[Federal Register Volume 62, Number 136 (Wednesday, July 16, 1997)]
[Rules and Regulations]
[Pages 38034-38035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18697]


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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Part 369

[FHWA Docket No. MC-96-37 and No. FHWA-97-2286]
RIN 2125-AE02


Compensated Intercorporate Hauling

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Final rule.

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SUMMARY: The FHWA is removing the regulation delineating the scope and 
notice filing requirements of the statutory exemption for compensated 
intercorporate hauling. Section 103 of the ICC Termination Act of 1995 
(ICCTA), Pub. L. 104-88, 109 Stat. 803, removed the requirement that a 
notice be filed before initiation of exempt compensated intercorporate 
hauling operations.

EFFECTIVE DATE: August 15, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas T. Vining or Ms. Patricia 
A. Burke, Office of Motor Carrier Information Analysis, HIA-30, (202) 
358-7028, or Ms. Grace Reidy, Office of the Chief Counsel, (202) 366-
0834, Federal Highway Administration, 400 Seventh St., 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: On October 21, 1996, the FHWA published a 
proposed rule and a request for comments in the Federal Register (61 FR 
54711) on the regulation governing the filing of a notice prior to 
initiation of operations under the statutory exemption for compensated 
intercorporate hauling. The proposed rule would eliminate this 
regulation.
    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 ICCTA 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 prior Federal Register notice questioned the 
continuing need for a notice requirement or for any regulations on this 
subject.
    The public comment period for the proposed rule closed on December 
20, 1996. The FHWA received one comment from the National Private Truck 
Council (NPTC). This comment is available for review at the U.S. DOT 
Dockets, Room PL-401, 400 Seventh Street, SW., Washington, DC 20590-
0001.
    The NPTC supports elimination of the regulation and notice filing 
requirement. The regulation at 49 CFR part 369 merely restates the 
scope of the statutory compensated intercorporate hauling exemption and 
provides the required form and content of the notice. The information 
that otherwise would be contained in the notice can be easily checked 
by the FHWA through other means 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 unregistered transportation operations. The corporation could 
easily obtain operating authority for legitimate operations. Thus, the 
regulation at 49 CFR part 369 no longer serves any meaningful 
regulatory purpose, and it will be removed.

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. The economic impact of this 
rulemaking will be minimal; therefore, a full regulatory evaluation is 
not required. The rulemaking merely eliminates 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 was analyzed in accordance with the principles and 
criteria contained in Executive Order 12612, and it was determined that 
this action does not have sufficient

[[Page 38035]]

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 eliminates the 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 the 
goals of the Paperwork Reduction Act.

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 Part 369

    Highways and roads.

    In consideration of the foregoing and under the authority of 
section 103 of the ICC Termination Act of 1995, Pub. L. 104-88, 109 
Stat. 803, and 49 CFR 1.48, the FHWA amends title 49, CFR, Chapter III, 
by removing part 369.

    Issued on: July 7, 1997.
Jane F. Garvey,
Acting Administrator for the Federal Highway Administration
[FR Doc. 97-18697 Filed 7-15-97; 8:45 am]
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