Single State Insurance Registration; Receipt Rule

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Part 367

RIN 2125-AD92

Single State Insurance Registration; Receipt Rule

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Final rule; continued suspension of effectiveness.

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SUMMARY: This document continues the suspension of the effectiveness of

the final rule concerning a receipt provision of Single State Insurance

Registration which was published at 60 FR 30011 on June 7, 1995. The

rule had directed the Base States to make copies of their issued

receipts which indicate that a motor carrier has filed the required

proof of insurance and has paid the required fees. Affected parties

then requested the Interstate Commerce Commission (ICC) to suspend the

effectiveness of the final rule and to reinstate the earlier rule

allowing the motor carriers to make the copies instead of the Base

States. This request was granted. This action continues the extension

of the current temporary receipt rule which was reinstated at 60 FR

39874 on August 4, 1995, until the DOT adopts a final rule implementing

a new motor carrier registration system.

EFFECTIVE DATE: Effective December 4, 1996, Sec. 367.5, as revised at

60 FR 30011, June 7, 1995, and suspended at 60 FR 39875, August 4,

1995, is further suspended until January 1, 1998. Section 367.5, which

was reinstated at 60 FR 39875, August 4, 1995, continues in effect

December 4, 1996, through December 31, 1997.

FOR FURTHER INFORMATION CONTACT: Ms. Dixie E. Horton, Office of Motor

Carrier Planning and Customer Liaison, (202) 366-4340, or Ms. Grace

Reidy, Office of Chief Counsel, (202) 366-0761, Federal Highway

Administration, 400 Seventh Street, 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: Since the Motor Carrier Act of 1935, Pub. L.

74- 255, 49 Stat. 543, Congress has permitted the States to police

unauthorized operations by interstate for-hire motor carriers. In 1965,

Congress allowed the States to enforce this activity through a multi-

filing system of operating authority registration, the so-called

``bingo stamp'' program. See Pub. L. 89-170, 79 Stat. 648. This

program, (formerly 49 U.S.C. 11506, now section 14504), was

administered at 49 CFR part 1023. The Intermodal Surface Transportation

Efficiency Act of 1991 (ISTEA)( Pub. L. 102-240, 105 Stat. 1914)

created the Single State Registration System (SSRS) to replace the

``bingo stamp'' program. Section 4005 of the ISTEA significantly

amended 49 U.S.C. 11506 in creating the SSRS. Under the SSRS, a

carrier: (a) Files proof of insurance with a single ``registration''(or

Base) State; (b) pays the Base State fees that are subject to

allocation among all States in which the carrier operates and which

participate in the system; and (c) keeps, in each of its commercial

vehicles, a copy of the receipt issued by the Base State.

The ISTEA directed the ICC to issue implementing rules under which

the SSRS would operate. In a decision in Ex Parte No. MC-100 (Sub-No.

6), Single State Insurance Registration, 9 I.C.C.2d 610 (1993), notice

published at 58 FR 28932 on May 18, 1993, the ICC adopted final

regulations that replaced the ``bingo stamp'' program regulations.

These new SSRS regulations were challenged and upheld in court, with

one exception concerning who makes the official copies of the Base

State-issued receipt. Nat'l Ass'n of Regulatory Util. Comm'rs v. ICC,

41 F.3d 721 (D.C. Cir. 1994). The court ruled that the States, rather

than the motor carriers, should make the copies of the Base State-

issued receipt that must be kept in each vehicle. The court remanded

this particular rule to the ICC for consideration. In a decision served

June 6, 1995, notice published at 60 FR 30011 on June 7, 1995, the ICC

adopted a revised final rule requiring the States to issue the official

copies of the receipts, effective July 7, 1995.

By a petition filed July 11, 1995, the National Conference of State

Transportation Specialists (NCSTS)

[[Page 64296]]

requested that the ICC postpone the effectiveness of this revised

receipt rule for one year. The American Trucking Associations (ATA) and

the American Insurance Association filed letters supporting the

petition. The NCSTS indicated that it was working with the motor

carrier and insurance industries and the DOT to create a new insurance

program. The ICC agreed to maintain the status quo while interested

parties consider alternatives to the SSRS, suspended the effectiveness

of the revised final rule, and reinstated the receipt rule that

previously was in effect. Ex Parte No. MC-100 (Sub-No. 6), Single State

Insurance Registration, served July 31, 1995, and notice published at

60 FR 39874 on August 4, 1995. The reinstated, temporary receipt rule

is found at 49 CFR 367.5 and would have remained in effect until

December 31, 1996. Carriers continue to make the copies of the Base

State-issued receipt to be kept in each vehicle.

Subsequent to this ICC action, Congress passed the ICC Termination

Act of 1995 (ICCTA) Pub. L. 104-88, 109 Stat. 803, 888, which

eliminated the ICC and transferred the SSRS, in 49 U.S.C. 14504, to the

DOT, under standards maintained by the Secretary of Transportation.

Congress did not specify in the ICCTA who should make the copies of the

receipts; rather, it reiterated that a copy must be retained in each of

a carrier's commercial vehicles. Section 204 of the ICCTA preserves the

existing ICC SSRS rules at 49 CFR part 367 until the Secretary modifies

them, if necessary. In a Federal Register notice (61 FR 14372, April 1,

1996), the FHWA stated, generally, that all of the ICC's existing rules

and regulations are to remain in effect until further action is taken.

The particular SSRS regulations now in effect in 49 CFR part 367 fall

under that notice and will remain in effect until further action is

taken. The FHWA anticipates that these rules will govern the operations

of the SSRS until further notice.

Section 13908 of title 49, U.S.C., under section 103 of the ICCTA

directs the Secretary, in a rulemaking to be completed by December 31,

1997, to replace four existing motor carrier registration/information

systems with a single replacement system. One of the four systems to be

replaced is the SSRS, provided certain conditions are met. Therefore,

it is possible that the current SSRS will be altered or eliminated in

that rulemaking. The FHWA issued an advance notice of proposed

rulemaking (ANPRM) seeking comments from the States, representatives of

the motor carrier and insurance industries, and the public on the

single, replacement system (61 FR 43816, August 26, 1996). Interested

parties may file comments on alternatives to the SSRS in relation to

that ANPRM.

On April 22, 1996, the ATA filed a request with the FHWA that the

former ICC order, suspending the effectiveness of its June 6, 1995

decision and reinstating the earlier rule, be extended until the

Secretary has issued new regulations in the section 13908 rulemaking,

which may potentially replace the SSRS in its entirety. The ATA argues

that without the extension motor carriers and States would otherwise

have to develop expensive and cumbersome systems that may be in effect

for only one year. It asserts that the States will not be harmed by the

extension of the suspension which will continue the current, smooth

operations of SSRS. On April 26, 1996, the North Dakota Department of

Transportation wrote in support of the ATA's request. On May 8, 1996,

the NCSTS also wrote in support of the extension of the suspension of

the ICC's July 7, 1995, receipt rule. The NCSTS states that it is not

worthwhile to make significant changes in the SSRS program that may

last only for one or two registration years. These requests seek to

continue the reinstated, temporary rule allowing motor carriers to make

the copies of the Base State-issued receipts, instead of the States,

until the future of the SSRS program is resolved.

Given the likely transitory nature of the SSRS, the support of the

major parties affected by the rule, and the lack of specific

congressional direction to the contrary, the FHWA has decided to

continue the suspension of the effectiveness of the revised final rule

and keep in effect the reinstated, temporary receipt rule at 49 CFR

367.5, Registration Receipts. This suspension of effectiveness will

continue until the future of SSRS is resolved in the pending

rulemaking, which has a December 31, 1997, deadline for completion. The

petitioning parties have submitted adequate justification for their

requests. Because it is unclear whether the SSRS will continue in

existence beyond the next year, preserving the status quo will prevent

unnecessary disruptions in the day-to-day operations of the SSRS. The

interested parties will have ample opportunity to comment on the future

of the SSRS in the section 13908 rulemaking. This action will also

alert the SSRS States so that they will avoid incurring substantial,

unnecessary copying expenses for the next registration year. While

there is no evidence of any pattern of abuse, the SSRS rules do provide

for penalties if violations of the rules should occur, 49 CFR 367.7.

Regulatory Analyses and Notices

The FHWA finds that prior notice and opportunity for comment are

unnecessary and contrary to the public interest under 5 U.S.C. 553

(b)(3)(B) because the issue of who should make the copies of Base

State-issued SSRS receipts has already been the subject of a notice-

and-comment rulemaking in a May 11, 1992, advance notice of proposed

rulemaking (57 FR 20072), a January 25, 1993, notice of proposed

rulemaking (58 FR 5951), a May 18, 1993, notice of final rulemaking (58

FR 28932), and a June 7, 1995, notice of revised final rulemaking (60

FR 30011). In addition, this final rule simply extends the effective

date of the existing temporary rule in order to ensure the smooth

operation of the SSRS for the next year, after which it may not even be

in existence, and prevents SSRS States from incurring substantial,

unnecessary copying and transition-related expenses. Finally, the FHWA

believes that further notice and opportunity for comment are not

required under the regulatory policies and procedures of the DOT. In

light of the earlier opportunities to comment on this subject, the FHWA

does not anticipate that providing an additional comment period on this

action would result in the receipt of useful information.

The FHWA also believes that good cause exists to dispense with the

30-day delayed effective date requirement of 5 U.S.C. 553(d) due to the

nature of this rulemaking. This final rule preserves the status quo

until the 13908 rulemaking is completed and the future of the SSRS is

determined. Continuing the effectiveness of the reinstated, temporary

rule also relieves the motor carrier industry of the requirement and

expense of converting to a new and more burdensome process for copying

receipts for only a brief period.

Executive Order 12866 (Regulatory Planning and Review) and DOT

Regulatory Policies and Procedures

The FHWA has determined that this action is neither a significant

regulatory action under Executive Order 12866 nor significant under the

Department of Transportation's regulatory policies and procedures. In

this action, the FHWA continues the suspension of the effectiveness of

a final rule, and thereby, continues the effectiveness of the

reinstated, temporary rule now in place for nearly one year. It is

anticipated that the economic impact of this action will not be

substantial because the status

[[Page 64297]]

quo is extended until the future of the SSRS is made clearer in the 49

U.S.C. 13908 rulemaking to be completed by December 31, 1997. The FHWA

is not altering an existing regulation in such a way as to either

impose or eliminate any economic burden.

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 action 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. As noted above, the FHWA is

merely extending the effective date of a reinstated, temporary rule

already in effect and is not altering the existing regulation in such a

way as to either impose or eliminate any economic burden.

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.

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.

Regulatory 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 367

Commercial motor vehicle, Financial responsibility, Insurance,

Motor carriers, Motor vehicle safety, Registration, Reporting and

recordkeeping requirements.

Issued on: November 25, 1996.

Rodney E. Slater,

Federal Highway Administrator.

[FR Doc. 96-30835 Filed 12-3-96; 8:45 am]

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