[Federal Register Volume 83, Number 241 (Monday, December 17, 2018)]
[Proposed Rules]
[Pages 64502-64506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27062]
[[Page 64502]]
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FEDERAL MARITIME COMMISSION
46 CFR Part 515
[Docket No. 18-11]
RIN 3072-AC73
Licensing, Financial Responsibility Requirements, and General
Duties for Ocean Transportation Intermediaries
AGENCY: Federal Maritime Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Maritime Commission (FMC or Commission) proposes
to amend its rules governing licensing, financial responsibility
requirements, and general duties for ocean transportation
intermediaries (OTIs). The proposed changes are mainly administrative
and procedural.
DATES: Submit comments on or before January 18, 2019.
ADDRESSES: You may submit comments, identified by the Docket Number in
the heading of this document by the following methods:
Email: [email protected]. For comments, include in the
subject line: ``Docket No. 18-11, Comments on Proposed OTI
Regulations.'' Comments should be attached to the email as a Microsoft
Word or text-searchable PDF document. Only non-confidential and public
versions of confidential comments should be submitted by email.
Mail: Rachel E. Dickon, Secretary, Federal Maritime
Commission, 800 North Capitol Street NW, Washington, DC 20573-0001.
Instructions: For detailed instructions on submitting comments,
including requesting confidential treatment of comments, and additional
information on the rulemaking process, see the Public Participation
heading of the Supplementary Information section of this document. Note
that all comments received will be posted without change to the
Commission's website, unless the commenter has requested confidential
treatment.
Docket: For access to the docket to read background documents or
comments received, go to the Commission's Electronic Reading Room at:
http://www.fmc.gov/18-11, or to the Docket Activity Library at 800
North Capitol Street NW, Washington, DC 20573, between 9:00 a.m. to
5:00 p.m., Monday through Friday, except Federal holidays. Telephone:
(202) 523-5725.
FOR FURTHER INFORMATION CONTACT: Rachel E. Dickon, Secretary. Phone:
(202) 523-5725. Email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Introduction
There are two types of OTIs that serve as transportation middlemen
for cargo moving in the U.S.-foreign oceanborne trades: Non-vessel-
operating common carriers (NVOCCs) and ocean freight forwarders (OFFs).
An NVOCC is a common carrier that holds itself out to the public to
provide ocean transportation and issues its own house bill of lading or
equivalent document, but does not operate the vessel by which ocean
transportation is provided. An OFF domiciled in the U.S. arranges for
the transportation of cargo with a common carrier on behalf of shippers
and processes documents related to U.S. export shipments. The Shipping
Act of 1984 and 46 CFR part 515 require that all NVOCCs and OFFs
located in the U.S. must be licensed by the Commission and must
establish financial responsibility.
NVOCCs doing business in the U.S.-foreign trades but located
outside the U.S. (foreign NVOCCs) may choose to become FMC-licensed,
but are not required to do so. Foreign-based NVOCCs must nonetheless
register with the Commission and establish financial responsibility if
not licensed under the FMC's program.
On November 3, 2015, the Federal Maritime Commission published a
final rule making significant amendments to its regulations governing
OTIs. These changes included adding requirements to renew OTI licenses
every three years; providing for simple on-line renewals; eliminating
the $10,000 financial responsibility coverage requirement for each
unincorporated branch office; and establishing an expedited hearing
process for license denials, revocations, and suspensions, while
continuing to provide applicants and licensees due process and the
ability to appeal adverse decisions to the Commission. Most of the
changes were implemented in December 2015, and OTI license renewals
were initiated in 2017.
II. Proposed Changes to Part 515
Based on its experience implementing the revised regulations, the
Commission has identified a number of regulatory provisions where
clarification is warranted. Accordingly, the Commission is proposing
changes to its current rules that are administrative or procedural in
nature or will further reduce the regulatory burden on regulated
entities and include: (1) Updating the title and scope of Part 515 to
include foreign-based NVOCC registrations; (2) clarifying the
requirements for U.S. agents of foreign-based registered NVOCCs; (3)
removing the optional paper application process and related reference
to fee amounts; (4) adding language to clarify who can be the
Qualifying Individual (QI) in partnerships between entities other than
individuals; (5) updating and improving processes (renewal, bond, and
termination); (6) adding clarifying language regarding the Commission's
direct review of applications in certain cases; (7) clarifying the
information that sureties are to provide regarding claims against OTIs;
(8) adding a requirement that NVOCCs submit their Form FMC-1 prior to
being issued a license; and (9) deleting reference to availability of
the Regulated Person's Index. None of the proposed changes increase the
burden to applicants, licensees, or registered foreign-based NVOCCs.
A. Part 515 Title and Scope
The proposed rule would add ``Registration'' to the part heading to
reflect that foreign-based NVOCCs have the option of registering or
becoming licensed. The proposed rule would similarly include
registration in the description of the scope of part 515 in Sec.
515.1.
B. U.S. Agents for Registered NVOCCs
Section 515.3 currently requires a registered foreign-based NVOCC
to use licensed OTIs as agents to provide NVOCC services in the United
States. Stakeholders have asked for clarification as to whether such
agents can be either OFFs or NVOCCs. The proposed language clarifies
that the licensed OTI agents can be either OFFs or NVOCCs.
C. Forms and Application Fees
The proposed rule would remove references in Sec. Sec. 515.5 and
515.14 to renewal forms for licensed OTIs. These references are not
needed because the data collection during the renewal process is the
same as the data collection of the initial Form FMC-18.
Proposed changes to Sec. 515.5(b) and Sec. 515.12(a) would
eliminate the paper application option for OTI licenses, based on the
Commission's experience since introducing the electronic filing option.
The Commission has not received any requests for a waiver to file a
paper application since the waiver requirement was implemented in
November 2015.
Finally, the Commission is proposing to replace an outdated
reference to ``Form FMC-18 Rev.'' in Sec. Sec. 515.5, 515.12 with
``Form FMC-18.''
D. Qualifying Individuals in Partnerships Between Entities
The qualifying individual (QI) requirements in Sec. 515.11(b)
regarding
[[Page 64503]]
partnerships assume that the managing partners are individuals and thus
eligible to be the QI for the partnership. In order to address the
situation in which the managing partners are entities rather than
individuals, clarifying language has been added indicating that an
officer of a general partner entity may be the QI.
E. Submission of Form FMC-1 as Prerequisite for License
The proposed changes to Sec. 515.14(a) would require NVOCCs
applying for a license to provide the Commission with a Form FMC-1
prior to the Commission issuing a license, which conforms to the
current procedures for foreign-based NVOCCs that register with the
Commission.\1\ Currently, a license is issued after approval by the
Commission and receipt of proof of financial responsibility. Although
NVOCCs are required under Sec. 520.3 to submit a Form FMC-1 prior to
the commencement of common carrier service pursuant to a published
tariff, submission of the form is not currently a prerequisite for
receiving a license. Like the current requirement for submitting proof
of financial responsibility, the proposed change would require NVOCCs
to submit a Form FMC-1 within 120 days of the conditional approval of
their license application. Failure to submit the form within that time
period would require the NVOCC to submit a new application to restart
the license process. This change would ensure that NVOCCs comply with
all requirements for commencing service in the U.S. trades in a timely
manner. This change would add no additional burden to NVOCCs seeking
licenses as they are already required to provide the Commission with a
Form FMC-1; the proposed change merely affects the timing of the
submission of the form.
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\1\ The proposed rule would also make minor clarifying changes
to the corresponding requirement in Sec. 515.19 for foreign-based
NVOCCs registering with the Commission.
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Because the proposed Form FMC-1 requirements mirror the existing
requirements for submitting proof of financial responsibility, the
latter requirement would be removed from Sec. 515.25 and combined with
the Form FMC-1 requirements being added to Sec. 515.14(a).
F. License Renewal Process
The proposed rule would make a number of changes to Sec. 515.14 to
improve and clarify the license renewal process. In addition to some
minor clarifying the language changes, the proposed rule would change
the initial period between licensing and renewal from three years to a
period of not less than one year to not greater than four years. This
change would spread out license renewals across the entire year and
thereby facilitate the efficient and prompt processing of such
renewals.
The proposed rule would also change the deadline for completing the
renewal process. Currently, Sec. 515.14 requires licensed OTIs to
complete the renewal process no later than 60 days prior to the renewal
date. The proposed rule would change the deadline to the renewal date
itself. This change would reduce the burden on licensed OTIs by
allowing them additional time to complete the renewal process.
G. Application After Revocation or Denial
The proposed rule would expand the types of applications subject to
direct Commission review to include applicants employing any of the
same officers, managers, or members as an OTI whose license was revoked
or denied within the previous three years because the Commission
determined that the OTI was not qualified to provide OTI services. The
applications currently subject to direct Commission review are limited
to those submitted by the OTI whose license was previously denied or
revoked, or those from another OTI that employs the same QI or is
controlled by persons whose conduct formed the basis for the previous
revocation or denial. The Commission believes that an OTI employing an
officer, manager, or member of another OTI that previously had its
license denied or revoked raises the same concerns as an OTI employing
the same QI and has tentatively concluded that direct review of
applications by such OTIs is warranted.
The proposed rule would also add clarifying language to more
clearly reflect that denial of an application under Sec. 515.18 is
final and not subject to the hearing procedures in Sec. 515.17.
H. Reporting Changes in Trade Names
The proposed rule would clarify in Sec. 515.20 that a change in a
licensee's name includes adding or deleting a trade name relating to
its OTI services. OTIs must seek prior approval from the Commission
before making such changes.
I. Proof of Financial Responsibility
The proposed rule would clarify in Sec. 515.22 that OTIs may
submit proof of financial responsibility via email, and, in Sec.
515.26, that the Commission may transmit notices of termination of
financial instruments via email. Allowing transmission of this
information by email reduces delays and the burdens on both OTIs and
the Commission.
The proposed rule would also clarify that in addition to the
principal's name, trade name, and address, the financial responsibility
instrument must clearly identify the principal's state of incorporation
or formation, and the printed name and title of the signatory.
J. Claims Against an OTI
The proposed rule would require that financial responsibility
providers include a registered foreign-based NVOCC's organization
number when notifying the Commission of claims against that NVOCC under
Sec. 515.23(c). The current rule requires that financial
responsibility providers include an OTI's license number, but
registered foreign-based NVOCC's do not have license numbers. This
change would ensure that the organization number for registered NVOCCs
would be included in claim notifications to the Commission.
Notwithstanding the ambiguity in the rule, financial responsibility
providers currently provide this information with OTI claim
information; thus, this proposed change would not result in any
additional burdens for financial responsibility providers.
K. Regulated Persons Index
The proposed rule would delete Sec. 515.34, which references the
availability of the Regulated Persons Index (RPI) on the Commission
website. The Commission has tentatively determined that because the RPI
is available on the website, and the Commission advertises that fact,
this section is no longer helpful or necessary.
III. Public Participation
How do I prepare and submit comments?
Your comments must be written and in English. To ensure that your
comments are correctly filed in the docket, please include the docket
number of this document in your comments.
You may submit your comments via email to the email address listed
above under ADDRESSES. Please include the docket number associated with
this notice and the subject matter in the subject line of the email.
Comments should be attached to the email as a Microsoft Word or text-
searchable PDF document. Only non-confidential and public versions of
confidential comments should be submitted by email.
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You may also submit comments by mail to the address listed above
under ADDRESSES.
How do I submit confidential business information?
The Commission will provide confidential treatment for identified
confidential information to the extent allowed by law. If your comments
contain confidential information, you must submit the following by mail
to the address listed above under ADDRESSES:
A transmittal letter requesting confidential treatment
that identifies the specific information in the comments for which
protection is sought and demonstrates that the information is a trade
secret or other confidential research, development, or commercial
information.
A confidential copy of your comments, consisting of the
complete filing with a cover page marked ``Confidential-Restricted,''
and the confidential material clearly marked on each page. You should
submit the confidential copy to the Commission by mail.
A public version of your comments with the confidential
information excluded. The public version must state ``Public Version--
confidential materials excluded'' on the cover page and on each
affected page, and must clearly indicate any information withheld. You
may submit the public version to the Commission by email or mail.
Will the Commission consider late comments?
The Commission will consider all comments received before the close
of business on the comment closing date indicated above under DATES. To
the extent possible, we will also consider comments received after that
date. If the Commission receives a comment too late to consider in
developing a final rule (assuming that one is issued), the Commission
will consider that comment as an informal suggestion for future
rulemaking action.
How can I read comments submitted by other people?
You may read the comments received by the Commission at the
Commission's Electronic Reading Room or the Docket Activity Library at
the addresses listed above under ADDRESSES.
Please note that even after the comment closing date, we may
continue to file relevant information in the docket as it becomes
available. Further, some commenters may submit late comments.
Accordingly, we recommend that you periodically check the docket for
new material.
IV. Rulemaking Analyses and Notices
Regulatory Flexibility Act
The Regulatory Flexibility Act (codified as amended at 5 U.S.C.
601-612) provides that whenever an agency is required to publish a
notice of proposed rulemaking under the Administrative Procedure Act
(APA) (5 U.S.C. 553), the agency must prepare and make available for
public comment an initial regulatory flexibility analysis (IRFA)
describing the impact of the proposed rule on small entities, unless
the head of the agency certifies that the rulemaking will not have a
significant economic impact on a substantial number of small entities.
5 U.S.C. 603, 605. Based on the analysis below, the Chairman of the
Federal Maritime Commission certifies that this final rule will not
have a significant economic impact on a substantial number of small
entities.
The Commission recognizes that the majority of businesses affected
by these rules (OTIs) qualify as small entities under the guidelines of
the Small Business Administration. The proposed rule would not,
however, result in a significant economic impact on these businesses.
No material changes are being proposed; the proposed rule would make
minor changes to the licensing, registration, and financial
responsibility processes. Most of the proposed changes will have little
to no economic impact on OTIs, while some of the proposed changes,
e.g., changes to the deadline for renewing licenses, expressly allowing
email transmission of documents between OTIs and the Commission, are
expected to reduce burdens on OTIs.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) requires
an agency to seek and receive approval from the Office of Management
and Budget (OMB) before collecting information from the public. 44
U.S.C. 3507. The agency must submit collections of information in
proposed rules to OMB in conjunction with the publication of the notice
of proposed rulemaking. 5 CFR 1320.11.
The information collection requirements for Part 515 are currently
authorized under OMB Control Numbers 3072-0018: 46 CFR 515--Licensing,
Financial Responsibility Requirements, and General Duties for Ocean
Transportation Intermediaries and Related Forms. Although the proposed
rule would result in very minor changes to this collection of
information, none of these changes is substantive or material. The
proposed rule would result minor adjustments to information provided to
the Commission and the timing of such submissions, as well as expressly
allowing the submission of certain information by email. None of these
changes are expected to affect the burden hours associated with the
information collection.
As these changes are neither substantive nor material, the
Commission is not required to submit them to OMB for approval. See 44
U.S.C. 3507(h)(3); 5 CFR 1320.5(g) (requiring OMB approval of
substantive or material modifications to information collections).
National Environmental Policy Act
The Commission's regulations categorically exclude certain
rulemakings from any requirement to prepare an environmental assessment
or an environmental impact statement because they do not increase or
decrease air, water or noise pollution or the use of fossil fuels,
recyclables, or energy. 46 CFR 504.4. This proposed rule relates to OTI
licensing and financial responsibility requirements and therefore falls
within the categorical exclusions for matters related to the issuance,
modification, denial and revocation of ocean transportation
intermediary licenses, and matters related to the receipt of surety
bonds from OTIs. Sec. 504.4(a)(1), (3). Therefore, no environmental
assessment or environmental impact statement is required.
Executive Order 12988 (Civil Justice Reform)
This proposed rule meets applicable standards in E.O. 12988 titled,
``Civil Justice Reform,'' to minimize litigation, eliminate ambiguity,
and reduce burden.
Regulation Identifier Number
The Commission assigns a regulation identifier number (RIN) to each
regulatory action listed in the Unified Agenda of Federal Regulatory
and Deregulatory Actions (Unified Agenda). The Regulatory Information
Service Center publishes the Unified Agenda in April and October of
each year. You may use the RIN contained in the heading at the
beginning of this document to find this action in the Unified Agenda,
available at http://www.reginfo.gov/public/do/eAgendaMain.
[[Page 64505]]
List of Subjects in 46 CFR Part 515
Freight, Freight forwarders, Maritime carriers, Reporting and
recordkeeping requirements.
For the reasons stated in the supplementary information, the
Federal Maritime Commission proposes to amend 46 CFR part 515 as
follows:
PART 515--LICENSING, REGISTRATION, FINANCIAL RESPONSIBILITY
REQUIREMENTS, AND GENERAL DUTIES FOR OCEAN TRANSPORTATION
INTERMEDIARIES
0
1. The authority citation for part 515 continues to read as follows:
Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. 305, 40102,
40104, 40501-40503, 40901-40904, 41101-41109, 41301-41302, 41305-
41307; Pub. L. 105-383, 112 Stat. 3411; 21 U.S.C. 862.
0
2. Revise the part heading to read as set forth above.
0
3. Amend Sec. 515.1 by revising the first sentence of paragraph (a) to
read as follows:
Sec. 515.1 Scope.
(a) This part sets forth regulations providing for the licensing
and registration as ocean transportation intermediaries of persons who
wish to carry on the business of providing intermediary services,
including the grounds and procedures for revocation and suspension of
licenses and registrations. * * *
* * * * *
0
4. Revise Sec. 515.3 to read as follows:
Sec. 515.3 License; when required.
Except as otherwise provided in this part, no person in the United
States may act as an ocean transportation intermediary unless that
person holds a valid license issued by the Commission. For purposes of
this part, a person is considered to be ``in the United States'' if
such person is resident in, or incorporated or established under, the
laws of the United States. Registered NVOCCs must utilize only licensed
ocean transportation intermediaries (Ocean Freight Forwarders or
NVOCCs) to provide NVOCC services in the United States. In the United
States, only licensed OTIs (Ocean Freight Forwarders or NVOCCs) may act
as agents to provide OTI services for registered NVOCCs.
0
5. Amend Sec. 515.5 by revising paragraphs (a), (b), and (c)(2) to
read as follows:
Sec. 515.5 Forms and fees.
(a) Forms. License Application Form FMC-18 is found at the
Commission's website www.fmc.gov for completion on-line by applicants
and licensees. Foreign-based Unlicensed NVOCC Registration/Renewal Form
FMC-65 and financial responsibility Forms FMC-48, FMC-67, FMC-68, FMC-
69 may be obtained from the Commission's website at www.fmc.gov, from
the Director, Bureau of Certification and Licensing, Federal Maritime
Commission, Washington, DC 20573, or from any of the Commission's Area
Representatives.
(b) Filing of license application forms. All application forms are
to be filed electronically.
(c) * * *
(2) Fees under this part 515 shall be as follows:
(i) Application for new OTI license as required by Sec. 515.12(a):
Filing $250.
(ii) Application for change to OTI license or license transfer as
required by Sec. 515.20(a) and (b): Filing $125.
0
6. Amend Sec. 515.11 by revising paragraph (b)(2) to read as follows:
Sec. 515.11 Basic requirements for licensing; eligibility.
* * * * *
(b) * * *
(2) Partnership. At least one of the active managing partners,
unless the partners are entities, such as corporations, in which case
an officer, member, or manager of one of the entities as long as the
entity is a general partner.
* * * * *
0
7. Amend Sec. 515.12 by revising the first sentence of paragraph
(a)(1) to read as follows:
Sec. 515.12 Application for license.
(a) * * * (1) Any person who wishes to obtain a license to operate
as an ocean transportation intermediary shall submit electronically a
completed application Form FMC-18 (Application for a License as an
Ocean Transportation Intermediary) in accordance with the automated
FMC-18 filing system and corresponding instructions. * * *
* * * * *
0
8. Amend Sec. 515.14 by revising paragraphs (a), (c), (d)(1), and the
first sentence of paragraph (d)(2) to read as follows:
Sec. 515.14 Issuance, renewal, and use of license.
(a) Qualification necessary for issuance. (1) The Commission will
issue a license if it determines, as a result of its investigation,
that the applicant possesses the necessary experience and character to
render ocean transportation intermediary services; has filed the
required bond, insurance or other surety; and has electronically
submitted Form FMC-1 pursuant to Sec. 520.3 if approved to offer NVOCC
service.
(2) If, within 120 days of notification of conditional approval for
licensing by the Commission, proof of financial responsibility and, in
the case of an NVOCC, the Form FMC-1 is not received, the conditional
approval of the application will be invalid. Applicants whose
applications/approvals have become invalid may submit a new Form FMC-
18, together with the required filing fee, at any time.
* * * * *
(c) Duration of license. Licenses shall be issued for an initial
period of not less than one year and not greater than four years as
determined by the license number and published on the Commission
website. Thereafter, licenses will be renewed for sequential three-year
periods upon successful completion of the renewal process in paragraph
(d) of this section.
(d) * * * (1) The licensee shall submit the renewal electronically
to the Director of the Bureau of Certification and Licensing (BCL) no
later than the renewal date as published on the Commission website. The
renewal date (month/day) will remain the same for subsequent renewals
irrespective of the date on which the license renewal is submitted or
when the renewal is accepted by the Commission, unless another renewal
date is assigned by the Commission.
(2) Where information identified in an OTI's license renewal
process is changed from that set out in its current Form FMC-18 and
requires Commission approval pursuant to Sec. 515.20, the licensee
must promptly submit a request for such approval on Form FMC-18
together with the required filing fee. * * *
* * * * *
0
9. Revise Sec. 515.18 to read as follows:
Sec. 515.18 Application after revocation or denial.
Whenever a license has been revoked or an application has been
denied because the Commission has found the licensee or applicant to be
not qualified to render ocean transportation intermediary services, any
further application within 3 years of the Commission's notice of
revocation or denial, made by such former licensee or applicant or by
another applicant employing the same qualifying individual, officer(s),
member(s), manager(s) or controlled by persons on whose conduct the
Commission based its determination for revocation or denial, shall be
reviewed directly by the Commission. If the Commission denies
[[Page 64506]]
the application, such denial is final and not subject to the hearing
procedures described in Sec. Sec. 515.15 and 515.17.
0
10. Amend Sec. 515.19 by revising paragraphs (c), (e), and
(g)(1)(viii) to read as follows:
Sec. 515.19 Registration of foreign-based unlicensed NVOCC.
* * * * *
(c) Registrations are complete upon receipt of a registration form
which meets the requirements of this section, evidence of financial
responsibility pursuant to Sec. 515.21, and Form FMC-1 pursuant to
Sec. 520.3.
* * * * *
(e) A tariff shall not be published and NVOCC service shall not
commence until the Commission receives valid proof of financial
responsibility from the registrant and a Form FMC-1 has been submitted.
* * * * *
(g) * * *
(1) * * *
(viii) Failure to designate and maintain a person in the United
States as legal agent for the receipt of judicial and administrative
process, including subpoenas, as required by Sec. 515.24.
* * * * *
0
11. Amend Sec. 515.20 by revising paragraph (a)(4) to read as follows:
Sec. 515.20 Changes in organization.
(a) * * *
(4) Any change in a licensee's name, including adding or deleting a
trade name relating to its OTI services; or
* * * * *
0
12. Amend Sec. 515.22 by revising paragraph (e) to read as follows:
Sec. 515.22 Proof of financial responsibility.
* * * * *
(e) All forms and documents for establishing financial
responsibility of ocean transportation intermediaries prescribed in
this section shall be submitted to the Director, Bureau of
Certification and Licensing, via email to [email protected]. Such forms and
documents must clearly identify the principal's name; trade name, if
any; address; the state of incorporation/formation; and the printed
name and title of the signatory.
0
13. Amend Sec. 515.23 by revising paragraph (c)(3) to read as follows:
Sec. 515.23 Claims against an ocean transportation intermediary.
* * * * *
(c) * * *
(3) Notices required by this section shall include the name of the
claimant, name of the court and case number assigned, and the name and
license or organization number of the OTI involved. Such notices may
include or attach other information relevant to the claim.
* * * * *
0
14. Amend Sec. 515.25 by revising paragraph (a)(1) to read as follows:
Sec. 515.25 Filing of proof of financial responsibility.
(a) * * * (1) Licenses. Upon notification by the Commission that an
applicant has been conditionally approved for licensing, the applicant
shall file with the Director of the Commission's Bureau of
Certification and Licensing, proof of financial responsibility in the
form and amount prescribed in Sec. 515.21. No license will be issued
until the Commission is in receipt of valid proof of financial
responsibility.
* * * * *
0
15. Revise Sec. 515.26 to read as follows:
Sec. 515.26 Termination of financial responsibility.
No license or registration shall remain in effect unless valid
proof of a financial responsibility instrument is maintained on file
with the Commission. Upon receipt of notice of termination of such
financial responsibility, the Commission shall notify the concerned
licensee, registrant, or registrant's legal agent in the United States,
by email, mail, courier, or other method reasonably calculated to
provide actual notice, at its last known email address or address, that
the Commission shall, without hearing or other proceeding, revoke the
license or terminate the registration as of the termination date of the
financial responsibility instrument, unless the licensee or registrant
shall have submitted valid replacement proof of financial
responsibility before such termination date. Replacement financial
responsibility must bear an effective date no later than the
termination date of the expiring financial responsibility instrument.
Sec. 515.34 [REMOVED]
0
16. Remove Sec. 515.34.
By the Commission.
Rachel E. Dickon,
Secretary.
[FR Doc. 2018-27062 Filed 12-14-18; 8:45 am]
BILLING CODE 6731-AA-P