47692 Federal Register / Vol. 77, No. 154 / Thursday, August 9, 2012 / Notices 

any member of the European Common 

Aviation Area, and (iii) other charters. 

Barbara J. Hairston, 

Supervisory Dockets Officer, Docket 

Operations, Alternate Federal Register 

Liaison. 

[FR Doc. 2012–19586 Filed 8–8–12; 8:45 am] 

BILLING CODE 4910–9X–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary of 

Transportation 

[Docket No. DOT–OST–2012–0124] 

Notice of Transportation Services’ 

Transition From Paper to Electronic 

Fare Media Comments, Response to 

Public Comments, and Final 

Notification 

AGENCY: Office of the Secretary, DOT. 

ACTION: Notice. 

SUMMARY: On March 29, 2011, and 

April 2, 2012, U.S. Department of 

Transportation’s Office of 

Transportation Services (TRANServe), 

located within the Office of the 

Assistant Secretary for Administration, 

published for public comment Notices 

of the adoption of a new program 

distribution methodology for transit 

benefits. To date, TRANServe has 

implemented its plan in three of the 

eight TRANServe Services Areas and 

continues to implement electronic fare 

media across the United States, ensuring 

that the implementation in the 

remaining five TRANServe Service 

Areas is consistent with applicable 

statutes and regulations. TRANServe’s 

plan is a two-year initiative designed to 

be responsive to industry changes and 

technological advances. Over time, 

many State and local transit authorities 

are transitioning, or have already 

transitioned, to electronic fare media, 

compelling the shift from a paper based 

system (vouchers) to an electronic fare 

media structure. Now that the Federal 

Register notification process is final, 

TRANServe will continue to engage all 

appropriate stakeholders through 

outreach and communication for 

assistance and advice. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Denise P. Wright, Business Office 

Manager, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On March 29, 2011, and April 2, 2012, 

TRANServe published for public 

comment Notices of its intent to adopt 

a new program distribution 

methodology for transit benefits. 

TRANServe provides service to over 

250,000 transit benefit participants 

employed by over 100 federal 

organizations nationwide. Since the 

program’s inception, TRANServe has 

distributed the qualified transportation 

fringe benefit to participating Federal 

employees via a paper voucher process. 

In addition to a growing number of 

participants, many State and local 

transit authorities are transitioning, or 

have already transitioned, to electronic 

fare media, compelling the shift from a 

paper based system (vouchers) to an 

electronic fare media structure. 

TRANServe has also experienced rising 

program costs related to inventory, 

travel, and infrastructure support, 

requiring that TRANServe adopt a new 

distribution method from paper to 

electronic fare media. As a result, 

TRANServe is implementing an efficient 

and effective electronic fare media 

transition to its participating transit 

benefit agencies, consistent with 

statutory requirements in 49 U.S.C. 327, 

Administrative Working Capital Fund; 

26 U.S.C. 132(f), Qualified 

Transportation Fringe; 31 U.S.C. 3302, 

Custodians of Money; Federal 

Employees Clean Air Incentives Act 

(Pub. L. 103–172); and Executive Order 

13150, Federal Workforce 

Transportation. To date, for instance, 

TRANServe has shifted to electronic 

fare media in the following three of the 

eight TRANServe Service Areas: 

Service Area 1—Washington, DC, 

Maryland, and Virginia. 

Service Area 2 (Southeast)— 

Tennessee, North Carolina, South 

Carolina, Georgia, Florida, Alabama, 

and Louisiana. 

Service Area 3 (Upper Midwest)— 

Minnesota, Wisconsin, Michigan, 

Illinois, Indiana, Ohio, West Virginia, 

Kentucky, Virgin Islands, and Puerto 

Rico. 

TRANServe intends to continue the 

implementation of electronic fare media 

across the United States within the five 

remaining areas, ensuring that such 

implementation is consistent with 

applicable statutes and regulations. 

II. Discussion of Public Comments 

Received on TRANServe’s Adoption of 

a New Program Distribution 

Methodology for Transit Benefits 

This section presents a summary of 

the significant comments submitted 

regarding the Federal Register Notices 

published on March 29, 2011, and 

April 2, 2012 on TRANServe’s adoption 

of a new program distribution 

methodology for transit benefits and 

TRANServe’s responses to those 

comments. TRANServe had received 

comments from interested individuals 

prior to this opportunity to comment. 

To provide a level playing field, 

TRANServe addresses all stakeholders’ 

comments, if applicable, via these 

overarching responses. 

Comment: TRANServe should 

develop a method to allow federal 

employees to add funds to their benefit 

cards, possibly through a credit or debit 

card transaction, so the TRANServe 

benefit card could be used to pay for 

monthly passes that cost over $125. 

Response: The U.S. Department of 

Treasury is the Administrator of the US 

Debit Card (USDC) Program, under 

which TRANServe has established the 

TRANServe Debit Card. Currently, the 

Treasury USDC Program does not offer 

a card product that delivers federal 

payments via a card with the capability 

of adding personal funds. 

Comment: Suggest that TRANServe 

advise transit agencies of any changes or 

additions to their Bank Identification 

Number (BIN). 

Response: TRANServe does not 

anticipate changes to the BIN number. 

But if there are any changes, 

TRANServe will continue to work with 

transit agencies for a smooth transition. 

Comment: Commenters remarked that 

they would be willing to assist 

TRANServe in the adoption of an 

electronic distribution system through 

consultation and outreach. 

Response: This Federal Register 

Notice comment period has provided an 

opportunity for stakeholders to assist 

and advise TRANServe as it transitions 

to electronic fare media for its 

participating agencies. However, 

TRANServe notes that there is no 

overarching Federal Agency responsible 

for Policy regarding the Transit Benefit 

Program. 

Comment: Define Electronic Fare 

Media. 

Response: TRANServe intends that 

the term ‘‘Electronic Fare Media’’ means 

electronic media that are excluded from 

gross income Section 132(a)(5) and 

132(f) of the Internal Revenue Code and 

may encompass smartcards, debit or 

credit cards, or other electronic media 

that meet the applicable requirements.’’ 

Comment: Does TRANServe intend to 

load smart cards for any transit agencies 

other than WMATA? If so, which ones? 

Response: At this time, TRANServe 

does not plan to load smart cards for 

any transit agency other than WMATA. 

However, TRANServe will take 

whatever steps are necessary to ensure 

that its new program distribution 

methodology for transit benefits is 

consistent with applicable legal 

requirements. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 154 / Thursday, August 9, 2012 / Notices 47693 

Comment: Commenters inquired 

whether the TRANServe debit card is 

compliant with IRS Revenue Ruling 

2006–57, as modified, which requires 

the cards to be restricted to sales 

terminals selling fare media only? 

Response: The TRANServe debit card 

continues to be compliant with Internal 

Revenue Code Section 132(f) and the 

applicable regulations, and is consistent 

with how those requirements are 

applied in IRS Revenue Ruling 2006–57 

to certain factual situations. 

Comment: Commenters asked about 

transaction monitoring, the restriction 

process developed for monitoring 

compliance, and how the TRANServe 

card would be protected to reduce 

fraudulent use. 

Response: The restriction process was 

developed through comprehensive 

analysis of IRS Revenue Ruling 2006– 

57, which provides guidance on the use 

of smartcards, debit or credit cards, or 

other electronic media under various 

situations to provide qualified 

transportation fringes, as well as 

analysis of other governing statutes, 

regulations, and policies. Consistent 

with the Office of Management and 

Budget Circular A–123, Management’s 

Responsibility for Internal Control, 

TRANServe and participating agencies 

have the responsibility for monitoring 

compliance. Additionally, transaction 

monitoring takes place through various 

means, to include but not limited to, 

system activity monitoring, data mining, 

anomaly reporting, etc. In order to 

reduce or mitigate fraudulent activity, 

the TRANServe debit card is issued 

with the participant’s name, is restricted 

to use with transit providers, returns 

unused funds to the Federal government 

at the end of each period, and provides 

detailed reporting of anomalies to 

permit follow-up action and system 

adjustments. 

Comment: Will nationwide rollout of 

this card, and corresponding monthly 

sweeping, create additional 

administrative issues at a time when 

DOT is seeking to reduce admin costs? 

Response: No. There are different 

administrative tasks with the 

introduction and use of the TRANServe 

debit card; however, TRANServe 

anticipates a decrease in administrative 

costs and better efficiencies in the long 

run. 

Comment: How will TRANServe 

administer its bicycle benefit program 

using ‘‘Electronic Fare Media? 

Response: TRANServe does not 

administer its bicycle benefit program 

using electronic fare media. 

Comment: Please indicate how 49 

U.S.C. 327, Administrative Working 

Capital Fund; 26 U.S.C. 132(f), Qualified 

Transportation Fringe; 31 U.S.C. 3302, 

Custodians of Money; Federal 

Employees Clean Air Incentives Act 

(Pub. L. 103–172); and Executive Order 

13150, Federal Workforce 

Transportation require DOT to switch to 

‘‘Electronic Fare Media’’? 

Response: The statutes and 

regulations mentioned do not require 

DOT to switch to Electronic Fare Media. 

In order to better serve its customers, 

TRANServe is responding to transit 

authority changes and technological 

advances, which are expected to reduce 

administrative costs and aid in the 

monitoring of the appropriate use of 

transit benefits. 

Comment: How will employees using 

vanpools, buses, etc. be able to access 

their transit benefits? 

Response: A growing number of State 

and local transit authorities are 

transitioning to electronic methods of 

payment. As explained above, the 

TRANServe Debit Card is now being 

used to distribute the transit benefit to 

federal employees in several geographic 

service areas. TRANServe recognizes 

that some transit providers have not yet 

implemented technologies that permit 

electronic payments. In each instance, 

TRANServe will continue to provide a 

limited paper voucher process while 

working with the transit provider 

towards acceptance of electronic 

payments, when appropriate. 

Comment: Commenters asked about 

the cost to administer the TRANServe 

program; how it compares with, or 

whether it is duplicate of, similar 

programs in the private sector; and 

whether TRANServe has investigated 

contracting its transit benefit program to 

a third party vendor to reduce its 

administrative costs and overhead. 

Response: The TRANServe Program is 

a fee-for service organization, which 

operates on a breakeven basis. 

TRANServe along with other Federal 

government agencies operate under 

specific statutory restrictions and 

authorities that only reside with and 

apply to the Federal government. Thus, 

TRANServe does not duplicate private 

sector services. When it is cost effective 

and programmatically feasible, 

TRANServe contracts out services that 

are not inherently governmental. In 

terms of the transition to electronic fare 

media, TRANServe is taking advantage 

of technological advances in the 

industry that are expected to reduce 

administrative costs, while assisting in 

the monitoring of the appropriate use of 

transit benefits. 

Issue date August 6, 2012. 

Marie Petrosino-Woolverton, 

Director, Office of Financial Management & 

Transit Benefit Programs. 

[FR Doc. 2012–19584 Filed 8–8–12; 8:45 am] 

BILLING CODE 4910–9X–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No FMCSA–2011–0097] 

Pilot Program on NAFTA Trucking 

Provisions 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice; request for public 

comment. 

SUMMARY: FMCSA announces and 

requests public comment on data and 

information concerning the PreAuthorization Safety Audit (PASA) for 

GCC Transportes SA de CV (GCC) which 

applied to participate in the Agency’s 

long-haul pilot program to test and 

demonstrate the ability of Mexicodomiciled motor carriers to operate 

safely in the United States beyond the 

municipalities on the international 

border or the commercial zones of such 

municipalities. This action is required 

by the ‘‘U.S. Troop Readiness, Veterans’ 

Care, Katrina Recovery, and Iraq 

Accountability Appropriations Act, 

2007’’ and all subsequent 

appropriations. 

DATES: Comments must be received on 

or before August 20, 2012. 

ADDRESSES: You may submit comments 

identified by Federal Docket 

Management System Number FMCSA– 

2011–0097 by any one of the following 

methods: Federal eRulemaking Portal: 

Go to http://www.regulations.gov. 

Follow the online instructions for 

submitting comments. 

• Fax: 1–202–493–2251. 

• Mail: Docket Management Facility, 

(M–30), U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE., West Building, Ground 

Floor, Room 12–140, Washington, DC 

20590–0001. 

• Hand Delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., ET, Monday through Friday, 

except Federal holidays. The telephone 

number is 202–366–9329. 

To avoid duplication, please use only 

one of these four methods. All 

submissions must include the Agency 

name and docket number for this notice. 

See the ‘‘Public Participation’’ heading 

below for instructions on submitting 

comments and additional information. 


tkelley on DSK3SPTVN1PROD with NOTICES