[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] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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] BILLING CODE 4910-22-P