[Federal Register Volume 62, Number 113 (Thursday, June 12, 1997)]
[Rules and Regulations]
[Pages 32040-32048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15441]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Parts 356, 370 and 379

RIN 2125-AE12


Motor Carrier Routing Regulations; Disposition of Loss and Damage 
Claims and Processing Salvage; Preservation of Records

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document adds to 49 CFR chapter III certain motor carrier 
transportation regulations, also codified in 49 CFR chapter X, which 
involve functions delegated to both the FHWA and the Surface 
Transportation Board (STB). These regulations govern motor carrier 
routing, the processing of claims for loss or damage, and the 
preservation of records. The Interstate Commerce Commission Termination 
Act of 1995 (ICCTA) abolished the Interstate Commerce Commission (ICC) 
and transferred certain functions and proceedings to the STB and the 
DOT. The Secretary of Transportation delegated to the FHWA certain 
motor carrier functions which were transferred to the DOT from the ICC. 
On October 21, 1996, the FHWA and the STB issued a final rule which 
transferred and redesignated those regulations in 49 CFR chapter X 
involving functions exclusively within the jurisdiction of the FHWA. 61 
FR 54706. This document completes the transfer process. Technical 
changes have been made to the regulations, where appropriate, to 
conform with current statutory citations and definitions and the 
transfer of regulatory functions to the Department of Transportation.

EFFECTIVE DATE: June 12, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. John F. Grimm, Director, Office of 
Motor Carrier Information Analysis, (202) 366-4039, or Mr. Michael 
Falk, Motor Carrier Law Division, Office of the Chief Counsel, (202) 
366-1384, at 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: This document adopts certain motor carrier 
transportation regulations codified in 49 CFR chapter X and 
incorporates them, with appropriate technical changes, into 49 CFR 
chapter III. These regulations involve motor carrier routing, 
processing of claims for loss and damage, and preservation of records. 
The ICCTA, Pub. L. 104-88, 109 Stat. 803, which was enacted on December 
29, 1995, and took effect on January 1, 1996, abolished the ICC and 
transferred certain functions and proceedings to the STB and the DOT. 
Certain motor carrier functions previously under the jurisdiction of 
the ICC were transferred to the Secretary of Transportation, who 
subsequently delegated those functions to the FHWA. Implementing 
regulations for those motor carrier functions delegated exclusively to 
the FHWA have already been redesignated and transferred to 49 CFR 
chapter III, where regulations under the authority of the FHWA are 
codified. 61 FR 54706 (October 21, 1996).
    Unlike the transfer and redesignation procedure employed in that 
proceeding, the regulations embraced by this proceeding will be added 
to chapter III but not removed from chapter X. No substantive changes 
are being made to the regulations at this time. Consequently, prior 
notice and opportunity for comment are unnecessary.

Summary of Technical Changes From 49 CFR Chapter X Regulations

    The regulations being added to chapter III in this proceeding have 
been modified to reflect current statutory citations, jurisdictional 
delegations, and regulatory responsibilities. Accordingly, references 
to the ``Interstate Commerce Act'' in the chapter X regulations have 
been changed to ``49 U.S.C. subtitle IV, part B'' and references to the 
``ICC'' or ``Commission'' have been changed to either the ``Secretary'' 
or ``FHWA'', where appropriate. Other differences between the chapter X 
regulations and the regulations being added to chapter III in this 
proceeding are discussed below.

Interpretations and Routing Regulations (Part 356)

    These regulations are currently found in 49 CFR part 1004 and are 
being added to chapter III as part 356 with the changes noted below.
    All references to ``household goods'' appearing in 49 CFR part 1004 
have been deleted from part 356 to reflect the Secretary's registration 
jurisdiction, which embraces all freight forwarders. Since the part 356 
regulations are essentially interpretive and impose no affirmative 
compliance requirements, including all freight forwarders within this 
part is not a substantive regulatory change.
    The FHWA is not incorporating 49 CFR 1004.26 into part 356 because 
that section involves claims and disputes relating to the lawfulness of 
shipment routing, matters which are within the jurisdiction of the 
Surface Transportation Board under 49 U.S.C. 13701.

Principles and Practices for the Investigation and Voluntary 
Disposition of Loss and Damage Claims and Processing Salvage (Part 370)

    These regulations are currently found in 49 CFR part 1005 and are 
being added to chapter III as part 370 with the changes noted below.
    Section 370.1 does not include the words ``railroad'' and ``express 
company'', which are contained in 49

[[Page 32041]]

CFR 1005.1. Inasmuch as 49 CFR 1005.7 pertains solely to rail 
transportation, it has not been incorporated into part 370.

Preservation of Records (Part 379)

    These regulations are currently found in 49 CFR part 1220 and are 
being added to chapter III as part 379 with the changes noted below.
    The words ``railroad companies'', ``electric railway companies'', 
``express companies'', ``persons furnishing cars to railroads'', 
``ratemaking organizations'', and ``demurrage and car service bureaus'' 
which appear in 49 CFR 1220 have not been incorporated into part 379. 
Appendix A does not contain requirements regarding the preservation of 
records relating to tariffs and rates and rail transportation since 
such matters fall within the jurisdiction of the STB.

Rulemaking Analyses and Notices

    Because the amendments made by this document relate to departmental 
management, organization, procedure, and practice, prior notice and 
opportunity for comment are unnecessary under 5 U.S.C. 553(b)(3)(A). In 
addition, prior notice and opportunity for comment are unnecessary 
pursuant to 5 U.S.C. 553(b)(3)(B) because the process of incorporating 
existing regulations into chapter III is merely technical in nature and 
proposes no substantive changes to which public comment could be 
solicited. Issuing this document as a final rule is also in the public 
interest because, once codified in chapter III, the sections now under 
the FHWA's jurisdiction may be modified or removed readily to 
correspond with the FHWA's new functions.
    This final rule is made effective upon publication in the Federal 
Register. The FHWA believes that good cause exists for this final rule 
to be exempt from the 30-day delayed effective date requirement of 5 
U.S.C. 553(d) for the above reason and because the process of adding 
the motor carrier transportation regulations to chapter III makes no 
substantive changes to the regulations. In fact, the sooner the 
regulations are incorporated into chapter III, the more quickly the 
FHWA can begin the process of updating those regulations and making 
necessary changes to them.

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. This final rule simply provides notice to 
the public that certain motor carrier transportation regulations 
currently found in 49 CFR chapter X are being incorporated into 49 CFR 
chapter III. No substantive changes are being made to the existing 
regulations. The regulations are simply being added to chapter III of 
title 49 of the Code of Federal Regulations so that the FHWA may 
administer and execute those motor carrier functions transferred to it 
from the ICC by the ICCTA.

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. As noted above, this final rule 
simply provides notice to the public that certain motor carrier 
transportation regulations currently found in 49 CFR chapter X are 
being incorporated into 49 CFR chapter III. No substantive changes are 
being made to the regulations which will affect small entities.

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. In the course of its ongoing regulatory review 
process, the FHWA will be reviewing these regulations in the near 
future and, where appropriate, may propose substantive changes. At that 
point in time, the FHWA intends to solicit public comment on the 
information collection burdens associated with these regulations, and 
to seek and obtain Office of Management and Budget approval.

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

49 CFR Part 356

    Administrative practice and procedure, Freight forwarders, Highways 
and roads, Motor carriers.

49 CFR Part 370

    Claims for property transported, Freight forwarders, Motor 
carriers.

49 CFR Part 379

    Brokers, Freight forwarders, Motor carriers, Recordkeeping 
requirements.

    Issued on: June 4, 1997.
Jane Garvey,
Acting Federal Highway Administrator.

    In consideration of the foregoing, the FHWA amends title 49, Code 
of Federal Regulations, chapter III, by adding parts 356, 370 and 379 
as set forth below:
    1. Chapter III is amended by adding part 356 to read as follows:

PART 356--MOTOR CARRIER ROUTING REGULATIONS

Sec.
356.1  Authority to serve a particular area--construction.
356.3  Regular route motor passenger service.
356.5  Traversal authority.
356.7  Tacking.
356.9  Elimination of routing restrictions--regular route carriers.
356.11  Elimination of gateways--regular and irregular route 
carriers.
356.13  Redesignated highways.

    Authority: 49 U.S.C. 13301 and 13902; 5 U.S.C. 553; 49 CFR 1.48.


Sec. 356.1  Authority to serve a particular area--construction.

    (a) Service at municipality. A motor carrier of property, motor 
passenger

[[Page 32042]]

carrier of express, and freight forwarder authorized to serve a 
municipality may serve all points within that municipality's commercial 
zone not beyond the territorial limits, if any, fixed in such 
authority.
    (b) Service at unincorporated community. A motor carrier of 
property, motor passenger carrier of express, and freight forwarder, 
authorized to serve an unincorporated community having a post office of 
the same name, may serve all points in the United States not beyond the 
territorial limits, if any, fixed in such authority, as follows:
    (1) All points within 3 miles of the post office in such 
unincorporated community if it has a population of less than 2,500; 
within 4 miles if it has a population of 2,500 but less than 25,000; 
and within 6 miles if it has a population of 25,000 or more;
    (2) At all points in any municipality any part of which is within 
the limits described in paragraph (b)(1) of this section; and
    (3) At all points in any municipality wholly surrounded, or so 
surrounded except for a water boundary, by any municipality included 
under the terms of paragraph (b)(2) of this section.


Sec. 356.3  Regular route motor passenger service.

    (a) A motor common carrier authorized to transport passengers over 
regular routes may serve:
    (1) All points on its authorized route;
    (2) All municipalities wholly within one airline mile of its 
authorized route;
    (3) All unincorporated areas within one airline mile of its 
authorized route; and
    (4) All military posts, airports, schools, and similar 
establishments that may be entered within one airline mile of its 
authorized route, but operations within any part of such establishment 
more than one airline mile from such authorized route may not be over a 
public road.
    (b) This section does not apply to those motor passenger common 
carriers authorized to operate within:
    (1) New York, NY;
    (2) Rockland, Westchester, Orange, or Nassau Counties, NY;
    (3) Fairfield County, CT; and
    (4) Passaic, Bergen, Essex, Hudson, Union, Morris, Somerset, 
Middlesex, or Monmouth Counties, NJ.


Sec. 356.5  Traversal authority.

    (a) Scope. An irregular route motor carrier may operate between 
authorized service points over any reasonably direct or logical route 
unless expressly prohibited.
    (b) Requirements. Before commencing operations, the carrier must, 
regarding each State traversed:
    (1) Notify the State regulatory body in writing, attaching a copy 
of its operating rights;
    (2) Designate a process agent; and
    (3) Comply with 49 CFR 387.315.


Sec. 356.7  Tacking.

    Unless expressly prohibited, a motor common carrier of property 
holding separate authorities which have common service points may join, 
or tack, those authorities at the common point, or gateway, for the 
purpose of performing through service as follows:
    (a) Regular route authorities may be tacked with one another;
    (b) Regular route authority may be tacked with irregular route 
authority;
    (c) Irregular route authorities may be tacked with one another if 
the authorities were granted pursuant to application filed on or before 
November 23, 1973, and the distance between the points at which service 
is provided, when measured through the gateway point, is 300 miles or 
less; and
    (d) Irregular route authorities may be tacked with one another if 
the authorities involved contain a specific provision granting the 
right to tack.


Sec. 356.9  Elimination of routing restrictions--regular route 
carriers.

    (a) Regular route authorities--construction. All certificates that, 
either singly or in combination, authorize the transportation by a 
motor common carrier of property over:
    (1) A single regular route or;
    (2) Over two or more regular routes that can lawfully be tacked at 
a common service point, shall be construed as authorizing 
transportation between authorized service points over any available 
route.
    (b) Service at authorized points. A common carrier departing from 
its authorized service routes under paragraph (a) of this section shall 
continue to serve points authorized to be served on or in connection 
with its authorized service routes.
    (c) Intermediate point service. A common carrier conducting 
operations under paragraph (a) of this section may serve points on, and 
within one airline mile of, an alternative route it elects to use if 
all the following conditions are met:
    (1) The carrier is authorized to serve all intermediate points 
(without regard to nominal restrictions) on the underlying service 
route;
    (2) The alternative route involves the use of a superhighway (i.e., 
a limited access highway with split-level crossings);
    (3) The alternative superhighway route, including highways 
connecting the superhighway portion of the route with the carrier's 
authorized service route,
    (i) Extends in the same general direction as the carrier's 
authorized service route and
    (ii) Is wholly within 25 airline miles of the carrier's authorized 
service route; and
    (4) Service is provided in the same manner as, and subject to any 
restrictions that apply to, service over the authorized service route.


Sec. 356.11  Elimination of gateways--regular and irregular route 
carriers.

    A motor common carrier of property holding separate grants of 
authority (including regular route authority), one or more of which 
authorizes transportation over irregular routes, where the authorities 
have a common service point at which they can lawfully be tacked to 
perform through service, may perform such through service over any 
available route.


Sec. 356.13  Redesignated highways.

    Where a highway over which a regular route motor common carrier of 
property is authorized to operate is assigned a new designation, such 
as a new number, letter, or name, the carrier shall advise the FHWA by 
letter, and shall provide information concerning the new and the old 
designation, the points between which the highway is redesignated, and 
each place where the highway is referred to in the carrier's authority. 
The new designation of the highway will be shown in the carrier's 
certificate when the FHWA has occasion to reissue it.
    2. Chapter III is amended by adding part 370 to read as follows:

PART 370--PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND 
VOLUNTARY DISPOSITION OF LOSS AND DAMAGE CLAIMS AND PROCESSING 
SALVAGE

Sec.
370.1  Applicability of regulations.
370.3  Filing of claims.
370.5  Acknowledgment of claims.
370.7  Investigation of claims.
370.9  Disposition of claims.
370.11  Processing of salvage.

    Authority: 49 U.S.C. 13301 and 14706; 49 CFR 1.48.


Sec. 370.1  Applicability of regulations.

    The regulations set forth in this part shall govern the processing 
of claims for loss, damage, injury, or delay to property transported or 
accepted for transportation, in interstate or foreign commerce, by each 
motor carrier, water

[[Page 32043]]

carrier, and freight forwarder (hereinafter called carrier), subject to 
49 U.S.C. subtitle IV, part B.


Sec. 370.3  Filing of claims.

    (a) Compliance with regulations. A claim for loss or damage to 
baggage or for loss, damage, injury, or delay to cargo, shall not be 
voluntarily paid by a carrier unless filed, as provided in paragraph 
(b) of this section, with the receiving or delivering carrier, or 
carrier issuing the bill of lading, receipt, ticket, or baggage check, 
or carrier on whose line the alleged loss, damage, injury, or delay 
occurred, within the specified time limits applicable thereto and as 
otherwise may be required by law, the terms of the bill of lading or 
other contract of carriage, and all tariff provisions applicable 
thereto.
    (b) Minimum filing requirements. A written or electronic 
communication (when agreed to by the carrier and shipper or receiver 
involved) from a claimant, filed with a proper carrier within the time 
limits specified in the bill of lading or contract of carriage or 
transportation and:
    (1) Containing facts sufficient to identify the baggage or shipment 
(or shipments) of property,
    (2) Asserting liability for alleged loss, damage, injury, or delay, 
and
    (3) Making claim for the payment of a specified or determinable 
amount of money, shall be considered as sufficient compliance with the 
provisions for filing claims embraced in the bill of lading or other 
contract of carriage; Provided, however, That where claims are 
electronically handled, procedures are established to ensure reasonable 
carrier access to supporting documents.
    (c) Documents not constituting claims. Bad order reports, appraisal 
reports of damage, notations of shortage or damage, or both, on freight 
bills, delivery receipts, or other documents, or inspection reports 
issued by carriers or their inspection agencies, whether the extent of 
loss or damage is indicated in dollars and cents or otherwise, shall, 
standing alone, not be considered by carriers as sufficient to comply 
with the minimum claim filing requirements specified in paragraph (b) 
of this section.
    (d) Claims filed for uncertain amounts. Whenever a claim is 
presented against a proper carrier for an uncertain amount, such as 
``$100 more or less,'' the carrier against whom such claim is filed 
shall determine the condition of the baggage or shipment involved at 
the time of delivery by it, if it was delivered, and shall ascertain as 
nearly as possible the extent, if any, of the loss or damage for which 
it may be responsible. It shall not, however, voluntarily pay a claim 
under such circumstances unless and until a formal claim in writing for 
a specified or determinable amount of money shall have been filed in 
accordance with the provisions of paragraph (b) of this section.
    (e) Other claims. If investigation of a claim develops that one or 
more other carriers has been presented with a similar claim on the same 
shipment, the carrier investigating such claim shall communicate with 
each such other carrier and, prior to any agreement entered into 
between or among them as to the proper disposition of such claim or 
claims, shall notify all claimants of the receipt of conflicting or 
overlapping claims and shall require further substantiation, on the 
part of each claimant of his/her title to the property involved or his/
her right with respect to such claim.


Sec. 370.5  Acknowledgment of claims.

    (a) Each carrier shall, upon receipt in writing or by electronic 
transmission of a proper claim in the manner and form described in the 
regulations in the past, acknowledge the receipt of such claim in 
writing or electronically to the claimant within 30 days after the date 
of its receipt by the carrier unless the carrier shall have paid or 
declined such claim in writing or electronically within 30 days of the 
receipt thereof. The carrier shall indicate in its acknowledgment to 
the claimant what, if any, additional documentary evidence or other 
pertinent information may be required by it further to process the 
claim as its preliminary examination of the claim, as filed, may have 
revealed.
    (b) The carrier shall at the time each claim is received create a 
separate file and assign thereto a successive claim file number and 
note that number on all documents filed in support of the claim and all 
records and correspondence with respect to the claim, including the 
acknowledgment of receipt. At the time such claim is received the 
carrier shall cause the date of receipt to be recorded on the face of 
the claim document, and the date of receipt shall also appear in the 
carrier's acknowledgment of receipt to the claimant. The carrier shall 
also cause the claim file number to be noted on the shipping order, if 
in its possession, and the delivery receipt, if any, covering such 
shipment, unless the carrier has established an orderly and consistent 
internal procedure for assuring:
    (1) That all information contained in shipping orders, delivery 
receipts, tally sheets, and all other pertinent records made with 
respect to the transportation of the shipment on which claim is made, 
is available for examination upon receipt of a claim;
    (2) That all such records and documents (or true and complete 
reproductions thereof) are in fact examined in the course of the 
investigation of the claim (and an appropriate record is made that such 
examination has in fact taken place); and
    (3) That such procedures prevent the duplicate or otherwise 
unlawful payment of claims.


Sec. 370.7  Investigation of claims.

    (a) Prompt investigation required. Each claim filed against a 
carrier in the manner prescribed in this part shall be promptly and 
thoroughly investigated if investigation has not already been made 
prior to receipt of the claim.
    (b) Supporting documents. When a necessary part of an 
investigation, each claim shall be supported by the original bill of 
lading, evidence of the freight charges, if any, and either the 
original invoice, a photographic copy of the original invoice, or an 
exact copy thereof or any extract made therefrom, certified by the 
claimant to be true and correct with respect to the property and value 
involved in the claim; or certification of prices or values, with trade 
or other discounts, allowance, or deductions, of any nature whatsoever 
and the terms thereof, or depreciation reflected thereon; Provided, 
however, That where property involved in a claim has not been invoiced 
to the consignee shown on the bill of lading or where an invoice does 
not show price or value, or where the property involved has been sold, 
or where the property has been transferred at bookkeeping values only, 
the carrier shall, before voluntarily paying a claim, require the 
claimant to establish the destination value in the quantity, shipped, 
transported, or involved; Provided, further, That when supporting 
documents are determined to be a necessary part of an investigation, 
the supporting documents are retained by the carriers for possible FHWA 
inspection.
    (c) Verification of loss. When an asserted claim for loss of an 
entire package or an entire shipment cannot be otherwise authenticated 
upon investigation, the carrier shall obtain from the consignee of the 
shipment involved a certified statement in writing that the property 
for which the claim is filed has not been received from any other 
source.


Sec. 370.9  Disposition of claims.

    (a) Each carrier subject to 49 U.S.C. subtitle IV, part B which 
receives a

[[Page 32044]]

written or electronically transmitted claim for loss or damage to 
baggage or for loss, damage, injury, or delay to property transported 
shall pay, decline, or make a firm compromise settlement offer in 
writing or electronically to the claimant within 120 days after receipt 
of the claim by the carrier; Provided, however, That, if the claim 
cannot be processed and disposed of within 120 days after the receipt 
thereof, the carrier shall at that time and at the expiration of each 
succeeding 60-day period while the claim remains pending, advise the 
claimant in writing or electronically of the status of the claim and 
the reason for the delay in making final disposition thereof and it 
shall retain a copy of such advice to the claimant in its claim file 
thereon.
    (b) When settling a claim for loss or damage, a common carrier by 
motor vehicle of household goods as defined in Sec. 375.1(b)(1) of this 
chapter shall use the replacement costs of the lost or damaged item as 
a base to apply a depreciation factor to arrive at the current actual 
value of the lost or damaged item: Provided, That where an item cannot 
be replaced or no suitable replacement is obtainable, the proper 
measure of damages shall be the original costs, augmented by a factor 
derived from a consumer price index, and adjusted downward by a factor 
depreciation over average useful life.


Sec. 370.11  Processing of salvage.

    (a) Whenever baggage or material, goods, or other property 
transported by a carrier subject to the provisions in this part is 
damaged or alleged to be damaged and is, as a consequence thereof, not 
delivered or is rejected or refused upon tender thereof to the owner, 
consignee, or person entitled to receive such property, the carrier, 
after giving due notice, whenever practicable to do so, to the owner 
and other parties that may have an interest therein, and unless advised 
to the contrary after giving such notice, shall undertake to sell or 
dispose of such property directly or by the employment of a competent 
salvage agent. The carrier shall only dispose of the property in a 
manner that will fairly and equally protect the best interests of all 
persons having an interest therein. The carrier shall make an itemized 
record sufficient to identify the property involved so as to be able to 
correlate it to the shipment or transportation involved, and claim, if 
any, filed thereon. The carrier also shall assign to each lot of such 
property a successive lot number and note that lot number on its record 
of shipment and claim, if any claim is filed thereon.
    (b) Whenever disposition of salvage material or goods shall be made 
directly to an agent or employee of a carrier or through a salvage 
agent or company in which the carrier or one or more of its directors, 
officers, or managers has any interest, financial or otherwise, that 
carrier's salvage records shall fully reflect the particulars of each 
such transaction or relationship, or both, as the case may be.
    (c) Upon receipt of a claim on a shipment on which salvage has been 
processed in the manner prescribed in this section, the carrier shall 
record in its claim file thereon the lot number assigned, the amount of 
money recovered, if any, from the disposition of such property, and the 
date of transmittal of such money to the person or persons lawfully 
entitled to receive the same.
    3. Chapter III is amended by adding part 379 to read as follows:

PART 379--PRESERVATION OF RECORDS

Sec.
379.1  Applicability.
379.3  Records required to be retained.
379.5  Protection and storage of records.
379.7  Preservation of records.
379.9  Companies going out of business.
379.11  Waiver of requirements of the regulations in this part.
379.13  Disposition and retention of records.

Appendix A to Part 379--Schedule of Records and Periods of Retention

    Authority: 49 U.S.C. 13301, 14122 and 14123; 49 CFR 1.48.


Sec. 379.1  Applicability.

    (a) The preservation of record rules contained in this part shall 
apply to the following:
    (1) Motor carriers and brokers;
    (2) Water carriers; and
    (3) Household goods freight forwarders.
    (b) This part applies also to the preservation of accounts, records 
and memoranda of traffic associations, weighing and inspection bureaus, 
and other joint activities maintained by or on behalf of companies 
listed in paragraph (a) of this section.


Sec. 379.3  Records required to be retained.

    Companies subject to this part shall retain records for the minimum 
retention periods provided in appendix A to this part. After the 
required retention periods, the records may be destroyed at the 
discretion of each company's management. It shall be the obligation of 
the subject company to maintain records that adequately support 
financial and operational data required by the Secretary. The company 
may request a ruling from the Secretary on the retention of any record. 
The provisions of this part shall not be construed as excusing 
compliance with the lawful requirements of any other governmental body 
prescribing longer retention periods for any category of records.


Sec. 379.5  Protection and storage of records.

    (a) The company shall protect records subject to this part from 
fires, floods, and other hazards, and safeguard the records from 
unnecessary exposure to deterioration from excessive humidity, dryness, 
or lack of ventilation.
    (b) The company shall notify the Secretary if prescribed records 
are substantially destroyed or damaged before the term of the 
prescribed retention periods.


Sec. 379.7  Preservation of records.

    (a) All records may be preserved by any technology that is immune 
to alteration, modification, or erasure of the underlying data and will 
enable production of an accurate and unaltered paper copy.
    (b) Records not originally preserved on hard copy shall be 
accompanied by a statement executed by a person having personal 
knowledge of the facts indicating the type of data included within the 
records. One comprehensive statement may be executed in lieu of 
individual statements for multiple records if the type of data included 
in the multiple records is common to all such records. The records 
shall be indexed and retained in such a manner as will render them 
readily accessible. The company shall have facilities available to 
locate, identify and produce legible paper copies of the records.
    (c) Any significant characteristic, feature or other attribute that 
a particular medium will not preserve shall be clearly indicated at the 
beginning of the applicable records as appropriate.
    (d) The printed side of forms, such as instructions, need not be 
preserved for each record as long as the printed matter is common to 
all such forms and an identified specimen of the form is maintained on 
the medium for reference.


Sec. 379.9  Companies going out of business.

    The records referred to in the regulations in this part may be 
destroyed after business is discontinued and the company is completely 
liquidated. The records may not be destroyed until dissolution is final 
and all pending transactions and claims are completed. When a company 
is merged with another company under

[[Page 32045]]

jurisdiction of the Secretary, the successor company shall preserve 
records of the merged company in accordance with the regulations in 
this part.


Sec. 379.11  Waiver of requirements of the regulations in this part.

    A waiver from any provision of the regulations in this part may be 
made by the Secretary upon his/her own initiative or upon submission of 
a written request by the company. Each request for waiver shall 
demonstrate that unusual circumstances warrant a departure from 
prescribed retention periods, procedures, or techniques, or that 
compliance with such prescribed requirements would impose an 
unreasonable burden on the company.


Sec. 379.13  Disposition and retention of records.

    The schedule in appendix A to this part shows periods that 
designated records shall be preserved. The descriptions specified under 
the various general headings are for convenient reference and 
identification, and are intended to apply to the items named regardless 
of what the records are called in individual companies and regardless 
of the record media. The retention periods represent the prescribed 
number of years from the date of the document and not calendar years. 
Records not listed in appendix A to this part shall be retained as 
determined by the management of each company.

Appendix A to Part 379

              Schedule of Records and Periods of Retention              
------------------------------------------------------------------------
 Item and category of records               Retention period            
------------------------------------------------------------------------
   A. Corporate and General                                             
                                                                        
1. Incorporation and                                                    
 reorganization:                                                        
    (a) Charter or             Note A.                                  
     certificate of                                                     
     incorporation and                                                  
     amendments.                                                        
    (b) Legal documents        Note A.                                  
     related to mergers,                                                
     consolidations,                                                    
     reorganization,                                                    
     receiverships and                                                  
     similar actions which                                              
     affect the identity or                                             
     organization of the                                                
     company.                                                           
2. Minutes of Directors,       Note A.                                  
 Executive Committees,                                                  
 Stockholders and other                                                 
 corporate meetings.                                                    
3. Titles, franchises and                                               
 authorities:                                                           
    (a) Certificates of        Until expiration or cancellation.        
     public convenience and                                             
     necessity issued by                                                
     regulating bodies.                                                 
    (b) Operating              Until expiration or cancellation.        
     authorizations and                                                 
     exemptions to operate.                                             
    (c) Copies of formal       Note A.                                  
     orders of regulatory                                               
     bodies served upon the                                             
     company.                                                           
    (d) Deeds, charters, and   Until disposition of property.           
     other title papers.                                                
    (e) Patents and patent     Note A.                                  
     records.                                                           
4. Annual reports or           3 years.                                 
 statements to stockholders.                                            
5. Contracts and agreements:                                            
    (a) Service contracts,     Until expiration or termination plus 3   
     such as for operational    years.                                  
     management, accounting,                                            
     financial or legal                                                 
     services, and agreements                                           
     with agents.                                                       
    (b) Contracts and other    Until expiration or termination plus 3   
     agreements relating to     years.                                  
     the construction,                                                  
     acquisition or sale of                                             
     real property and                                                  
     equipment except as                                                
     otherwise provided in                                              
     (a) above.                                                         
    (c) Contracts for the      Until expiration.                        
     purchase or sale of                                                
     material and supplies                                              
     except as provided in                                              
     (a) above.                                                         
    (d) Shipping contracts     Until expiration.                        
     for transportation or                                              
     caretakers of freight.                                             
    (e) Contracts with         Until expiration.                        
     employees and employee                                             
     bargaining groups.                                                 
    (f) Contracts, leases and  Until expiration or termination plus 1   
     agreements, not            year.                                   
     specifically provided                                              
     for in this section.                                               
6. Accountant's auditor's,                                              
 and inspector's reports:                                               
    (a) Certifications and     3 years.                                 
     reports of examinations                                            
     and audits conducted by                                            
     public accountants.                                                
    (b) Reports of             3 years.                                 
     examinations and audits                                            
     conducted by internal                                              
     auditors, time                                                     
     inspectors, and others.                                            
7. Other.....................  Note A.                                  
                                                                        
         B. Treasury                                                    
                                                                        
1. Capital stock records:                                               
    (a) Capital stock ledger.  Note A.                                  
    (b) Capital stock          Note A.                                  
     certificates, records of                                           
     or stubs of.                                                       
    (c) Stock transfer         Note A.                                  
     register.                                                          
2. Long-term debt records:                                              
    (a) Bond indentures,       Until redemption plus 3 years.           
     underwritings,                                                     
     mortgages, and other                                               
     long-term credit                                                   
     agreements.                                                        
    (b) Registered bonds and   Until redemption plus 3 years.           
     debenture ledgers.                                                 
    (c) Stubs or similar       Note A.                                  
     records of bonds or                                                
     other long-term debt                                               
     issued.                                                            
3. Authorizations from         Note A.                                  
 regulatory bodies for                                                  
 issuance of securities                                                 
 including applications,                                                
 reports, and supporting                                                
 papers.                                                                
4. Records of securities       Until the securities are sold, redeemed  
 owned, in treasury, or held    or otherwise disposed of.               
 by custodians, detailed                                                
 ledgers and journals, or                                               
 their equivalent.                                                      
5. Other.....................  Note A.                                  
                                                                        
 C. Financial and Accounting                                            
                                                                        
1. Ledgers:                                                             
    (a) General and            Until discontinuance of use plus 3 years.
     subsidiary ledgers with                                            
     indexes.                                                           
    (b) Balance sheets and     3 years.                                 
     trial balance sheets of                                            
     general and subsidiary                                             
     ledgers.                                                           
2. Journals:                                                            
    (a) General journals.....  Until discontinuance of use plus 3 years.
    (b) Subsidiary journals    3 years.                                 
     and any supporting data,                                           
     except as otherwise                                                
     provided for, necessary                                            
     to explain journal                                                 
     entries.                                                           
3. Cash books:                                                          

[[Page 32046]]

                                                                        
    (a) General cash books...  Until discontinuance of use plus 3 years.
    (b) Subsidiary cash books  3 years.                                 
4. Vouchers:                                                            
    (a) Voucher registers,     3 years.                                 
     indexes, or equivalent.                                            
    (b) Paid and canceled      3 years.                                 
     vouchers, expenditure                                              
     authorizations, detailed                                           
     distribution sheets and                                            
     other supporting data                                              
     including original bills                                           
     and invoices, if not                                               
     provided for elsewhere.                                            
    (c) Paid drafts, paid      3 years.                                 
     checks, and receipts for                                           
     cash paid out.                                                     
5. Accounts receivable:                                                 
    (a) Record or register of  3 years after settlement.                
     accounts receivable,                                               
     indexes thereto, and                                               
     summaries of                                                       
     distribution.                                                      
    (b) Bills issued for       3 years after settlement.                
     collection and                                                     
     supporting data.                                                   
    (c) Authorization for      1 year.                                  
     writing off receivables.                                           
    (d) Reports and            1 year.                                  
     statements showing age                                             
     and status of                                                      
     receivables.                                                       
6. Records of accounting       3 years after discontinuance.            
 codes and instructions.                                                
7. Other.....................  Note A.                                  
                                                                        
  D. Property and Equipment                                             
                                                                        
  Note.--All accounts, records, and memoranda necessary for making a    
complete analysis of the cost or value of property shall be retained for
the periods shown. If any of the records elsewhere provided for in this 
schedule are of this character, they shall be retained for the periods  
shown below, regardless of any lesser retention period assigned.        
                                                                        
1. Property records:                                                    
    (a) Records which          3 years after disposition of property.   
     maintain complete                                                  
     information on cost or                                             
     other value of all real                                            
     and personal property or                                           
     equipment.                                                         
    (b) Records of additions   3 years after disposition of property.   
     and betterments made to                                            
     property and equipment.                                            
    (c) Records pertaining to  3 years after disposition of property.   
     retirements and                                                    
     replacements of property                                           
     and equipment.                                                     
    (d) Records pertaining to  3 years after disposition of property.   
     depreciation.                                                      
    (e) Records of equipment   3 years after disposition of property.   
     number changes.                                                    
    (f) Records of motor and   3 years after disposition of property.   
     engine changes.                                                    
    (g) Records of equipment   Only current or latest records.          
     lightweighed and                                                   
     stenciled.                                                         
2. Engineering records of      3 years after disposition of property.   
 property changes actually                                              
 made.                                                                  
3. Other.....................  Note A.                                  
                                                                        
   E. Personnel and Payroll                                             
                                                                        
1. Personnel and payroll       1 year.                                  
 records.                                                               
                                                                        
   F. Insurance and Claims                                              
                                                                        
1. Insurance records:                                                   
    (a) Schedules of           Until expiration plus 1 year.            
     insurance against fire,                                            
     storms, and other                                                  
     hazards and records of                                             
     premium payments.                                                  
    (b) Records of losses and  1 year after settlement.                 
     recoveries from                                                    
     insurance companies and                                            
     supporting papers.                                                 
    (c) Insurance policies...  Until expiration of coverage plus 1 year.
2. Claims records:                                                      
    (a) Claim registers, card  1 year after settlement.                 
     or book indexes, and                                               
     other records which                                                
     record personal injury,                                            
     fire and other claims                                              
     against the company,                                               
     together with all                                                  
     supporting data.                                                   
    (b) Claims registers,      1 year after settlement.                 
     card or book indexes,                                              
     and other records which                                            
     record overcharges,                                                
     damages, and other                                                 
     claims filed by the                                                
     company against others,                                            
     together with all                                                  
     supporting data.                                                   
    (c) Records giving the     3 years.                                 
     details of authorities                                             
     issued to agents,                                                  
     carriers, and others for                                           
     participation in freight                                           
     claims.                                                            
    (d) Reports, statements    3 years.                                 
     and other data                                                     
     pertaining to personal                                             
     injuries or damage to                                              
     property when not                                                  
     necessary to support                                               
     claims or vouchers.                                                
    (e) Reports, statements,   1 year.                                  
     tracers, and other data                                            
     pertaining to unclaimed,                                           
     over, short, damaged,                                              
     and refused freight,                                               
     when not necessary to                                              
     support claims or                                                  
     vouchers.                                                          
    (f) Authorities for        3 years.                                 
     disposal of unclaimed,                                             
     damaged, and refused                                               
     freight.                                                           
3. Other.....................  Note A.                                  
                                                                        
           G. Taxes                                                     
                                                                        
1. Taxes.....................  Note A.                                  
                                                                        
   H. Purchases and Stores                                              
                                                                        
1. Purchases and stores......  Note A.                                  
                                                                        
    I. Shipping and Agency                                              
          Documents                                                     
                                                                        
1. Bills of lading and                                                  
 releases:                                                              
    (a) Consignors' shipping   1 year.                                  
     orders, consignors'                                                
     shipping tickets, and                                              
     copies of bills of                                                 
     lading, freight bills                                              
     from other carriers and                                            
     other similar documents                                            
     furnished the carrier                                              
     for movement of freight.                                           
    (b) Shippers' order-to-    1 year.                                  
     notify bills of lading                                             
     taken up and canceled.                                             
2. Freight waybills:                                                    
    (a) Local waybills.......  1 year.                                  
    (b) Interline waybills     1 year.                                  
     received from and made                                             
     to other carriers.                                                 

[[Page 32047]]

                                                                        
    (c) Company freight        1 year.                                  
     waybills.                                                          
    (d) Express waybills.....  1 year.                                  
3. Freight bills and                                                    
 settlements:                                                           
    (a) Paid copy of freight                                            
     bill retained to support                                           
     receipt of freight                                                 
     charges:                                                           
        (1) Bus express        1 year.                                  
         freight bills                                                  
         provided no claim                                              
         has been filed.                                                
        (2) All other freight  1 year.                                  
         bills.                                                         
    (b) Paid copy of freight                                            
     bill retained to support                                           
     payment of freight                                                 
     charges to other                                                   
     carriers:                                                          
        (1) Bus express        1 year.                                  
         freight bills                                                  
         provided no claim                                              
         has been filed.                                                
        (2) All other freight  1 year.                                  
         bills.                                                         
    (c) Records of unsettled   1 year after disposition.                
     freight bills and                                                  
     supporting papers.                                                 
    (d) Records and reports    1 year.                                  
     of correction notices.                                             
4. Other freight records:                                               
    (a) Records of freight     1 year.                                  
     received, forwarded, and                                           
     delivered.                                                         
    (b) Notice to consignees   1 year.                                  
     of arrival of freight;                                             
     tender of delivery.                                                
5. Agency records (to include                                           
 conductors, pursers,                                                   
 stewards, and others):                                                 
    (a) Cash books...........  1 year.                                  
    (b) Remittance records,    1 year.                                  
     bank deposit slips and                                             
     supporting papers.                                                 
    (c) Balance sheets and     1 year.                                  
     supporting papers.                                                 
    (d) Statements of          1 year.                                  
     corrections in agents'                                             
     accounts.                                                          
    (e) Other records and      1 year.                                  
     reports pertaining to                                              
     ticket sales, baggage                                              
     handled, miscellaneous                                             
     collections, refunds,                                              
     adjustments, etc..                                                 
                                                                        
      J. Transportation                                                 
                                                                        
1. Records pertaining to                                                
 transportation of household                                            
 goods:                                                                 
    (a) Estimate of charges..  1 year.                                  
    (b) Order for service....  1 year.                                  
    (c) Vehicle-load manifest  1 year.                                  
    (d) Descriptive inventory  1 year.                                  
2. Records and reports                                                  
 pertaining to operation of                                             
 marine and floating                                                    
 equipment:                                                             
    (a) Ship log.............  3 years.                                 
    (b) Ship articles........  3 years.                                 
    (c) Passenger and room     3 years.                                 
     list.                                                              
    (d) Floatmen's barge,      2 years.                                 
     lighter, and escrow                                                
     captain's reports,                                                 
     demurrage records,                                                 
     towing reports and                                                 
     checks sheets.                                                     
3. Dispatchers' sheets,        3 years.                                 
 registers, and other records                                           
 pertaining to movement of                                              
 transportation equipment.                                              
4. Import and export records   2 years.                                 
 including bonded freight and                                           
 steamship engagements.                                                 
5. Records, reports, orders    3 years.                                 
 and tickets pertaining to                                              
 weighting of freight.                                                  
6. Records of loading and      2 years.                                 
 unloading of transportation                                            
 equipment.                                                             
7. Records pertaining to the   2 years.                                 
 diversion or reconsignment                                             
 of freight, including                                                  
 requests, tracers, and                                                 
 correspondence.                                                        
8. Other.....................  Note A.                                  
                                                                        
    K. Supporting Data for                                              
    Reports and Statistics                                              
                                                                        
1. Supporting data for                                                  
 reports filed with the                                                 
 Federal Highway                                                        
 Administration, the Surface                                            
 Transportation Board, the                                              
 Department of                                                          
 Transportation's Bureau of                                             
 Transportation Statistics                                              
 and regulatory bodies:                                                 
    (a) Supporting data for    3 years.                                 
     annual financial,                                                  
     operating and                                                      
     statistical reports.                                               
    (b) Supporting data for    3 years.                                 
     periodical reports of                                              
     operating revenues,                                                
     expenses, and income.                                              
    (c) Supporting data for    3 years.                                 
     reports detailing use of                                           
     proceeds from issuance                                             
     or sale of company                                                 
     securities.                                                        
    (d) Supporting data for    3 years after disposition of the         
     valuation inventory        property.                               
     reports and records.                                               
     This includes related                                              
     notes, maps and                                                    
     sketches, underlying                                               
     engineering, land, and                                             
     accounting reports,                                                
     pricing schedules,                                                 
     summary or collection                                              
     sheets, yearly reports                                             
     of changes and other                                               
     miscellaneous data, all                                            
     relating to the                                                    
     valuation of the                                                   
     company's property by                                              
     the Federal Highway                                                
     Administration, the                                                
     Surface Transportation                                             
     Board, the Department of                                           
     Transportation's Bureau                                            
     of Transportation                                                  
     Statistics or other                                                
     regulatory body.                                                   
2. Supporting data for         3 years.                                 
 periodical reports of                                                  
 accidents, inspections,                                                
 tests, hours of service,                                               
 repairs, etc..                                                         
3. Supporting data for         3 years.                                 
 periodical statistical of                                              
 operating results or                                                   
 performance by tonnage,                                                
 mileage, passengers carried,                                           
 piggyback traffic,                                                     
 commodities, costs, analyses                                           
 of increases and decreases,                                            
 or otherwise.                                                          
                                                                        
       M. Miscellaneous                                                 
                                                                        
1. Index of records..........  Until revised as record structure        
                                changes.                                
2. Statement listing records   For the remainder of the period as       
 prematurely destroyed or       prescribed for records destroyed.       
 lost.                                                                  
------------------------------------------------------------------------
Note A.--Records referenced to this note shall be maintained as         
  determined by the designated records supervisory official. Companies  
  should be mindful of the record retention requirements of the Internal
  Revenue Service, Securities and Exchange Commission, State and local  
  jurisdictions, and other regulatory agencies. Companies shall exercise
  reasonable care in choosing retention periods, and the choice of      
  retention periods shall reflect past experiences, company needs,      
  pending litigation, and regulatory requirements.                      


[[Page 32048]]

[FR Doc. 97-15441 Filed 6-11-97; 8:45 am]
BILLING CODE 4910-22-P