[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Notices]
[Page 55598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27136]



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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; suspension of effective date.

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SUMMARY: The purpose of this Notice is to address the written comments 
filed in this proceeding, and to suspend the effective date for 
implementation of the changes 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.

EFFECTIVE DATE: The revised internal procedures announced here will 
apply to insurance, surety bond and trust fund notices of cancellation 
filed on or after November 1, 1995. The earlier-announced effective 
date of October 15, 1995, has been suspended until November 1, 1995.

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: In a Notice served September 29, 1995, and 
published in the Federal Register at 60 FR 50645, we announced revised 
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. Under the new procedures, as soon as the Commission 
receives notice that a carrier's insurance is to be canceled, the 
Commission will serve an order giving the carrier 30 days in which to 
obtain insurance, or its authority will be revoked. The public was 
invited to comment, and the effective date of the change was to be 
October 15, 1995.
    Comments were filed by four parties: the American Insurance 
Association, the American Movers Conference, the American Trucking 
Associations and the Regular Common Carrier Conference (RCCC). In 
general, the commenters support our changes and recognize the need for 
a shorter revocation period. Some commenters, however, have raised 
certain reservations about our revised procedures, which we will 
address.
    In particular, some commenters express concern about a carrier's 
ability to achieve compliance within the 30-day period after it is 
notified that its insurance is about to lapse, or the Commission's 
ability to process filings in a timely manner. We recognize that our 
new procedure increases the responsibility of the authority holder and 
its security holder to comply in a timely manner, and that it also 
heightens the responsibility of the Commission to process all filings 
efficiently. The 30-day period, however, does not begin to run until 
the agency has received an insurer's notice of cancellation, has 
entered it into the computer system, and has served the order notifying 
the carrier of its impending noncompliance. Thus, the carrier will in 
fact have more than 30 days in which to achieve compliance prior to any 
actual revocation of authority. Given the public interest in keeping 
uninsured carriers off the roads, we believe that the revised 
procedures provide sufficient time for carriers to achieve compliance. 
We note that carriers may expedite their compliance by having their 
insurance companies use the new option of filing evidence of insurance 
and other financial security electronically.
    The RCCC recommends that we modify the current 30-day notice period 
of 49 CFR 1043.7(d), to require insurance carriers to give 60-days 
notice of cancellation to the agency, in order to provide more time in 
which motor carriers can perfect their new insurance filings. We see no 
need to put the burden of carrier noncompliance on the insurance 
industry. As we have noted, carriers should be able to remain in 
compliance with the law, even with the current 30-day notification 
requirement. We will, however, monitor the new procedures and will be 
open to requests for further modification should it be warranted. An 
efficient and fair revocation process, which will require due diligence 
on the part of all involved, will be beneficial to the motor carrier 
industry and the public.
    Because the replacement of the 4-document, 120-day process with the 
2-document, 30-day process requires modification to the Commission's 
computer system, which has not yet been completed, we will suspend the 
effective date of the new changes until November 1, 1995.

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: October 26, 1995.

    By the Commission, Chairman Morgan, Vice Chairman Owen, and 
Commissioner Simmons.
Vernon A. Williams,
Secretary.
[FR Doc. 95-27136 Filed 10-31-95; 8:45 am]
BILLING CODE 7035-01-P