[Federal Register Volume 62, Number 249 (Tuesday, December 30, 1997)]
[Proposed Rules]
[Pages 67821-67823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33902]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
49 CFR Part 376
[FHWA Docket No. FHWA-97-3050]
RIN 2125-AE26
Exemption of Commonly-Owned Motor Carriers From Equipment
Identification and Receipt Requirements Applicable to Leased and
Interchanged Vehicles
AGENCY: Federal Highway Administration (FHWA), DOT.
ACTION: Notice of proposed rulemaking; request for comments.
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SUMMARY: The FHWA is proposing to modify its regulations under 49 CFR
part 376 governing the lease and interchange of motor vehicle equipment
by exempting commonly-owned and controlled motor carriers from the
vehicle identification and exchange of receipt requirements of
Sec. 376.22 and the identification of equipment requirement of
Sec. 376.31. The FHWA routinely grants waivers from these requirements
on an individual basis. This proposed action would eliminate the need
for carriers to obtain individual waivers from the FHWA.
DATES: Comments to this NPRM should be received no later than March 2,
1998. Late comments will be considered to the extent practicable.
ADDRESSES: All signed, written comments should refer to the docket
number appearing at the top of this document and must be submitted to
the Docket Clerk, U.S. DOT Dockets, Room PL-401, 400 Seventh Street,
SW., Washington, DC 20590-0001. All comments received will be available
for examination at the above address between 10 a.m. and 5 p.m., e.t.,
Monday through Friday, except Federal holidays. Those desiring
notification of receipt of comments must include a self-addressed,
stamped envelope or postcard.
FOR FURTHER INFORMATION CONTACT: Mr. John F. Grimm, Director, Office of
Motor Carrier Information Analysis, (202) 366-4039, or Mr. Michael J.
Falk, Motor Carrier Law Division, Office of the Chief Counsel, (202)
366-1384, Federal Highway Administration, Department of Transportation,
400 Seventh Street, SW., Washington, DC 20590. Office hours are from 8
a.m. to 4:30 p.m., e.t., Monday through Friday, except Federal
holidays.
SUPPLEMENTARY INFORMATION: The FHWA's regulations at 49 CFR part 376
govern motor carrier transportation provided in nonowned equipment.
These regulations, originally promulgated by the Interstate Commerce
Commission (ICC), were formerly codified at 49 CFR part 1057 until
redesignated on October 21, 1996. The ICC Termination Act of 1995
(ICCTA), Public Law 104-88, 109 Stat. 803, transferred jurisdiction
over motor carrier leasing and interchange of equipment practices to
the Secretary of Transportation, who delegated this function to the
FHWA under 49 CFR 1.48(h)(6).
Section 376.22 permits motor carriers of property, subject to
registration under the ICCTA (authorized carriers), to trip lease
equipment between themselves and private motor carriers under specified
conditions. A trip lease is a contract for the use of nonowned vehicles
for single point-to-point hauls. Section 376.22(a) requires that trip-
leasing carriers comply with the identification of equipment
[[Page 67822]]
requirements of Sec. 376.11(c). Under Sec. 376.22(c)(2), the carriers
must also have a written agreement placing control and responsibility
for the equipment with the lessee during the lease period, as
determined by an exchange of equipment receipts required under
Sec. 376.11(b). Section 376.22(c)(4) permits the use of a master lease
under certain conditions to comply with the trip-leasing requirements.
Vehicle Identification Requirements
Under Sec. 376.11(c)(1), an authorized carrier acquiring the use of
nonowned equipment must identify the equipment in accordance with the
marking of commercial vehicle regulations at 49 CFR part 390, subpart D
(formerly 49 CFR part 1058). These regulations require that commercial
vehicles display the name or trade name of the motor carrier operating
the vehicle, as well as its principal place of business and motor
carrier identification number.
Equipment Receipt Requirements
Under Sec. 376.11(b), at the time the authorized carrier acquires
the use of nonowned equipment, it must give the owner of the equipment
a receipt specifically identifying the equipment and the date and time
of day possession is transferred. A receipt must also be given when the
authorized carrier returns possession of the equipment to the owner, if
required by the lease agreement.
Purpose of These Requirements
The leasing regulations are intended to ensure that motor carriers
providing transportation in vehicles owned and operated by others
assume responsibility for, and control the transportation service in,
equipment they do not own to the same extent as if they owned the
vehicles themselves. This not only affixes carrier responsibility and
liability for the protection of shippers and the general public, but
also facilitates enforcement of applicable regulatory requirements. The
equipment identification and exchange of receipt requirements in
Secs. 376.22(a) and (c) are designed to monitor control and
responsibility for the operation of leased vehicles.
Waivers for Commonly-Owned Carriers
Over the years, motor carriers under joint ownership or control
have requested individual waivers from the equipment identification and
exchange of receipt requirements of Secs. 376.22(a) and (c), when
exchanging equipment among themselves, on the grounds that compliance
is unnecessary and unduly burdensome as long as the carriers remain
under joint ownership and control. The FHWA, as did the ICC before it,
has granted these waivers on the condition that the carriers continue
to comply with other applicable provisions of Sec. 376.22 and that
contractual relationships between owner-operators and the individual
carriers will be governed by Secs. 376.11 and 376.12. The purpose of
this notice of proposed rulemaking is to establish a blanket exemption
from the vehicle identification and receipt requirements of Sec. 376.22
for jointly-owned or controlled carriers, thus eliminating the need for
individual waiver petitions. Such carriers would still be required to
comply with the other applicable provisions of Sec. 376.22, as well as
Secs. 376.11 and 376.12.
The FHWA has granted individual waivers from the Sec. 376.22
identification of vehicles and exchange of receipt requirements because
these requirements serve little public purpose when vehicles are being
exchanged between commonly-controlled companies which are jointly
operated with respect to safety program administration and equipment
utilization. Vehicle ownership and assignment information can be
readily made available from computerized dispatch records and
operational logs, obviating the need for strict identification,
placarding and receipt issuance requirements. Furthermore, commonly-
controlled carriers seeking waivers claim that the elimination of these
requirements would allow them to operate more efficiently and
economically by fostering improved equipment use and eliminating a
significant and unproductive paperwork and placarding burden.
The proposed action is consistent with the National Transportation
Policy because it will promote efficiency in the motor carrier
transportation system and encourage more productive use of equipment
and energy resources. See 49 U.S.C. 13101(a)(2)(B) and (E). It would
also allow FHWA to conserve its own resources by eliminating the need
to grant waivers on an individual basis.
Interchange Identification Requirements
For purposes of consistency between the leasing regulations in
subpart B of part 376 and the interchange regulations in subpart D of
that part, we are also proposing to modify Sec. 376.31(d) with respect
to the interchange of equipment between commonly-controlled authorized
carriers. Interchange of equipment occurs when one motor common carrier
receives equipment from another in order to continue a through
movement. Section 376.31(d)(1) requires that the carrier giving up
possession of the equipment remove all placarding identification
showing it as the operating entity, and that the carrier receiving
possession mark the equipment with its own name, place of business and
identification number, in accordance with 49 CFR part 390, subpart D.
New paragraph (d)(3) would eliminate this requirement for commonly-
controlled carriers interchanging equipment among themselves. It would
also eliminate, for these carriers, the Sec. 376.31(d)(2) requirement
that each vehicle carry a detailed interchange statement.
The FHWA solicits public comment on the proposed modifications of
Secs. 376.22 and 376.31(d), which are set forth below.
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 exempt a
small number of transportation entities from complying with
identification and documentation requirements which FHWA has routinely
waived upon request. Neither the individual nor cumulative impact of
this action would 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
[[Page 67823]]
effects of this rule on small entities. Based on the evaluation, the
FHWA hereby certifies that this action would not have a significant
economic impact on a substantial number of small entities. The FHWA
receives less than ten petitions per year seeking waiver of vehicle
identification and receipt issuance requirements. The proposed rule,
while beneficial, would 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 is specifically designed to eliminate certain
existing paperwork requirements for commonly-controlled motor carriers
leasing or interchanging vehicles among themselves. Thus, this action
is consistent with 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 376
Highways and roads, Motor carriers--equipment leasing, Reporting
and recordkeeping requirements.
Issued: December 18, 1997.
Kenneth R. Wykle,
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,
chapter III, as follows:
1. The authority citation for part 376 continues to read as
follows:
Authority: 49 U.S.C. 13301 and 14102; 49 CFR 1.48.
2. Section 376.22 is amended by adding new paragraph (d) to read as
follows:
Sec. 376.22 Exemption for private carrier leasing and leasing between
authorized carriers.
* * * * *
(d) Authorized and private carriers under common ownership and
control may lease equipment to each other under this section without
complying with the requirements of paragraph (a) of this section
pertaining to identification of equipment, and the requirements of
paragraphs (c)(2) and (c)(4) of this section pertaining to equipment
receipts. The leasing of equipment between such carriers will be
subject to all other requirements of this section.
3. Section 376.31 is amended by adding paragraph (d)(3) to read as
follows:
Sec. 376.31 Interchange of equipment.
* * * * *
(d)(3) Authorized carriers under common ownership and control may
interchange equipment with each other without complying with the
requirements of paragraph (d)(1) of this section pertaining to removal
of identification from equipment, and the requirements of paragraph
(d)(2) of this section pertaining to the identification of equipment.
[FR Doc. 97-33902 Filed 12-29-97; 8:45 am]
BILLING CODE 4910-22-P