[Federal Register Volume 60, Number 189 (Friday, September 29, 1995)]
[Notices]
[Pages 50645-50646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24264]



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INTERSTATE COMMERCE COMMISSION
[Ex Parte No. MC-5 (Sub-No. 12)]


Procedural Change in Authority Revocation Process

AGENCY: Interstate Commerce Commission.

ACTION: Notice of Procedural Change.

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SUMMARY: The purpose of this Notice is to announce changes, effective 
October 15, 1995, in the Commission's internal procedures for 
revocation of operating authority based upon noncompliance with the 
financial security provisions of 49 U.S.C. 10927 and 49 CFR 1043.

DATES: The revised internal procedures announced here will apply to 
insurance, surety bond and trust fund notices of cancellation filed on 
or after October 15, 1995. Comments must be filed by October 10, 1995.

ADDRESSES: Send comments (an original and 10 copies) referring to: 
Docket No. Ex Parte No. MC-5 (Sub-No. 12), Procedural Change in 
Authority Revocation Process, to the Office of the Secretary, Case 
Control Branch, Interstate Commerce Commission, 1201 Constitution 
Avenue, NW., Washington, DC 20423.

FOR FURTHER INFORMATION CONTACT: Dixie E. Horton, (202) 927-5520 or 
Patricia A. Burke, (202) 927-5520. [TDD for the hearing impaired: (202) 
927-5721.]

SUPPLEMENTARY INFORMATION: The Interstate Commerce Act requires that 
motor carriers, brokers, and household goods freight forwarders must 
maintain insurance or other security in order to operate in interstate 
commerce. Under our current insurance and surety compliance program, as 
soon as we learn that a regulated entity's insurance is about to lapse, 
we initiate a license revocation proceeding. The revocation process, 
however, is not completed until 120 days after the date when the 
security is cancelled. We intend to shorten and simplify the revocation 
process in order to better protect the public and to make better use of 
scarce Commission resources without impinging on an authority holder's 
rights under the statute.
    Under the Commission's current revocation process, when the 
Commission receives a 30-day advance notice of cancellation from an 
insurer about to cancel a carrier's or a household goods freight 
forwarder's insurance, or a broker's surety bond or trust fund 
agreement, it immediately sends a letter to the carrier, forwarder or 
broker. The letter advises the authority holder of the cancellation 
date, and it indicates that any operations without insurance are 
unlawful and that revocation proceedings will begin in the event of 
failure to comply with insurance requirements. Unless the Commission 
receives acceptable evidence demonstrating that the authority holder's 
insurance or security has been renewed by the end of the 30-day advance 
notification period, the agency institutes a revocation proceeding 
(first decision). The first decision requires the holder either to show 
cause why its authority should not be revoked or to achieve compliance 
within 60 days. After 60 days, if the Commission has not received 
notification of insurance or broker security renewal, a second decision 
is issued, establishing a second 60-day compliance period (second 
decision). If the Commission has not received evidence of an acceptable 
insurance filing by the end of the second 60-day period, the authority 
stands revoked. A final notice (third decision) is then issued formally 
revoking the authority. If, however, compliance is achieved within 
either of the 60-day periods, a notice of discontinuance of the 
revocation proceeding is issued.
    In our continuing efforts to ensure that our regulatory procedures 
are performed efficiently and effectively, we have concluded that the 
current procedure is too labor-intensive, and, because it is so time-
consuming, it has the potential for putting the public at unnecessary 
risk. We do not have sufficient staff to issue 4 documents to complete 
what ought to be a ministerial process. Moreover, a carrier, broker, or 
household goods forwarder retains its license for 4 months after its 
security has lapsed; during that period of time, the public is at risk 
from uninsured carriers that may continue operating--albeit 
unlawfully--under color of their license. Shortening our revocation 
procedures will conserve scarce resources and better protect the 
public.
    Under the revised procedures, upon receipt of the 30-day advance 
notice of cancellation filed by the insurer, the Commission will issue 
an initial order to the carrier, broker, or forwarder instituting a 
revocation proceeding. The order will note the cancellation date and 
will indicate that any operations without insurance are unlawful. This 
order will also direct the authority holder either to obtain 
replacement coverage or to show good cause within 30 days of the 
service date of the order why its authority should not be revoked. The 
order will further provide that failure to respond or comply within 30 
days of the service date of the order shall result in revocation of its 
operating rights. In the event that acceptable evidence of insurance is 
not filed within the 30-day period, or that the authority holder has 
not shown cause why its authority should not be revoked, a final order 
will be issued notifying the holder that its operating authority has 
been revoked.
    If the holder achieves compliance within the 30-day period, a 
notice discontinuing the revocation proceeding will be issued. Pending 
receipt of the notice, the authority holder will have various options 
to verify its renewed compliance prior to notification of the 
discontinuance. It could confirm that we have received acceptable 
filings by contacting its own insurance company/agent or the 
Commission's Regional offices, or by accessing the Commission's 
Automated Response Capability system at (202) 927-7600. Copies of the 
initial order, and the final revocation order or the notice 
discontinuing the proceeding will continue to be placed in the 
authority holder's public docket file.
    These procedures--under which a four-step process concluding 120 
days beyond an insurance lapse is replaced with a two-step process 
concluding within a few days after an insurance lapse--will not alter 
substantive rights and responsibilities. They simply provide for a more 
effective and expeditious method of protecting the public from 
operations by uninsured motor carriers, brokers and forwarders by 
reducing the time period within which operating authorities will be 
revoked for failure to comply with 49 U.S.C. 10927.1

    \1\ Under section 10927, the holder's authority remains in 
effect only so long as the holder is in compliance with the security 
limits.
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    We will provide a brief comment period to enable interested parties 
to submit written statements or arguments regarding the revised 
process. Notice of the procedural change will be published in the 
Federal Register and the ICC Register, and interested parties will have 
10 days to comment.

Environmental Statement

    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.


    Authority: 49 U.S.C. 10925 and 10927; 49 CFR 1043 and 1084.

    Decided: September 25, 1995.


[[Page 50646]]

    By the Commission, Chairman Morgan, Vice Chairman Owen, and 
Commissioners Simmons and McDonald.
Vernon A. Williams,
Secretary.
[FR Doc. 95-24264 Filed 9-28-95; 8:45 am]
BILLING CODE 7035-01-P