Exemption of Commonly-Owned Motor Carriers From Equipment Identification and Receipt Requirements Applicable to Leased and Interchanged Vehicles

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Part 376

[FHWA Docket No. FHWA-97-3050]

RIN 2125-AE26

Exemption of Commonly-Owned Motor Carriers From Equipment

Identification and Receipt Requirements Applicable to Leased and

Interchanged Vehicles

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Final rule.

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SUMMARY: The FHWA is modifying its regulations under 49 CFR part 376

governing the lease and interchange of motor vehicle equipment by

exempting commonly-owned and controlled motor carriers from the vehicle

identification and exchange of receipt requirements of Sec. 376.22 and

the vehicle identification requirement of Sec. 376.31. This action

eliminates the need for carriers to obtain individual waivers from

these requirements from the FHWA.

EFFECTIVE DATE: August 31, 1998.

FOR FURTHER INFORMATION CONTACT: Mr. John F. Grimm, Director, Office of

Motor Carrier Information Analysis, (202) 366-4039, or Mr. Michael J.

Falk, Motor Carrier Law Division, Office of the Chief Counsel, (202)

366-1384, Federal Highway Administration, Department of Transportation,

400 Seventh Street, SW., Washington, DC 20590. Office hours are from 8

a.m. to 4:30 p.m., e.t., Monday through Friday, except Federal

holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access

Internet users can access all comments received by the U.S. DOT

Dockets, Room PL-401, by using the universal resource locator (URL):

http://dms.dot.gov. It is available 24 hours each day, 365 days each

year. Please follow the instructions online for more information and

help.

An electronic copy of this document may be downloaded using a modem

and suitable communications software from the Federal Register

Electronic Bulletin Board Service at (202) 512-1661. Internet users may

reach the Federal Register's home page at: http://www.nara.gov/nara/

fedreg and the Government Printing Office's database at: http://

www.access.gpo.gov/su_docs.

Background

The FHWA's regulations at 49 CFR part 376 govern motor carrier

transportation provided in nonowned equipment. Section 376.22 permits

motor carriers of property who must register with the FHWA under 49

U.S.C. 13901 and Sec. 13902 (authorized carriers) to trip lease

nonowned equipment between themselves and private motor carriers under

specified conditions. Section 376.22(a) requires that trip-leasing

carriers comply with certain equipment identification and equipment

receipt requirements contained in 49 CFR 376.11. Under these

requirements, trip-leased vehicles must display the trade name and

other pertinent information regarding the motor carrier operating the

vehicle. Equipment receipts must be exchanged between the owner and

authorized carrier when possession of the equipment is transferred.

Section 376.31 of the regulations imposes a similar vehicle

identification requirement on authorized carriers which interchange

equipment to continue a through movement, and also requires that either

a copy of the interchange agreement or a detailed interchange statement

be carried in each vehicle.

On December 30, 1997, the FHWA published a notice of proposed

rulemaking (NPRM) and a request for comments in the Federal Register

(62 FR 67821) on amending part 376 to exempt commonly-owned and

controlled motor carriers from the vehicle identification and exchange

of receipt requirements of Sec. 376.22 and the vehicle identification

and documentation requirements of Sec. 376.31. Commonly-owned or

controlled carriers have routinely been granted individual waivers from

these requirements by the former Interstate Commerce Commission (ICC)

and the FHWA on the ground that compliance is unnecessary and

burdensome as long as the carriers remained under joint ownership and

control.

The FHWA believes that the vehicle identification and exchange of

receipt requirements serve little useful purpose when vehicles are

being exchanged between commonly-controlled companies which are jointly

operated with respect to safety program administration and equipment

utilization. Vehicle ownership and assignment information can be

readily made available from computerized dispatch records and

operational logs, obviating the need for strict identification,

placarding and receipt issuance requirements. Furthermore, elimination

of these requirements would allow such carriers to operate more

efficiently and economically by fostering improved equipment use and

eliminating a significant and unproductive paperwork and placarding

burden. This amendment would also allow the FHWA to conserve its own

resources by eliminating the need to grant waivers on an individual

basis.

Discussion of Public Comments

The public comment period for the NPRM closed on March 2, 1998.

Comments were received from the California Highway Patrol (CHP);

Landstar System, Inc., and its 10 motor carrier subsidiaries; and the

National Solid Wastes Management Association (NSWMA). Landstar and the

NSWMA support the proposed rule on the ground that it will eliminate

burdensome administrative and paperwork requirements which no longer

serve a useful purpose. The CHP, however, believes that exempting

commonly-owned and controlled carriers from vehicle identification

requirements will create problems for enforcement personnel issuing

traffic citations and conducting routine vehicle inspections and

accident investigations. According to the CHP, the carrier information

displayed on the vehicle is used to identify the carrier for purposes

of preparing inspection, citation and accident reports, which are

incorporated into State and Federal motor carrier databases. In order

to ensure the accuracy of this data, the CHP requests that the proposed

rule be amended to require that each vehicle carry documentation

identifying the operating carrier which would have to be presented to

law enforcement personnel on request.

We agree with the CHP that it is important for enforcement

personnel to be able to accurately identify the

[[Page 40838]]

operating motor carrier when issuing traffic citations and conducting

vehicle inspections and accident investigations. However, vehicles

trip-leased among commonly-owned and controlled carriers will still be

required to carry a copy of either the trip-leasing agreement under

Sec. 376.22(c)(3) or a master lease under Sec. 376.22(c)(4).

Consequently, enforcement personnel will be able to identify the

operating motor carrier of trip-leased equipment.

With respect to interchanged equipment, Sec. 376.31(d)(2) is the

only regulatory provision requiring interchanged vehicles to carry

documentation identifying the operating motor carrier. Instead of

achieving consistency with Sec. 376.22 as intended, the proposed

exemption from Sec. 376.31(d)(2) would actually create inconsistent

identification requirements because vehicles interchanged among

commonly-owned and controlled carriers would no longer have to carry

documents identifying the operating carrier. Accordingly, the final

rule will retain the requirement that equipment interchanged among

commonly-owned and controlled carriers carry either a copy of the

interchange agreement or a detailed interchange statement. Inasmuch as

individual petitions for waivers have generally sought relief from the

provisions of Sec. 376.22 rather than Sec. 376.31, retaining this

requirement should not be a burden on commonly-owned and controlled

motor carriers.

Rulemaking Analyses and Notices

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. It is anticipated that the economic

impact of this rulemaking will be minimal; therefore, a full regulatory

evaluation is not required. The rulemaking merely exempts a small

number of transportation entities from complying with identification

and documentation requirements which the FHWA has routinely waived upon

request. Neither the individual nor cumulative impact of this action

would 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 FHWA receives less than ten

petitions per year seeking waiver of vehicle identification and receipt

issuance requirements. The rule, while beneficial, would not have a

significant economic impact.

Unfunded Mandates Reform Act of 1995

The Unfunded Mandates Reform Act of 1995 (the Act) (Pub. L. 104-4)

requires each agency to assess the effects of its regulatory actions on

State, local and tribal governments and the private sector. Any agency

promulgating a rule likely to result in a Federal mandate requiring

expenditures by a State, local or tribal government or by the private

sector of $100 million or more in any one year must prepare a written

statement incorporating various assessments, estimates and descriptions

that are delineated in the Act. The FHWA has determined that the

changes in this rule will not have an impact of $100 million or more in

any one year.

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. It is specifically designed to eliminate certain

existing paperwork requirements for commonly-controlled motor carriers

leasing or interchanging vehicles among themselves. Thus, this action

is consistent with 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 376

Highways and roads, Motor carriers--equipment leasing, Reporting

and recordkeeping requirements.

Issued: July 21, 1998.

Kenneth R. Wykle,

Federal Highway Administrator.

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, chapter III, as

follows:

PART 376--LEASE AND INTERCHANGE OF VEHICLES

1. The authority citation for part 376 continues to read as

follows:

Authority: 49 U.S.C. 13301 and 14102; 49 CFR 1.48.

2. Section 376.22 is amended by adding new paragraph (d) to read as

follows:

Sec. 376.22 Exemption for private carrier leasing and leasing between

authorized carriers.

* * * * *

(d) Authorized and private carriers under common ownership and

control may lease equipment to each other under this section without

complying with the requirements of paragraph (a) of this section

pertaining to identification of equipment, and the requirements of

paragraphs (c)(2) and (c)(4) of this section pertaining to equipment

receipts. The leasing of equipment between such carriers will be

subject to all other requirements of this section.

3. Section 376.31 is amended by adding paragraph (d)(3) to read as

follows:

Sec. 376.31 Interchange of equipment.

* * * * *

(d) * * *

(3) Authorized carriers under common ownership and control may

interchange equipment with each other without complying with the

requirements of paragraph (d)(1) of this

[[Page 40839]]

section pertaining to removal of identification from equipment.

[FR Doc. 98-20519 Filed 7-30-98; 8:45 am]

BILLING CODE 4910-22-P