[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Proposed Rules]
[Pages 39111-39112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18643]



[[Page 39111]]

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DEPARTMENT OF TRANSPORTATION

Bureau of Transportation Statistics

49 CFR Part 1420

[Docket No. BTS-98-4659]
RIN 2139-AA05


Revision to Reporting Requirements for Motor Carriers of Property 
and Household Goods

AGENCY: Bureau of Transportation Statistics, DOT.

ACTION: Withdrawal of proposed rule.

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SUMMARY: The Bureau of Transportation Statistics (BTS) published a 
Supplemental Notice of Proposed Rulemaking on March 23, 1999, regarding 
its motor carrier financial and operating data collection program. The 
proposal would have restricted access to individual carrier data for 
some of the operating statistics, revenue equipment, and employment 
data items. Access to these data items would have been limited to the 
Department of Transportation and to such persons and in such 
circumstances as DOT determined to be in the public interest or 
consistent with the Department's regulatory functions and 
responsibilities. Most of the comments strongly opposed adopting the 
proposed rule. After considering the issues raised by the comments, BTS 
is withdrawing the Supplemental Notice of Proposed Rulemaking.

DATES: The proposed amendment to Sec. 1420.10, published on March 23, 
1999 (64 FR 13948), is withdrawn on July 21, 1999.

FOR FURTHER INFORMATION CONTACT: David Mednick, K-1, Bureau of 
Transportation Statistics, 400 Seventh Street, SW., Washington, DC 
20590; (202) 366-8871; fax: (202) 366-3640;   e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Electronic Access

    You can examine all comments that were submitted to the Rules 
Docket concerning this rulemaking at: Department of Transportation, 400 
Seventh Street, SW., Room PL-401, Washington, DC 20590, from 10 a.m. to 
5 p.m., Monday through Friday, except Federal holidays. Internet users 
can access the comments at the address: http://dms.dot.gov. Search for 
Docket Number 4659. Please follow the instructions online for more 
information and help.
    You can download an electronic copy of this document using a modem 
and suitable communications software from the Federal Register 
Electronic Bulletin Board Service at (202) 512-1661. If you have access 
to the Internet, you can obtain an electronic copy at http://
www.bts.gov/mcs/rulemaking.htm.

II. Background

    Under 49 U.S.C. 14123 and its implementing regulations at 49 CFR 
1420, BTS collects financial and operating information from for-hire 
motor carriers of property and household goods. The data are collected 
on annual Form M, filed by Class I and Class II carriers, and quarterly 
Form QFR, filed only by Class I carriers. The data are used by the 
Department of Transportation, other federal agencies, motor carriers, 
shippers, industry analysts, labor unions, segments of the insurance 
industry, investment analysts, and the consultants and data vendors 
that support these users. Among the uses of the data are: (1) 
Developing the U.S. national accounts and preparing the quarterly 
estimates of the Gross Domestic Product; (2) measuring the performance 
of the for-hire motor carrier industry and segments within it; (3) 
monitoring carrier safety; (4) benchmarking carrier performance; and 
(5) analyzing motor carrier safety, productivity, and its role in the 
economy.
    On November 3, 1998, BTS initiated a rulemaking to consider what 
data items BTS should collect and how BTS should implement a system 
whereby carriers could, in order to avoid competitive harm, request 
that their reported information be kept confidential or that they be 
excused from filing (63 FR 59263). The final rule was published on 
March 23, 1999 (64 FR 13916). On the same day, BTS published a 
Supplemental Notice of Proposed Rulemaking (SNPRM) concerning access to 
motor carrier financial and operating information reported to BTS (64 
FR 13948). Under current policy, all reported data are made available 
at the carrier level. The only exception is when a carrier is granted 
confidentiality under 49 CFR 1420.9 based on competitive harm, in which 
case its report is withheld from public release for three years. BTS 
reviewed this policy in light of comments received during the 
rulemaking and the governing legislation. Under the legislation, in 
designing the data collection program BTS must consider: (1) Safety 
needs; (2) the need to preserve confidential business information and 
trade secrets and prevent competitive harm; (3) private sector, 
academic, and public use of information in the reports; and (4) the 
public interest. In other words, BTS has to consider both 
confidentiality issues and data access issues.
    The proposed regulation was therefore intended to strike a balance 
between the interests of respondents, many of whom do not want data 
they believe are proprietary and sensitive made available to 
competitors, shippers, and the public, and the interests of data users, 
who often need access to individual carrier data. While most data would 
be fully available, BTS sought to withhold the most sensitive data 
items from general release. Those data items receiving protection would 
be available only for key uses and this limitation would apply to data 
reported by all carriers. For these data items, access would be allowed 
only as follows: (1) Aggregate statistics that do not identify a 
particular carrier would be available to the public; (2) individual 
carrier data would be available only to Department of Transportation 
users and those users whose access is ``in the public interest or 
consistent with the Department's regulatory functions and 
responsibilities;'' and (3) individual carrier data previously kept 
confidential would be available to the public after three years.

III. General Summary of the Comments

    BTS received 10 comments on the proposal, from the American Moving 
and Storage Association, the Central Analysis Bureau, the Inland Marine 
Underwriters Association, the International Brotherhood of Teamsters, 
Landstar System, Jack A. Nickerson, Transportation Technical Services, 
the Transportation Trades Department of the AFL-CIO, University of 
Michigan Trucking Industry Program, and Klaas T van't Veld. Nine of the 
commenters were opposed to the proposal and wanted it withdrawn; one 
supported the proposal as written.
    Landstar System supported the proposal, stating that it would 
withhold certain sensitive information and struck a reasonable balance. 
The comments opposing the proposal were generally based on three 
arguments: (1) BTS does not have the authority to restrict access to 
data, except case-by-case based on carrier requests; (2) public 
availability of the data does not and will not cause competitive harm 
to the reporting carrier; and (3) the proposed system would impair 
important uses of the data.

IV. Withdrawal of the Proposed Rule

    BTS appreciates both the concern that sensitive information be 
protected to the extent possible and the concern that the insurance 
industry, safety analysts, other researchers, and other data users

[[Page 39112]]

have timely access to information about the motor carrier industry and 
individual motor carriers. BTS has carefully reviewed the comments 
received. After considering the concerns raised on both sides of the 
issue, we are convinced that the proposal as written would not 
accomplish the goal of striking an appropriate balance and that BTS 
does not have enough experience with respect to the recent changes made 
to the program to make adequate adjustments. BTS is therefore 
withdrawing the supplemental proposal.
    The SNPRM requested comments on whether and why public availability 
of the identified data items, or other data items, would be likely to 
cause substantial competitive harm. BTS received comments from only one 
carrier, which said the information was sensitive and release would 
cause competitive harm. Additionally, in the initial rulemaking, BTS 
received several similar generalized assertions. However, BTS received 
no explanation or examples of how public access would cause competitive 
harm for carriers generally, leaving the assertions unsupported.
    BTS is also concerned that the changes it proposed were premature. 
The possibility of competitive harm resulting from public release of 
data is inextricably intertwined with what data items are collected. 
The types of data collected, the level of detail they are collected at, 
and how those data can be put together with other available data must 
all be considered. In the final rule published the same day as the 
SNPRM, BTS made many changes to the report forms, eliminating some 
categories of data items and either reducing detail or changing what is 
collected in others. The amount of information reported by Class I 
carriers was reduced by 64 percent. For Class II carriers, the burden 
was not reduced, but the report form was significantly changed. The 
feedback BTS received regarding confidentiality was based largely on 
the old forms. Therefore, BTS does not know how the changes in the 
forms impact the confidentiality issue. Also, before the final rule was 
published, carriers did not have a mechanism for requesting 
confidentiality. Now individual carriers can request confidentiality 
protection based on a competitive harm standard. If a carrier meets the 
standard, BTS must withhold its report from public release. Carriers 
can also request an exemption from filing based on a similar standard. 
In order to know what further protections are needed, if any, BTS must 
review how effective these new mechanisms are. In sum, in order for BTS 
to accomplish its goal of striking an appropriate balance, it needs to 
gain more experience with the major changes it recently made.
    Gaining experience and additional information will also be critical 
in solving several problems pointed out in the comments. For instance, 
while it may sound reasonable to limit access to certain classes of 
users--those classes where access would be least likely to cause 
competitive harm--this presents several practical problems. For 
instance, researchers would be able to conduct safety and policy-
relevant studies with carrier-level data, but the researchers would not 
be able to publish their results at the carrier level. Not only would 
this preclude the presentation of many of the meaningful findings, but 
others would not be able to examine and critique their work. Similarly, 
it is not clear whether safety researchers outside of academia would 
have access, although safety is certainly a concern to many others. For 
instance, how would access work with organizations such as trucking 
associations or labor unions, which are likely to have broad interests 
including safety? Thus, the proposal would not achieve its goal of not 
impeding access for safety and other key uses. While these problems 
have been raised, no solutions--other than withdrawing the proposal--
were suggested.
    While we will continue to monitor the issue and seek feedback from 
respondents and data users, BTS believes it would be unwise to proceed 
at this time. Any changes would have to come after the benefit of more 
experience regarding the recent changes and a deeper understanding of 
the issues. BTS can then determine whether and how to make further 
adjustments regarding access to reported data.

V. Effect on the Availability of Reported Data

    While the SNPRM was pending, BTS did not release any reported data 
from the 1998 annual report and the 1999 quarterly reports. By 
withdrawing this proposal, BTS will make that information available, 
except as otherwise prohibited by law. For instance, pursuant to 49 CFR 
1420.10, BTS will not release data where a carrier's report has been 
granted confidential treatment or is covered by a pending 
confidentiality request.
Ashish Sen,
Director.
[FR Doc. 99-18643 Filed 7-20-99; 8:45 am]
BILLING CODE 4910-FE-P