherwise remove carriers from FMCSA jurisdiction and, thus, relieve
them of registration obligations--such as the commercial zone exemption
of 49 U.S.C. 13506(b)(1), the ``casual, occasional, or reciprocal''
transportation exemption of 49 U.S.C. 13506(b)(2), or the taxicab
exemption of 49 U.S.C. 13506(a)(2). In addition, FTA grantees are
advised that there are no exemptions from registration requirements
related to vehicle capacity, frequency of interstate operations, or the
non-profit status of a transportation operation. Further, FMCSA believes that no meaningful relief from statutory
registration requirements can be made available to FTA grantees under
the general exemption authority of 49 U.S.C. 13541. The statute
expressly constrains the Secretary from exercising that exemption
authority to relieve a person from the application of, and compliance
with, any law or regulation pertaining to specified matters including
insurance and safety fitness--matters integral to the registration
process. ICCTA amendment to 49 U.S.C. 31138(e) only adjusted the minimum
financial responsibility levels FTA grantees are required to observe.
It did not relieve FTA grantees with interstate transit service areas
of their obligation to register with FMCSA as required of all
interstate for-hire carriers under 49 U.S.C. 13902. Similarly, ICCTA
amendment did not relieve FTA grantees of their obligation under 49
U.S.C. 13906 to file with FMCSA evidence of insurance under 49 CFR part
387 as a condition of registration. However, this proposal would waive
the otherwise applicable $200 registration and $10 financial
responsibility filing fees for such applicants. These applicants would
also be eligible to apply to self-insure their operations, and the fees
for such applications would be waived as well. Accordingly, FTA grantees that provide interstate service within
areas that exceed commercial zone limits are required to register their
operations with FMCSA and, as part of that process, to file evidence
that they maintain the minimum levels of financial responsibility
coverage required under 49 U.S.C. 31138(e). This notice proposes to
amend the 49 CFR part 387 regulations governing minimum levels of
financial responsibility for motor carriers to reflect the revised
compliance option made available by ICCTA to transit service providers. VIII. Systems Under Consideration for Merger With the New Unified
Registration System A. Registration for Certain Mexico-Domiciled Motor Carriers Today's notice requests comment on whether the proposed unified
registration system should include the registration process for Mexico-
domiciled motor carriers seeking to operate between Mexico and points
in the United States beyond the border commercial zones along the
United States-Mexico international border. The agency announced the
registration process for this group of motor carriers in a March 19,
2002, interim final rule (IFR) (see Application by Certain Mexico-
Domiciled Motor Carriers to Operate Beyond United States Municipalities
and Commercial Zones on the United States-Mexico Border at 67 FR
12702). Regulations governing the registration process for this group
of motor carriers are published in Subpart E of 49 CFR part 365. The
process includes requirements applicable only to Mexico-domiciled
carriers seeking authority to operate between Mexico and points in the
United States beyond the border commercial zones along the United
States-Mexico international border. FMCSA seeks comment on whether the
unique conditions related to these carriers warrant retaining a
separate registration procedure and application form for them. The unique registration requirements arise from Section 350 of the
2002 DOT Appropriations Act (the Act), Public Law 107-87. In effect,
Section 350 prohibits the Secretary of Transportation from obligating
or expending funds for reviewing or processing applications of Mexico-
domiciled motor carriers to transport property or passengers in
interstate commerce between Mexico and points in the United States
beyond the municipalities and commercial zones along the United States-
Mexico international border until the DOT satisfies conditions imposed
by Section 350. FMCSA satisfied part of Section 350 by incorporating
registration requirements prescribed by the section into its
regulations published in the 2002 IFR and companion rules published
concurrently with the 2002 IFR. Among other things, these carriers: Are uniquely required to successfully complete a
preauthorization safety audit (PASA) encompassing the nine areas of
inquiry required by section 350(a)(1)(B) prior to being granted
operating authority; Must be assigned a distinctive U.S. DOT Number in
accordance with section 350(a)(4); and Must provide proof of valid insurance issued by an
insurance company licensed in the United States before being granted
authority to operate beyond the border commercial zones, in accordance
with 350(a)(8) Additional conditions apply to Mexico-domiciled carriers that have
had operating authority for less than three consecutive years. In
accordance with section 350(a)(5), each of their commercial motor
vehicles that do not display a valid Commercial Vehicle Safety Alliance
(CVSA) inspection decal issued by a CVSA-certified inspector must
successfully pass a Level 1 inspection. Each vehicle must display a
valid CVSA decal as evidence of having met the inspection criteria, and
the vehicles must be re-inspected every three months by a CVSA-
certified inspector. The agency is exploring the possibility of bringing this group of
Mexico-domiciled motor carriers under the Unified Registration System
and requests public comment on whether to proceed. Several changes would result from merging their registration system
under the Unified Registration System. The MCSA-1 would replace the OP-
1(MX) as the registration application form. These carriers would
provide additional identifying information and certifications. The
proposed Form MCSA-1 captures approximately 22 additional new or
modified items of information relating to the operation type, form of
business, revenue, contact information, and certifications that are not
on the Form OP-1(MX): FMCSA estimates these fields would increase the
paperwork burden for these carriers. Any changes in the paperwork
burden or costs and benefits would be reflected in the final rule's
supporting documentation. For a detailed discussion of the information
collection burdens associated with the OP-1(MX), see the May 19, 2002
IFR. Additional impacts to these carriers would include a modified
application process. They would be subject to the proposed multi-phase
application process which involves the assignment of a temporary
tracking number in lieu of a USDOT Number until certain conditions are
met. Unlike other applicants, a Mexico-domiciled carrier seeking to
operate in the United States beyond the border commercial zones would
additionally need to successfully complete a PASA before receiving a
USDOT Number. FMCSA would need to incorporate consideration of the PASA
results as well as its associated due process procedures into the
Unified Registration System. Under the Unified Registration System the initial registration fee
would decrease from $300 to $200. Form OP-1(MX) filers now have
multiple options for payment of fees, including checks and money
orders. The only approved payment methods for the initial registration
and administrative filing fees under the Unified Registration System
would be approved credit cards, electronic funds transfers, and charge
cards. FMCSA specifically invites comment on these and other potential
impacts, whether FMCSA should incorporate the OP-1(MX) registration
with the Unified Registration System and, if so, how the agency can
most effectively integrate the two systems. B. Hazardous Materials Safety Permit Application Process On June 30, 2004, FMCSA published a final rule requiring any
carrier that desires to haul certain high-hazard materials in
interstate or intrastate commerce to obtain a hazardous materials
safety permit (HM Safety Permit). (See Federal Motor Carrier Safety
Regulations: Hazardous Materials Safety Permits, published at 69 FR
39350.) Applicants must complete the Form MCS-150B when initially
applying for or renewing the HM Safety Permit under the biennial
renewal process. For these carriers, the MCS-150B is submitted in lieu
of the MCS-150 as the application for the USDOT Number. Today's NPRM does not merge the HM Permitting Process under the
Unified Registration System for two reasons: (1) Congress did not,
under sec. 103 of the ICC Termination Act, specify the HM Safety
Permitting Process as one of the systems for inclusion in the new on-
line unified registration system; and (2) the final rule announcing the
HM Safety Permitting Process was published after the URS NPRM was in
the final stages of development. The agency is exploring the
possibility of integrating the HM Safety Permitting Process with the
Unified Registration System, however, and requests public comment on
whether we should proceed. The primary impact of merging the HM Safety Permitting Process
under the Unified Registration System would be the modification of Form
MCSA-1 to capture the data on the MCS-150B--which is identical to the
MCS-150 with an additional six fields related to the permit program
requirements. We believe incorporating the MCS-150B into the MCSA-1
would result in a small net efficiency in time and money. FMCSA
estimates these fields would increase the paperwork burden for
completing the MCSA-1 by six minutes. Any changes in the paperwork
burden or costs and benefits would be reflected in the final rule's
supporting documentation. For a detailed discussion of the information
collection burdens associated with the MCS-150B, see the June 30, 2004
final rule. Additional HM Safety Permitting Process components being considered
for integration with the Unified Registration System include the HM
permit suspension and revocation procedures; appeals process; and
permit evidence requirements for the vehicle/shipping paper. One particular challenge presented by integrating the HM Safety
Permitting Process would involve the treatment of certain intrastate
carriers. Intrastate carriers are not normally required to obtain a
USDOT Number, and most of the FMCSRs do not apply to intrastate
carriers. However, the HM Safety Permitting Process regulations were
promulgated under hazardous materials statutes (49 U.S.C. 5105(e),
5109, and 5113) and apply to both interstate and intrastate haulers of
high-hazard materials. The June 30 final rule specifies a carrier must
have a ``Satisfactory'' safety rating to qualify for the HM Safety
Permit. This means that, in order to procure an HM Safety Permit,
intrastate carriers must now obtain a USDOT Number and submit to a
compliance review. The USDOT Number ensures that such carriers are
targeted for a compliance review. The compliance review is solely for
the purpose of obtaining a safety rating to qualify for an HM Safety
Permit and is based upon the HMRs and FMCSR-compatible State
regulations. Other than the requirement to obtain a USDOT Number and pass a
compliance review, the additional proposed provisions under the URS
NPRM that do not already apply to intrastate carriers would continue to
not apply if HM Safety Permitting and the Unified Registration System
were to be integrated. Examples of URS NPRM provisions that would not
apply to intrastate carriers include the requirement to file evidence
of financial responsibility with FMCSA or to designate a process agent. FMCSA specifically invites comments on whether it should
incorporate the HM Safety Permitting Process with the Unified
Registration System and, if so, how the agency can most effectively
integrate the two systems. [[Page 29004]] C. Hazardous Materials Cargo Tank Registration Process On April 18, 2003, the Research and Special Programs Administration
(RSPA) published a final rule titled, Hazardous Materials: Requirements
for Cargo Tanks at 68 FR 19258. Among other things, RSPA's rule
transferred to FMCSA responsibility for administering the Cargo Tank
Registration Program for all persons who are engaged in the
manufacture, assembly, inspection and testing, certification, or repair
of a cargo tank or a cargo tank motor vehicle manufactured in
accordance with a DOT specification under 49 CFR parts 100 to 185 or
under terms of an exemption issued under 49 CFR part 107 (see 49 CFR
107.502(d)). Facility applicants applying for a new Cargo Tank (CT)
number must complete the registration statement when initially
registering with the Department. For facilities currently registered
with the Department, this process is used to add facility locations or
to update registration statements as required by 49 CFR 107.504(c).
Facility applicants submit the MCS-150 to obtain a USDOT Number which
is used only for tracking purposes in MCMIS. Today's NPRM does not merge the Cargo Tank Registration Program
with the Unified Registration System for two reasons: (1) Congress did
not, under sec. 103 of the ICC Termination Act, specify the Cargo Tank
Registration Process as one of the systems for inclusion in the new on-
line unified registration system; and (2) the final rule transferring
the Cargo Tank Registration program from RSPA to FMCSA was published
after the URS NPRM was in the final stages of development. The agency
is nonetheless exploring the possibility of integrating the Cargo Tank
Registration Process with the Unified Registration System and requests
public comment on whether, and if so how, we should proceed. Except for the requirement to obtain a USDOT Number, the URS NPRM
is not expected to increase the regulatory requirements already
applicable to cargo tank facilities. Examples of URS NPRM provisions
that would not apply to cargo tank facilities include the requirement
to file evidence of financial responsibility with FMCSA or (for U.S.
residents) to designate a process agent. Persons who are not residents
of the United States are still required in accordance with 49 CFR
107.107 to designate a permanent resident of the United States as their
agent for service of process. FMCSA specifically invites comments on incorporating the Cargo Tank
Registration Process into the Unified Registration System and on the
best method of integrating the two systems. IX. Performance and Registration Information Systems Management Program
(PRISM) The PRISM program is a priority FMCSA initiative comprised of two
major processes: (1) The Motor Carrier Safety Improvement Process
(MCSIP) and (2) the Commercial Vehicle Registration Process. These
processes work in parallel to identify motor carriers and hold them
responsible for the safety of their operation. The performance of
unsafe carriers is improved through a comprehensive system of
identification, education, awareness, safety monitoring and treatment. FMCSA provides grants to approved States. As of September 2004, 37
States have entered into grant agreements with FMCSA to implement
PRISM. At least 19 of these States are currently collecting MCS-150
Forms and issuing USDOT Numbers to interstate motor carriers. The PRISM program uses MCSIP to hold motor carriers responsible for
the safety of their operations. The MCSIP is designed to improve the
safety performance of motor carriers with demonstrated poor safety
performance through accurate identification, performance monitoring,
and interventions such as on-site compliance reviews at a motor
carrier's principal place of business. MCSIP carriers that do not
improve their safety performance face progressively more stringent
penalties that may result in a Federal Operations Out-of-Service Order
and possible concurrent suspension or denial of vehicle registration
privileges by the State. A State's International Registration Plan commercial vehicle
registration process provides the framework for the PRISM program and
serves two vital functions. First, it establishes a system of
accountability by ensuring that no vehicle receives license plates
without the identification of the carrier responsible for the safety of
the vehicle during the registration year. Second, the use of
registration sanctions serves as a powerful incentive for unsafe
carriers to improve their safety performance. The commercial vehicle registration process of PRISM creates a new
Federal-State partnership that improves safety and strengthens
Congressionally-mandated enforcement policies such as those related to
the consequences of unsatisfactory safety ratings (Section 4009 of TEA-
21), failure to pay civil penalties (Section 206 of the MCSIA of 1999)
and biennial data update requirements (Section 217 of the MCSIA of
1999). One of the fundamental tenets of the PRISM program is that State
vehicle registration agencies will: Suspend a motor carrier's International Registration Plan
(IRP) license plates in conjunction with an FMCSA order to cease
interstate operation; and/or Deny renewal of IRP license plates to any motor carrier
that is prohibited from operating in interstate commerce by FMCSA. Additionally the commercial vehicle registration process of PRISM
allows participating States to check motor carriers' MCS-150 ``date of
last update'' in FMCSA information systems as part of their annual IRP
license plate renewal processes. If the motor carrier's MCS-150 data
(census data) is more than 24 months old before the end of the license
plate registration period, the State requires them to update this data
as a condition for receiving their IRP license plate. This approach
ensures that motor carriers who obtain IRP license plates in PRISM
states cannot let their census data expire. The FMSCA has determined
that motor carriers who update their census data in this manner already
meet the periodic filing requirement of the current 49 CFR 390.19 and
would require no additional filing with FMCSA. However, they would be
subject to the penalties for filing false or misleading information
(see proposed Sec. 360.25(a)(4)). For clarification purposes, the data
contained on the MCS-150 would now be incorporated into the new MCSA-1. States participating in the PRISM program also routinely issue
USDOT Numbers to interstate motor carriers who do not have them as part
of their commercial vehicle registration processes. This, in essence,
has allowed participating States to serve as a one-stop shop where
motor carriers could receive a USDOT Number, apply for or renew IRP
license plates, and meet the biennial data updating requirements. Under this proposed rule, carriers are required to file an MCSA-1
prior to receiving a U.S. DOT number. FMCSA cannot delegate to PRISM
States its responsibility to ensure that the MCSA-1 Form is correct and
complete, and otherwise consistent with our safety fitness policy.
States will, however, be able to issue USDOT Numbers to ``registrants''
(such as leasing companies) and intrastate carriers. Therefore, we are
particularly interested in comments from States now participating in
the PRISM program regarding the impact of the inability to continue
issuing USDOT Numbers to [[Page 29005]] interstate motor carriers concurrently with the commercial vehicle
registration process. FMCSA invites comments and questions on anticipated impacts of this
rule. X. Regulatory Evaluation of the Unified Registration System (URS) NPRM:
Summary of Benefits and Costs A. Background and Summary FMCSA has determined that this NPRM constitutes a significant
regulatory action as defined under section 3(f)(3) of Executive Order
12866 and under Department of Transportation policies and procedures.
While the costs of this NPRM do not exceed the $100 million annual
threshold as defined in Executive Order 12866, it is expected to
generate extensive public interest. Section 103 of ICCTA, as codified at 49 U.S.C. 13908, directs the
Secretary of Transportation to issue a rule to replace four systems
with a ``single, on-line, Federal system.'' Title 49 U.S.C. 13908(c)
provides the Secretary the option of establishing a fee system for
registration and filing of evidence of financial responsibility, and
states that, ``Fees collected under the fee system shall cover the
costs of operating and upgrading the registration system, including all
personnel costs associated with the system.'' Several fee changes are
identified in the discussion below and are proposed with the goal of
ensuring that the ``single, on-line, Federal (registration) system''
will be self-sustaining. Additionally, since 49 U.S.C. 13908 directs
the Secretary to create a single unified system, we propose several
changes to the registration requirements for certain segments of the
motor carrier population (such as exempt for-hire carriers) in an
attempt to harmonize the registration process for all types of motor
carriers. The major proposed URS NPRM provisions for which direct costs have
been estimated include: Requiring private and exempt for-hire motor carriers to
pay the same FMCSA registration fee as that paid by non-exempt for-hire
carriers; Requiring private and exempt for-hire motor carriers to
file proof of process agent designation with FMCSA;
Requiring insurance representatives of exempt for-hire
carriers and insurers of private interstate carriers of hazardous
materials to file proof of liability insurance with FMCSA;
Requiring private and exempt for-hire carriers to file
reinstatement requests with FMCSA;
Eliminating the ability of motor carriers to transfer
operating authority; and
Cost to industry from revising other motor carrier filing
fees. Direct benefits of this NPRM include:
Time savings to industry and FMCSA personnel resulting
from streamlining the motor carrier registration process; Time savings to FMCSA in locating and serving private and
exempt for-hire motor carriers for compliance and other reviews as a
result of the process agent designation filing; Additional crashes avoided as a result of FMCSA being able
to conduct additional compliance reviews annually due to time saved in
searching for, locating, and serving private and exempt for-hire motor
carriers for reviews; and Time savings to the industry's insurance representatives
from eliminating cargo insurance filing requirements for common
carriers and freight forwarders of non-household goods.
A summary of the costs and benefits associated with this NPRM are
presented in Table 2. Table 2.--Summary of 10-Year Costs and Benefits of the URS NPRM
[In millions of discounted dollars]
-------------------------------------------------
Net direct
Costs Benefits benefit
(benefits--costs)
-------------------------------------------------
Total $75.4 $91.4 $16
-------------------------------------------------Total discounted costs of this proposed rule equal $75.4 million
over the 10-year analysis period. Total discounted benefits of this
proposed rule equal $91.4 million over 10 years, resulting in net
discounted benefits of $16 million. The detailed costs and benefits
associated with this NPRM are discussed in the next two sections,
respectively. B. Costs
The categories of costs are summarized in Table 3.
Table 3.--Costs of URS NPRM by Major Provision
[Millions of discounted dollars]
----------------------------------------------------------------------
Total 10-
First-year year
RS provision or proposed change costs discounted
costs
----------------------------------------------------------------------
New Registration Fees...................... $1.5 $11.6
Filing Proof of Process Agent Designation.. 20.5 47.1
Filing Proof of Liability Insurance........... 1.5 4.5
Filing Reinstatement Requests................. 0.4 4.4
Eliminating Transfers of Operating Authority.. 0.7 6.9
Revising Other FMCSA Fees..................... 0.08 0.9
---------------------
Total Discounted Costs.................... 24.7 75.4
----------------------------------------------------------------------Note: Subtotals may not add exactly to totals due to rounding. [[Page 29006]] The present value of total costs resulting from this NPRM is
estimated to be $75.4 million for the 10-year analysis period. All
dollar figures were discounted using a discount rate of 7 percent,
based on Office of Management and Budget guidelines. The following
discussion represents a summary of calculations performed for the
benefit-cost analysis. A full discussion of the data used, assumptions
made, and calculations performed can be found in the stand-alone
regulatory evaluation (Preliminary Regulatory Evaluation: Unified
Registration System (URS) Notice of Proposed Rulemaking (NPRM))
contained in the public docket for this rule. 1. New Registration Fees for Private and Exempt For-Hire Carriers Under the current registration system, a carrier's operating
status, such as non-exempt for-hire, exempt for-hire, or private,
determines what specific forms that carrier must file with FMCSA and
what specific fees, if any, are paid. For example, new entrants
registering as non-exempt for-hire motor carriers must now file an OP
series form (Application for Motor Carrier and Broker Authority), an
MCS-150 form (Motor Carrier Identification Report), and an MCS-150A
form (Safety Certification) and pay a $300 registration fee.
Conversely, private and exempt for-hire carriers file only the MCS-150
and MCS-150A forms and pay no fee. Under the new registration system, all new entrants, including all
non-exempt for-hire, exempt for-hire, and private motor carriers, as
well as brokers and freight forwarders, would be required to file the
new MCSA-1 form (which combines most elements of the OP series, MCS-
150, and MCS-150A forms), and all would be assessed a $200 registration
fee. This revised fee would reduce by $100 the registration costs of
non-exempt for-hire motor carriers, brokers and freight forwarders. At
the same time, it would increase by $200 the registration costs of
private, exempt for-hire, and other new entrant carriers, such as
private passenger (non-business) carriers, private carriers of migrant
workers by motor vehicle, and various government entities. Data from FMCSA Office of Information Management indicate that the
number of new entrants applying for operating authority or a USDOT
Number with FMCSA averaged 47,535 annually between the years 1995 and
2002. Further details on the breakdown of these numbers appear in Table
4. Table 4.--Average Annual Number of New Entrants by Operation
Classification, 1995-2002
----------------------------------------------------------------------
Number
Operation classification (average per Percent of
year) total
----------------------------------------------------------------------
Non-exempt For-Hire................ 23,440 49
Exempt For-Hire.................... 3,758 8
Private (Property & Passengers 16,551 35
(business)).......................
Other (includes private passenger 664 1
carriers (non-business) and various
government entities)..............
Mexico-domiciled (commercial zone & long- 1,200 3
haul) \1\.........................
Brokers, Freight Forwarders........ 1,922 4
-----------------
Total.......................... 47,535 100
----------------------------------------------------------------------Source: Motor Carrier Management Information System (MCMIS) and
Licensing and Insurance System (L& I), 1995-2002 data.
\1\ Represents projected estimate of number of Mexico-domiciled new
entrant applicants based on 2003 data. Examining the numbers in Table 4, a total of 20,973 new entrants
(Exempt For-Hire + Private + Other) would each see their registration
fee increase from no fee to $200. Conversely, 26,562 new entrants (non-
exempt for-hire carriers, Mexico-domiciled carriers, and brokers/
freight forwarders) would each see their registration fee reduced from
$300 to $200. Combining these two offsetting effects, the net
regulatory cost of revising the new entrant registration fee would be
$1.5 million annually. Over the 10-year analysis period, the total
discounted cost of this provision would be $11.6 million, using a seven
percent annual discount rate and assuming an average annual growth rate
of seven percent for the industry. A special note is required here regarding how we arrived at the
proposed $200 registration fee for all new entrants. Projected fiscal
year 2005 (FY05) personnel and support costs (including labor, and
direct/indirect operations support) to implement and manage the new
licensing and registration system proposed here were estimated at $9.7
million. This total represents the projected FMCSA personnel and
related costs to handle, review, and process new entrant applications,
as well as to initiate follow-up phone calls with new entrants in those
cases where additional information is needed to process the
application. Dividing this number ($9.7 million) by our estimate of the
average annual number of new entrants (47,535) results in an average
registration cost per applicant of $204 per filing. Rounding to the
nearest $50, in accordance with proposed Sec. 360.5 regulations
addressing the rounding of FMCSA fees, we arrive at a registration fee
of $200 per new entrant. It should be noted here that these costs were
not included in the FY05 FMCSA information systems budget request
developed by the FMCSA Information Management and Budget Offices, since
the agency intends to cover these personnel costs through the revenues
it collects from new entrant registration fees. As discussed earlier in this evaluation, guidance regarding fee
levels for the new registration system is provided by 49 U.S.C. 13908,
which indicates that the Secretary may assess a fee to cover all costs
associated with upgrading and operating the registration system.
Additionally, guidance provided by the Office of Management and Budget
Circular A-25, ``User Charges,'' is consistent in this regard, since it
states that ``each service, sale or use of Government goods or
resources provided by an agency to specific recipients be self-
sustaining.'' 2. New Process Agent Filings Required by FMCSA Currently, non-exempt for-hire carriers are required to verify that
they have designated a process agent for those States in which they
intend to operate. There is currently no charge to file this form
(known as a ``BOC-3'' form) with FMCSA. This NPRM proposes to extend
this filing requirement to private and exempt for-hire carriers, and
proposes to begin charging a fee of $10 per filing. In 2005, this
provision would affect approximately 20,000 exempt for-hire and private
new entrants and 319,000 [[Page 29007]] existing carriers. Since no existing exempt for-hire or private carrier
has been required in the past to file proof of process agent
designation with FMCSA, we assume all would file such proof in the
first year of the rule's implementation period. Although the process
agent designation form is generally a one-time filing, we would expect
some existing carriers to re-file this form with FMCSA in any given
year because of changes in their operations (i.e., changing process
agents, business address, etc.). And current regulations (49 CFR parts
365 and 368) require motor carriers to notify FMCSA within 45 days of a
change or correction in their process agent designation filing. As
such, in future years we estimate that this provision would affect
approximately 20,000 new entrants and 10 percent of the carriers who
initially filed in calendar year (CY) 2005. In CY 2006, 10 percent of
this motor carrier population would equal 34,100, if we assume an
average annual industry growth rate of seven percent (i.e., 31,900 *
1.07 = 34,100). Compliance costs associated with this provision include: (1) The
opportunity (time) cost for a private or exempt for-hire motor carrier
to contact and secure the services of a process agent (we assumed that
none has yet secured such services and that it would take 30 minutes
per carrier to do so, at an average wage rate of $19.32/hour), (2) the
$40 service fee charged to these carriers by the process agents, and
(3) the $10 fee assessed by FMCSA to file a process agent designation
form. If we multiply the above three cost elements by the number of new
entrant and existing motor carriers affected by this provision in each
year and sum the results, it yields total first-year compliance costs
of $20.5 million. Total discounted costs over the 2005-2014 analysis
period equal $47.1 million. 3. New Requirement and Fee for Insurance Representatives of Exempt For-
Hire Carriers and Private Carriers of Hazardous Materials To File Proof
of Liability Insurance This provision would require insurance representatives of exempt
for-hire and private motor carriers of hazardous materials (hazmat) to
file proof of liability insurance with FMCSA. These carriers are
currently required by statute (49 U.S.C. 31138 and 31139) to hold such
insurance, but FMCSA has not required their insurance representatives
to file proof of that insurance with the agency. In 2005, this
provision would affect almost 5,400 new entrants and 106,000 existing
exempt for-hire and private hazmat carriers (and/or their insurance
representatives), since we assume all affected existing carriers would
comply with the new requirement in the first year. In later years, this
provision continues to affect almost 5,400 new entrants. However, it
also affects 20 percent of the existing carriers (or 22,700 carriers in
CY2006 when we assume an average annual industry growth rate of seven
percent), since we anticipate that the new insurance representatives
for this percentage of existing carriers would re-file the carriers'
liability insurance each year based on changes in insurance coverage
such as a change in insurance carriers. Compliance costs include: (1)
The cost of the $10 filing fee to insurance representatives for exempt
for-hire and private hazmat carriers who would now be required to file
proof of liability insurance with FMCSA, (2) the opportunity (time)
costs of 10 minutes per filing to each insurance representative of the
carrier to file proof of liability insurance with FMCSA (at an average
hourly wage rate of $19.32), and (3) the time and filing costs (10
minutes and $10 per filing, respectively) to insurance representatives
of those existing motor carriers which change insurance companies in a
given year and must re-file. If we multiply the above three cost elements by the number of new
entrant and existing motor carriers affected by this provision in each
year and sum the results, it yields a total first-year cost of $1.5
million (after rounding). Total discounted costs over the entire 2005-
2014 analysis period amount to $4.5 million. 4. New Requirement and Fee for Private Hazmat and Exempt For-Hire
Carriers To File Reinstatement Requests When a new entrant for-hire motor carrier or other applicant
initially registers with FMCSA, the applicant or its insurance company
must also file proof of liability insurance with the agency. Upon
completion of the initial registration and insurance filing
requirements, the carrier obtains an ``active'' status with FMCSA. In
order to remain ``active'' in the agency's database, the carrier or its
insurance company must file updates with FMCSA when elements of the
insurance coverage change, such as when a motor carrier changes
insurance companies for cost or other reason. If the carrier or its
insurance company does not file these updates with FMCSA within the
allowable time period, the carrier's status changes from ``active'' to
``inactive'' and it must apply for reinstatement with FMCSA. The
reinstatement fee is currently $80, although FMCSA proposes to increase
it to $100 with implementation of this rule. All revenue derived from
insurance filing fees would be dedicated to supporting the operations
of the system, thereby allowing it to operate in a self-sufficient
manner. The projected fiscal year 2005 operating expenses for the
Enforcement Compliance Division that would be covered via fee revenues
are estimated at $3.5 million (including labor, and direct/indirect
operations support). In 2002, three percent of non-exempt for-hire motor carriers (or
almost 6,500 of 215,000) filed reinstatement requests with FMCSA. With
implementation of this proposal, the agency expects this number to
increase because exempt for-hire and private hazmat carriers would be
required to file proof of liability insurance with FMCSA. Assuming the
same percentage of exempt for-hire and private hazmat carriers would
file for reinstatement in a typical year as non-exempt for-hire
carriers currently do (3 percent), FMCSA could expect an additional
2,900 reinstatement requests annually in 2005 (3 percent of 98,000 such
carriers expected to be operating in 2005). Each of these carriers could be expected to spend an average of 10
minutes filing a reinstatement request with FMCSA. At $19.32/hour and
2,900 applicable carriers, the filing time costs would total less than
$10,000 in 2005. Additionally, each of these carriers would be required
to pay a $100 filing fee, which given 2,900 carriers in 2005, would
equal $290,000 in 2005. Regarding non-exempt for-hire carriers, who are currently required
to file reinstatement requests with FMCSA at $80 per filing, the agency
projects that there would be more than 7,000 reinstatement requests
filed in 2005 (assuming an average annual growth rate of seven percent
in the existing non-exempt for-hire carrier population). With a $20
increase in their reinstatement filing fee, costs would total $140,000
in 2005. Totaling the three aforementioned sets of costs (the exempt
for-hire, private hazmat, and non-exempt for-hire carriers) yields
approximately $440,000 in first-year costs for this provision. Over the
entire 10-year analysis period, where FMCSA assumes the carrier
population increases at an average of seven percent annually, total
discounted costs of this provision would be $4.4 million. 5. Eliminating Transfers of Operating Authority
Under this proposed rule, motor carrier requests for transfers of
operating [[Page 29008]] authority would no longer be permitted. As such, the motor carrier to
whom the operating authority is to be transferred would be considered a
new entrant from the perspective of FMCSA, requiring that carrier to
obtain a new USDOT Number. Also, more importantly, the owner of this
new USDOT Number is considered a new entrant, and thereby subject to a
new entrant safety audit. The primary costs associated with this
proposed change in FMCSA policy include: (1) The time and fee
associated with filing an MCSA-1 form with FMCSA; and (2) the costs
associated with conducting and participating in an FMCSA new entrant
safety audit. These costs are discussed below. According to the FMCSA Licensing Team, there were 621 requests for
transfers of operating authority filed with FMCSA in 2002. Each of the
carriers to whom operating authority was transferred paid a $300 fee to
FMCSA. Given that such transfers would no longer be permitted under
this proposal, these carriers would have to file with FMCSA as new
entrants (including filing an MCSA-1 form). Therefore, each carrier
would save $100 in filing fees under this proposed rule (or the
difference between the current $300 fee to file transfers of operating
authority and the proposed $200 new entrant filing fee discussed
earlier in this rule). However, as estimated earlier, filing an MCSA-1
form with FMCSA also requires approximately 2 hours of labor time for
each carrier (or their staff) to actually fill out the form. Using a
fully-loaded wage rate of $19.20 per hour (as used earlier is this
evaluation), each carrier would incur $38.40 in filing costs for the
new MCSA-1 form. As such, the net savings in fees and filing costs to
each carrier as a result of this proposal is $61.60 (or $300 minus
$238.40). Multiplying this estimate ($61.60 of cost savings per
carrier) by the number of carriers who requested such transfers in 2002
(621 carriers) yields a first-year cost savings of almost $40,000. However, the above cost savings would be offset (and then some) by
the requirements associated with being designated a new entrant, namely
the costs of a new entrant safety audit. The regulatory impact analysis
prepared for the New Entrant Safety Assurance Process final Rule (New
Entrant Safety Assurance Process Interim Final Rule, Docket No. FMCSA-
2001-11061, May 13, 2002) contained an estimate of the total agency
cost to conduct each new entrant safety audit. The average cost was
estimated to be $1,100, and represented the costs to the agency (i.e.,
FMCSA or state) to conduct the audit, including 12 hours of labor time
preparing for, conducting, and reviewing the results of the audit as
well as average travel costs per audit. Using an average hourly wage of
$19.20 (as discussed earlier) and assuming each carrier spends an
average of four hours at an audit, total costs for a motor carrier to
participate in an audit equal $76.80 (or $19.20 * 4 hours). Adding up
these costs yields an average total cost per new entrant safety audit
of $1,176.80. Multiplying this estimate by the number of requests for
transfers of operating authority (621) yields a total first-year cost
of $730,793 to conduct the additional new entrant safety audits
resulting from this proposed policy change. Deducting the cost savings
associated with the differences in filing fees and other costs
discussed earlier (equal to almost $40,000 in the first year), the
total first-year cost is equal to $0.7 million (after rounding). Total
discounted costs associated with this proposal over the 10-year
analysis period are equal to $6.9 million, using a seven-percent
discount rate as prescribed by OMB and assuming an average annual
growth rate in the industry of seven percent. 6. Revising Other FMCSA Fees In addition to those fee changes discussed earlier in this
analysis, FMCSA proposes to revise three of the fees it currently
charges to motor carriers for individual services or filing
requirements. These revisions include (1) instituting a fee of $500 to
review/approve each quarterly report filed by participants of the FMCSA
Liability Self-Insurance Program, and (2) eliminating the $14 fee
assessed to non-exempt for-hire motor carriers and others that change
their business names. Only the fees that FMCSA currently assesses for
these services would change under this proposal. No other changes
regarding these services, such as which entities are required to file,
are being proposed. Adding up the new costs for self insurance quarterly report filing
and the net cost savings associated with the fee reduction for name
changes yields a net cost savings of less than $0.1 million
(undiscounted) in the first year of this proposal. Full details
regarding the offsetting effects of these fee changes are contained in
the stand-alone regulatory evaluation contained in the docket. Total
net discounted cost savings associated with these proposed fee changes
discussed above would equal $0.9 million over the entire 10-year
analysis period. 7. Total Costs of URS NPRM Adding up all of the costs from the four URS provisions discussed
above yields a total discounted cost of $75.4 million over the 10-year
analysis period. Sixty-two percent of these costs (or $47.1 million)
are due to the proposed provision that requires exempt for-hire and
private motor carriers to secure and file a designation of process
agent form with FMCSA. The other proposed provisions would raise the
total discounted cost only by an additional $28.3 million combined. As noted earlier in this document, FMCSA considered merging the
registration-related elements of the Application Process for Certain
Mexico-Domiciled Carriers rule, HM Permitting rule and the HM Cargo
Tank Registration rule into this notice (For details on those rules,
see Application by Certain Mexico-Domiciled Motor Carriers to Operate
Beyond United States Municipalities and Commercial Zones on the United
States-Mexico Border published at 67 FR 12702; Federal Motor Carrier
Safety Regulations: Hazardous Materials Safety Permits, published at 69
FR 39350, and Hazardous Materials: Requirements for Cargo Tanks,
published at 68 FR 19258). As part of that consideration, FMCSA
analysts reviewed the regulatory impact analyses developed for each of
those final rules. And while the agency is soliciting public comments
on this integration, we made the determination that the costs
associated with those three rules should not be included in this
regulatory evaluation. This decision was based on two factors. First,
detailed regulatory impact analyses were developed independently for
each of those rules, and the compliance costs associated with each were
fully documented and published. To include those costs as part of this
regulatory impact analysis would constitute ``double counting'' the
costs associated with those rules. Secondly, as noted earlier in this
document, FMCSA analysts anticipate that the integration of the
registration processes associated with those three rules into the
system envisioned under the Unified Registration System would result in
costs savings by way of economies of scale. However, the anticipated
cost savings were deemed to be relatively modest, based on the
relatively small number of entities affected by each of those rules. As
such, while we recognize potential cost savings from a full
integration, the results are not quantified here, since their
anticipated impact to this rule's total costs and benefits was deemed
to be relatively [[Page 29009]] insignificant and the option still remains to be evaluated, based upon
public comment to this notice. The next section discusses the societal benefits expected from
implementation of this proposal. C. Benefits The major categories of estimated benefits resulting from this NPRM
are summarized in Table 5. Table 5.--Benefits of the URS NPRM
[Millions of discounted dollars]
------------------------------------------------------------------------
Total
First-year discounted
Provision/proposed change benefits 10-year
benefits
------------------------------------------------------------------------
Streamlining the Registration Process \1\..... $0.7 $5.2
Filing Proof of Process Agent Designation \2\. 8.3 82.6
Eliminating Cargo Insurance Filings \3\....... 0.4 3.6
--------------
Total Discounted Benefits:................ 9.3 91.4
------------------------------------------------------------------------Note: Subtotals may not add exactly to totals due to rounding.
\1\ Time savings incurred by new entrants.
\2\ Safety benefits in the form of large truck crashes avoided.
\3\ Time savings incurred by new entrants and existing carriers who
otherwise may have re-filed these forms periodically. Total first-year benefits of this proposal would be $9.3 million
(discounted), while total discounted benefits are estimated at $91.4
million over the 10-year analysis period. Benefits from this proposed
rule include crash-related benefits from avoided crashes as well as
time/cost savings, the latter being associated with a reduced filing
burden and/or reduced FMCSA fees paid by motor carriers. 1. Cost Savings From Streamlined New Entrant Registration Process With this NPRM, FMCSA registration process would be streamlined by
merging the OP series form with the MCS-150, and MCS-150A forms,
yielding the single MCSA-1 application form. With the new, combined
form, less information would be required of most applicants, since
previously redundant information would be eliminated following the
merger of the forms. Additionally, more detailed instructions would be
provided to steer applicants through the form more efficiently. FMCSA
estimates the average time saved per filer would be 30 minutes. Using an average hourly wage rate of $19.32 for a motor carrier, an
estimate of 47,535 new entrants in 2005, and average time savings of 30
minutes per applicant, the first year cost savings associated with this
provision would be a little less than $0.5 million. Additionally, the
time saved by FMCSA employees to process the filings would be expected
to average 10 minutes per filing. Using a fully-loaded average hourly
wage rate of $29.05 for FMCSA staff and an estimated 47,535 new
entrants filing annually, the first-year cost savings to FMCSA would be
approximately $0.2 million. Total first-year cost savings would equal $0.7 million, while total
discounted cost savings over the 10-year analysis period would equal
$5.2 million. s than there are FMCSA staff resources
to initiate them). With the new process agent designation filing requirement for
private and exempt motor carriers, FMCSA division administrators expect
to save a significant number of hours in staff search costs to locate
carriers for compliance and other types of reviews. FMCSA expects this
provision to result in efficiency and safety benefits. FMCSA division
administrators have indicated that this requirement would reduce the
average amount of search time spent on each compliance review, thereby
resulting in extra time within each calendar year to conduct additional
compliance reviews. As a result, the agency anticipates a direct safety
benefit to accrue from implementation of this provision.
In discussions with several FMCSA division administrators, the
number of cases where the field staff had trouble locating a motor
carrier against whom they wished to take enforcement action ranged from
10 to 100 cases per division in 2003, with the majority indicating less
than 25 cases per year. For this analysis, we assumed that each
division office would eliminate excessive carrier search costs in 20
enforcement cases per [[Page 29010]] year, or slightly less than 10 percent of the average 216 reviews
conducted by each FMCSA division office in calendar year 2002. Given
that private and exempt for-hire carriers represent 43 percent of new
entrants to the industry, and 54 percent of the existing motor carrier
industry, we felt that this assumption was reasonable. Also, discussions with FMCSA division administrators indicated that
field staff spend an average of 10 to 20 hours per case in search costs
trying to track down these ``hard to find'' carriers. For this
analysis, we took the midpoint and assumed that FMCSA field staff would
save an average of 15 hours in staff search costs per case where the
carrier was difficult to locate. Multiplying the average hours per case
(15) with the average number of ``hard to find'' cases per division per
year (20), yields a total of 300 hours of staff time saved per year per
division. With an FMCSA division office located within each of the 50
states, we estimated that total time saved by all FMCSA division staff
for these ``hard to find'' carriers at roughly 15,000 hours per year
(we did not include the District of Columbia and Puerto Rico due to the
relatively limited number of reviews they conduct each year). Given
that FMCSA division staff spend an average of 21 hours to prepare for,
conduct, and complete each compliance review (according to unpublished
FMCSA research on the Federal compliance review process), we anticipate
that this proposed rule would generate enough time savings to conduct
an additional 714 compliance reviews annually, or roughly 6.5 percent
of the total 10,802 reviews conducted by the 50 State-based FMCSA
division offices in fiscal year 2002. To estimate the impact of the Compliance Review (CR) Program on
motor carrier safety, FMCSA completed a CR program assessment in 2003
with the John A. Volpe National Transportation Systems Center.\3\ In
2002, 1,600 truck-related crashes were avoided as a result of the 8,924
CRs conducted in 2001. In 2001, 2,200 truck-related crashes were
avoided as a result of the 11,340 CRs conducted in 2000. Summing the
number of CRs conducted between 1998 and 2001, and dividing by the
summation of crashes avoided in each year yields an average of 0.1847
truck-related crashes avoided per CR conducted between 1998 and 2001.
It should be noted that the above estimate represents just the direct
crash-reduction benefit associated with a CR, not the deterrent effect
(such as the ``threat'' of receiving a CR). As such, this crash-
reduction benefit estimate of a CR can be considered conservative, in
the sense that we believe the benefit is higher but were not able to
quantify the indirect, or deterrent effect of CRs (even though such an
effect has been documented in research studying the effects of
increased penalties and public awareness campaigns on the incidence of
drunk driving). If we multiply our crash reduction estimate per CR
(0.1847) by the number of new compliance reviews we estimate the agency
would be able to conduct each year because of the time savings benefits
of this provision (714), we find that this proposal has the potential
to reduce truck-related crashes by 132 each year. At an average cost
per truck-related crash of $62,613 in 2003 dollars\4\, this provision
yields crash-reduction benefits of $8.3 million annually
(undiscounted). Total discounted crash-reduction benefits of this
provision equal $82.6 million over the 10-year analysis period, when an
average 7-percent industry growth rate is assumed (as was assumed for
all other provisions analyzed in this regulatory evaluation). --------------------------------------------------------------------------- \3\ ``FMCSA Safety Program Effectiveness Assessment: Compliance
Review Program CR Impact Assessment Model, Results for 2001 and 2002
* * *'', May 2003.
\4\ Average large truck crash costs were obtained from,
``Revised Costs of Large Truck- and Bus-involved Crashes'' by
Zalonshja, Miller, and Spicer (2004 unpublished research for FMCSA). --------------------------------------------------------------------------- It must be noted here that the average annual industry growth rate
assumed for this analysis (7 percent) is based on the average number of
new entrant applications filed with FMCSA over an 8-year period (1995-
2002). To estimate the safety benefits of the process agent designation
filing requirement discussed above, we assumed a corresponding 7-
percent annual increase in the number of carriers deemed high risk (or
those targeted for an on-site (i.e., compliance) review of the
carrier's operations), and by implication, a comparable increase in the
percentage of hard-to-locate carriers. As such, a 7-percent annual
increase in industry participants, and particularly high-risk carriers,
is assumed to result in a comparable increase in truck-related crashes,
absent the beneficial effects of implementing the process agent
designation filing requirement. 3. Cost Savings From Eliminating Cargo Insurance Filing Requirement
All non-exempt for-hire common carriers and freight forwarders are
currently required to hold cargo insurance up to a limit of $5,000 per
vehicle and $10,000 per occurrence. Under this proposed rule, these
groups, excluding those associated with household goods transportation,
would not be required to hold or file proof of cargo insurance with
FMCSA through their insurance representatives. Practically speaking
though, all these carriers would continue to hold cargo insurance since
virtually all of their clients require such insurance as a prerequisite
for doing business with a carrier. In 2005, this provision affects approximately 9,600 new entrant
non-exempt for-hire common carriers and freight forwarders, and 20,000
such existing entities, since the agency would expect that they would
direct their insurance representative to re-file their cargo insurance
with FMCSA in 2005. In future years, it would affect 9,600 new
entrants, and 20 percent of existing carriers (or 21,700 in CY2006
assuming an average annual growth rate of seven percent), for whom
FMCSA anticipates the new insurance representative would otherwise have
to re-file their cargo insurance in each of the future years of this
analysis. Cost savings would include: (1) Elimination of the $10 filing
fee paid by the insurance representative for these new entrant carriers
when filing proof of cargo insurance with FMCSA, (2) elimination of the
filing time (10 minutes per form) that would otherwise have been
required of these carriers insurance representatives (at an average
hourly wage rate of $19.32), and (3) elimination of re-filings made by
insurance representatives of existing for-hire common carriers which
change insurance companies in a given year. Multiplying the above three cost elements by the number of carriers
affected and summing the result yields a total first-year cost savings
of $0.4 million. Total discounted costs over the entire 10-year
analysis period would be $3.6 million. 4. Total Benefits Total first-year benefits of this proposal would be $9.3 million
discounted dollars, while total discounted benefits would equal $91.4
million over the 10-year analysis period. All dollar figures were
discounted using a discount rate of 7 percent in accordance with Office
of Management and Budget guidelines. 6. Net Benefits From URS NPRM Total discounted costs of this proposal were estimated to be $75.4
million over the 10-year analysis period. Total discounted benefits
were estimated to be $91.4 million over this same period. The net
discounted benefits associated with implementation are $16 million over
the 10-year analysis [[Page 29011]] period. FMCSA invites comments to the docket regarding these cost and
benefit estimates and assumptions associated with them.
BILLING CODE 4910-EX-P [[Page 29012]] XI. Appendix to the Preamble--Proposed Form MCSA-1 and Instructions
[GRAPHIC] [TIFF OMITTED] TP19MY05.000
[[Page 29013]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.001
[[Page 29014]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.002
[[Page 29015]
[GRAPHIC] [TIFF OMITTED] TP19MY05.003
[[Page 29016]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.004
[[Page 29017]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.005
[[Page 29018]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.006
[[Page 29019]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.007
[[Page 29020]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.008
[[Page 29021]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.009
[[Page 29022]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.010
[[Page 29023]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.011
[[Page 29024]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.012
[[Page 29025]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.013
[[Page 29026]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.014
[[Page 29027]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.015
[[Page 29028]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.016
[[Page 29029]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.017
[[Page 29030]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.018
[[Page 29031]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.019
[[Page 29032]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.020
[[Page 29033]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.021
[[Page 29034]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.022
[[Page 29035]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.023
[[Page 29036]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.024
[[Page 29037]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.025
[[Page 29038]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.026
[[Page 29039]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.027
[[Page 29040]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.028
[[Page 29041]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.029
[[Page 29042]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.030
[[Page 29043]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.031
[[Page 29044]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.032
[[Page 29045]]
[GRAPHIC] [TIFF OMITTED] TP19MY05.033
BILLING CODE 4910-EX-C [[Page 29046]] XII. Rulemaking Analyses and Notices Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures FMCSA has determined that this action is a significant regulatory
action within the meaning of Executive Order 12866, and is significant
within the meaning of Department of Transportation regulatory policies
and procedures (DOT Order 2100.5 dated May 22, 1980; 44 FR 11034,
February 26, 1979) because it is expected to generate significant
public interest. However, it is anticipated that the economic impact of
the revisions in this rule would not exceed the annual $100 million
threshold for economic significance. The Office of Management and
Budget has reviewed this proposed rule. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement and Fairness Act (SBREFA), requires
Federal agencies to analyze the impact of rulemakings on small
entities, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
The agency believes these proposals meet the threshold values for
requiring an initial regulatory flexibility analysis (IRFA), since the
proposed fees may have a significant impact on a substantial number of
small entities. Therefore, FMCSA has prepared this IRFA. The following sections contain FMCSA's IRFA analysis.
(1) A description of the reasons why action by the agency is being
considered. This rule is required by the ICC Termination Act of 1995.
ICCTA created a new 49 U.S.C. 13908, which directs the Secretary of
Transportation to create a single, on-line Federal system to replace
the multiple systems currently used by FMCSA to register interstate
motor carriers. One goal of the proposed rule is to streamline the current
registration system, and thereby improve the efficiency of the process
by which new entrant motor carriers receive USDOT Numbers and operating
authority. Another goal is to enhance the fairness of the FMCSA
registration process and equalize the filing burden among various
groups of motor carriers (authorized for hire, exempt for hire, and
private carriers, for instance). Given these goals, FMCSA has proposed changes in the process by
which new entrants register with FMCSA, including the forms that new
entrant motor carriers and other applicants file, and the fees assessed
for such filings. (2) A succinct statement of the objectives of, and the legal basis
for, the proposed rule. The primary objective of this proposal is to
streamline the current motor carrier licensing, registration, and
insurance filing processes by creating a single, on-line filing system
managed by FMCSA. Under this proposal, motor carriers interested in
operating in interstate commerce could file all licensing,
registration, and insurance compliance documents with FMCSA on-line via
the Internet or by mail. Another primary objective is to create
uniformity in FMCSA filing requirements for motor carriers.
Specifically, the goal is to treat all motor carriers the same, where
possible, by eliminating filing distinctions among several types of
motor carriers such as for-hire vs. private, and for-hire common vs.
for-hire contract, so that where possible each motor carrier
essentially files the same forms with FMCSA. As such, the agency
proposes that some current FMCSA filing requirements be eliminated,
while others be expanded to cover a broader pool of new and existing
motor carriers. As previously noted, this proposed action is responsive to the 49
U.S.C. 13908 directive to develop a single, on-line Federal system for
identifying and registering entities within our jurisdiction. The Motor
Carrier Safety Act of 1984 requires the Secretary to prescribe
regulations on commercial motor vehicle safety. The regulations shall
prescribe minimum safety standards for commercial motor vehicles
(CMVs). At a minimum, the regulations shall ensure that: (1) CMVs are
maintained, equipped, loaded, and operated safely; (2) the
responsibilities imposed on operators of CMVs do not impair their
ability to operate the vehicles safely; (3) the physical condition of
operators of CMVs is adequate to enable them to operate the vehicles
safely; and (4) the operation of CMVs does not have a deleterious
effect on the physical condition of the operators (49 U.S.C. 31136(a)). This NPRM is intended to streamline the registration process and
ensure that FMCSA can more efficiently track CMVs and ensure their safe
operation. As such, it imposes no operational responsibilities on
drivers, and, consequently, implements the Sec. 31136(a)(1) mandate
that our regulations ensure that CMVs are maintained and operated
safely. onsidered small entities. This
assumption is generally consistent with an alternative, industry-based
approach used to estimate the number of small trucking firms, where
size is defined by the number of power units (i.e., tractors or single-
unit trucks) owned or leased by motor carriers. MCMIS data indicate
that 80 percent of new entrant motor carriers within the industry owned
or leased six or fewer power units. Regarding existing motor carriers (to which some of the URS
insurance compliance filings apply), there were 674,771 motor carriers
registered with FMCSA as of July 2004, according to the agency's Motor
Carrier Management [[Page 29047]] Information System (MCMIS). However, only 494,126 of these are
identified by a specific operations classification (i.e., authorized
for hire, private, exempt for hire, etc.), which is one approach FMCSA
uses to identify those motor carriers currently operating in interstate
commerce. The 180,645 motor carriers omitted here (or the difference
between 674,771 and 494,126) are considered ``inactive'' for the
purposes of this analysis. Most of these carriers are classified in
MCMIS as authorized for hire, but the agency could not match their
MCMIS records with those maintained in FMCSA's Licensing and Insurance
(L &I) database, where all interstate, for hire carriers are required to
maintain various licensing and insurance information in order to be
considered ``active'' by the agency. This issue requires further study,
but for this analysis, we assume the total, active population of
existing motor carriers is currently 494,126. For this analysis, the
agency will also assume that 75 percent of existing motor carriers are
defined as small entities, since the 1997 Economic Census data
indicates as much. Therefore, of the 494,126 current, active motor
carriers, almost 371,000 are considered small entities. As discussed in the regulatory evaluation accompanying this
proposal, FMCSA estimated the economic impacts of the proposal
separately for each major provision and estimated the impacts to new
entrants and existing carriers separately. Since the costs associated
with this proposed rule are generally one-time costs, we examined the
first-year costs for this analysis. Looking at the first-year costs
(and cost savings) of each provision to new entrants, the agency
arrived at the following in Table 6: Table 6
------------------------------------------------------------------------
In millions
of dollars
------------------------------------------------------------------------
Cost, Revising New Entrant Registration Fees............... 1.5
Cost Savings, Streamlining the Registration Process........ -0.7
Cost, Requiring Process Agent Designation.................. 1.5
Cost Savings, Eliminating Proof of Cargo Insurance......... -0.1
Cost, Requiring Proof of Liability Insurance............... 0.07
Cost, Revising Other FMCSA Fees............................ \1\ N/A
------------------------------------------------------------------------\1\ The category ``Revising Other FMCSA Fees'' involves fees assessed to
existing motor carriers, and therefore not applicable to new entrants. The net costs of these provisions for new entrant motor carriers in
a single year, 2004, would be $2.3 million (after rounding). Note that
some of the figures in Table 6 represent cost savings from reduced
filing burdens, which partially offset new compliance costs associated
with this rule. As stated earlier, it is appropriate to examine only 1
year of costs (the first year in this instance), since these costs are,
for the most part, one-time costs to new entrants during their first
year of operation. Dividing the $2.3 million figure by 47,535 new
entrants in 2004 yields an average compliance cost of $48 per new
entrant carrier. Data from the 1997 Economic Census, NAICS 484, the ``Truck
Transportation'' segments, divides trucking firms into 11 revenue
categories, beginning with those firms generating less than $100,000 in
annual gross revenues and ending with those generating $100 million or
more. The term small trucking firms is defined here as those that
generate less than $21.5 million in annual revenues, of which there are
eight specific revenue categories according to the 1997 Economic Census
data. The annual revenue categories, the number of firms in each, and
the average annual revenues of firms in each category are listed below
in Table 7. Table 7.--Average Annual Revenues of Small Trucking Firms
(NAICS 484, Truck Transportation) by Revenue Category -------------------------------------------------------------------------
Average Average pre- Compliance
Revenue Number of revenues per tax profits costs per
category firms firm per firm firms ($48) as
($1,000s) ($1,000s) ($1,000s) % of profits
-------------------------------------------------------------------------
<$100... 11,865 53 3 1.6
100-249.9..... 20,959 162 8 0.6
250-499.9..... 14,492 356 17 0.3
500-999.9..... 11,193 705 35 0.1
1,000-2,499.9. 9,730 1,558 48 0.1
2,500-4,999.9. 4,218 3,461 105 0.05
5,000-9,999.9. 2,190 6,869 165 < 0.05
10,000-21,500. 844 15,667 455 < 0.05
--------
Total... (100%) 75,491 ........ ......... .........
-------------------------------------------------------------------------Source: 1997 Economic Census (Sales Size of Firms) published by the U.S. Census Bureau. As seen in the above table, the average cost of the URS provisions
per new entrant ($48) represents 1.6 percent of average pre-tax profits
of the smallest firms (those with annual gross revenues less than
$100,000). Note that this cost applies only during the first year of
operation, since these costs are generally not annual or recurring. For
the second smallest revenue group (those with annual gross revenues
between $100,000 and $249,999), compliance costs represent 0.6 percent
of average pre-tax profits in the first year. Thus, for the two smallest revenue groups, which represent 43
percent of small carriers (for instance, (11,865+20,959)/75,491), pre-
tax profits are reduced by far less than 1 percent on average in any
given year within the analysis period. Extrapolating these results to
the 35,651 small new entrants anticipated each year, there could be
15,330 carriers which have first-year pre-tax profits reduced by less
than 1 percent as a result of this proposal. As stated earlier, this
monetary impact would be a single-year reduction in profits generally
speaking, since for the majority of new entrant carriers, the URS costs
are not recurring. The remaining 57 percent of small new entrants could
expect a reduction in pre-tax profits of less than 0.1 percent (or less
than 1/10 of 1 percent) on average. Regarding the impact on existing carriers, the costs of this
proposed rule [[Page 29048]] would be lower. First-year costs are as follows in Table 8: Table 8
------------------------------------------------------------------------
In millions
of dollars
------------------------------------------------------------------------
Cost, Process Agent Designation........................... 19
Cost savings, Eliminating Cargo Insurance Filing.......... -0.3
Cost, Proof of Liability Insurance........................ 1.4
Cost, Reinstatement Fee Increase.......................... 0.4
Cost, Revising Other FMCSA Fees........................... 0.08
------------------------------------------------------------------------The net cost of the URS proposal to existing motor carriers in a
single year, 2004, would be $20.6 million. Dividing this figure by the
494,126 existing carriers we estimated earlier are active in 2004
yields an average total of $42 in compliance costs per existing motor
carrier. er this proposal. (5) An identification, to the extent practicable, of all relevant
Federal rules which may duplicate, overlap or conflict with the
proposed rule. The agency is not aware of any Federal rules that
duplicate, overlap, or conflict with the proposed rule. With regard to the agency's current authority to assess user fees
for the services it provides, guidance regarding fee levels for the new
registration system is provided by 49 U.S.C. 13908, which indicates
that the Secretary may assess a fee to cover all costs associated with
upgrading and operating the registration system. Additionally, guidance
provided by the Office of Management and Budget in Circular A-25,
``User Charges,'' is consistent, since it states that ``each service,
sale or use of Government goods or resources provided by an agency to
specific recipients be self-sustaining.'' (6) Description of significant alternatives that accomplish the
stated objectives and minimize the impact on small entities. In
proposing the changes discussed in this NPRM, FMCSA attempted to comply
with the Title 49 U.S.C. 13908 mandate that the agency implement a
single, on-line Federal registration system, while also achieving its
own goals: namely to streamline the overall motor carrier registration
process, to enhance its fairness in terms of equalizing the filing
burden among various groups of motor carriers, and most importantly, to
improve industry safety. With these (sometimes competing) objectives in mind, FMCSA
considered several alternatives to the proposal discussed here, in an
effort to minimize the potential new filing burden on small entities.
For instance, FMCSA did consider exempting existing carriers from
certain new filing requirements (via a grandfather clause), with the
idea that it would minimize the compliance costs of this proposal.
However, while reducing compliance costs (and thereby improving filing
efficiency), it would also have reduced, not enhanced, the fairness of
the motor carrier registration process relative to the status quo by
placing higher burdens on new entrants than existing carriers. As such,
it would have acted as a barrier to entry to small new entrants to the
benefit of existing carriers. Conversely, the agency also considered a
proposal to exempt new entrants from these requirements, but dismissed
this on the grounds that it too would have reduced the fairness of the
registration process. Additionally, either option would have reduced
safety relative to the proposal discussed here. And exempting new
entrants from various requirements would not have assisted small
entities over larger ones, given that the composition of the new
entrant carriers is similar to that of the overall existing population
(namely, 80 percent have six or fewer power units). The agency also considered removing the process agent designation
filing requirement on the grounds that it was the most costly of the
initiatives in this proposal. However, the agency dismissed this option
because FMCSA division administrators felt that this particular filing
requirement had the best potential to increase industry safety by
improving the productivity of the agency's safety investigators
(thereby allowing them to initiate additional compliance reviews).
Additionally, the process agent designation filing requirement also
enhances the fairness of the agency's registration process. Lastly, in examining the overall burden of this proposal to small
entities, the agency has countered some of its new (cost inducing)
proposals with several actions that would reduce the filing burden of
new entrant and existing motor carriers. The cost savings associated
with these provisions would partially offset the compliance costs of
this proposal, resulting in average total compliance costs of $48 per
new entrant and $42 per existing carrier in any single year of the 10-
year analysis period. Since such costs are expected to reduce pre-tax
profits of small entities by less than 1 percent in a given year, the
agency believes the impact on small entities has effectively been
minimized with the current proposal, while trying to meet its stated
goals and Congress' mandate. Unfunded Mandates Reform Act of 1995 The Unfunded Mandates Reform Act of 1995 [Pub. L. 104-4; 2 U.S.C.
1532) requires each agency to assess the effects of its regulatory
actions on State, local, and tribal governments and the private sector.
Any agency promulgating a rule likely to result in a Federal mandate
requiring expenditures by a State, local, or tribal government or by
the private sector of $120.7 million or more in any one year must
prepare a written statement incorporating various assessments,
estimates, and descriptions [[Page 29049]] that are delineated in the Act. FMCSA has determined that the changes
proposed in this rule would not have an impact of $120.7 million or
more in any one year. National Environmental Policy Act The agency analyzed this final rule for the purpose of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and
determined under our environmental procedures Order 5610.1, issued
March 1, 2004 (69 FR 9680), that this action is categorically excluded
(CE) under Appendix 2, paragraphs 6.e and 6.h of the Order from further
environmental documentation. The CE under Appendix 2, paragraph 6.e.
relates to establishing regulations and actions taken pursuant to the
regulations concerning applications for operating authority and
certificates of registration. The CE under Appendix 2, paragraph 6h
relates to establishing regulations and actions taken pursuant to the
regulations implementing procedures to collect fees that will be
charged for motor carrier registrations and insurance for the following
activities: (1) Application filings; (2) Records searches; (3)
Reviewing, copying, certifying, and related services. In addition, the
agency believes that this action includes no extraordinary
circumstances that would have any effect on the quality of the
environment. Thus, the action does not require an environmental
assessment or an environmental impact statement. We have also analyzed this rule under the Clean Air Act, as amended
(CAA), section 176(c) (42 U.S.C. 7401 et seq.), and implementing
regulations promulgated by the Environmental Protection Agency.
Approval of this action is exempt from the CAA's General conformity
requirement since it involves policy development and civil enforcement
activities, such as, investigations, inspections, examinations, and the
training of law enforcement personnel. See 40 CFR 93.153(c)(2). It will
not result in any emissions increase nor will it have any potential to
result in emissions that are above the general conformity rule's de
minimis emission threshold levels. Moreover, it is reasonably
foreseeable that the rule change will not increase total CMV mileage,
change the routing of CMVs, how CMVs operate or the CMV fleet-mix of
motor carriers. This notice of proposed rulemaking was mandated under
section 103 of ICCTA. It would consolidate and simplify the Federal
registration processes and increase public accessibility to data about
interstate and foreign motor carriers, property brokers, and freight
forwarders. Paperwork Reduction Act Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal agency must obtain approval from the Office of
Management and Budget (OMB) for each collection of information it
conducts, sponsors, or requires through regulations. FMCSA analyzed
this proposal and determined its implementation would streamline the
information collection burden on motor carriers, relative to the
baseline, or current paperwork collection process. This includes making
the FMCSA registration and insurance filing processes more efficient,
implementing on-line filing of FMCSA requirements, where practical, as
well as eliminating some outdated filing requirements. These benefits
would be partially offset by the proposal to extend certain existing
filing requirements to additional groups of carriers within the
industry. Streamlined registration process. FMCSA exercises both economic and
safety oversight of for-hire non-exempt carriers. Currently, they must
apply for operating authority (economic registration) and obtain a
USDOT Number (safety registration) using separate paper forms. Under
URS, the process would be streamlined so that a single application form
would accomplish both economic and safety registration. Questions from
various economic registration forms would be transferred to the MCSA-1,
redundant questions removed, and most economic registration forms
eliminated. For hire, non-exempt carriers no longer would need to
determine which form to use. Private and for-hire exempt carriers, because they are subject only
to FMCSA safety oversight, would use the MCSA-1 form and disregard
questions concerning economic registration. Elimination of economic
registration forms would have no impact on this group of carriers. Increases due to extending filing requirements to private and for-
hire exempt carriers. Because private and exempt for-hire carriers are
not currently required to designate a process agent, the agency assumes
all of them would file proof of process agent designation in the first
year after the NPRM becomes a final rule. Extending process agent
filing requirements to existing private and for-hire exempt carriers
would account for 319,000 of the proposed 339,305 hour burden increase.
In subsequent years, the burden would substantially decrease. Similarly, most existing private and for-hire exempt carriers would
need to file proof of financial responsibility with the agency in the
first year the rule becomes final. Current regulations require them to
maintain this proof at their principal place of business for inspection
during a compliance review, but there is no requirement to file with
the agency. The requirement to file with the agency would increase the
proposed burden hours by 18,560 hours in the first year. This increase
is offset by a 4,927 burden hour reduction attributed to eliminating
the cargo insurance filing requirement for a net increase of 13,633
hours. Nonetheless, the agency believes the overall net result would be a
more streamlined process for FMCSA registration for all motor carrier
applicants. This proposal would create a new information collection to cover
the requirements in proposed FMCSA Form MCSA-1. There are also six
currently-approved information collections that would be affected by
this NPRM: OMB Control No. 2126-0013, titled ``Motor Carrier
Identification Report,'' OMB Control No. 2126-0015, titled
``Designation of Agents, Motor Carriers, Brokers and Freight
Forwarders,'' OMB Control No. 2126-0016, titled ``Revision of Licensing
Application Forms, Application Procedures, and Corresponding
Regulations,'' OMB Control No. 2126-0017, titled ``Financial
Responsibility, Trucking, and Freight Forwarding,'' OMB Control No.
2126-0018, titled ``Request for Revocation of Authority Granted,'' and
OMB Control No. 2126-0019, titled ``Application for Certificate of
Registration for Foreign Motor Carriers and Foreign Motor Private
Carriers.'' The total burden hours for the six currently approved
information collections noted above are 208,190. Table 9 captures the
current and proposed burden hours associated with the six currently
approved information collections. [[Page 29050]] Table 9.--Current and Proposed Information Collection Burdens
-------------------------------------------------------------------------
Burden hours
OMB approval No. currently Burden hours Change
approved proposed \1\
-------------------------------------------------------------------------
2126-NEW ............. 0 176,743 176,743
2126-0013............. 74,896 2,457 (72,439)
2126-0015............. 5,000 344,305 339,305
2126-0016............. 59,001 2,043 (56,958)
2126-0017............. 45,225 58,858 13,633
2126-0018............. 250 0 (250)
2126-0019............. 23,818 0 (23,818)
-----------------
Total............. 208,190 584,406 376,216
-------------------------------------------------------------------------\1\ The estimates in this column reflect first year burdens. Many of these information collections would
significantly decrease in later years. Following is an explanation of how each of the seven information
collections shown above would be impacted by this proposal. OMB Control No. 2126-NEW. The estimated paperwork burden for the
proposed MCSA-1 would be 176,743 burden hours [102,993 hours for new
entrants (47,535 new entrants x 2 hours, 10 minutes per form, divided
by 60 minutes) + 73,750 hours for biennial updates (295,000 carriers
required to file in year 1 x 15 minutes per form, divided by 60
minutes)]. OMB Control No. 2126-0013. In this proposal, all requirements under
this information collection, except those related to Form MCS-150B and
applications by certain Mexico-domiciled carriers, would be folded into
OMB Control No. 2126-NEW (see above). The Form MCS-150B is used to
apply for a Hazardous Materials Safety Permit and is not being
incorporated under the Unified Registration System in this proposal. Of
the 74,896 hours, 646 are attributed to the Form MCS-150B and 1,811
hours are attributed to the Form MCS-150 filed by Mexico-domiciled
motor carriers registering to operate between Mexico and points in the
United States beyond border commercial zones along the U.S.-Mexico
international border. As a result, this information collection would
result in a net decrease of 72,439 burden hours. OMB Control No. 2126-0015. This information collection would
increase by 339,309 burden hours (20,309 new entrant carriers x 1 hour)
+ (319,000 existing carriers x 1 hour). This is due to FMCSA's proposal
to extend the service of process agent filing requirement to include
private carriers and exempt for-hire carriers. Although process agents
are not currently required for these carriers, it is common practice
for them to designate a process agent. This estimate includes 20,309
new entrant carriers expected to file annually, and 319,000 existing
carriers who must file process agent designations within year one of
the rule. FMCSA conservatively assumes that no existing private and
exempt for-hire motor carriers currently has a process agent and that
all will file proof with FMCSA as a result of this NPRM. Later year burdens would decrease to include approximately 20,309
new entrant carriers and 10% of existing carriers who make changes to
the BOC-3 form annually. OMB Control No. 2126-0016. Under this proposal, all requirements
included in this information collection, except those relating to form
OP-1(MX), would be folded into OMB Control No. 2126-NEW (see above).
This information collection is currently approved at 59,001 burden
hours. The 59,001 hours includes 2,043 burden hours associated with
Mexico-domiciled carriers completing the form OP-1(MX) to operate
between Mexico and points in the United States beyond border commercial
zones along the U.S.-Mexico international border. Although currently
approved by OMB, this portion of the burden is not currently being
performed at this time and is not proposed to be incorporated under the
Unified Registration System at this time. Thus, the information
collection would result in a net decrease of 56,958. OMB Control No. 2126-0017. Changes would be required to this
information collection due to FMCSA's proposal to (1) require exempt
for-hire motor carriers and private interstate motor carriers of
hazardous materials to file proof of liability insurance with FMCSA,
and to (2) eliminate ``cargo insurance filings'' and ``cancellation of
cargo insurance filings.'' The proposal to require exempt for-hire
motor carriers and private interstate motor carriers of hazardous
materials to file proof of liability insurance with FMCSA would
increase the annual burden hours by 18,560 [893 for new entrants (5,356
new entrant carriers x 10 minutes per carrier, divided by 60 minutes) +
17,667 for existing carriers filing in year one (106,000 existing
carriers x 10 minutes per carrier filing, divided by 60 minutes)]. In
later years, the burden estimate would decrease to include 5,356 new
entrant carriers annually and 20% of existing carriers who annually
change their insurance information. The proposal to eliminate ``cargo insurance filings'' would
decrease the annual burden hours by 4,927 [1,594 for new entrants (the
elimination of 9,566 new entrant carriers x 10 minutes per form,
divided by 60 minutes) + 3,333 for existing carriers making cargo
insurance re-filings in year one (the elimination of 20,000 existing
carriers x 10 minutes per form, divided by 60 minutes). This results in
a net increase of 13,633 burden hours for this information collection
(+18,560-4,927 = 13,633). OMB Control No. 2126-0018. Under this proposal, the requirements
included in this information collection would be folded into OMB
Control No. 2126-NEW (see above), resulting in a net decrease of 250
burden hours. OMB Control No. 2126-0019. Under this proposal, the requirements
included in this information collection would be folded into OMB
Control No. 2126-NEW (see above), resulting in a net decrease of 23,818
burden hours. The proposals contained in this NPRM, affecting six currently-
approved information collections and one new information collection,
would result in a net increase of 376,216 burden hours in the agency's
information collection budget. FMCSA requests comments on whether the collection of information is
necessary for the agency to meet its goal of reducing truck crashes,
including: (1) Whether the information is useful to this goal; (2) the
accuracy of the estimated information collection burden; (3) ways to
enhance the quality, utility, and clarity of the information [[Page 29051]] collected; and (4) ways to minimize the information collection burden
on respondents, including the use of automated collection techniques or
other forms of information technology. You may submit to the Office of Management and Budget (OMB)
comments on the information collection burden addressed by this NPRM.
The OMB must receive your comments by August 17, 2005. You must mail or
hand deliver your comments to: Attention: Desk Officer for the
Department of Transportation, Docket Library, Office of Information and
Regulatory Affairs, Office of Management and Budget, Room 10102, 725
17th Street, NW., Washington, DC 20503. Executive Order 12630 (Taking of Private Property) This proposed rule would not effect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights. Executive Order 12988 (Civil Justice Reform) This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. Executive Order 13045 (Protection of Children) Executive Order 13045, ``Protection of Children from Environmental
Health Risks and Safety Risks'' (April 23, 1997, 62 FR 19885), requires
that agencies issuing economically significant rules, which also
concern an environmental health or safety risk that an agency has
reason to believe may disproportionately affect children, must include
an evaluation of the environmental health and safety effects of the
regulation on children. Section 5 of Executive Order 13045 directs an
agency to submit for a covered regulatory action an evaluation of its
environmental health or safety effects on children. The agency has determined that this proposed rule is not a covered
regulatory action as defined under Executive Order 13045. This
determination is based upon the fact that this proposed rule is not
economically significant under Executive Order 12866, because the
changes proposed in this rule would not have an impact of $100 million
or more in any one year. This proposal would not concern an
environmental health risk or safety risk that would disproportionately
affect children. Executive Order 13132 (Federalism) This proposed rule has been analyzed in accordance with the
principles and criteria in Executive Order 13132, dated August 4, 1999
(64 FR 43255, August 10, 1999). FMCSA has determined that this proposal
would not have significant Federalism implications or limit the
policymaking discretion of the States. Executive Order 12372 (Intergovernmental Review) The regulations implementing Executive Order 12372 regarding
intergovernmental consultation on Federal programs and activities do
not apply to this program. Executive Order 13211 (Energy Supply, Distribution, or Use) FMCSA has analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. This proposal is not a significant energy action
within the meaning of section 4(b) of the Executive Order. This
proposal is a procedural action, is not economically significant, and
will not have a significant adverse effect on the supply, distribution,
or use of energy. Privacy Act Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit http://dms.dot.gov. List of Subjects 49 CFR Parts 360 Administrative practice and procedure, Brokers, Buses, Freight
forwarders, Hazardous materials transportation, Highway safety,
Insurance, Motor carriers, Motor vehicle safety, Moving of household
goods, Penalties, Reporting and recordkeeping requirements, Surety
bonds. 49 CFR Part 365 Administrative practice and procedure, Brokers, Buses, Freight
forwarders, Motor carriers, Moving of household goods. 49 CFR Part 366 Brokers, Motor carriers. 49 CFR Part 368 Administrative practice and procedure, Insurance, Motor carriers. 49 CFR Part 387 Buses, Freight, Freight forwarders, Hazardous materials
transportation, Highway safety, Insurance, Intergovernmental relations,
Motor carriers, Motor vehicle safety, Moving of household goods,
Penalties, Reporting and recordkeeping requirements, Surety bonds. For the reasons stated in the preamble, the Federal Motor Carrier
Safety Administration proposes to amend title 49, Code of Federal
Regulations, chapter III, subchapter B as set forth below:
1. Amend Chapter III by revising part 360 to read as follows: PART 360--REGISTRATION Subpart A--Registration Procedures Sec. 360.1 What are the definitions of terms used in this part?
360.3 Who must register?
360.5 When must I register?
360.7 Where must I register?
360.9 What is involved in registering for a USDOT Number?
360.11 What general certifications must I make in my registration
application?
360.13 How will FMCSA process my application?
360.15 For what reasons may FMCSA deny my application?
360.17 Can I appeal the denial of my application?
360.19 May I withdraw my application before processing has been
completed?
360.21 If FMCSA rejects, denies or dismisses my application or
revokes my registration for any reason, how do I start the process
again?
360.23 When does my registration become permanent?
360.25 When must I update my registration?
360.27 What penalties may FMCSA impose if I fail to register or
update my information or if I furnish misleading information?
360.29 What happens to my Motor Carrier (MC), Mexico-Domiciled
Carrier (MX), or Freight Forwarder (FF) number after [24 months
after the effective date of the final rule]?
Subpart B--How To Oppose a Request For Permanent USDOT Registration by
a Motor Carrier, Broker or Freight Forwarder That Is Subject to 49
U.S.C. Chapter 139
360.101 Who may oppose a request for permanent USDOT registration by
a motor carrier, broker or freight forwarder that is subject to 49
U.S.C. chapter 139?
360.103 When must a protest be filed?
360.105 What must be included in the protest?
360.107 How will FMCSA process the protest? [[Page 29052]] designation?
Subpart H--Cancellation, Reinstatement and Deactivation of USDOT
Registration
360.701 What procedures must I follow to cancel my USDOT
registration?
360.703 How will FMCSA process a request to cancel a USDOT
registration?
360.705 For what other reasons will FMCSA deactivate my USDOT
registration?
360.707 040 Can I reinstate an inactive USDOT registration? Authority: 5 U.S.C. 553 and 559; 31 U.S.C. 9701; 49 U.S.C. 502,
503, 504, 13101, 13301, 13303, 13304, 13901-13908, 14504, 14708,
31136, 31138, 31139, 31142, 31144, 31145, 31301 et seq., and 31501
et seq., and 49 CFR 1.73. Subpart A--Registration Procedures Sec. 360.1 What are the definitions of terms used in this part? The definitions for many terms used in this part are found in Sec.
390.5 of this subchapter. Other terms used in this part are defined as
follows: (a) Border commercial zones means municipalities in the United
States on the U.S.-Mexico international border or the commercial zones
of such municipalities, as defined in 49 CFR part 372, and Dona Ana and
Luna Counties in New Mexico. (b)(1) Freight forwarder means an individual or entity engaged in
interstate commerce that holds itself out to the general public (other
than as a pipeline, rail, motor or water carrier) to provide
transportation of property for compensation and in the ordinary course
of its business: (i) Assembles and consolidates, or provides for assembling and
consolidating, shipments and performs or provides for break-bulk and
distribution operations of the shipments; (ii) Assumes responsibility for the transportation from the place
of receipt to the place of destination; and (iii) Uses for any part of the transportation a carrier subject to
jurisdiction under 49 U.S.C. 10101 et seq. (2) The term does not include a person using transportation of an
air carrier subject to part A of 49 U.S.C. 40101 et seq. (c) FTA grantee means a motor carrier of passengers that receives
grants from the Federal Transit Administration either directly or
through a third-party contract to provide passenger transportation in a
transit service area under an agreement with a State or local
government. (d) Interstate transportation means transportation described at 49
U.S.C. 13501, and transportation in the United States otherwise exempt
from the Secretary's jurisdiction under 49 U.S.C. 13506(b)(1). (e) Mexico-domiciled motor carrier means a motor carrier of
property or passengers whose principal place of business is located in
Mexico. (f) Process agent means a person who will accept legal and
administrative filings and notices on behalf of the applicant. (g) Property broker means an individual or entity engaged in
interstate commerce that, for compensation, arranges or offers to
arrange the transportation of property by a for-hire motor carrier that
must register under 49 U.S.C. chapter 139. Motor carriers, or persons
that are employees or bona fide agents of carriers, are not brokers
within the meaning of this section when they arrange or offer to
arrange the transportation of shipments which they are authorized to
transport and which they have accepted and legally bound themselves to
transport. (h) Protest means a filing by a person wishing to oppose an
application for registration filed under the provisions of 49 U.S.C.
chapter 139. (i) Protestant means a person filing a valid protest pursuant to
subpart B of this part. Sec. 360.3 Who must register? (a) You must register with the Federal Motor Carrier Safety
Administration and obtain a USDOT Number if you are:
(1) An interstate for-hire motor carrier of property or passengers;
(2) A private carrier of property or passengers operating in
interstate commerce;
(3) A Mexico-domiciled motor carrier of property or passengers that
wants to operate within the border commercial zones;
(4) A property broker engaged in interstate commerce; or
(5) A freight forwarder engaged in interstate commerce.
(b) If you perform operations as more than one type of entity, such
as a carrier and a broker, you must register each entity with FMCSA and
pay a filing fee for each registration.
(c) A motor carrier that is required to obtain a USDOT Number under
49 U.S.C. 13901 but fails to register its operations as required, or
operates beyond the scope of its registration, is subject to applicable
civil and/or criminal penalties and out-of-service orders. Sec. 360.5 When must I register? You must register and obtain your assigned USDOT registration
number before you begin operations in interstate commerce. Sec. 360.7 Where must I register? (a) You must register either on the FMCSA Web site or by mail.
(b) You may file on-line, obtain the registration form and
instructions from [[Page 29053]] any FMCSA field office, download them from the FMCSA Web site, or you
may request the registration form by calling 1-800-832-5660 (or 001-
800-832-5660 from Mexico). (c) Assistance in completing the application is available from all
FMCSA Service Centers and Division offices nationwide, or by calling 1-
800-832-5660 (or 001-800-832-5660 from Mexico). Sec. 360.9 What is involved in registering for a USDOT Number? In order to be issued a USDOT Number, you must:
(a) Submit a complete and accurate Form MCSA-1--FMCSA Registration
Form (USDOT Number Application) that is prepared in English and
accompanied by fees. If you file a hard-copy application, it must have
all required signatures.
(b) Ensure that your insurance company or other financial
responsibility provider files with FMCSA the appropriate form(s) as
prescribed under part 387 of this subchapter, if you are:
(1) An interstate for-hire motor carrier;
(2) A private carrier transporting hazardous materials in
interstate commerce;
(3) A property broker; or
(4) A freight forwarder.
(c) File, or have a process service agent file on your behalf, a
Form BOC-3--Designation of Agents--Motor Carriers, Brokers, and Freight
Forwarders with FMCSA. You must either submit Form BOC-3 with your
application or indicate on the Form MCSA-1 that you will use a process
agent service that will submit the form electronically.
(d) Make the certification required under Sec. 360.11.
(e) Meet applicable household goods requirements described under
subpart F of this part.
(f) Have tariffs in effect to the extent applicable before
beginning operations.
(g) Comply with subpart D of this part if you are a Mexico-
domiciled motor carrier seeking authority to operate within the border
commercial zones. Sec. 360.11 What general certifications must I make in my
registration application? (a) If you operate a commercial motor vehicle, as defined in Sec.
390.5 of this title, you must certify that you:
(1) Have a system in place to ensure compliance with all applicable
requirements of the Federal Motor Carrier Safety Regulations and the
Hazardous Materials Regulations, including driver qualifications, hours
of service, alcohol and controlled substances testing, vehicle
condition and maintenance, crash monitoring, and hazardous materials
transportation;
(2) Are willing and able to provide the proposed service; and
(3) Will comply with all pertinent statutory and regulatory
requirements; and
(4) Are not currently disqualified from operating a commercial
motor vehicle in any State or the United States under the provisions of
the Motor Carrier Safety Improvement Act of 1999.
(b) If you fail to make the necessary certifications, FMCSA will
reject your application. Sec. 360.13 How will FMCSA process my application? The application process for motor carriers that are required to
register under Sec. 360.3 is comprised of three steps.
(a) Step One--Initial Screening. During the initial screening,
FMCSA will:
(1) Issue a tracking number. This is a temporary number used only
to track the application until a USDOT Number has been assigned. The
tracking number must be used to make initial financial responsibility
filings under part 387 of this title. The tracking number is also used
when filing the Form BOC-3--Designation of Agents--Motor Carriers,
Brokers and Freight Forwarders to designate an agent for service of
process as required under subpart G of this part.
(2) Review your application for correctness, completeness, and
adequacy of evidence;
(3) Correct minor errors without notifying you;
(4) Review your application for consistency with the agency safety
fitness policy set forth in part 385 of this title;
(5) Validate the accuracy of information and certifications
provided in the application.
(6) Reject your application for any of the following reasons:
(i) The application is not completed in English;
(ii) The application does not include the appropriate fees, as set
forth in Sec. 360.401;
(iii) The application is not complete as described under Sec.
360.9;
(iv) You have an ``Unsatisfactory'' safety fitness rating when the
application is filed;
(v) You own or control a company that is currently subject to an
out-of-service order or has a current Unsatisfactory safety rating;
(vi) You previously owned or controlled a company that is currently
subject to an out-of-service order or has a current Unsatisfactory
rating that was imposed during your ownership or control. (6) If you have not filed Form BOC-3 with your application because
you will be using a process agent service, that service must file a
list of agents for service of legal process in each State in which you
intend to operate. The service must file this information with FMCSA
within 90 days of the date that the application is submitted. If the
required filing is not made within the 90-day period, FMCSA will
dismiss your application, and the registration fee will not be
refunded. (7) If you are a for-hire motor carrier, a private carrier of
hazardous materials, a broker or a freight forwarder, you must obtain
the appropriate insurance, surety bond or trust fund as required in
part 387 of this title. Your insurer, surety company or financial
institution must electronically file evidence of coverage with FMCSA
pursuant to Sec. 360.415 within 90 days of the date that the
application is submitted. If the required filing is not made within the
90-day period, FMCSA will dismiss your application, and the
registration fee will not be refunded. (8) If you are a Mexico-domiciled motor carrier that operates
exclusively within the border commercial zones, you are not required to
file evidence of financial responsibility with FMCSA. However, you must
carry appropriate evidence of insurance in all vehicles operated in the
United States as required under Sec. 387.7(b)(3) of this title. (b) Step Two--Issuance of provisional registration. (1) If your
application meets all applicable requirements under step one of the
application process described in paragraph (a) of this section, the
agency will issue you a USDOT Number and provisional registration. You
may begin operations under provisional registration if you are not
subject to registration under 49 U.S.C. chapter 139. Provisional
registration will be revoked if you do not successfully complete the
other registration requirements. (2) Freight forwarders and brokers are not issued provisional
registration. If your registration application is not successfully
opposed, registration is permanent when FMCSA issues it at the
conclusion of the protest process prescribed under subpart B of this
part. (3) Registrations under 49 U.S.C. chapter 139, except Mexico-
domiciled motor carriers operating exclusively within the border
commercial zones, are subject to additional procedures under paragraph
(c) of this section before provisional registration may be granted. [[Page 29054]] (4) After you are issued a provisional registration, you must
successfully complete the New Entrant Safety Assurance Program under
subpart D of part 385 of this title, which includes an 18-month
monitoring program and a safety audit. Mexico-domiciled carriers
operating exclusively within the border commercial zones are required
to successfully complete a safety monitoring system under subpart B of
part 385 of this title, instead of the New Entrant Safety Assurance
Program. (c) Step Two(a)--Special procedure for certain 49 U.S.C. chapter
139 registrations. (1) If you are subject to registration under 49
U.S.C. chapter 139 and your application passes the initial screening,
FMCSA will publish a notice of your request for registration in the
FMCSA Register to provide the public an opportunity to oppose pursuant
to subpart B of this part. After publication, interested persons may
request a copy of the application by contacting FMCSA. (2) Applications by Mexico-domiciled motor carriers seeking to
operate only within the border commercial zones may not be opposed, and
notice of such applications for registration will not be published in
the FMCSA Register. Private and exempt for-hire carriers are not
subject to 49 U.S.C. chapter 139 and their applications for
registration likewise may not be opposed, and notice of such
applications for registration will not be published in the FMCSA
Register. (3) Once the application is filed, you may supplement evidence only
with FMCSA approval. Amendments to the application generally are not
permitted, but in appropriate instances may be entertained at the
discretion of FMCSA. (4) Serving copies of pleadings. An applicant must serve all
pleadings and letters on FMCSA and all known participants in the
proceeding, except that a reply to a motion need only be served on the
moving party. A protestant need serve only FMCSA and applicant with
pleadings or letters. (5) Replies to motions. Replies to motions filed under this part
are due within 5 days of the date the motion is filed at FMCSA. (6) Modified proceedings. FMCSA will handle applications under
paragraph (b)(2)(i) of this section using the modified procedures, if
possible. The applicant and protestants send statements made under oath
(verified statements) to each other and to FMCSA. There are no personal
appearances or formal hearings. (d) Step Three--Issuance of permanent registration. A motor carrier
will be issued permanent registration only after complying with
paragraph (b)(4) of this section. Sec. 360.15 For what reasons may FMCSA deny my application? After your application passes the initial screening described under
Sec. 360.13(a), FMCSA may deny the application if it determines, based
on a valid protest filed under subpart B of this part or other
evidence, that: (a) You do not have a system in place to ensure compliance with all
applicable requirements of the Federal Motor Carrier Safety Regulations
and the Hazardous Materials Regulations, as applicable; or
(b) You are not willing and able to provide the proposed service
and comply with all pertinent statutory and regulatory requirements. Sec. 360.17 Can I appeal the denial of my application? You have the right to appeal denial of your application. The appeal
must specify in detail why FMCSA's decision to deny the application was
wrong. The appeal must be a written request to the Director, Office of
Information Management, and sent by mail, fax or electronically within
20 days of the date of the letter denying the application. The decision
of the Director will be the final agency order. Sec. 360.19 May I withdraw my application before processing has been
completed? You may withdraw your application before processing has been
completed by notifying FMCSA in writing. Your registration fee will not
be refunded. Sec. 360.21 If FMCSA rejects, denies or dismisses my application or
revokes my registration for any reason, how do I start the process
again? (a) To restart the registration process after rejection, denial or
dismissal of your application or revocation of your registration,
follow the application procedures in Sec. 360.9 and pay the applicable
registration fee under Sec. 360.401. (b) To restart the registration process after your registration has
been revoked, you must wait until 30 days after the effective date of
the revocation before reapplying for registration. (c) If your registration has been cancelled or made inactive, see
Sec. 360.707 for the process to reinstate or reactivate your
registration. Sec. 360.23 When does my registration become permanent? (a) Your motor carrier registration becomes permanent after you
satisfactorily complete the new entrant safety assurance process in
part 385, subpart D of this title, if you are subject to those
requirements. b) Brokers and freight forwarders are not issued provisional
registration. Their registration is permanent when FMCSA issues it at
the conclusion of the publication and protest process described in
subpart B of this part. Sec. 360.25 When must I update my registration? (a)(1) Biennial update. You must update your registration every 24
months as prescribed in this section by filing an updated Form MCSA-1
and completing only the data indicated in the form instructions. (2) You must file the biennial registration update in the month
indicated in the table to this section based upon the last digit of
your USDOT Number. Table to Sec. 360.25
------------------------------------------------------------------------
USDOT number with the last digit of Must file by last day of
------------------------------------------------------------------------
1......................................... January.
2......................................... February.
3......................................... March.
4......................................... April.
5......................................... May.
6......................................... June.
7......................................... July.
8......................................... August.
9......................................... September.
0......................................... October.
------------------------------------------------------------------------(3) You must file the biennial registration update in the year
based upon the next-to-last digit of the USDOT Number. If the next-to-
last digit of your USDOT Number is odd-numbered (1, 3, 5, 7, or 9), you
must file your update in every odd-numbered calendar year. If the next-
to-last digit of the USDOT Number is even-numbered (0, 2, 4, 6, or 8),
you must file your update in every even-numbered calendar year. (4) If you fail to file the biennial registration update, furnish
misleading information, or make a false statement on your biennial
registration update, you are subject to the civil penalties prescribed
in 49 U.S.C. 521(b)(2)(B) and 49 U.S.C. 14901(a). (5) If you register in a State that participates in the PRISM
program, you are not required to file biennial updates with FMCSA
provided you file all the required information with the appropriate
State office. You are also subject to the penalties under paragraph
(a)(4) of this section for filing false or misleading information and
are required to make the filings under paragraph (b) of this section. (b) Change in legal name, form of business, or address of
registered [[Page 29055]] entities. Changes are permitted in the legal name, form of business, or
address of a registered entity, provided that there is no change in the
ownership, management, or control. Within 20 days of any change in
legal name, form of business, or address, you must file:
(1) A revised Form MCSA-1 reflecting the change(s); and
(2) A certification confirming that there has been no change in the
ownership, management, or control of the registered entity. (c) Failure to make the certification required in paragraph (b)(2)
of this section, or making a false certification, will result in
revocation of the USDOT Number 30 days after FMCSA notifies you that
the certification is either missing or false, unless acceptable
correction follows. (d) If you receive notification as provided under paragraph (c) of
this section that your USDOT Number will be revoked, you have the right
to appeal. The appeal must specify in detail why FMCSA's decision to
revoke your USDOT Number was in error. The appeal must be submitted in
writing to the Director, Office of Information Management, and sent by
mail, or FAX, or electronically, within 30 days of the date of the
letter advising that your USDOT Number will be revoked. The decision of
the Director will be the final agency order. Sec. 360.27 What penalties may FMCSA impose if I fail to register or
update my information or if I furnish misleading information? You may be subject to civil and/or criminal penalties under 49
U.S.C. 521 and 49 U.S.C. chapter 149 for:
(a) Operating in interstate commerce before you have registered
with FMCSA and have obtained a USDOT Number;
(b) Failing to update your registration biennially or every time
you change your form of business; legal name, or address, as set forth
in Sec. 360.25 of this part;
(c) Continuing to operate in interstate commerce after cancellation
or revocation of your registration; or
(d) Furnishing false or misleading information. Sec. 360.29 What happens to my Motor Carrier (MC), Mexico-Domiciled
Carrier (MX), or Freight Forwarder (FF) number after [24 months after
the effective date of the final rule]? (a) The Motor Carrier (MC), Mexico-domiciled Carrier (MX) and
Freight Forwarder (FF) numbers will be cancelled [insert date twenty-
four months after the effective date of this rule]. You will no longer
be allowed to use them for identification purposes but will not be
required to remove these markings from your commercial motor vehicle. (b) Before [24 months after the effective date of the final rule],
FMCSA will issue a USDOT Number to those entities that only have an MC,
MX, or FF number. These entities include brokers, freight forwarders,
and motor carriers exclusively operating vehicles below the thresholds
of a ``commercial motor vehicle'' as defined in Sec. 390.5 of this
subchapter. Subpart B--How To Oppose a Request for USDOT Registration by a
Motor Carrier, Broker or Freight Forwarder That Is Subject to 49
U.S.C. Chapter 139 Sec. 360.101 Who may oppose a request for USDOT registration by a
motor carrier, broker or freight forwarder that is subject to 49 U.S.C.
chapter 139? (a) Anyone may oppose an application of a for-hire motor carrier,
broker or freight forwarder subject to 49 U.S.C. chapter 139 by filing
a protest. A protest may not be filed against the application of a
Mexico-domiciled motor carrier requesting to operate exclusively within
the border commercial zones. (b) A protest filed pursuant to paragraph (a) of this section must
be based upon the grounds that the applicant does not meet safety
fitness or other applicable FMCSA regulatory requirements. Sec. 360.103 When must a protest be filed? (a) The protest must be filed within 10 days after notice of the
application appears in the on-line FMCSA Register, which is accessible
from the FMCSA web site. The protest will be placed in the FMCSA docket
and made available for public inspection. Failure to file a timely
protest waives further participation in this aspect of the registration
process. (b) The Protestant must provide the applicant with a copy of the
protest at the same time it is filed with FMCSA. Sec. 360.105 What must be included in the protest? (a) The protest must include evidence, information or documentation
to substantiate the allegations providing the basis for the protest.
(b) The protest must be verified, as follows:
(1) If executed outside the United States: ``I declare (or certify, verify, or state) under penalty of
perjury under the laws of the United States of America that the
foregoing is true and correct. Executed on (date). (Signature)''. (2) If executed within the United States, its territories,
possessions, or commonwealths: ``I declare (or certify, verify, or state) under penalty of
perjury that the foregoing is true and correct. Executed on (date). (Signature) (c) FMCSA may reject the protest if it does not substantially
comply with applicable statutory or regulatory standards.
(d) Protests regarding registration will be accepted only when
based on an allegation that the applicant fails or will fail to comply
with the: (1) Registration requirements; (2) Federal Motor Carrier Safety Regulations; (3) Hazardous Materials Regulations; (4) Commercial Regulations; (5) Safety fitness requirements; or (6) Financial responsibility requirements. Sec. 360.107 How will FMCSA process the protest? (a) If a timely protest is filed, FMCSA will review any evidence
and arguments made by the Protestant under Sec. Sec. 360.103 and
360.105 of this part and provide the motor carrier with an opportunity
to respond. (b) The applicant's reply statement to the protest must be filed
within 10 days of the service date of the protest with the Director,
Office of Information Management. The decision of the Director will be
the final agency order. (c) The reply statement must not contain new evidence. It must only
rebut or further explain matters previously raised. (d) The reply statement need not be notarized or verified. You
should understand that the oath in the application form applies to all
evidence submitted in the application. Separate legal arguments by
counsel need not be notarized or verified. Sec. 360.109 How do I withdraw my protest? To withdraw a protest, you must submit a written request to FMCSA
by mail, fax or electronically. Subpart C--[Reserved] Subpart D--Operations by Mexico-domiciled Motor Carriers in the
Border Commercial Zones Sec. 360.301 Must I register? (a) A Mexico-domiciled motor carrier must register with FMCSA to
provide interstate transportation in the border commercial zones as
defined in 49 U.S.C. 13902(c)(4)(A). (b) Registration under this subpart permits only interstate
transportation in [[Page 29056]] the border commercial zones. A carrier registered under this subpart
who operates a vehicle beyond this area is subject to applicable
penalties and out-of-service orders. (c) Registration may be done either on the FMCSA web site or by
mail. You may file on-line, obtain the registration form and
instructions from any FMCSA field office, download them from the FMCSA
web site, or you may call 1-800-832-5660 (or 001-800-832-5660 from
Mexico). Assistance from English-speaking FMCSA personnel in completing
the application is available from all FMCSA Service Centers and
Division offices nationwide, or by calling 1-800-832-5660 (or 001-800-
832-5660 from Mexico). Assistance from Spanish-speaking FMCSA personnel
in completing the application is available only by calling 1-800-832-
5660 (or 001-800-832-5660 from Mexico) and connecting to our
Transborder office in Otay Mesa, California. Sec. 360.302 What is involved in registering for a USDOT Number under
subpart D of this part? In order to be issued a USDOT Number, you must:
(a) Submit a complete and accurate Form MCSA-1--FMCSA Registration
Form (USDOT Number Application) that is prepared in English and
accompanied by fees;
(b) Meet the financial responsibility requirements under Sec.
387.7(b)(3) of this title;
(c) File, or have a process service agent file on your behalf, a
Form BOC-3--Designation of Agents--Motor Carriers, Brokers, and Freight
Forwarders with FMCSA. You must either submit Form BOC-3 with your
application or indicate on your application that you will use a process
agent service that will submit the form electronically;
(d) Make the certifications under Sec. 360.11;
(e) Meet household goods requirements described under subpart F of
this part if applicable to your operations; and
(f) Have tariffs in effect to the extent applicable before
beginning operations. Sec. 360.303 [Reserved] Sec. 360.305 How will FMCSA process my application? The application process for Mexico-domiciled motor carriers of
property that are required to register under Sec. 360.301 is comprised
of three steps. (a) Step One--Initial Screening. During the initial screening,
FMCSA will:
(1) Issue a tracking number. This is a temporary number used only
to track the application until a USDOT Number has been assigned. The
tracking number must be used when filing the Form BOC-3--Designation of
Agents--Motor Carriers, Brokers and Freight Forwarders to designate an
agent for service of process as required under subpart G of this part.
(2) Review the application for correctness, completeness, and
adequacy of information. Non-material errors will be corrected without
notice to the applicant.
(3) Validate the accuracy of information and certifications
provided in the application against data maintained in databases of the
governments of Mexico and the United States.
(4) Reject your application for any of the following reasons:
(i) The application is not completed in English;
(ii) The application did not include the appropriate fees, as set
forth in Sec. 360.401;
(iii) The application did not include all the required supporting
documents and applicable certifications set forth in the instructions
to the Form MCSA-1 or other information appropriate for your proposed
operations.
(iv) You have an ``Unsatisfactory'' safety fitness rating when the
application is filed;
(v) You own or control a company that is currently subject to an
out-of-service order or has a current unsatisfactory safety rating;
(vi) You previously owned or controlled a company that is currently
subject to an out-of-service order or has a current unsatisfactory
rating that was imposed during your ownership or control. (5) FMCSA will confirm that required Form BOC-3 filings have been
made. If you have not filed Form BOC-3 with your application because
you will be using a process agent service, that service must file a
list of agents for service of legal process in each State in which you
intend to operate. The service must file this information with FMCSA
within 90 days of the date that the application is submitted. (6) Require you to obtain the financial responsibility set forth in
Sec. 387.7(b)(3) of this title. You are not required to file evidence
of financial responsibility with FMCSA, but must carry appropriate
evidence of insurance in all vehicles operated in the United States.
(b) Step Two--Issuance of provisional registration. (1) You must
successfully complete applicable requirements under Step One above.
(2) If your application and certifications demonstrate that your
operations would be consistent with FMCSA safety fitness standards, you
will be issued provisional registration. You will also be assigned a
distinctive USDOT Number that authorizes you to provide interstate
transportation between the United States and Mexico in the border
commercial zones.
(3) After you are issued a provisional registration, you must
successfully complete the safety monitoring system under subpart B of
part 385 of this title.
(d) Step Three--Issuance of permanent registration. A motor carrier
will be issued permanent registration only after complying with
paragraph (b)(3) of this section. Sec. 360.307 What registration-related documents must I carry in my
vehicle? A motor carrier of property registered to operate in the border
commercial zones must maintain a copy of its registration and proof of
financial responsibility as required under 49 CFR 387.7(b)(3) in any
vehicle providing transportation service within the scope of the
registration, and make such information available upon request to any
Federal, State or local authorized inspector or enforcement officer. Subpart E--Fees for Registration and Related Services Sec. 360.401 What fees must I pay for registration and registration-
related services? When requesting registration or registration-related services, you
are subject to the applicable fees listed in the table to this section.
FTA grantees are not subject to the application and evidence of
financial responsibility filing fees. Table to Sec. 360.401--Unified Registration Schedule of Fees
------------------------------------------------------------------------
You must pay FMCSA
------------------------------------------------------------------------
REGISTRATION
------------------------------------------------------------------------
If you:....................................
(a) Are subject to the registration $200
requirements under Sec. 360.3 of this
part and are requesting a new application
to operate in interstate commerce..
--------------------------------------------
OTHER SERVICES
------------------------------------------------------------------------If you file a:.............................
(b) Biennial update of registration........ No cost.
(c) Request for change of name, address, or No cost.
form of business. [[Page 29057]] (d) Request for cancellation of No cost.
registration.
(e) Request for registration reinstatement. 100
(f) Designation of process agent........... 10 ------------------------------------------------------------------------ Sec. 360.403 What methods of payment will FMCSA accept for
registration and registration-related services? (a) FMCSA will only accept a charge card (e.g., American
ExpressTM), credit card (e.g., VISATM,
MASTERCARDTM, or DISCOVERTM) or electronic funds
transfer for payment of registration and registration-related services. (b) If you or your agent fails to file the appropriate filing fee,
your application will be rejected. Sec. 360.405 What is FMCSA policy regarding a dishonored charge card
or credit card or electronic funds transfer (EFT)? If a bank or financial institution does not honor your charge card
or credit card or EFT in payment of an FMCSA filing or service fee,
FMCSA will notify you that: (a) The agency has suspended further processing on the application
until payment in full of FMCSA filing or service fees, and applicable
FMCSA penalties for dishonored payments; and (b) If you do not pay within 90 days, FMCSA will reject your
application and filing. Sec. 360.407 How do I request a reduced or waived fee? (a) You may request a waiver or reduction of the fee prescribed in
Sec. 360.401 at the time you submit your application.
(b) FMCSA's general policy is not to waive or reduce filing fees.
(c) On request, FMCSA will waive filing fees for applications filed
by a Federal government agency, or a State or local government entity.
For purposes of this paragraph, the terms ``Federal government agency''
and ``government entity'' do not include a quasi-governmental
corporation or government subsidized transportation company.
(d) FMCSA will consider other requests for waivers or fee
reductions only in extraordinary situations. Sec. 360.409 What information must be included in my waiver request? The information provided in your request must:
(a) Demonstrate that the waiver or reduction of the fee is in the
best interest of the public;
(b) Describe the impacts you could experience if we do not grant
the waiver or reduction; and
(c) Include documentation supporting the basis for your request. Sec. 360.411 How will FMCSA process my waiver request? FMCSA will review your request and notify you whether it is granted
after the agency accepts your application for processing. Sec. 360.413 May I obtain a refund of the filing fee or other related
fees? No. Once your application is received by FMCSA, the agency will not
refund filing or other service fees. This policy applies whether or not
the agency grants, approves, denies, rejects before docketing,
dismisses, or receives an applicant's request to withdraw its
application. Sec. 360.415 How do I make my insurance filing and what are the fees
associated with the filing? a) Insurance filings must be made by your insurer, surety company,
or financial institution as provided by part 387 of this subchapter. (b) The fees for insurance filings are included in the table to
this paragraph: Table to 360.415(b).--Insurance Filing Fees
------------------------------------------------------------------------
------------------------------------------------------------------------
(1) Financial Responsibility Service Provider filing $10
evidence of minimum level of insurance, surety bond, or
trust fund agreement......................................
(2) Qualification as a self-insurer for bodily injury, 4,200
property damage, or environmental restoration.............
(3) Qualification as a self-insurer for cargo insurance.... 420
(3) Quarterly self-insurance monitoring filing............. 500
(4) Annual self-insurance monitoring filing................ (\1\)
------------------------------------------------------------------------ (1) No cost. (c) Currently registered exempt for-hire motor carriers and private
motor carriers transporting hazardous materials in interstate commerce.
If you are a private motor carrier that transports hazardous materials
in interstate commerce or an exempt for-hire motor carrier, subject to
the financial responsibility requirements under part 387 of this title;
and you had registered with FMCSA and been issued a valid USDOT Number
before effective date of the final rule., your evidence of financial
responsibility must be filed with FMCSA by [180 days after the
effective date of the final rule. Sec. 360.417 Must my insurer, surety company, or financial
institution establish an account that will allow it to make insurance
filings with FMCSA? Insurers, surety companies, and financial institutions must obtain
authorization to file insurance, surety, or trust fund information by
registering with the FMCSA Enforcement Compliance Division. Sec. 360.419 What are the fees for record searching, reviewing,
copying, certifying, and related services? Certifications and copies of public records and documents on file
with the Federal Motor Carrier Safety Administration will be furnished
on the following basis, pursuant to USDOT Freedom of Information Act
regulations at 49 CFR part 7: (a) Certificate of the Director, Office of Information Management,
as to the authenticity of documents, $12.00;
(b) Service involved in locating records to be certified and
determining their authenticity, including clerical and administrative
work incidental thereto, at the rate of $21.00 per hour;
(c) Copies of the public documents, at the rate of $.80 per letter
size or legal size exposure. A minimum charge of $5.00 will be made for
this service; and
(d) Search and copying services requiring automated data processing
(ADP), as follows:
(1) A fee of $50.00 per hour for professional staff time will be
charged when it is required to fulfill a request for ADP data.
(2) The fee for computer searches will be set at the current rate
for computer service. Information on those charges can be obtained from
the Office of Information Management (MC-RIS).
(3) Printing shall be charged at the rate of $.10 per page of
computer-generated output with a minimum charge of $1.00. There will
also be a charge for the media provided (e.g., CD ROMs) based on the
agency's costs for such media. Sec. 360.421 How will FMCSA update user fees? (a) Each fee established in this subpart may be updated, as deemed
necessary by FMCSA.
(b) Publication and effective dates. Notice of updated fees will be
published in the Federal Register and will become effective 30 days
after publication.
(c) Payment of fees. You must pay the fee applicable on the date
you file or request services. [[Page 29058]] Subpart F--Special Requirements for Transportation of Household
Goods Sec. 360.501 Must I offer arbitration to individual shippers if I
register to provide household goods transportation services? (a) You must offer arbitration to individual shippers as a means of
settling loss and damage claims against you if you register to provide
household goods transportation services as a motor carrier or freight
forwarder. (b) You must affirm on your application that you will offer
arbitration to individual shippers, in accordance with 49 U.S.C. 14708.
(c) You must provide the name and address of the entity that will
administer your arbitration program.
(d) You must comply with part 375 of this subchapter if you
transport household goods for individual shippers, as defined in Sec.
375.1 of this subchapter. Sec. 360.503 If I transport household goods, must I certify that I
have a tariff in effect? Yes. If you will be transporting household goods as a motor carrier
or freight forwarder, you must certify that you have a tariff in effect
and available for review upon request, in accordance with 49 U.S.C.
13702. Subpart G--How To Designate Agents for Service of Process Sec. 360.601 Who must designate service of process agents? You must designate a service of process agent (a person upon whom
court process may be served) following the rules in this subpart if you
meet any of the following conditions: (a) You are a motor carrier, property broker or freight forwarder
engaged in interstate commerce.
(b) You are a motor carrier that operates in the United States in
the course of transportation between points in a foreign country.
(c) You are a fiduciary of a motor carrier, property broker or
freight forwarder. A fiduciary, as defined at Sec. 387.319(a) of this
title, must designate a service of process agent as of the moment of
succession. Sec. 360.603 How do I designate agents for service of process with
FMCSA? (a) Currently registered entities. If you have registered with
FMCSA and have been issued a valid USDOT Number before [effective date
of the final rule.] but do not already have a Form BOC-3--Designation
of Agents--Motor Carriers, Brokers, and Freight Forwarders on file with
FMCSA, you must file your designation of agent for service of process
by [180 days after the effective date of the final rule]. (b) New applicants for registration. If you apply for USDOT Number
registration after [effective date of the final rule.], you must file a
Form BOC-3--Designation of Agents--Motor Carriers, Brokers and Freight
Forwarders with the MCSA-1 application or indicate on the Form MCSA-1
that you will use a process agent service to submit the Form BOC-3
electronically. If you elect to use a process agent service to submit
the Form BOC-3, the service must submit the form within 90 days of the
date that the MCSA-1 application is filed with FMCSA. (c) Only one completed current form may be on file with FMCSA. You
must retain a copy of this designation at your principal place of
business. Sec. 360.605 For which jurisdictions must I designate service of
process agents? (a) Motor carriers. You must designate a service of process agent
for each State in which you are authorized to operate and for each
State through which you travel when operating as a motor carrier. You
must retain a copy of these designations at your principal place of
business. (b) Brokers. When you operate as a property broker, you must
designate a process agent for each State in which your offices are
located, in which you write contracts, or in which you are authorized
to write contracts. (c) Freight Forwarders. When you operate as a freight forwarder,
you must make a designation for each State in which you:
(1) Maintain offices;
(2) Write contracts;
(3) Assemble, consolidate, or provide for assembling and
consolidating shipments;
(4) Perform or provide for break-bulk and distribution operations
of the shipments;
(5) Assume responsibility for the transportation from the place of
receipt to the place of destination; or
(6) Use any rail, water, pipeline, or motor carrier for any part of
the transportation. Sec. 360.607 What are the requirements for my designees? (a) You must only designate persons (as defined at 49 U.S.C.
13102(16)) who:
(1) Reside in the State for which you designate them; or
(2) Maintain an office in the State for which you designate them;
and
(3) Will accept service of process.
(b) If a State official is designated, evidence of his/her
willingness to accept service of process must be furnished to FMCSA. Sec. 360.609 May I make blanket designations? (a) You are permitted to make blanket designations. Where an
association or corporation has filed with the FMCSA a list of process
agents for each State, you may make the required designations by using
the following statement: Those persons named in the list of process agents on file with
the Federal Motor Carrier Safety Administration by---- (Name of
association or corporation) and any subsequently filed revisions
thereof, for the States in which this carrier will operate in or
through, except those States in which we have made individual
designations. (b) You must retain a copy of the blanket designation at your
principal place of business. Sec. 360.611 How must I change or cancel a designation? (a) A designation may be canceled or changed only by a new
designation except that, where a motor carrier, broker or freight
forwarder ceases to be subject to Sec. 360.605 in whole or in part for
1 year, designation is no longer required and may be canceled without
making another designation.
(b) You must file the change using a new Form BOC-3--Designation of
Agents--Motor Carriers, Brokers and Freight Forwarders. You may file
the Form BOC-3 on-line at the FMCSA web site or by mail.
(c) A valid, up-to-date designation must be on file with FMCSA as
long as you are subject to, in whole or in part, Sec. 360.605. Changes
in designation must be filed with FMCSA in such a manner that no lapses
in designation occur.
(d) You must retain a copy of this change or cancellation at your
principal place of business.
(e) A cancellation request will become effective 30 days after
receipt of your Form BOC-3.
(f) You may not operate in any State for which you cancel your
designation until you designate a new service agent for that State. Subpart H--Cancellation, Reinstatement and Deactivation of USDOT
Registration Sec. 360.701 What procedures must I follow to cancel my USDOT
registration? (a) You must submit a request to cancel a USDOT Number by one of
the following methods: (1) Electronically on the FMCSA Web site at: http://www.fmcsa.dot.gov, or (2) By mail.
(b) A USDOT Number cancellation request must include the following
applicable certification statement:
(1) If executed outside the United States: [[Page 29059]] ``I declare (or certify, verify, or state) under penalty of
perjury under the laws of the United States of America that I have
the authority to seek the requested cancellation of this USDOT
Number. Executed on (date).
(Signature)''.
or (2) If executed within the United States, its territories,
possessions, or commonwealths: ``I declare (or certify, verify, or state) under penalty of
perjury that I have the authority to seek the requested cancellation
of this USDOT Number. Executed on (date). (Signature)''. Sec. 360.703 How will FMCSA process a request to cancel a USDOT
registration? (a) Upon receipt of the USDOT registration cancellation request,
FMCSA will mark your registration as inactive and you will no longer be
authorized to operate interstate commerce. (b) If you operate in interstate commerce after canceling your
USDOT registration, you will be subject to civil and/or criminal
penalties under 49 U.S.C. 5 and 49 U.S.C. chapter 149. Sec. 360.705 For what other reasons will FMCSA deactivate my USDOT
registration? (a) FMCSA will mark your registration as inactive and revoke your
registration to operate in interstate commerce if: (1) You fail to have on file with FMCSA evidence of the necessary
financial responsibility, as required by part 387 of this subchapter;
or (2) You fail to have on file with FMCSA your agents for service of
process, as required by subpart G of this part. (b) If you operate in interstate commerce after FMCSA marks your
registration inactive, you will be subject to civil and/or criminal
penalties under 49 U.S.C. Chapters 5 and 149. Sec. 360.707 Can I reinstate an inactive USDOT registration? (a) You may reinstate registration marked inactive under this
subpart under the following conditions: (1) You request reinstatement within 2 years of the date your
registration is marked inactive; (2) You file, or cause to be filed with FMCSA, the necessary
evidence of financial responsibility and designation of agents for
service of process; (3) You pay the reinstatement fee prescribed in Sec. 360.401; and (4) If you are a motor carrier, you will be considered a new
entrant subject to the requirements of the New Entrant Safety Assurance
Program in part 385, subpart D of this subchapter, unless you have
previously completed the new entrant program requirements. (b) If your registration has been marked inactive for more than 2
years and you wish to resume operations in interstate commerce: (1) You must reapply to activate your previously-issued USDOT
Number under the procedures in subpart A of this part. (2) If you are a motor carrier, you will be considered a new
entrant subject to the requirements of the New Entrant Safety Assurance
Program in part 385, subpart D of this subchapter. PART 365--[AMENDED] 2. The authority citation for part 365 continues to read as
follows: Authority: 5 U.S.C. 553 and 559; 16 U.S.C. 1456; 49 U.S.C.
13101, 13301, 13901-13906, 14708, 31138, and 31144; 49 CFR 1.73. Subparts A Through D [Removed and Reserved] 3. Remove and reserve subparts A through D of part 365.
PART 366--[REMOVED AND RESERVED]
4. Remove and reserve part 366.
PART 368--[REMOVED AND RESERVED]
5. Remove and reserve part 368. PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR
CARRIERS 6. The authority citation for part 387 continues to read as
follows: Authority: 49 U.S.C. 13101, 13301, 13906, 14701, 31138, and
31139; and 49 CFR 1.73. 7. Amend Sec. 387.33 by redesignating the unnumbered paragraph as
paragraph (a), by adding the subheading ``General limits'' at the
beginning of paragraph (a), and by adding paragraph (b) to read as
follows: Sec. 387.33 Financial responsibility, minimum levels. (a) General limits. * * *
(b) Limits applicable to transit service providers. Notwithstanding
the provisions of 49 CFR 387.33(a), the minimum level of financial
responsibility for a motor vehicle used to provide transportation
services within a transit service area located in more than one State
under an agreement with a Federal, State, or local government funded,
in whole or in part, with a grant under 49 U.S.C. 5307, 5310, or 5311,
including transportation designed and carried out to meet the special
needs of elderly individuals and individuals with disabilities, will be
the highest level required for any of the States in which it operates.
Transit service providers conducting such operations must register as
for-hire passenger carriers under part 365 of this subchapter, identify
the States in which they operate under the applicable grants, and
certify on their registration documents that they have in effect
financial responsibility levels in an amount equal to or greater than
the highest level required by any of the States in which they are
operating under a qualifying grant.
8. Amend Sec. 387.301 by revising paragraphs (a)(1) and (b) to
read as follows: Sec. 387.301 Surety bond, certificate of insurance, or other
securities. (a) Public liability. (1) No for-hire motor carrier of property and
passengers, and no private motor carrier of hazardous materials, shall
engage in interstate commerce unless and until there shall have been
filed with and accepted by FMCSA a certificate of insurance, surety
bond, proof of qualification as self-insurer, or other securities or
agreements in the amounts set forth in Sec. 387.303, conditioned to
pay any final judgment recovered against such motor carrier for bodily
injuries to or the death of any person resulting from the negligent
operation, maintenance or use of motor vehicles in transportation, or,
in the case of motor carriers of property operating freight vehicles
described in Sec. 387.303(b)(2), for environmental restoration. No
registration issued to a motor carrier transporting property or
passengers by motor vehicle subject to Subtitle IV, part B, chapter 135
of title 49 of the U.S. Code shall remain in force unless the necessary
evidence of public liability insurance coverage is continuously on file
with FMCSA.
* * * * * (b) Household goods. No motor carrier subject to Subtitle IV, part
B, chapter 135 of title 49 of the U.S. Code that provides
transportation of household goods, as defined in Sec. 375.1(b) of this
subchapter, shall engage in interstate commerce, nor shall any
registration be issued to such a carrier or remain in force unless and
until there shall have been filed with and accepted by FMCSA, a surety
bond, certificate of insurance, proof of qualifications as a self-
insurer, or other securities or agreements in the amounts prescribed in
Sec. 387.303, conditioned upon such carrier making compensation to
shippers or consignees and coming into the possession of such carrier
in [[Page 29060]] connection with its transportation services. 9. Amend Sec. 387.303 by revising paragraphs (b)(2) and (c) to
read as follows: Sec. 387.303 Security for the protection of the public: Minimum
limits (a) * * *
(b)(1) * * *
(2) Motor carriers subject to Sec. 387.301(a)(2) are required to
have security for the required minimum limits as follows: ------------------------------------------------------------------------
Kind of equipment Commodity transported Amount
------------------------------------------------------------------------
(a) Freight vehicles of 10,000 Property (non- $750,000
pounds (4,536 kilograms) or hazardous).
more GVWR.
(b) Freight vehicles of 10,000 Hazardous substances, 5,000,000
(4,536 kilograms) pounds or as defined in Sec.
more GVWR. 171.8 of this title,
transported in cargo
tanks, portable
tanks, or hopper-
type vehicles with
capacities in excess
of 3,500 water
gallons, or in bulk
Class A or B
explosives, poison
gas, (Poison A),
liquefied compressed
gas or compressed
gas, or highway
route controlled
quantity or
radioactive
materials as defined
in Sec. 173.455 of
this title.
(c) Freight vehicles of 10,000 Oil listed in Sec. 1,000,000
pounds (4,536 kilograms) or 172.101 of this
more GVWR. title; hazardous
waste, hazardous
materials and
hazardous substances
defined in Sec.
171.8 of this title
and listed in Sec.
172.101 of this
title, but not
mentioned in (b)
above or (d) below.
(d) Freight vehicles under Any quantity of class 5,000,000
10,000 pounds (4,536 A or B explosives;
kilograms) GVWR. any quantity of
poison gas (Poison
A); or highway route
controlled quantity
radioactive
materials as defined
in Sec. 173.455 of
this title.
------------------------------------------------------------------------* * * * * (c) Cargo liability. Motor carriers and freight forwarders of
household goods are required to obtain and maintain insurance in the
amount of $5,000 for loss of or damage to property carried on any one
vehicle and $10,000 for loss of or damage to or aggregate losses or
damages occurring at any one time or place. 10. Amend Sec. 387.403 by revising paragraph (a) to read as
follows: Sec. 387.403 General requirements. (a) Cargo. A household goods freight forwarder may not operate
until it has filed with FMCSA an appropriate surety bond, certificate
of insurance, qualifications as a self-insurer, or other securities or
agreements, in the amounts prescribed in Sec. 387.405, for loss of or
damage to property. * * * * * PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL 11. The authority for part 390 continues to read as follows: Authority: 49 U.S.C. 508, 13301, 13902, 31133, 31136, 31502,
31504, and sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 U.S.C.
701 note); sec. 114, Pub. L. 103-311, 108 Stat. 1673, 1677; sec.
217, Pub. L. 106-159, 113 Stat. 1748, 1767; and 49 CFR 1.73. Sec. 390.19 [Removed and Reserved] 12. Remove and reserve Sec. 390.19. Issued on: May 11, 2005.
Annette M. Sandberg,
Administrator.
[FR Doc. 05-9692 Filed 5-11-05; 3:55 pm]
|
