[Federal Register Volume 61, Number 92 (Friday, May 10, 1996)]
[Rules and Regulations]
[Pages 21387-21388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11742]



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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board

49 CFR Parts 1164 and 1311

[STB Ex Parte No. 545]


Removal of Obsolete Regulations Concerning Owner-Operators

AGENCY: Surface Transportation Board.

ACTION: Final rule.

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SUMMARY: The Surface Transportation Board (the Board) is removing from 
the Code of Federal Regulations obsolete regulations concerning owner-
operators.

EFFECTIVE DATE: May 10, 1996.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-7513. [TDD for 
the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: Effective January 1, 1996, the ICC 
Termination Act of 1995, Pub. L. No. 104-88, 109 Stat. 803 (ICCTA) 
abolished the Interstate Commerce Commission (ICC) and established the 
Board within the Department of Transportation. Section 204(a) of ICCTA 
provides that ``[t]he Board shall promptly rescind all regulations 
established by the [ICC] that are based on provisions of law repealed 
and not substantively reenacted by this Act.''
    Generally, prior to enactment of the Motor Carrier Act of 1980 
(MCA-80), motor common and contract carriers needed licenses from the 
ICC (certificates for common carriers, permits for contract carriers) 
in order to operate. These licenses were based on public convenience 
and necessity and fitness standards. Motor common and contract carriers 
could only charge rates that were filed with the ICC in tariffs or 
schedules.
    The regulations involved here relaxed these regulatory requirements 
for owner-operators transporting food. The part 1164 regulations were 
based on former 49 U.S.C. 10922(b)(4)(E), 10923(b)(5)(A), and 11145(c). 
The part 1311 regulations were based on former 49 U.S.C. 10762(a)(1) 
and 10762(g), as well as former sections 10922(b)(4)(E) and 
10923(b)(5)(A). Under the Trucking Industry Regulatory Reform Act 
(TIRRA), Title II of the Hazardous Materials Transportation Act 
Amendments of 1994, Pub. L. No. 103-311 (August 26, 1994), and the 
ICCTA, these statutory provisions were repealed, and we are accordingly 
removing the obsolete part 1164 and part 1311 regulations.

PART 1164--LICENSING

    Sections 5(a)(3) and 10(a)(2) of the MCA-80 provided exceptions for 
owner-operators to the licensing provisions then generally applicable 
for obtaining certificates and permits. These sections of the MCA-80 
were codified, as here relevant, at former 49 U.S.C. 10922(b)(4)(E) and 
49 U.S.C. 10923(b)(5)(A). Owner-operators were allowed to obtain 
operating authority from the ICC to transport food and certain other 
commodities 1 through a fitness-only application procedure.2 
The ICC issued regulations implementing the new statute in Owner-
Operator Food Transportation, 132 M.C.C. 521 (1981) (Owner-
Operator).3
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    \1\  These commodities were food and other edible products 
included for human consumption (excluding alcoholic beverages and 
drugs), agricultural limestone, and fertilizers and other soil 
conditioners. For brevity, these commodities will be referred to as 
food products.
    \2\  The statute limited this provision to transportation by the 
owner of the vehicle, except in emergency situations, and to 
situations in which the annual tonnage of food products transported 
did not exceed the annual tonnage of exempt commodities transported. 
Former 49 U.S.C. 11145(c) required the ICC to ``streamline'' the 
annual method of reporting tonnage.
    \3\  These regulations were originally found in 49 CFR part 
1138, but they were redesignated at 49 CFR part 1164 on November 1, 
1982 (47 FR 49534). They defined the term ``emergency situations'' 
and promulgated an annual reporting requirement to certify 
compliance with the statute's annual tonnage limitation.
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    TIRRA again amended former sections 10922 and 10923. Sections 207 
and 208 of TIRRA eliminated the provisions of 49 U.S.C. 10922(b)(4)(E) 
and 49 U.S.C. 10923(b)(5)(A) and also modified other parts of sections 
10922 and 10923 to apply the fitness-only standard to all non-household 
goods motor property common and contract carrier applicants. See 
Revised MC-Licensing Appl. Forms and Regs., 10 I.C.C.2d 386, 387 
(1994).4 Thus, since the passage of TIRRA, owner operators have 
been able to obtain authority to transport food products under that 
standard regardless of the annual tonnage and ownership of the 
vehicle.5
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    \4\  Effective January 1, 1995, the ICC was to issue authorities 
to carriers upon finding that the applicant was in compliance with 
(1) ICC regulations and safety requirements; (2) DOT safety fitness 
requirements; and (3) minimum financial responsibility requirements 
established by the ICC pursuant to 49 U.S.C. 10927.
    \5\  Truck licensing was again changed under the ICCTA. 
Permanent licensing for motor carriers of property was eliminated. 
49 U.S.C. 13902. Now, motor carriers are registered for a term 
determined by the Secretary of Transportation based on fitness 
standards (safety and insurance) similar to those in TIRRA. A two-
year transition period is established to allow motor common and 
contract carriers to be issued certificates and permits under the 
TIRRA framework. 49 U.S.C. 13902(d). Although ICCTA eliminates the 
distinction between motor common and contract carriage, each carrier 
can be separately registered during the transition period.
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    Because former sections 10922(b)(E)(5), 10923(b)(5)(A), and 
11145(c) have been eliminated, we will remove the obsolete regulations 
at 49 CFR part 1164.

PART 1311--RATE FILINGS

    Section 5(a) of the MCA-80 modified for owner-operators the 
requirement to file tariffs and schedules: former 49 U.S.C. 10762 was 
amended by the addition of a new subsection (g) mandating the 
streamlining of rate filing requirements of motor carriers holding 
authority issued under former section 10922(b)(4)(E) and 
10923(b)(5)(a). Also, former section 10762(a)(1) was amended

[[Page 21388]]

to require the filing of only minimum rates for owner-operator 
transportation of food products. In Owner-Operator, supra, the ICC 
adopted regulations at 49 CFR part 1311 that permitted owner-operators 
of food products to file, in lieu of tariffs or schedules, a letter 
statement containing the transportation services performed and the 
minimum rates.6
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    \6\ The ICC later eliminated by exemption the requirement that 
motor contract carriers file a schedule of rates. Exemption--Mtr. 
Contr. Car.--Tariff Filing Requirements, 133 M.C.C. 150 (1983), 
aff'd sub nom. Central & Southern Motor Freight Ass'n v. United 
States, 757 F.2d 301 (D.C. Cir. 1985), cert. denied, 474 U.S. 1019 
(1985).
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    Section 206 of TIRRA further amended former section 10762(a)(1) by 
removing the tariff filing requirement for individually (as 
distinguished from collectively) set rates of motor common carriers of 
property (other than household goods and carriers involved with water 
carriers in the noncontiguous domestic trade). Motor contract carriers 
were no longer required to file actual or minimum rates.7
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    \7\ Although sections 207 and 208 of TIRRA eliminated former 
sections 10922(b)(4)(E) and 10923(b)(5)(A), TIRRA did not remove 
former section 10762(g), the provision for streamlined rate filing 
for owner-operator transportation of food products.
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    The ICCTA further modified the rate filing requirements. Former 
section 10762(g) was removed. Now, under 49 U.S.C. 13702, motor 
carriers only need to file a tariff with the Board for transportation 
in noncontiguous domestic trade (with certain exceptions).
    Because the statutory bases for the part 1311 regulations have been 
repealed, we are eliminating these obsolete rules.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

List of Subjects

49 CFR Part 1164

    Foods, Freight, Motor carriers, Reporting and recordkeeping 
requirements.

49 CFR Part 1311

    Foods, Freight, Motor carriers.

    Decided: April 24, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.

PARTS 1164 AND 1311--[REMOVED]

    For the reasons set forth in the preamble and under the authority 
of 49 U.S.C. 721(a), title 49, chapter X of the Code of Federal 
Regulations is amended by removing parts 1164 and 1311.

[FR Doc. 96-11742 Filed 5-9-96; 8:45 am]
BILLING CODE 4915-00-P