[Federal Register: July 31, 1998 (Volume 63, Number 147)]
[Rules and Regulations]
[Page 40837-40839]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31jy98-20]

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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