[Federal Register Volume 61, Number 204 (Monday, October 21, 1996)]
[Proposed Rules]
[Pages 54711-54712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26668]


Federal Register / Vol. 61, No. 204 / Monday, October 21, 1996 / 
Proposed Rules

[[Page 54711]]


Federal Highway Administration

49 CFR Part 369

[FHWA Docket No. MC-96-37]
RIN 2125-AE02

Compensated Intercorporate Hauling

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice of proposed rulemaking (NPRM); request for comments.


SUMMARY: This document proposes to remove the regulation that 
delineates the scope and notice filing requirements of the statutory 
exemption for compensated intercorporate hauling. Section 103 of the 
ICC Termination Act of 1995 removed the requirement that a notice be 
filed before initiation of compensated intercorporate hauling 
operations. Removal of the regulation would reflect the statutory 
change and is consistent with the overall intent of the ICC Termination 
Act of 1995 to eliminate unnecessary regulation.

DATES: Written comments must be submitted on or before December 20, 

ADDRESSES: Submit signed, written comments to FHWA Docket No. MC-96-37, 
FHWA, Office of the Chief Counsel, HCC-10, Room 4232, 400 Seventh 
Street SW., Washington, DC 20590. All comment received will be 
available for examination at the above address from 8:30 a.m. to 3:30 
p.m., e.t., Monday through Friday, except Federal holidays. Those 
desiring notification of receipt of comments must include a self- 
addressed, stamped postcard/envelope.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas T. Vining or Ms. Patricia 
A. Burke, Office of Motor Carrier Information Analysis, HIA-30, (202) 
927-5520, or Ms. Grace Reidy, Office of the Chief Counsel, (202) 366-
0834, Federal Highway Administration, 400 Seventh Street, SW., 
Washington, DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., 
e.t., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: The former Interstate Commerce Act contained 
an exemption from ICC regulation at 49 U.S.C. 10524(b) for compensated 
transportation service by a member of a corporate family, for other 
members of the same family, if proper notice was given. To qualify for 
the exemption, the participants were required to be members of a 
corporate family in which the parent owned, either directly or 
indirectly, a 100 percent interest in the subsidiaries. Corporate 
entities availing themselves of the exemption were also required to 
file a notice, which was published in the Federal Register, listing the 
participating subsidiaries and certifying 100 percent ownership by the 
corporate parent.
    The ICC Termination Act of 1995 (ICCTA), Public Law 104-88, 109 
Stat. 803, reenacted the substantive exemption for compensated 
intercorporate hauling, but removed the requirement for filing of a 
notice of operations under the exemption, 49 U.S.C. 13505(b). Although 
the ICCTA does not prohibit imposition of a notice requirement by the 
FHWA, which has assumed responsibility for these regulations pursuant 
to the ICCTA, the continuing need for such a requirement, or for any 
regulations on this subject, is doubtful.
    The provisions of 49 CFR Part 369 merely restate the scope of the 
exemption as set out in the statute. Sections 369.22 and 369.23 cover 
the form and content of the notice and when an updated notice must be 
filed. These regulations appear to serve little purpose. In particular, 
the information contained in the notice can be easily checked by the 
FHWA if it ever appears that a corporation is conducting operations 
which exceed the scope of the exemption. Because the ICCTA essentially 
limits licensing requirements to compliance with safety and insurance 
requirements, there also appears to be no incentive for a corporation 
to use the exemption as a cover for unlicensed transportation 
operations. The corporation could easily obtain operating authority for 
legitimate operations. Thus, the regulations at 49 CFR 369 no longer 
have any meaningful regulatory requirements and the FHWA proposes to 
remove them. The FHWA invites comments on this proposal.

Rulemaking Analyses and Notices

    All comments received before the close of business on the comment 
closing date indicated above will be considered and will be available 
for examination in the docket at the above address. Comments received 
after the comment closing date will be filed in the docket and will be 
considered to the extent practicable, but the FHWA may issue a final 
rule at any time after the close of the comment period. In addition to 
late comments, the FHWA will also continue to file in the docket 
relevant information that becomes available after the comment closing 
date, and interested persons should continue to examine the docket for 
new material.

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

    The FHWA has determined that this action is not a significant 
regulatory action within the meaning of Executive Order 12866 or 
significant within the meaning of Department of Transportation 
regulatory policies and procedures. It is anticipated that the economic 
impact of this rulemaking will be minimal; therefore, a full regulatory 
evaluation is not required. The rulemaking merely proposes to eliminate 
a notice filing requirement which applies to a small number of 
transportation entities. Neither the individual nor cumulative impact 
of this action will be significant.

Regulatory Flexibility Act

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

Executive Order 12612 (Federalism Assessment)

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

Executive Order 12372 (Intergovernmental Review)

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

Paperwork Reduction Act

    This action does not contain a collection of information 
requirement for purposes of the Paperwork Reduction Act of 1995, 44 
U.S.C. 3501 et seq. It does eliminate a requirement that parties taking 
advantage of the exemption at 49 U.S.C. 13505(b) prepare and file a 
notice of their operations. This action is thus consistent with goals 
of the Paperwork Reduction Act.

[[Page 54712]]

National Environmental Policy Act

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

Regulation Identification Number

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

List of Subjects in 49 CFR 369

    Highways and roads.

    Issued on: September 30, 1996.
Rodney E. Slater,
Federal Highway Administrator.
    In consideration of the foregoing and under the authority of 
section 103 of the ICC Termination Act of 1995, Public Law 104-88, 109 
Stat. 803, and 49 CFR 1.48, the FHWA proposes to amend title 49, CFR, 
chapter III, by removing Part 369.
[FR Doc. 96-26668 Filed 10-18-96; 8:45 am]