Compensated Intercorporate Hauling

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Part 369

[FHWA Docket No. MC-96-37 and No. FHWA-97-2286]

RIN 2125-AE02

Compensated Intercorporate Hauling

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Final rule.

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SUMMARY: The FHWA is removing the regulation delineating the scope and

notice filing requirements of the statutory exemption for compensated

intercorporate hauling. Section 103 of the ICC Termination Act of 1995

(ICCTA), Pub. L. 104-88, 109 Stat. 803, removed the requirement that a

notice be filed before initiation of exempt compensated intercorporate

hauling operations.

EFFECTIVE DATE: August 15, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas T. Vining or Ms. Patricia

A. Burke, Office of Motor Carrier Information Analysis, HIA-30, (202)

358-7028, or Ms. Grace Reidy, Office of the Chief Counsel, (202) 366-

0834, Federal Highway Administration, 400 Seventh St., 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: On October 21, 1996, the FHWA published a

proposed rule and a request for comments in the Federal Register (61 FR

54711) on the regulation governing the filing of a notice prior to

initiation of operations under the statutory exemption for compensated

intercorporate hauling. The proposed rule would eliminate this

regulation.

The former Interstate Commerce Act contained an exemption from ICC

regulation at 49 U.S.C. 10524(b) for compensated transportation service

by a member of a corporate family, for other members of the same

family, if proper notice was given. To qualify for the exemption, the

participants were required to be members of a corporate family in which

the parent owned, either directly or indirectly, a 100 percent interest

in the subsidiaries. Corporate entities availing themselves of the

exemption were also required to file a notice, which was published in

the Federal Register, listing the participating subsidiaries and

certifying 100 percent ownership by the corporate parent.

The ICCTA reenacted the substantive exemption for compensated

intercorporate hauling, but removed the requirement for filing of a

notice of operations under the exemption, 49 U.S.C. 13505(b). Although

the ICCTA does not prohibit imposition of a notice requirement by the

FHWA, which has assumed responsibility for these regulations pursuant

to the ICCTA, the prior Federal Register notice questioned the

continuing need for a notice requirement or for any regulations on this

subject.

The public comment period for the proposed rule closed on December

20, 1996. The FHWA received one comment from the National Private Truck

Council (NPTC). This comment is available for review at the U.S. DOT

Dockets, Room PL-401, 400 Seventh Street, SW., Washington, DC 20590-

0001.

The NPTC supports elimination of the regulation and notice filing

requirement. The regulation at 49 CFR part 369 merely restates the

scope of the statutory compensated intercorporate hauling exemption and

provides the required form and content of the notice. The information

that otherwise would be contained in the notice can be easily checked

by the FHWA through other means if it ever appears that a corporation

is conducting operations which exceed the scope of the exemption.

Because the ICCTA essentially limits licensing requirements to

compliance with safety and insurance requirements, there also appears

to be no incentive for a corporation to use the exemption as a cover

for unregistered transportation operations. The corporation could

easily obtain operating authority for legitimate operations. Thus, the

regulation at 49 CFR part 369 no longer serves any meaningful

regulatory purpose, and it will be removed.

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. The economic impact of this

rulemaking will be minimal; therefore, a full regulatory evaluation is

not required. The rulemaking merely eliminates a notice filing

requirement which applies to a small number of transportation entities.

Neither the individual nor cumulative impact of this action will 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 effects of this rule 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. The filing requirement currently

only involves the preparation of a relatively simple notice by less

than twenty transportation entities annually. Its elimination, while

beneficial, will not have a significant economic impact.

Executive Order 12612 (Federalism Assessment)

This action was analyzed in accordance with the principles and

criteria contained in Executive Order 12612, and it was determined that

this action does not have sufficient

[[Page 38035]]

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 eliminates the requirement that parties taking

advantage of the exemption at 49 U.S.C. 13505(b) prepare and file a

notice of their operations. This action is thus consistent with the

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 369

Highways and roads.

In consideration of the foregoing and under the authority of

section 103 of the ICC Termination Act of 1995, Pub. L. 104-88, 109

Stat. 803, and 49 CFR 1.48, the FHWA amends title 49, CFR, Chapter III,

by removing part 369.

Issued on: July 7, 1997.

Jane F. Garvey,

Acting Administrator for the Federal Highway Administration

[FR Doc. 97-18697 Filed 7-15-97; 8:45 am]

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