Jurisdiction Over Motor Finance Transactions

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Parts 1181, 1182, 1186, and 1188

[Ex Parte No. MC-216]

Jurisdiction Over Motor Finance Transactions

AGENCY: Surface Transportation Board.

ACTION: Proposed rule, withdrawal.

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SUMMARY: The Surface Transportation Board is discontinuing the

rulemaking in Ex Parte No. MC-216. The rulemaking is discontinued

because the regulatory support is no longer required.

DATES: This withdrawal is effective on July 8, 1997.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600]. [TDD

for the hearing impaired: (202) 565-1695.]

SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No.

104-88, 109 Stat. 803 (1995) (ICCTA), which took effect on January 1,

1996, abolished the Interstate Commerce Commission (ICC) and

transferred certain of its motor carrier regulatory functions to the

Secretary of Transportation (Secretary) and to the Surface

Transportation Board (Board). See ICCTA section 101 (abolition of the

ICC). See also new 49 U.S.C. 13101-14914 (regulatory provisions

applicable to motor carriers, administered in part by the Secretary and

in part by the Board).

Prior to January 1, 1996, former 49 U.S.C. 11343 provided that

certain motor carrier transactions, including those related to mergers,

purchases, and acquisitions of control, could not be carried out

without prior ICC approval. Under former 49 U.S.C. 11343(d)(1),

however, ICC approval was not required if the only parties were motor

carriers and their ``aggregate gross operating revenues'' did not

exceed $2 million during a consecutive 12-month period ending not more

than 6 months before the date of the agreement underlying the

transaction.

Sale, lease, and merger transactions involving only motor carriers

whose aggregate gross operating revenues did not exceed the $2 million

threshold were subject to prior ICC approval under former 49 U.S.C.

10926 and the small carrier transfer rules of 49 CFR part 1181. Control

transactions involving only motor carriers whose aggregate gross

operating revenues did not exceed the $2 million threshold were not

subject to ICC jurisdiction.

In the notice of proposed rulemaking (NPR) in this proceeding,

served

[[Page 36481]]

December 15, 1993, and published December 16, 1993 (58 FR 65695), the

ICC proposed to redefine aggregate gross operating revenues for

purposes of calculating the $2 million threshold. The notice of

proposed rulemaking included both a revised 49 CFR part 1188 and

conforming amendments to 49 CFR parts 1181, 1182, and 1186.

Under new 49 U.S.C. 14303(g), the only remaining jurisdiction

analogous to the non-rail portions of former section 49 U.S.C. 11343,

motor carriers of passengers must still obtain Board approval for the

same transactions that formerly were subject to old 49 U.S.C. 11343,

unless the parties' aggregate gross operating revenues do not exceed

the same $2 million jurisdictional threshold of old 49 U.S.C.

11343(d)(1). Other regulatory approval, as was required under former 49

U.S.C. 10926, is no longer required when the parties' aggregate gross

operating revenues do not exceed the $2 million threshold.

Consequently, in Revision to Regulations Governing Finance Applications

Involving Motor Passenger Carriers, STB Ex Parte No. 559 (published

elsewhere in this section of the Federal Register), we are issuing a

new NPR proposing revised procedures for finance applications involving

motor carriers of passengers. Because we will consider the

jurisdictional threshold computation issue in STB Ex Parte No. 559, we

are discontinuing this proceeding. The comments previously filed in

this proceeding will be made part of the record in STB Ex Parte No. 559

and need not be refiled.

Environmental And Energy Considerations

This action will not significantly affect either the quality of the

human environment or the conservation of energy resources.

Regulatory Flexibility Analysis

This action will not have a significant economic impact on a

substantial number of small entities. It imposes no new requirements on

any entity, and previous requirements involving carriers other than

motor passenger carriers have been repealed by statute.

Decided: June 20, 1997.

By the Board, Chairman Morgan and Vice Chairman Owen.

Vernon A. Williams,

Secretary.

[FR Doc. 97-17747 Filed 7-7-97; 8:45 am]

BILLING CODE 4915-00-P