
[Federal Register: October 26, 2011 (Volume 76, Number 207)]
[Proposed Rules]               
[Page 66505-66595]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26oc11-33]                         


[[Page 66505]]

Vol. 76

Wednesday,

No. 207

October 26, 2011

Part IV





Department of Transportation





-----------------------------------------------------------------------





Federal Motor Carrier Safety Administration





-----------------------------------------------------------------------





49 CFR Parts 360, 365, 366, et al.





Unified Registration System; Proposed Rule


[[Page 66506]]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 360, 365, 366, 368, 385, 387, 390 and 392

[Docket No. FMCSA-97-2349]
RIN 2126-AA22

 
Unified Registration System

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Supplemental Notice of Proposed Rulemaking (SNPRM).

-----------------------------------------------------------------------

SUMMARY: The FMCSA amends its proposal regarding establishment of the 
Unified Registration System (URS) required by the ICC Termination Act 
of 1995 (ICCTA) and originally announced in a May 19, 2005 notice of 
proposed rulemaking (NPRM). URS is the replacement system for several 
existing registration and information systems for motor carriers, 
property brokers, and freight forwarders under FMCSA jurisdiction. This 
SNPRM responds to comments to the 2005 URS NPRM, incorporates new 
proposals implementing requirements imposed by final rules published 
after the 2005 URS NPRM, and includes new proposals to implement 
certain provisions of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The Agency 
believes the proposed URS would improve the registration process for 
motor carriers, property brokers, freight forwarders and other entities 
that register with FMCSA.

DATES: You must submit comments on or before December 27, 2011.

ADDRESSES: You may submit comments identified by Federal Docket 
Management System (FDMS) Docket ID Number FMCSA-97-2349 by any of the 
following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the online instructions for submitting 
comments.
     Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200 New Jersey Avenue, SE., West Building Ground 
Floor, Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Avenue, SE., between 9 a.m. and 5 p.m. ET, 
Monday through Friday, except Federal holidays.
     Fax: 202-493-2251.
    Instructions: For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Public 
Participation heading under the Supplementary Information caption of 
this document. Note that all comments received will be posted without 
change to http://www.regulations.gov, including any personal 
information provided. Please see the Privacy Act heading below.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the US 
Department of Transportation's DOT Privacy Act System of Records Notice 
for the DOT Federal Docket Management System published in the Federal 
Register on January 17, 2008 (73 FR 3316), or you may visit http://
edocket.access.gpo.gov/2008/pdf/E8-785.pdf.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov or the street 
address listed above. Follow the online instructions for accessing the 
dockets.

FOR FURTHER INFORMATION CONTACT: Mr. Richard Clemente, Transportation 
Specialist, Driver and Carrier Operations Division, (202) 366-2722, or 
by e-mail at: Richard.Clemente@dot.gov. Business hours are from 8 a.m. 
to 4:30 p.m. ET, Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Public Participation

    The Federal eRulemaking Portal (http://www.regulations.gov) is 
available 24 hours each day, 365 days each year. You can get electronic 
submission and retrieval help and guidelines under the ``How to Use 
This Site'' menu option.
    Comments received after the comment closing date will be included 
in the docket and we will consider late comments to the extent 
practicable. The FMCSA may, however, issue a final rule at any time 
after the close of the comment period.

Preamble Table of Contents

    The following is an outline of the preamble.

I. Legal Basis for the Rulemaking
II. Regulatory History
    A. Advance Notice of Proposed Rulemaking
    B. Notice of Proposed Rulemaking
III. Discussion of the Supplemental Notice of Proposed Rulemaking
    A. New Regulatory Drafting Strategy
    B. The Proposal
IV. Regulatory Evaluation of the URS SNPRM: Summary of Benefits and 
Costs
V. Appendix to the Preamble--Proposed Form MCSA-1 and Instructions
VI. Rulemaking Analyses and Notices

I. Legal Basis for the Rulemaking

    This rulemaking is in response to sec. 103 of the ICC Termination 
Act of 1995 (ICCTA) [Pub. L. 104-88, 109 Stat. 888, December 29, 1995] 
and title IV of the Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) [Pub. L. 
109-59, 119 Stat. 1714, August 10, 2005]. This rulemaking action is 
consistent with the requirements of 31 U.S.C. 9701 and 49 U.S.C. 
31136(a).
    In the ICCTA, Congress enacted 49 U.S.C. 13908 directing the 
Secretary of Transportation (the Secretary), in cooperation with the 
States, and after notice and opportunity for public comment, to issue 
regulations to replace the existing information systems listed below 
with a single, online, Federal system:
    1. The current Department of Transportation (USDOT) identification 
number system;
    2. The single State registration system (SSRS) under [49 U.S.C.] 
section 14504;
    3. The registration system contained in 49 U.S.C. chapter 139; and
    4. The financial responsibility information system under section 
13906.
    Congress also directed the Secretary to consider whether to 
integrate the requirements of 49 U.S.C. 13304 regarding service of 
process in court proceedings into the new system. Congress specified 
that the new URS should serve as a clearinghouse and depository of 
information on, and identification of, all foreign and domestic motor 
carriers, property brokers, freight forwarders, and others required to 
register with the USDOT as well as information on safety fitness and 
compliance with required levels of financial responsibility. The 
language of 49 U.S.C. 13908(c) also authorized the Secretary to 
``establish, under section 9701 of title 31 [of the U.S. Code], a fee 
system for registration and filing evidence of financial responsibility 
under the new system under subsection (a). Fees collected under the fee 
system shall cover the costs of operating and upgrading the 
registration system, including all personnel costs associated with the 
system.''
    The Unified Carrier Registration Act of 2005, subtitle C of title 
IV of SAFETEA-LU, modified the requirements for a unified registration 
system for motor carriers contained in ICCTA. In particular, SAFETEA-LU 
changed the scope of the Secretary's responsibility for the development 
of a registration system to replace the SSRS. It also modified the 
requirement that

[[Page 66507]]

fees collected under the new system cover the costs of operating and 
upgrading the registration system and placed limitations on certain 
fees that the Agency could charge. Section 4304 of SAFETEA-LU 
reiterated the congressional requirement for a single, Federal, online 
system to replace the four individual systems identified under 49 
U.S.C. 13908 and also mandated inclusion of the service of process 
agent systems under 49 U.S.C. 503 and 13304. SAFETEA-LU refers to the 
Federal online replacement system as the Unified Carrier Registration 
System. The Agency considers the URS announced in the May 2005 NPRM to 
be the Unified Carrier Registration System.\1\
---------------------------------------------------------------------------

    \1\ The Unified Carrier Registration (UCR) Agreement mandated 
under section 4305 of SAFETEA-LU (which enacted 49 U.S.C. 14504a) is 
the replacement for the Single State Registration System authorized 
by former 49 U.S.C. 14504. Registration and payment of fees under 
the UCR Agreement are not the responsibility of FMCSA. However, as 
provided by 49 U.S.C. 13908(b), information about the compliance of 
entities subject to the UCR Agreement will be available through the 
URS when that system has been developed.
---------------------------------------------------------------------------

    Congress also repealed the statutory provisions of 49 U.S.C. 14504 
governing SSRS. (SAFETEA-LU section 4305(a)).\2\ The legislative 
history indicates that the purpose of the UCR Plan and Agreement is 
both to ``replace the existing outdated system [SSRS]'' for 
registration of interstate motor carrier entities with the States and 
to ``ensure that States don't lose current revenues derived from SSRS'' 
(S. Rep. 109-120, at 2 (2005)).\3\
---------------------------------------------------------------------------

    \2\ This repeal became effective on January 1, 2007, in 
accordance with section 4305(a).
    \3\ The Senate bill's provisions were enacted ``with 
modifications.'' H. Conf. Rep. No. 109-203, at 1020 (2005).
---------------------------------------------------------------------------

    The statute provided for a 15-member Board of Directors for the UCR 
Plan and Agreement (Board) appointed by the Secretary of 
Transportation. The statute specified that the Board should consist of 
Federal, State and motor carrier industry representatives. The 
establishment of the board was announced in the Federal Register on May 
12, 2006 (71 FR 27777). The Board's duties include issuing rules and 
regulations, recommending fee levels for the system, and designating a 
revenue depository for the new system. On Friday, August 24, 2007, the 
Agency published a final rule establishing initial fees for 2007 and a 
fee bracket structure for the Unified Carrier Registration Agreement in 
the Federal Register (72 FR 48585). The FMCSA subsequently adjusted the 
UCR Agreement fees and fee bracket structure in a final rule dated 
April 27, 2010 (74 FR 21993).
    SAFETEA-LU also amended several definitions that affect the 
coverage of the URS, amended certain financial responsibility 
requirements, and eliminated the Agency's authority to collect certain 
fees. Today's proposal incorporates new requirements imposed by 
SAFETEA-LU.
    Title 31 U.S.C. 9701 (the so-called ``User Fee Statute'') 
establishes general authority for agencies to ``charge for a service or 
thing of value provided by the Agency.'' Accordingly, FMCSA proposes to 
charge fees under URS that will enable the Agency to recoup costs 
associated with processing registration applications and administrative 
filings. Title 49 U.S.C. 13908(d) requires establishment of 
registration fees that, as nearly as possible, cover the costs of 
processing the registration, provided the fees do not exceed $300.
    Section 206 of the Motor Carrier Safety Act of 1984 [Pub. L. 98-
554, title II, 98 Stat. 2832, October 30, 1985, 49 U.S.C. App. 2505, 
recodified at 49 U.S.C. 31136] requires the Secretary to prescribe 
regulations on commercial motor vehicle safety. The regulations shall 
prescribe minimum safety standards for commercial motor vehicles 
(CMVs). At a minimum, the regulations shall ensure that: (1) CMVs are 
maintained, equipped, loaded, and operated safely; (2) the 
responsibilities imposed on operators of CMVs do not impair their 
ability to operate the vehicles safely; (3) the physical conditions of 
operators of CMVs is adequate to enable them to operate the vehicles 
safely; and (4) the operation of CMVs does not have a deleterious 
effect on the physical condition of the operators (49 U.S.C. 31136(a)).
    This SNPRM is intended to streamline the existing registration 
process and ensure that FMCSA can more efficiently track motor 
carriers, freight forwarders, brokers, intermodal equipment providers 
and cargo tank facilities. It implements the mandate under sec. 
31136(a)(1) that FMCSA's regulations ensure that CMVs are maintained 
and operated safely. This proposal imposes no operational 
responsibilities on drivers. Therefore, this proposed regulation would 
not impair a driver's ability to operate vehicles safely (sec. 
31136(a)(2)), would not impact the physical condition of drivers (sec. 
31136(a)(3)), and would not have a deleterious effect on the physical 
condition of drivers (sec. 31136(a)(4)).

II. Regulatory History

A. Advance Notice of Proposed Rulemaking

    In response to the ICCTA mandate to develop a unified registration 
system, the Federal Highway Administration (FMCSA's predecessor agency) 
issued an advance notice of proposed rulemaking (ANPRM) announcing 
plans to develop a single, online, Federal information system (61 FR 
43816, August 26, 1996). The ANPRM solicited specific detailed 
information from the public about each of the systems to be replaced by 
the URS, the conceptual design of the URS, uses and users of the 
information to be collected, and potential costs.

B. Notice of Proposed Rulemaking

    On May 19, 2005, FMCSA published an NPRM describing a proposal to 
merge all of the prescribed information systems except SSRS into a 
unified, online, Federal system (70 FR 28990) as set forth below.
1. Entities To Be Included in the Unified Registration System
    The Agency proposed to include the following entities in the 
Unified Registration system: (1) All for-hire motor carriers (including 
those exempt from the 49 U.S.C. chapter 139 registration requirements), 
(2) private motor carriers, (3) property brokers, and (4) freight 
forwarders.
    In the NPRM, the Agency proposed to exclude the following entities 
from the Unified Registration System: (1) Mexico-domiciled motor 
carriers applying to engage in long-haul operations, (2) applicants for 
hazardous materials safety permits to haul certain hazardous materials 
under 49 CFR part 385, subpart E, and (3) cargo tank facilities 
required to register with FMCSA pursuant to 49 CFR 107.502 and 49 
U.S.C. 5108. The Agency requested comment on whether the unique 
conditions of these entities warranted retaining separate registration 
procedures and application forms or whether they also should be 
included in the Unified Registration System. The Agency also solicited 
information on how to most effectively integrate the systems under 
consideration for merger with URS.
2. Proposed User Fees
    The Agency proposed user fees as set forth in the Table to Sec.  
360.401 below:

[[Page 66508]]



     Table to Sec.   360.401--Unified Registration Schedule of Fees
------------------------------------------------------------------------
               Registration                      You must pay FMCSA
------------------------------------------------------------------------
If you:
    (a) Are subject to the registration     $200.
     requirements under Sec.   360.3 and
     are requesting a new application to
     operate in interstate commerce.
------------------------------------------------------------------------
                             Other Services
------------------------------------------------------------------------
If you file a:
    (b) Biennial update of registration...  No cost.
    (c) Request for change of name,         No cost.
     address, or form of business.
    (d) Request for cancellation of         No cost.
     registration.
    (e) Request for registration            $100.
     reinstatement.
    (f) Designation of process agent......  $10.
------------------------------------------------------------------------

    Additionally, the Agency proposed fees for record searching, 
reviewing, copying, certifying, and related services under Sec.  
360.419(a) through (d) as follows:

------------------------------------------------------------------------
                Description                              Fee
------------------------------------------------------------------------
(a) Certificate of the Director, Office of   $12.
 Information Management, as to the
 authenticity of documents.
(b) Service involved in locating records to  $21 per hour.
 be certified and determining their
 authenticity, including incidental
 clerical and administrative work.
(c) Photocopies of public documents........  $.80 per letter- or legal-
                                              size page; $5 minimum.
(d) Search and copying services requiring
 automated data processing services (ADP),
 as follows:
    (1) Professional staff time to fulfill   $50 per hour.
     an ADP request.
    (2) Computer searches..................  Current rate for computer
                                              service as determined by
                                              the Office of Information
                                              Management (MC-RIS).
    (3) Printing...........................  Paper--$.10 per page with a
                                              $1 minimum; Electronic
                                              media--Agency's cost.
------------------------------------------------------------------------

3. Financial Responsibility
Bodily Injury and Property Damage Insurance (BI & PD) Filing 
Requirement
    Existing regulations prescribe minimum levels of financial 
responsibility for certain motor carrier classifications. However, only 
for-hire motor carriers, brokers and certain freight forwarders \4\ 
that are subject to the chapter 139 registration requirements must file 
evidence of financial responsibility with FMCSA as a precondition to 
receiving and holding chapter 139 operating authority. Evidence of 
financial responsibility may be in the form of certificates of 
insurance, surety bonds, proof of qualifications as a self-insurer, 
endorsements, or trust agreements, as appropriate.
---------------------------------------------------------------------------

    \4\ Household goods freight forwarders performing transfer, 
collection and delivery service.
---------------------------------------------------------------------------

    The Agency proposed to retain the financial responsibility filing 
requirement for these entities and to extend them to for-hire motor 
carriers exempt from the chapter 139 registration requirements 
(hereafter referred to as ``exempt for-hire motor carriers'') and to 
private interstate motor carriers transporting hazardous materials. All 
such carriers already are required by statute (49 U.S.C. 31138 and 
31139) and regulations (49 CFR part 387) to obtain and maintain BI & PD 
insurance. The NPRM merely proposed to require the filing of evidence 
of financial responsibility with FMCSA. The Agency believes the 
proposed filing requirement would provide the public with assurances 
that all for-hire motor carriers and private carriers transporting 
hazardous materials in interstate commerce have the financial means to 
compensate members of the public for injuries or damages caused by 
negligence. These filings also would increase public accessibility to 
insurance information and would enable FMCSA to more effectively track 
insurance cancellations.
    The filing requirement would not be extended to motor carriers 
transporting hazardous materials in intrastate commerce; these carriers 
would continue to maintain evidence of financial responsibility at 
their principal place of business.
Web-Based Filings by Insurers, Surety Companies, and Financial 
Institutions
    The Agency proposed to require financial responsibility service 
providers such as insurers to file evidence of financial responsibility 
using a Web-based (HTML) format. These filings would include evidence 
of certificates of insurance, proof of qualification to self-insure, 
endorsements, surety bonds, trust-fund agreements, household goods 
(HHG) cargo insurance, and notices of cancellations. The FMCSA believes 
Web-based filings will promote efficiencies for FMCSA, insurers, 
sureties, financial institutions, and the public. The NPRM solicited 
comment on whether the proposed mandatory Web-based filing would be a 
significant burden on small insurers, surety companies, and financial 
institutions. Also, the Agency invited comments, ideas and suggestions 
regarding a potential phase-in approach as opposed to immediate 
mandatory on-line filing.
    Cargo Insurance. The NPRM included a proposal to eliminate the 
cargo insurance requirement for all entities except HHG motor carriers 
and HHG

[[Page 66509]]

freight forwarders. Current 49 CFR 387.303(c) and 387.405(a) require 
non-exempt for-hire motor common carriers of property and freight 
forwarders, respectively, to maintain cargo insurance in the amount of 
$5,000 per vehicle, and $10,000 per occurrence, and to file evidence of 
coverage with FMCSA. Contract carriers are not subject to a requirement 
to maintain or file evidence of cargo insurance. However, SAFETEA-LU 
prohibited FMCSA from registering motor carriers as ``common'' or 
``contract'' carriers, effective January 1, 2007. The Agency proposed 
to eliminate the cargo insurance requirement for all entities except 
HHG carriers and HHG freight forwarders based on the assumption that 
most for-hire motor carriers and freight forwarders carry cargo 
insurance well above FMCSA limits because their shipper clients 
generally require it as a condition of doing business. However the 
Agency deemed it in the public interest to retain the cargo insurance 
requirement for household goods motor carriers and household goods 
freight forwarders.
    Self-Insurance Program. The Agency proposed several changes to the 
self-insurance program, including changes to the fees charged to 
applicants seeking approval to self-insure and changes to the fees 
associated with annual and quarterly reporting by entities approved to 
self-insure. The Agency announced that it would continue its practice 
of processing and approving each motor carrier self-insurance 
application on a case-by-case basis.
    Insurance Filing Fees. The Agency proposed insurance filing fees as 
set forth in the Table to Sec.  360.415(b):

            Table to Sec.   360.415(b)--Insurance Filing Fees
------------------------------------------------------------------------

------------------------------------------------------------------------
(1) Financial responsibility service provider filing                 $10
 evidence of minimum level of insurance, surety bond,
 or trust fund agreement..............................
(2) Qualification as a self-insurer for bodily injury,             4,200
 property damage, or environmental restoration........
(3) Qualification as a self-insurer for cargo                        420
 insurance............................................
(4) Quarterly self-insurance monitoring filing........               500
(5) Annual self-insurance monitoring filing...........             (\1\)
------------------------------------------------------------------------
\1\ No cost.

4. Process Agent Designations
    Current regulations under 49 CFR part 366 require only motor 
carriers and brokers that are subject to the 49 U.S.C. chapter 139 
commercial registration requirements to designate a process agent.\5\ 
Today exempt for-hire motor carriers are not subject to FMCSA 
commercial regulations and thus are not required to designate a process 
agent. Heretofore, the Agency has not exercised the authority granted 
under 49 U.S.C. 503 to require private carriers to designate a process 
agent. However, in the May 2005 NPRM, the Agency proposed to require 
new and existing private and exempt for-hire motor carriers and freight 
forwarders to make process agent designation filings with FMCSA. 
Additionally, private motor carriers that operate in the United States 
in the course of transportation between points in a foreign country 
would need to file process agent designations with the Agency.
---------------------------------------------------------------------------

    \5\ Although part 366 does not require process agent 
designations by freight forwarders, designation of agents for 
service of process by freight forwarders in connection with Agency 
proceedings is required under 49 U.S.C. 13303. Consequently, the 
Agency has required such designations by freight forwarders 
notwithstanding the omission of freight forwarders in part 366. The 
Agency proposed to add freight forwarders to part 366 to fully 
implement section 13303.
---------------------------------------------------------------------------

    The FMCSA concluded that extending the requirement to all URS 
registrants would enhance the public's ability to serve legal process 
on responsible individuals when seeking compensation for losses 
resulting from a crash involving a commercial motor vehicle operated by 
private or exempt for-hire motor carriers. Moreover, FMCSA would be 
better able to identify among all of its regulated entities the 
appropriate individual(s) upon whom to serve notices for enforcement 
actions.
5. Timeframes for Evidence of Financial Responsibility and Process 
Agent Designation Filings
    The Agency proposed to increase to 90 days the maximum time allowed 
for an applicant to submit evidence of financial responsibility and to 
designate a process agent (Sec. Sec.  360.13(a)(6) \6\ and (a)(7)). 
Failure to make these filings within 90 days of applying for 
registration would result in dismissal of the application.
---------------------------------------------------------------------------

    \6\ The May 2005 NPRM incorrectly included two paragraphs (a)(6) 
under Sec.  360.13. This statement cross references the second 
paragraph (a)(6).
---------------------------------------------------------------------------

    Existing regulations already provide up to 80 days for these 
filings. Today agents must file evidence of financial responsibility on 
behalf of non-exempt for-hire motor carriers, brokers and freight 
forwarders within 20 days of the date of publication of the application 
in the FMCSA Register (published on the Agency Web site at http://
www.fmcsa.dot.gov). If the filings are not completed within the 20-day 
period, FMCSA issues a dismissal warning and may grant a one-time 60-
day grace period.
    The Agency stated that a 90-day filing period for these 
administrative filings more realistically reflects the actual time 
necessary to arrange insurance and process agent coverage. The NPRM 
included a proposal that administrative filings be completed within 90 
days after submission of the Form MCSA-1, with no further extensions. 
If either the insurance or process agent filings were not completed 
within this 90-day period, the Agency would dismiss the registration 
request.
    In addition, the Agency proposed a 180-day grace period for the 
newly required administrative filings by existing exempt for-hire and 
covered private motor carriers.
6. USDOT Number as the Sole Identifier for Entities Registered in URS
    At the time of publication of the NPRM, FMCSA registration systems 
used five identification numbers: (1) The USDOT Number; (2) the MC 
Number (assigned to non-exempt for-hire motor carriers and brokers 
registering under 49 U.S.C. chapter 139); (3) the FF Number (assigned 
to freight forwarders); (4) the MX Number (assigned to Mexico-domiciled 
motor carriers operating exclusively within municipalities in the 
United States on the U.S.-Mexico international border and the 
commercial zones of such municipalities; and (5) cargo tank facility 
(CT) numbers. The Agency proposed to discontinue issuing MC, MX, and FF 
Number designations and to phase out the use of current MC, MX, and FF 
Numbers within 2 years of the compliance date for the URS final rule. 
Thus, the USDOT Number would become the sole identification number for 
all entities registered by FMCSA (except for cargo tank facilities). 
This unique USDOT Number would be

[[Page 66510]]

displayed on the side of the vehicle pursuant to the CMV marking 
requirement in 49 CFR 390.21. The FMCSA would issue a USDOT Number with 
a distinctive suffix to any Mexico-domiciled motor carrier granted 
registration.
7. The Application Process
    The Agency proposed under subpart A to part 360 a new multi-step 
application process and procedures for issuance of a USDOT Number under 
which an applicant would begin the registration process by filing a 
completed Form MCSA-1 and paying the registration fee. If the Agency 
accepted the Form MCSA-1 application, it would assign a temporary 
number to track the application through the registration process and 
enable registrants to make required administrative filings. The 
applicant's financial responsibility agent would use the tracking 
number to file evidence of compliance with FMCSA financial 
responsibility requirements under 49 CFR part 387; the motor carrier or 
its agent also would use the temporary tracking number to make a 
process agent designation filing. An applicant would be prohibited from 
commencing operations until the Agency issues a USDOT Number and grants 
registration.
    Upon receipt of the USDOT Number, a motor carrier applicant would 
be considered a ``new entrant'' and placed under the appropriate safety 
monitoring program. A U.S.- or Canada-domiciled motor carrier would be 
subject to the FMCSA New Entrant Safety Assurance Program described 
under 49 CFR part 385, subpart D, which includes a safety audit. The 
provisional registration is the new entrant registration defined at 49 
CFR 385.3. New entrant registration for these motor carriers would 
become permanent only if the applicant satisfactorily completed the New 
Entrant Safety Assurance Program. Similarly, to receive permanent 
registration, a Mexico-domiciled new entrant operating exclusively 
within the border commercial zones would be required to satisfactorily 
complete the safety monitoring program and safety audit described under 
49 CFR part 385, subpart B. Motor carrier operating authority obtained 
under the procedures in 49 CFR part 365 would not become permanent 
until an applicant operating commercial motor vehicles satisfactorily 
completed the New Entrant Safety Assurance Program.
Special procedures for chapter 139 brokers, freight forwarders or motor 
carriers
    Current registration procedures in 49 U.S.C. 13902 allow anyone to 
oppose a request for permanent operating authority by non-exempt for-
hire motor carriers, property brokers, and freight forwarders, provided 
the protest is based upon the applicant's willingness and ability to 
comply with: (1) The registration procedures; (2) applicable DOT 
regulations, including the Federal Motor Carrier Safety Regulations 
(FMCSRs), Hazardous Materials Regulations (HMRs) and regulations 
implementing the Americans with Disabilities Act (ADA); (3) the safety 
fitness standards; and/or (4) the financial responsibility 
requirements. The proposed unified registration system would continue 
to allow protests for applications covered under section 13902, but 
would not extend the right of protest to applications for registration 
filed by private motor carriers or exempt for-hire motor carriers.
    In accordance with section 13902, FMCSA must notify the public when 
applications for authority are under consideration and provide an 
opportunity for protest. Upon acceptance of an application for 
registration from a chapter 139 entity, FMCSA would publish notice of 
the application in the FMCSA Register, initiating a 10-day protest 
period. The Agency would issue the applicant a temporary tracking 
number for the purpose of completing administrative filings and 
tracking the application through the registration process. If the 
Agency denied an application based on a protest, the application would 
be dismissed, and the registration fee would not be refunded.
    If the application of a broker or freight forwarder is not 
protested or if insufficient grounds exist to deny a protested 
application, the Agency would issue a USDOT Number and grant permanent 
registration. Brokers and freight forwarders are not subject to a 
safety monitoring program.
    If the application of a non-exempt motor carrier is not protested, 
or if insufficient grounds exist to deny a protested application, FMCSA 
would grant the applicant new entrant registration subject to 
completion of applicable administrative requirements. New entrant 
registration would become permanent registration only after 
satisfactory completion of the New Entrant Safety Assurance Program.
8. The Proposed Application Form (MCSA-1)
    The FMCSA proposed to combine the data elements now captured on 
several different licensing, registration and certification forms into 
a single, new application form called the Form MCSA-1. For those 
entities subject to URS, Form MCSA-1 would replace the following forms: 
(1) Motor Carrier Identification Report (Application for USDOT Number), 
Form MCS-150; (2) Application for Motor Property Carrier and Broker 
Authority, Form OP-1; (3) Application for Motor Passenger Carrier 
Authority, Form OP-1(P); (4) Application for Freight Forwarder 
Authority, Form OP-1(FF); and (5) Application for Mexican Certificate 
of Registration for Foreign Motor Carriers and Foreign Motor Private 
Carriers Under 49 U.S.C. 13902, Form OP-2. The NPRM also invited 
comments on whether the URS should incorporate the data requirements of 
three other registration processes: (1) Registration of Mexico-
domiciled motor carriers seeking to operate between points in Mexico 
and points in the United States beyond the border commercial zones, 
Form OP-1(MX); (2) registration of entities requesting a hazardous 
materials safety permit, Form MCS-150B; and (3) registration of cargo 
tank facilities (which is requested in a letter submitted by the 
applicant to FMCSA).
9. Electronic Filing Requirement With Paper Filing Option
    The FMCSA proposed an online electronic application process with a 
paper filing option. The Agency requested comments on the benefits or 
hardships applicants might experience from a mandatory online 
electronic filing requirement. The Agency also asked whether it should 
immediately require online electronic filing or provide a phase-in 
period. The FMCSA noted several factors in support of an online filing 
requirement:
     There is widespread public access to computers and the 
Internet;
     In 2005 when the Agency published the NPRM, more than 70 
percent of U.S. motor carriers had Internet access, with Internet 
access clearly increasing;
     Automated error-checking would result in more accurate 
information about the applicant;
     Online filing would allow USDOT Numbers to be issued 
faster, substantially reducing the current 2- to 4-week paper-based 
processing time for registration applications; and
     Online filing would be more cost-effective for FMCSA than 
manually processing applications.

[[Page 66511]]

10. Biennial Update Requirement
    The FMCSA proposed to require biennial updates using proposed Form 
MCSA-1 by all motor carriers, brokers and freight forwarders. Passenger 
and property motor carriers, freight forwarders, and property brokers 
would have to file regular updates to their registration information 
every 24 months. At the time the URS NPRM was published (May 19, 2005), 
existing Sec.  390.19 required only safety registration information 
filed on Form MCS-150 or Form MCS-150-B to be updated. There was no 
requirement for non-exempt for-hire motor carriers, property brokers, 
and freight forwarders to biennially update commercial registration 
information. In the May 2005 NPRM, the Agency explained that since the 
Form MCSA-1 would combine safety and commercial registration for most 
motor carriers, FMCSA had preliminarily concluded it is reasonable to 
extend the biennial update requirement to all motor carriers subject to 
FMCSA's commercial and safety jurisdiction. As a result, all motor 
carriers, property brokers, and freight forwarders would need to file 
biennial updates. The registration updates would provide valuable motor 
carrier and fleet information and would be useful in assessing safety 
performance. A motor carrier that registers its vehicles in a 
Performance and Registration Information Systems Management (PRISM) 
Program State would fulfill the biennial update through its annual 
State re-registration requirement.
11. Transfers of Operating Authority
    Existing 49 CFR part 365, subpart D, permits non-exempt for-hire 
motor carriers, brokers and freight forwarders that register under 
chapter 139 to merge, transfer or lease their operating authority 
(indicated by an MC or FF Number), and establishes procedures for 
Agency approval of these transactions. Currently, these entities are 
required to file transfer applications with FMCSA and pay a $300 fee.
    The Agency determined that in enacting the ICCTA, Congress repealed 
pre-existing statutory authority to approve transfers of operating 
authority (former 49 U.S.C. 10926). Accordingly, the Agency proposed to 
discontinue regulation of transfers of operating authority and to 
remove 49 CFR part 365, subpart D, governing such transfers from the 
FMCSRs.\7\
---------------------------------------------------------------------------

    \7\ FMCSA (then part of the Federal Highway Administration) 
initially proposed removal of the transfer regulations in a February 
13, 1998 NPRM (63 FR 7362). On May 16, 2001, FMCSA published a 
notice in the Federal Register (66 FR 27059) announcing the 
withdrawal of the February 1998 NPRM with the intention of 
addressing the transfer issue in the URS rulemaking.
---------------------------------------------------------------------------

    The FMCSA proposed to issue only a USDOT Number as an indicator of 
operating authority. Issuance of MC, MX, and FF Numbers would be 
discontinued. Unlike chapter 139 certificates and permits, which have 
traditionally been considered transferable motor carrier assets, a 
USDOT Number is a unique identifier used to monitor a carrier's safety 
performance. As such, the USDOT Number never has been subject to 
transfer.
    Under the proposal, the Agency would permit retention of an 
existing USDOT Number in a situation where an entity changed its legal 
name, form of business, or address, provided that there was no change 
in the ownership, management, or control of the entity. Thus, the USDOT 
Number could be retained following a change in the legal name of a sole 
proprietorship, corporation, or partnership; a change in the trade name 
or assumed name of an entity; and a change in the form of a business, 
such as the incorporation of a partnership or sole proprietorship. The 
Agency proposed that all entities requesting a change in legal name, 
form of business, or address be required to fill out a revised Form 
MCSA-1 within 20 days of the precipitating change with a certification 
that there had been no change in the ownership, management, or control 
of the entity holding the USDOT Number. Such a certification would have 
addressed whether the change in name, form of business, or address was 
associated with a transfer of the operating authority.
12. Cancellation, Reinstatement, and Deactivation of USDOT Registration
    Under existing procedures, if a motor carrier, broker or freight 
forwarder whose operations are authorized under 49 U.S.C. chapter 139 
wishes to voluntarily cancel its operating authority, it must submit a 
notarized Form OCE-46, ``Voluntary Revocation Request,'' or 
electronically file its request. In the May 2005 NPRM, the Agency 
proposed to replace the voluntary revocation request procedure with the 
procedure now used by motor carriers requesting to discontinue use of a 
USDOT Number. Motor carriers would be required to mail or 
electronically submit to the Agency a cancellation request and 
certification statement under proposed Sec.  360.701. Use of the Form 
OCE-46 would be discontinued.
    Under proposed Sec.  360.705, FMCSA would deactivate a motor 
carrier's USDOT Registration if the carrier failed to comply with the 
financial responsibility and process agent filing requirements.
    Under proposed Sec.  360.707, a motor carrier, broker or freight 
forwarder could reinstate a USDOT Registration that had been 
deactivated for less than 2 years by making the necessary filings and 
paying a reinstatement fee. If the USDOT Registration had been 
deactivated for 2 or more years, the entity would need to request the 
Agency to activate its USDOT Registration (under the previously-issued 
USDOT Number) by completing the procedures in proposed subpart A to 
part 360, including payment of a registration fee. A motor carrier that 
sought to reinstate its USDOT Registration after 2 years of being 
deactivated would be classified as a new entrant.
    In setting the proposed threshold for reclassification of a carrier 
as a new entrant at 2 years, the Agency sought to prevent carriers that 
go in and out of business for very short periods of time from being 
required to re-enter the New Entrant Safety Assurance Program. The 2-
year threshold also would parallel the existing 2-year update 
requirement for motor carrier information.
13. Requirements for Special Transit Operations (Federal Transit 
Administration (FTA) Grantees)
    The Agency proposed to include under URS passenger carriers that 
provide service funded, in whole or in part, by a grant from the FTA 
under 49 U.S.C. 5307, 5310, or 5311. (49 U.S.C. 31138(e)(4)). These 
motor carriers currently are exempt from Federal financial 
responsibility requirements but must comply with the highest minimum 
requirement imposed by any State in which they operate. The Agency 
proposed to waive all fees for FTA grantees, including the registration 
fee, insurance filing fee, and any fees related to the self-insurance 
approval process. It also proposed amending 49 CFR part 387 to reflect 
the financial responsibility requirements unique to FTA grantees.

III. Discussion of the Supplemental Notice of Proposed Rulemaking

A. New Regulatory Drafting Strategy

    The Agency proposes in the SNPRM to use a different regulatory 
drafting strategy than earlier proposed. The FMCSA would not at this 
time attempt to combine and redraft within a single CFR part the 
diverse application and program requirements as proposed in the May 
2005 URS NPRM. Instead, the Agency proposes an incremental approach 
that would establish a general

[[Page 66512]]

requirement under 49 CFR part 390, subpart C, for all entities under 
FMCSA safety or commercial jurisdiction to obtain USDOT Registration. 
USDOT Registration encompasses all registration requirements for FMCSA 
regulated entities, including the identification of motor carriers and 
intermodal equipment providers for safety oversight, as required under 
49 U.S.C. 31144, commercial registration required under 49 U.S.C. 
chapter 139, hazardous materials safety permitting required under 49 
U.S.C. 5109, and cargo tank facility registration required under 49 CFR 
107.502 and 49 U.S.C. 5108. Existing 49 CFR part 390, subpart C, which 
includes in-depth information governing intermodal equipment providers, 
would be re-designated as subpart D to part 390.
    Fee schedules would remain under 49 CFR part 360, and information 
regarding designation of process agents would remain under 49 CFR part 
366.
    Conforming amendments would be made to parts 360, 365, 366, 368, 
and 385 to replace references to obsolete forms in the OP- and MCS-
series with references to proposed Form MCSA-1, the Application for 
USDOT Number/Operating Authority.
    The new regulatory strategy is necessary because registration 
requirements vary widely among those entities regulated by FMCSA. 
Although Congress directed the Secretary to combine several distinct 
information systems into a new on-line replacement system, it did not 
direct that there be uniform requirements for all entities under FMCSA 
jurisdiction. For example, not all of the entities subject to FMCSA 
safety oversight are subject to its commercial jurisdiction under 49 
U.S.C. chapter 139 and thus required to obtain certificates, permits 
and licenses granted to motor carriers, brokers and freight forwarders, 
respectively. For this reason, the Unified Registration System would 
need to accommodate these distinctions as long as they exist.

B. The Proposal

    The comment period for the May 2005 URS NPRM closed on August 17, 
2005. The FMCSA received a total of 60 comment submissions to the 
docket from 58 entities, including State and local government agencies, 
motor carriers, industry trade associations, enforcement associations, 
safety advocates, and private citizens. Most comments supported 
creation of a unified registration system. Because the Agency is 
soliciting additional comments on modifications made to the NPRM, we 
will not, at this point in the proceeding, address all comments 
received. Comments will be discussed if they have resulted in changes 
to the Agency's original proposal. A more detailed response to comments 
received to both the NPRM and this SNPRM will be included in the 
preamble to the final URS rule.
    Major proposals carried over from the 2005 NPRM to this SNPRM 
include the following:
     The URS would combine (1) the USDOT identification number 
system; (2) the Title 49, chapter 139 commercial registration system; 
and (3) the 49 U.S.C. 13906 financial responsibility information system 
into a new single, online system. In accordance with section 4304 of 
SAFETEA-LU, the Agency also proposes inclusion of the service of 
process agent designation system in accordance with 49 U.S.C. 503 and 
13304.
     All regulated entities would be required to update 
registration information every 2 years.
     All entities registered under URS would be identified by 
FMCSA solely by the USDOT Number. Motor carriers could continue to use 
obsolete MC Numbers for business and advertising reasons, and the 
Agency would not require a motor carrier to remove the existing MC 
Number from its vehicles. But the Agency encourages motor carriers to 
refrain from displaying the MC Number on new or repainted CMVs once the 
rule becomes final.
     The Agency would no longer accept or review requests for 
transfers of operating authority.
     All existing private motor carriers that transport 
hazardous materials in interstate commerce would be required to 
maintain and file evidence of financial responsibility with the Agency. 
There would be at least a 3-month moratorium on enforcement of the 
filing requirement after the effective date of the rule. The moratorium 
would not apply to new entrants.
1. Single State Registration System (SSRS)
    Although numerous commenters addressed SSRS issues, section 4305 of 
SAFETEA-LU repealed the SSRS and placed responsibility for developing 
an SSRS replacement system with the Unified Carrier Registration Plan 
(UCR Plan). Under Section 4305(b) of SAFETEA-LU, the UCR Plan is the 
organization responsible for developing, implementing, and 
administering the Unified Carrier Registration Agreement (49 U.S.C. 
14504a(a)(9)) (UCR Agreement). The UCR Agreement developed by the UCR 
Plan is the ``interstate agreement governing the collection and 
distribution of registration and financial responsibility information 
provided and fees paid by motor carriers, motor private carriers, 
brokers, freight forwarders and leasing companies * * *.'' (49 U.S.C. 
14504a(a)(8)).
    The statute provides for a 15-member Board of Directors for the UCR 
Plan and Agreement (Board) appointed by the Secretary of 
Transportation, only one of whom shall be from the Department of 
Transportation. The remaining Board members represent State agencies 
and the motor carrier industry. The establishment of the Board was 
announced in the Federal Register on May 12, 2006 (71 FR 27777).
    The Board is charged with developing regulations governing the UCR 
Agreement and recommends the applicable fees to the Secretary of 
Transportation.\8\ The FMCSA is required by SAFETEA-LU to set the fees 
within 90 days after receiving the Board's recommendation and after 
notice and opportunity for public comment (49 U.S.C. 14504a(d)(7)(B)).
---------------------------------------------------------------------------

    \8\ The Secretary's functions under section 14504a have been 
delegated to the Administrator of the Federal Motor Carrier Safety 
Administration. 49 CFR 1.73(a)(7), as amended, 71 FR 30833 (May 31, 
2006).
---------------------------------------------------------------------------

    The FMCSA described the statutory requirements in detail in an NPRM 
published on May 29, 2007 (72 FR 29472). On Friday, August 24, 2007, 
the Agency published a final rule establishing initial fees for 2007 
and a fee bracket structure for the Unified Carrier Registration 
Agreement in the Federal Register (72 FR 48585). The FMCSA subsequently 
adjusted the UCR Agreement fees and fee bracket structure in a final 
rule dated April 27, 2010 (74 FR 21993).
    For reasons stated in Section I of this SNPRM, development of the 
replacement system for the SSRS is no longer addressed under the URS 
rulemaking.
2. Entities Subject to the URS Registration Requirement
    Except as noted below, the Agency proposes to require all entities 
which are under FMCSA commercial or safety jurisdiction to register 
under the Unified Registration System using proposed Form MCSA-1. 
Section 4304 of SAFETEA-LU amended 49 U.S.C. 13908(b) to require the 
Federal on-line replacement system to ``serve as a clearinghouse and 
depository of information on, and identification of, all foreign and 
domestic motor carriers, motor private carriers, brokers, freight 
forwarders, and others required to register with the Department of 
Transportation * * *.'' The FMCSA

[[Page 66513]]

interprets this statute as authorizing the inclusion of all entities 
regulated by FMCSA in the Unified Registration System.
    Accordingly, proposed 49 CFR 390.101 would establish a general 
requirement for all regulated entities, except Mexico-domiciled motor 
carriers seeking authority to operate beyond the border commercial 
zones (Mexico-domiciled long-haul carriers), to obtain USDOT 
Registration by filing proposed Form MCSA-1 and to provide FMCSA 
biennial updates of the registration information.
    Under proposed Sec.  390.102, a motor carrier that registers its 
vehicles in a State that participates in the Performance and 
Registration Information Systems Management program (PRISM) 
alternatively could satisfy the USDOT registration and biennial update 
requirements in Sec.  390.101 by electronically filing the required 
information with the State Driver Licensing Agency (SDLA) according to 
its policies and procedures, provided the SDLA has integrated the USDOT 
registration/update capability into its vehicle registration program. 
If State procedures do not allow a motor carrier to file the MCSA-1 
form or to submit updates within the required 24-month window, the 
motor carrier would need to complete such filings directly with FMCSA.
    Proposed Sec.  390.103 would require all for-hire motor carriers 
and private motor carriers that transport hazardous materials in 
interstate commerce, as well as brokers and freight forwarders, to file 
evidence of financial responsibility to receive USDOT Registration.
    Although seven comments supported the inclusion of Mexico-domiciled 
long-haul carriers in the unified system, the Agency does not propose 
to include such carriers at this time. In September 2007, FMCSA began 
registering Mexico-domiciled long-haul carriers under a limited-term 
cross-border demonstration project in which participation by Mexican 
carriers was voluntary. This program was discontinued in March 2009, 
following enactment of section 136 of the Transportation, Housing and 
Urban Development, and Related Agencies Appropriations Act, 2009 
[Division I, title I of the Omnibus Appropriations Act, 2009, Public 
Law 111-8, March 11, 2009], which prohibited the use of funds 
appropriated in that Act to establish, implement, continue, promote, or 
in any way permit a cross-border demonstration program. Subsequent to 
enactment of section 136, Congress has not enacted any language that 
prohibits funding for a new cross-border demonstration program. 
Currently, FMCSA and USDOT are working closely with the Government of 
Mexico to implement a new phased-in long-haul cross border trucking 
program. FMCSA's experiences in implementing this new program will be 
important in assessing the need to propose further changes in the 
unified program at a future date. The applicable procedures governing 
transportation by Mexico-domiciled motor carriers beyond the 
municipalities and commercial zones along the United States-Mexico 
international border remain 49 CFR part 365, subpart E, 49 CFR part 
385, subpart B, and 49 CFR 390.19.
    Proposed Sec.  390.105 would list, and provide cross-references to, 
other governing regulations that are applicable to those requesting 
USDOT Registration. For-hire and private motor carriers, brokers and 
freight forwarders additionally would be required to designate a 
process agent as a pre-condition for receiving USDOT Registration and 
commercial operating authority, when applicable. U.S. and Canada-
domiciled motor carriers must satisfactorily complete the new entrant 
safety assurance program under 49 CFR part 385, subpart D in order for 
their USDOT Registration and commercial operating authority, if 
applicable, to become permanent. A Mexico-domiciled motor carrier is 
subject to the safety monitoring system under 49 CFR part 385, subpart 
B. A non-North America-domiciled motor carrier is subject to the 
requirements of 49 CFR part 385, subpart H, and must complete the 
safety monitoring program under 49 CFR part 385, subpart I. An 
intermodal equipment provider is subject to the requirements of 49 CFR 
part 390, subpart D. A person who applies for a hazardous materials 
safety permit is subject to the requirements of 49 CFR part 385, 
subpart E. A cargo tank facility is subject to the requirements of 49 
CFR part 107, subpart F, 49 CFR part 172, subpart H, and 49 CFR part 
180.
    Finally, Sec.  390.107 would direct a non-North America-domiciled 
motor carrier that requests authority to conduct interstate commerce 
within the United States to Sec.  385.607(a) for detailed information 
about the requirement to complete a pre-authorization safety audit as a 
pre-condition for receiving USDOT Registration and commercial operating 
authority, if applicable.
    By placing the unified registration requirement under part 390, 
FMCSA State partners that participate in the Motor Carrier Safety 
Assistance Program would be able to enforce the registration 
requirement consistent with the compatibility requirements under 49 CFR 
parts 350 and 355.
    All entities required to register under URS are listed in the chart 
below:

                       Entities Required To Register Under the Unified Registration System
----------------------------------------------------------------------------------------------------------------
                 Entity                                                Description
----------------------------------------------------------------------------------------------------------------
1. A for hire or private motor carrier
 domiciled in the U.S., Canada, Mexico
 or a non-North American country:
    a. For-hire carrier................  A person engaged in the transportation of goods or passengers for
                                          compensation.
        i. Exempt......................  A person engaged in transportation exempt from commercial regulation by
                                          the Federal Motor Carrier Safety Administration (FMCSA) under 49
                                          U.S.C. chapter 135. Exempt motor carriers that operate commercial
                                          motor vehicles as defined in 49 U.S.C. 31101 are subject to the safety
                                          regulations set forth in Part B of Subtitle VI of subchapter B of
                                          Title 49 Code of Federal Regulations.
        ii. Non-exempt.................  A person engaged in transportation subject to commercial regulation by
                                          the Federal Motor Carrier Safety Administration (FMCSA) under 49
                                          U.S.C. chapter 139, regardless of whether such transportation is
                                          subject to the safety regulations.
    b. Private carrier.................  A person who provides transportation of property or passengers, by
                                          commercial motor vehicle, and is not a for-hire motor carrier.
2. Broker..............................  A person who, for compensation, arranges, or offers to arrange, the
                                          transportation of property by a non-exempt for-hire motor carrier.

[[Page 66514]]


3. Freight forwarder...................  A person holding itself out to the general public (other than as an
                                          express, pipeline, rail, sleeping car, motor, or water carrier) to
                                          provide transportation of property for compensation in interstate
                                          commerce, and in the ordinary course of its business: (1) performs or
                                          provides for assembling, consolidating, break-bulk, and distribution
                                          of shipments; (2) assumes responsibility for transportation from place
                                          of receipt to destination; and (3) uses for any part of the
                                          transportation a carrier subject to FMCSA commercial jurisdiction.
4. Intermodal equipment provider.......  A person that interchanges intermodal equipment with a motor carrier
                                          pursuant to a written interchange agreement or has a contractual
                                          responsibility for the maintenance of the intermodal equipment.
5. Hazardous Materials Safety Permit     A motor carrier that transports in interstate or intrastate commerce
 applicant.                               any of the hazardous materials, in the quantity indicated for each,
                                          listed under 49 CFR 385.403.
6. Cargo tank facility.................  A cargo tank and cargo tank motor vehicle manufacturer, assembler,
                                          repairer, inspector, tester, and design certifying engineer subject to
                                          registration requirements under 49 CFR 107.502 and 49 U.S.C. 5108.
----------------------------------------------------------------------------------------------------------------

3. Proposed User Fees
    The Agency sets forth under Sec.  360.3(f) proposed registration, 
insurance filing and other services fees as follows.

------------------------------------------------------------------------
      Type of proceeding                                       Fee
------------------------------------------------------------------------
Part I: Registration:
    (1).......................  An application for      $300.
                                 USDOT Registration
                                 pursuant to 49 CFR
                                 part 390, subpart C.
    (2).......................  An application for      $100.
                                 motor carrier
                                 temporary authority
                                 issued in response to
                                 a national emergency
                                 or natural disaster
                                 and following an
                                 emergency declaration
                                 under Sec.   390.23
                                 of this subchapter.
    (3).......................  Biennial update of      $0.
                                 registration.
    (4).......................  Request for change of   $0.
                                 name, address, or
                                 form of business.
    (5).......................  Request for             $0.
                                 cancellation of
                                 registration.
    (6).......................  Request for             $10.
                                 registration
                                 reinstatement.
    (7).......................  Designation of process  $0.
                                 agent.
Part II: Insurance:
    (8).......................  A service fee for       $10 per accepted
                                 insurer, surety, or     certificate,
                                 self-insurer accepted   surety bond or
                                 certificate of          other
                                 insurance, surety       instrument
                                 bond, and other         submitted in
                                 instrument submitted    lieu of a
                                 in lieu of a broker     broker surety
                                 surety bond.            bond.
    (9).......................  (i) An application for  [Reserved].
                                 original
                                 qualification as self-
                                 insurer for bodily
                                 injury and property
                                 damage insurance
                                 (BI&PD).
                                (ii) An application     [Reserved].
                                 for original
                                 qualification as self-
                                 insurer for cargo
                                 insurance.
                                (iii) Fee for           [Reserved].
                                 quarterly self-
                                 insurance monitoring
                                 filing.
                                (iv) Fee for annual     [Reserved].
                                 self-insurance
                                 monitoring filing.
------------------------------------------------------------------------

    The Agency proposes a $300 registration fee for all registered 
entities. Please refer to the discussion of the proposed new 
registration fee under ``IV. Regulatory Evaluation of the URS SNPRM: 
Summary of Benefits and Costs'' of the preamble for an explanation of 
the basis for this proposal. The FMCSA proposes to charge a $10 
registration reinstatement fee for those seeking to reinstate USDOT 
registration as a result of failure to maintain required financial 
responsibility and process agent designation filings with the Agency. 
The FMCSA also proposes to change the fee currently charged for 
reinstating commercial operating authority after such authority has 
been revoked from $80 to $10. After completion of required filings 
(financial responsibility or process agent designation) and payment of 
the reinstatement fee, the information system would match up the 
payment with the filings and automatically issue a reinstatement letter 
at 5:00 am on the next business day. Section 360.3(f)(7) would 
eliminate the existing $10 process agent designation filing fee because 
section 4304 of SAFETEA-LU amended 49 U.S.C. 13908(d)(2) to prohibit 
the Agency from charging a fee for filing designation of an agent for 
service of process.
    The Agency proposes under Sec.  360.1(e)(1) to exempt any Agency of 
the Federal Government or a State government or any political 
subdivision of any such government from paying the fees listed in Sec.  
360.3(f) to access or retrieve URS data for its own use. Proposed 
paragraph (e)(2) would exempt any registered entity within URS from 
paying fees to access or retrieve its own data.
4. Financial Responsibility
Bodily Injury and Property Damage Insurance
    For-hire motor carriers. Existing regulations require only non-
exempt for-hire motor carriers to file evidence of financial 
responsibility with the Agency. The NPRM included a proposal to require 
both exempt and non-exempt for-hire motor carriers to file evidence of 
financial responsibility with the Agency as a precondition to receiving 
registration. Section 4303(b) of SAFETEA-LU amended financial security 
requirements under 49 U.S.C. 13906 by requiring ``all persons, other 
than a motor private carrier, registered with the Secretary to provide 
transportation or service as a motor

[[Page 66515]]

carrier under section 13905(b)'' to file evidence of financial 
responsibility with the Agency by December 10, 2005. The Agency 
believes amended 49 U.S.C. 13906 mandates financial responsibility 
filings by all for-hire motor carriers. Therefore, the Agency retains 
its proposal for such filings to be required as a precondition for 
registration under proposed Sec. Sec.  390.103(a)(2)(i) and 387.303
    Private motor carriers hauling hazardous materials. The SNPRM 
retains under Sec.  390.103(a)(2)(ii) the proposal that a private motor 
carrier hauling hazardous materials in interstate commerce be required 
to file evidence of financial responsibility with the Agency to receive 
registration. However, a private motor carrier hauling hazardous 
materials in bulk in intrastate commerce would continue to be required 
to meet the financial responsibility requirements under 49 CFR part 387 
and maintain evidence of having met the financial responsibility 
requirements at its principal place of business.\9\
---------------------------------------------------------------------------

    \9\ The statutory authority to require motor private carriers to 
file evidence of insurance with FMCSA is codified at 49 U.S.C. 
31139(c). This authority expressly applies to minimum levels of 
financial responsibility established by the Secretary under 49 
U.S.C. 31139(b). Section 31139(b) only applies to financial 
responsibility requirements for transportation in interstate 
commerce. Although the Secretary has other authority, in 49 U.S.C. 
31139(d), to establish minimum levels of financial responsibility 
for intrastate transportation of hazardous materials, section 
31139(d) does not authorize the Secretary to require that evidence 
of such insurance be filed with FMCSA.
---------------------------------------------------------------------------

    Private motor carriers not hauling hazardous materials. Initially, 
section 4120(a)(1) of SAFETEA-LU amended 49 U.S.C. 31138(a) and 
31139(b)(1) to remove the phrase ``for compensation'' from the statutes 
governing financial responsibility and filing of evidence of financial 
responsibility with the Agency, thereby creating a financial 
responsibility requirement for private motor carriers, which the Agency 
was required to implement through rulemaking. Section 4120(a)(2) stated 
the Agency could require a private non-hazardous materials motor 
carrier to file evidence of financial responsibility with FMCSA. 
Section 305(a) of the SAFETEA-LU Technical Corrections Act of 2008 
[Pub. L. 110-244, 122 Stat. 1619-1620, June 6, 2008] amended section 
31138 by limiting the Secretary's authority to establish minimum levels 
of financial responsibility for private motor carriers of passengers to 
those carriers transporting passengers for commercial purposes.
    The Agency anticipates that a proposal regarding financial 
responsibility for private non-hazardous materials motor carriers would 
generate major interest from the private motor carrier community and 
might cause a significant delay in completing the URS rulemaking. 
Consequently, FMCSA has decided to address the financial responsibility 
requirements for private non-hazardous material motor carriers in a 
separate rulemaking from URS.
    Brokers and freight forwarders. Brokers and freight forwarders 
would be required under proposed Sec.  390.103(a)(2) to file evidence 
of financial responsibility as a pre-condition to registration. This 
requirement includes only those freight forwarders that perform 
transfer, collection and delivery service (i.e., operate a motor 
vehicle). Under the existing regulations, only HHG freight forwarders 
performing transfer, collection and delivery service are subject to 
this requirement. These regulations were transferred without change 
from the Interstate Commerce Commission following enactment of the 
ICCTA, which re-regulated general commodities freight forwarders. 
However, the regulations were not amended to reflect the Agency's 
broadened jurisdiction. The FMCSA believes there is no basis to limit 
the requirement to HHG freight forwarders and therefore proposes to 
extend this requirement to all freight forwarders.
Restoration of Liability Insurance Requirements for Small Freight 
Vehicles
    Section 4120 of SAFETEA-LU removed FMCSA's commercial jurisdiction 
over for-hire transportation of property in motor vehicles that did not 
meet the definition of commercial motor vehicle (CMV) under 49 U.S.C. 
31132. Consequently, the Agency removed former 49 CFR 387.303(b)(1)(i), 
which established minimum public liability limits of $300,000 for 
fleets that consisted only of vehicles with Gross Vehicle Weight 
Ratings of under 10,000 pounds.\10\ The SAFETEA-LU Technical 
Corrections Act of 2008 restored the Agency's commercial jurisdiction 
over these vehicles. Accordingly, the Agency proposes to restore former 
Sec.  387.303(b)(1)(i) with one minor change, revising 10,000 pounds to 
10,001 pounds to be consistent with the statutory definition of CMV.
---------------------------------------------------------------------------

    \10\ See 72 FR 55697, 55702 (October 1, 2007).
---------------------------------------------------------------------------

    Cargo Insurance. Section 4303(c) of SAFETEA-LU required the Agency 
to discontinue designating operating authority as common or contract 
carriage beginning January 1, 2007. The FMCSA concluded that because 
the cargo insurance requirement is tied to the common/contract 
distinction, and because we no longer may distinguish between common 
and contract carriers in the Agency's registration process or base any 
regulations upon that distinction, it was important to address the 
cargo insurance issue as quickly as possible. Consequently, the Agency 
published a separate final rule eliminating the cargo insurance 
requirement for for-hire motor carriers of property (except household 
goods motor carriers) and freight forwarders (except household goods 
freight forwarders), effective March 21, 2011 (75 FR 35318, June 22, 
2010). The preamble to that final rule addressed the comments filed in 
this proceeding regarding the NPRM's cargo insurance proposal.
Web-Based Filing by Insurers, Surety Companies, and Financial 
Institutions
    The Agency would require insurers, surety companies and financial 
institutions to convert to a Web-based format when electronically 
filing evidence of financial responsibility. (Sec.  387.323) These 
filings would include evidence of surety bonds, certificates of 
insurance, trust-fund agreements, proof of qualifications to self-
insure, and notices of cancellations. The Agency also proposes 
conforming amendments to miscellaneous sections governing financial 
responsibility requirements to convey that electronic filing would be 
mandatory and not optional. (Sec. Sec.  360.3(a)(2), 387.313(b), 
387.313(d), 387.323, 387.413(b), and 387.419)
Self-Insurance Program
    Commenters generally supported the proposal to modify fees related 
to the self-insurance program. Currently, the cost of the program 
exceeds the amounts recovered from fees collected from those entities 
that self-insure. The Agency believes that because entities that 
qualify to self-insure receive a valuable benefit, it is reasonable and 
appropriate for the fees charged to support the costs of administering 
the program. However, FMCSA has determined that the proposed fees for 
the self-insurance program published in the 2005 NPRM are inadequate to 
recover Agency costs to administer the program, including the costs of 
evaluating and monitoring the financial health of motor carriers 
requesting approval to participate in the self-insurance program. The 
Agency seeks to make the self-insurance program self-sustaining more 
quickly and is therefore developing a separate rulemaking to address 
this issue.
Editorial Changes
    The Agency proposes to remove obsolete effective dates and 
liability

[[Page 66516]]

information from the schedule of limits on Form MCS-90B, Endorsement 
for Motor Carrier Policies of Insurance for Public Liability Under 
Section 18 of the Bus Regulatory Reform Act of 1982 (Illustration I to 
Sec.  387.39). Also, the Agency would correct an omission in Sec.  
387.419 by adding the phrase ``notice of cancellations.'' Although the 
existing section heading is ``Electronic filing of surety bonds, 
certificates of insurance and cancellations'' the Agency neglected to 
include information regarding cancellations.
5. Process Agent Designations
    The Agency, by proposing to amend 49 CFR 366.1, retains the NPRM 
proposal to include private and exempt for-hire motor carriers among 
those entities that would be required to file process agent 
designations with FMCSA. Private motor carriers are already mandated by 
49 U.S.C. 503 to make such filings, although FMCSA has not yet 
promulgated a rule requiring them to do so. Inasmuch as non-exempt for-
hire motor carriers, brokers, and freight forwarders are required to 
file process agent designations under 49 U.S.C. 13303 and 13304, 
approximately 90 percent of the entities subject to this rule are 
required, by statute, to file such designations. Although there is no 
statutory requirement that exempt for-hire carriers file process agent 
designations, FMCSA believes that extending the process agent 
designation requirement to include such carriers, as well as private 
carriers, would enhance the public's ability to serve legal process on 
responsible individuals when seeking compensation for losses resulting 
from a crash involving a commercial motor vehicle operated by any motor 
carrier, regardless of the carrier's regulatory status. Moreover, FMCSA 
would be able to better identify the appropriate individual(s) upon 
whom to serve notices for enforcement actions. The Agency invites 
comments on whether the process agent filing process can be made less 
costly.
    The FMCSA also proposes to amend Sec.  366.1 by including freight 
forwarders among those entities required to file process agent 
designations with FMCSA. Under 49 U.S.C. 13303(a), a freight forwarder 
providing service under FMCSA jurisdiction must designate an agent on 
whom service of notices in Agency proceedings, as well as service of 
Agency actions, may be made.
    The FMCSA proposes to amend Sec.  366.6 to obligate those entities 
that would be required to file a process agent designation to update 
FMCSA of any changes to the designated process agent's information, 
including name, address or contact information. Amended Sec.  366.6 
would require the report to be made within 20 days of the change.
6. Timeframes for Filing Evidence of Financial Responsibility and 
Process Agent Designation
    As proposed in the NPRM, the Agency would require new filings of 
both evidence of financial responsibility and designation of agents for 
service of process to be completed within 90 days of the date that an 
application is submitted, or within 90 days of the date that the notice 
of application is published in the FMCSA Register if a carrier also is 
seeking commercial operating authority. (Sec.  365.109) The proposed 
90-day time period combines the existing 20-day initial deadline and 
60-day extension period and adds 10 more days for Agency processing.
    Section 4303(b) of SAFETEA-LU amended 49 U.S.C. 13906(a) to 
establish December 10, 2005 as the deadline for existing exempt for-
hire motor carriers to make insurance filings with FMCSA, making it 
unnecessary to propose a grace period for financial responsibility 
filings. Inasmuch as section 13906(a) excluded private motor carriers 
registered with the Agency under 13905(b) from the expedited financial 
responsibility filing requirement, and in the interest of treating all 
applicants who must file evidence of financial responsibility 
equitably, the Agency will not include in proposed Sec.  390.103 a 180-
day grace period for financial responsibility filings by existing 
exempt for-hire or private motor carriers. Such carriers would have to 
file by the effective date of the final rule.
    The SNPRM includes, in proposed Sec.  366.2(b), a 180-day grace 
period for all existing private and exempt for-hire motor carriers to 
file process agent designations. The grace period would be calculated 
from the final rule compliance date. The FMCSA believes the 180-day 
time period for existing private and exempt for-hire motor carriers to 
make process agent designations is necessary for Agency IT systems to 
accommodate the anticipated one-time surge in the number of filings 
from this group and to provide them adequate time to comply with the 
new filing requirements.
7. The Application Process
    The Agency proposed in the NPRM a new multi-step application 
process and procedures for issuance of a USDOT Number under which 
applicants would initially be assigned temporary numbers to track the 
application through the registration process and enable applicants and 
their agents to make required administrative filings using the tracking 
number. Under this proposal, an applicant would not receive a USDOT 
Number until all necessary filings were made and would be prohibited 
from commencing operations until the USDOT Number was issued.
    The Owner-Operator Independent Drivers Association, Inc. (OOIDA) 
and Missouri Department of Transportation (MODOT) supported the 
proposed multi-phase application process. MODOT further stated that 
waiting until an application has passed initial screening before 
issuing a USDOT Number is a valid approach.
    The American Trucking Associations, Inc. (ATA) commented that 
because USDOT Numbers and provisional registrations would no longer be 
issued at the time of application under the NPRM proposal, new carriers 
may be delayed entry into the market. ATA urged the Agency to supply 
applicants with temporary tracking numbers immediately upon receipt of 
the application and provide the applicant a point of contact at FMCSA. 
Greyhound stated that temporary tracking numbers would cause tremendous 
confusion and the Agency should issue a tentative USDOT Number at the 
beginning of the process, making the number permanent at the conclusion 
of the process.
    The MODOT, the Iowa Department of Transportation (IADOT), the 
American Association of Motor Vehicle Administrators (AAMVA), ATA, and 
the National Conference of State Transportation Specialists (NCSTS) 
filed comments opposing the proposed system. MODOT commented that as a 
partner in the implementation of the Federal safety fitness program it 
should be able to continue to issue USDOT Numbers under PRISM. AAMVA 
echoed the same concern, adding that if States are not able to issue 
USDOT Numbers, their resulting inability to deliver accurate and timely 
customer service will cause substantial delay for carriers wishing to 
enter the market. ATA found it ``very disturbing'' that the process for 
issuing USDOT Numbers and for updating MCS-150 data may conflict with 
PRISM requirements in such a way as to delay the vehicle registration 
of International Registration Plan (IRP) fleets. IADOT commented that 
under the NPRM the States' inability to issue USDOT Numbers to 
interstate carriers and registrants would have the following adverse 
impacts: (1) Increased processing time for first-time motor carriers, 
especially private carriers; and (2) increased costs for private and 
exempt carriers to operate.

[[Page 66517]]

OOIDA urged FMCSA to ensure that States retain the ability to issue 
USDOT Numbers to registering owner-operators. OOIDA suggested that a 
simple separate electronic form should be used when a vehicle is 
registered, and owner-operator USDOT Numbers could be maintained in the 
URS system.
    After careful consideration of all filed comments and discussions 
with PRISM States that issue USDOT Numbers to carriers on FMCSA's 
behalf, the Agency has withdrawn the proposal to issue a temporary 
tracking number to applicants and issue a USDOT Number only after 
applicable administrative filings have been completed. Under proposed 
Sec.  390.101(c)(2), each applicant would be issued an inactive USDOT 
Number. The inactive USDOT Number would be activated by the Agency only 
after the applicant has filed applicable administrative filings such as 
evidence of financial responsibility or a process agent designation. If 
a carrier also is seeking operating authority, the USDOT Number would 
remain inactive until all protests filed under 49 CFR part 365 have 
been resolved and the applicant has filed applicable administrative 
filings. The Agency also proposes new Sec.  392.9b to prohibit a motor 
carrier with an inactive USDOT Number from operating a CMV and to 
establish penalties for violating the prohibition. This change has been 
made in order to allow PRISM States to continue to offer one-stop 
services to carriers and to better enable PRISM States to track and 
monitor carriers' safety performance. PRISM States and insurance 
companies would have had to alter their IT systems and administrative 
processes to accommodate the issuance of temporary tracking numbers, 
which would have been costly and time-consuming. The FMCSA believes its 
current proposal is the most transparent and efficient model.
    The FMCSA plans to collaborate with PRISM States in developing a 
unified message to notify motor carriers, at the time of registration, 
that operating with an inactive USDOT Number would result in 
enforcement at the Federal and State levels. During vehicle 
registration, PRISM States would inform the motor carrier that its 
license plates would be suspended if its application for operating 
authority is denied as a result of the protest process, if appropriate 
administrative filings are not made within a specified number of days, 
and/or if its application is rejected during FMCSA review under 49 CFR 
365.109.
8. Revisions to Proposed Application Form MCSA-1
    The Agency proposed in the NPRM to combine the data elements now 
captured on several different licensing, registration and certification 
forms into a single, new application form called the Form MCSA-1. 
Commenters generally supported the use of a single form but urged that 
the form be as simple as possible. Although ATA generally supported the 
scope of the proposed Form MCSA-1, it argued that the benefits the new 
form could provide may be outweighed by problems caused by an unwieldy, 
complex, and inconvenient form. ATA urged the Agency to ensure that the 
form is as simple as possible for use by the majority of the trucking 
industry, which largely consists of small business entities. In 
particular, ATA said it is important for the form and its instructions 
to be clear regarding the transactions for which the form is to be used 
and the compliance requirements for each transaction type. ATA believes 
Form MCSA-1 should be concise and devoid of requests for safety- and 
non-safety-related information that are not required by the current 
FMCSRs and HMRs. Finally, ATA urged the Agency to review and eliminate 
all entries on Form MCSA-1 and its appendices that do not contain 
critical data needed for the registration process (i.e., research 
data).
    The Utah Department of Transportation (UTDOT) and the Utah Trucking 
Association (UTA) supported combining the filings in one form and using 
one online central access point for motor carriers, freight forwarders, 
and property brokers while providing an alternative for ``mom and pop'' 
companies that do not utilize computers.
    The OOIDA supported combining several existing forms into one new 
form and urged the Agency to make the form available in hard copy to 
filers who are not ``computer-savvy.'' OOIDA supported the proposed 
collection of carrier and cargo classification and HHG arbitration 
information. OOIDA stated that the Bureau of Transportation Statistics 
(BTS) should continue to collect motor carrier financial information 
and sought verification that the collection of information on the new 
form is not intended to replace BTS information collection activities.
    Greyhound believed proposed Form MCSA-1 and the instructions for 
its completion are somewhat confusing and need to be revised to be more 
user friendly. Greyhound and ABA recommended that the Agency ``require 
applicants to demonstrate they are in compliance with the Americans 
with Disabilities Act (ADA) [[Pub. L. 101-336, Title I, Sec.  102, July 
26, 1990, 104 Stat. 331] as amended].'' The Community Transportation 
Association of America (CTAA) applauded the Agency's efforts to unify 
all registration information into a single form but suggested some 
minor modifications to the proposed form.
    The National Propane Gas Association (NPGA) believed information 
about gross operating revenue should not be collected. NPGA stated the 
Form MCSA-1 instructions are unclear regarding whether a hazardous 
materials shipper is required to file Form MCSA-1 and requested that 
the Agency modify the instructions to explicitly state that the 
proposed form would not apply to hazardous materials shippers. The 
Corporate Transportation Coalition (CTC) stated that there must 
continue to be a way to distinguish between private and for-hire 
carriers and recommended that private carriers not be required to 
submit financial data or other information unrelated to the safe 
operation of their truck fleets.
    The American Moving and Storage Association (AMSA) commented that 
the more detailed and tougher congressional registration requirements 
for HHG movers should be incorporated in the URS rule. Advocates for 
Highway and Auto Safety (Advocates) supported the inclusion of the new 
entrant provisions in the URS rule.
    The FMCSA agrees that proposed Form MCSA-1 should be as simple and 
easy to use as possible, consistent with the need to collect the 
necessary information. The FMCSA has reviewed the draft Form MCSA-1 and 
instructions in light of the various comments and made revisions to 
clarify the form and instructions and to eliminate extraneous material.
    The Agency proposes to revise the MCSA-1 form and instructions to 
collect registration information from all FMCSA regulated entities, 
except Mexico-domiciled long-haul carriers. Because hazardous materials 
shippers are not subject to the FMCSRs, the Agency also proposes to 
exclude them from the Unified Registration System. Conforming 
amendments are proposed for Form MCSA-1 and instructions as well. As 
mentioned previously, the URS rule was impacted by new provisions 
enacted by SAFETEA-LU and subsequently promulgated final rules, which 
brought new entities under FMCSA's registration jurisdiction (such as 
intermodal equipment providers and non-North America-domiciled motor 
carriers). To accommodate these

[[Page 66518]]

changes, the Agency proposes changes to the MCSA-1 form and 
instructions, including additional questions and new or relocated 
sections as follows:

------------------------------------------------------------------------
                                               MCSA-1 Form--URS SNPRM
       MCSA-1 Form--URS NPRM version                   version
------------------------------------------------------------------------
Section A--Business Description             Section A--Business
                                             Description
Section B--Motor Carriers                   Section B--General
                                             Operational Information
Section C--Hazardous Materials (HM)         Section C--Hazardous
                                             Materials (HM)
Section D--Transportation of Household      Section D--Hazardous
 Goods                                       Materials Permitting
Section E--Commercial Zone Operations       Section E--Cargo Tank
                                             Facility
Section F--Additional Information           Section F--Transportation of
                                             Household Goods
Section G--Safety Certifications            Section G--Transportation of
                                             Passengers
Section H--Certifications                   Section H--Scope of
                                             Authority
Section I--Cancellation                     Section I--Commercial Zone
                                             Operations
Section J--Filing Fee Information           Section J--Non-North America-
                                             Domiciled Carriers
Attachments to Section G (Supplemental      ............................
 information required only from a Mexico-
 domiciled motor carrier)
                                            Section K--Additional
                                             Information
                                            Section L--Safety
                                             Certifications
                                             (Certifications applicable
                                             only to Mexico- or Non-
                                             North America-domiciled
                                             motor carriers)
                                            Section M--Compliance
                                             Certifications
                                            Section N--Applicant's Oath
                                            Section O--Filing Fee
                                             Information
                                            Attachments to Section L--
                                             Supplemental Information
                                             required only from a Mexico-
                                              or Non-North America-
                                             domiciled motor carrier
------------------------------------------------------------------------

    Consistent with provisions under section 4204 of SAFETEA-LU, FMCSA 
proposes collection of additional registration information from HHG 
motor carriers as follows: (1) Evidence of participation in an 
arbitration program and a copy of the notice of the arbitration program 
as required by section 14708(b)(2); (2) identification of the carrier's 
tariff and a copy of the notice of availability of the tariff for 
inspection as required by section 13702(c); (3) evidence that carriers 
have access to, have read, are familiar with, and will observe all 
applicable Federal laws relating to consumer protection, estimating, 
consumers' rights and responsibilities, and options for limitations of 
liability for loss and damage; and (4) disclosure of any relationships 
involving common stock, common ownership, common management, or common 
familial relationships between filing carriers and any other motor 
carriers, freight forwarders, or property brokers of HHG within 3 years 
of the proposed date of registration.
    The FMCSA also proposes the following improvements to Form MCSA-1 
and the instructions:
     Elimination of a requirement for U.S.- and Canada-
domiciled motor carriers to submit a ``description of a retraining and 
educational program for poorly performing drivers.'' The form will 
continue to require a certification that a motor carrier has in place 
``a system and procedures for ensuring the continued qualification of 
drivers to operate safely, including a safety record for each driver, 
procedures for verification of proper age and licensing of each driver, 
and procedures for identifying drivers who are not complying with the 
safety regulations.'' The revised certification removes a requirement 
not contained in the FMCSRs and is less burdensome.
     The Agency previously proposed a vehicle certification 
which read: ``My vehicles were manufactured or have been retrofitted in 
compliance with the applicable USDOT Federal Motor Vehicle Safety 
Standards.'' The SNPRM revises the proposed certification to read ``The 
carrier will ensure, once operations in the United States have begun, 
that all vehicles it operates in the United States were manufactured or 
have been retrofitted in compliance with the applicable USDOT Federal 
Motor Vehicle Safety Standards or Canadian Motor Vehicle Safety 
Standards in effect at the time of manufacture.'' The Agency believes 
the new language clarifies the carrier's responsibility to ensure that 
no vehicle may be operated in the United States unless it complies with 
the applicable vehicle safety standards.
     The Agency proposes revisions to Form MCSA-1 to collect 
information regarding ADA compliance. Although the Over-the-Road Bus 
Accessibility Act of 2007 [Pub. L. 110-291, 122 Stat. 2915, July 30, 
2008] requires FMCSA to consider compliance with DOT's ADA regulations 
at 49 CFR part 37, subpart A, as an element of an over-the-road bus 
company's fitness for receiving new operating authority, it does not 
require the inclusion of detailed ADA compliance information in the 
application form. Nonetheless, to assist in ensuring ADA compliance, 
FMCSA will take the following actions:
    [cir] Ask the following questions regarding ADA compliance during 
the new entrant safety audit--
     Does the carrier have the means to provide accessible 
over-the-road bus (OTRB) service on a 48-hour advance notice basis by 
its owned or leased OTRBs?
     If the carrier does not have the means then does the 
carrier have an arrangement with another carrier that operates 
accessible OTRBs?
    [cir] If noncompliance with DOT's ADA regulations is discovered in 
the course of a new entrant safety audit or compliance review, FMCSA 
will either forward the information to the U.S. Department of Justice 
(DOJ) for appropriate action or conduct its own investigation and 
attempt to resolve the violations, in accordance with a February 2009 
Memorandum of Understanding between DOJ and DOT executed pursuant to 
Public Law 110-291. (A copy of the Memorandum of Understanding has been 
placed in the docket for this rulemaking).
    [cir] Refer any non-compliant motor carrier that is also a 
recipient of DOT financial assistance to FTA for administrative 
enforcement action, as appropriate. FTA administers a program that 
provides financial assistance to some over-the-road bus carriers and, 
consistent with section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794), as amended, and DOT rules implementing it (49 CFR part 
27), cannot provide such assistance to carriers who are out of 
compliance with their ADA obligations.

[[Page 66519]]

    [cir] When appropriate, initiate action to amend, suspend, or 
revoke a carrier's registration based on willful noncompliance with 
DOT's ADA regulations
    FMCSA proposes conforming amendments to align 49 CFR 365.105 with 
certain information on Form MCSA-1. In proposed Sec.  365.105, the 
Agency replaces references to obsolete OP series forms with ``Form 
MCSA-1'' and reduces the number of operational categories from six to 
three so it is clear that the fee for operating authority applies only 
to the general categories of motor carrier, broker and freight 
forwarder and not to each individual subgroup of these categories 
listed in Section A, question 17 of Form MCSA-1. (see Instructions for 
Form MCSA-1, item number 50)
    In proposed Sec.  365.107, the Agency replaces references to OP 
series forms with ``Form MCSA-1.'' Also, the Agency proposes to remove 
obsolete references to common and contract carriage as required by 49 
U.S.C. 13902(f), as amended by section 4303(c) of SAFETEA-LU.
9. Adoption of an Exclusively Online Electronic Registration System
    Several commenters filed comments about the effect of a mandatory 
online filing requirement, including a possible phase-in period for 
mandatory online filing. ATA supported the emphasis on online filing 
and said it should be made mandatory with a 2 to 3 year phase-in 
period. NCSTS stated that a minimum 5-year phase-in period is needed 
before electronic filing becomes mandatory and suggested that FMCSA 
maintain an alternative system to allow paper filings during systems 
failures and computer outages. The Property Casualty Insurers 
Association of America (PCIAA) also favored phased-in mandatory 
electronic filing.
    The Petroleum Marketers Association of America (PMAA), the American 
Insurance Association (AIA), and OOIDA opposed mandatory electronic 
filing. PMAA stated that some of its members would be unable to access 
the Internet and urged the Agency to keep the paper filing option 
available. OOIDA asserted electronic filing is a hardship for some 
parties, opposed mandatory electronic filing and stated a 5-year phase-
in period is absolutely necessary in the event mandatory electronic 
filing is adopted. OOIDA also stated that FMCSA should provide an 
alternative back-up system to online filing.
    The Agency believes mandatory electronic filing is feasible and 
would result in substantial cost savings to both filers and FMCSA. 
Currently, an estimated 88 percent of motor carriers in the United 
States have Internet access, and this number is steadily growing. 
Furthermore, the Internet is publicly accessible via libraries and 
other public facilities. Electronic filing is cost effective and would 
incorporate automated error checking, reduce processing time, and 
facilitate faster issuance of USDOT Numbers. A detailed cost/benefit 
analysis performed by the Agency supporting this position, titled 
``Report on Benefits and Costs of Mandatory Electronic Filing of 
FMCSA's Unified Registration System,'' is included as Appendix A to the 
regulatory evaluation. The conclusions of this analysis are reported in 
the URS SNPRM under Section IV, titled ``Regulatory Evaluation of the 
URS SNPRM: Summary of Benefits and Costs.''
    Based on the year-to-year increases in the percentage of electronic 
filings for the Agency's MCMIS data, the Agency estimated that, even in 
the absence of a mandatory electronic filing requirement, the 
percentage of electronic filers would range between 80 and 90 percent. 
The FMCSA developed projections of the numbers of new registrants 
expected to enter the industry from 2014 to 2023 and assessed the costs 
of electronic filing both for new registrants and for existing firms 
that file biennial updates.
    Mandatory electronic filing would only impose a cost on firms that 
would otherwise have filed by paper due to a lack of computer skills 
and/or Internet access. The results of FMCSA's analysis showed that 
costs to these affected firms would be low, ranging from $12.73 to 
$80.00 for new registrants and from $3.14 to $51.53 for firms with 
recent activity filing biennial updates. The low end of these cost 
ranges are for firms that file their registrations at a public library, 
and the high end is for firms that would hire another entity to 
complete the forms on their behalf. The FMCSA also prepared estimates 
of the benefits of mandatory electronic filing, consisting of estimates 
of the value of time saved by carriers and the value of substantially 
more rapid receipt of operating authority, as well as benefits to FMCSA 
from electronic filing. A comparison of the costs and benefits 
indicated that mandatory electronic filing would result in anticipated 
benefits of more than $38 million.
    The FMCSA confirmed that the Small Business Administration (SBA) 
would not consider a totally electronic registration system to be a 
barrier to entry for small businesses, if the cost-benefit analysis 
supported the proposal. Based on its analysis, FMCSA proposes a 
mandatory electronic registration system. The system would incorporate 
electronic signature technology for required signatures. Supplemental 
documentation required for registration would be accepted 
electronically as well. The system would include the capability to 
upload scanned or electronic versions of this information.
    The Agency does not propose a phase-in period because it 
anticipates that most entities should have online access when the URS 
rule becomes effective. The Agency would provide adequate time to 
adjust to the electronic filing requirement when setting the compliance 
date for the final rule, and would adopt procedures to ensure continued 
operational capability in case of system failure.
10. Transfers of Operating Authority
    This SNPRM withdraws the proposal that entities, when submitting a 
revised Form MCSA-1 due to a change of name, form of business, or 
address, must also submit a certification that there has been no change 
in the ownership, management, or control of the entity. While the 
Agency has determined that the ICCTA removed its statutory authority to 
review transfers of operating authority, the ICCTA did not prohibit 
such transfers. Therefore, FMCSA also would eliminate 49 CFR part 365, 
subpart D, governing transfers of operating authority. A motor carrier 
would be required, however, to identify any current management official 
(e.g. Owner, President, Vice President, Safety Director, etc.) 
responsible for motor carrier safety in its operation who was hired 
after the last update when completing the Form MCSA-1 biennial 
registration update. A motor carrier that changes its name, form of 
business, or address would retain its existing USDOT Number.
    Regarding the comments about the practice of ``churning'' (motor 
carriers `reincarnating' by registering for a new USDOT Number in an 
attempt to conceal a negative safety history), the Agency believes that 
existing regulations, the proposals contained in this SNPRM and the 
requirements in 49 CFR part 385, together with procedures adopted and 
recently implemented by the Agency for review of motor carrier 
applications for operating authority, will discourage this practice. In 
this SNPRM, the Agency also proposes to require information on motor 
carrier ownership on the Form MCSA-1 to be filed with the Agency prior 
to receipt of a new USDOT Number. This information would assist the 
Agency in identifying individuals involved in churning and rejecting 
their applications for new registration when

[[Page 66520]]

appropriate. The Agency also believes that the requirement under 49 CFR 
part 385 for all new entrants (carriers receiving a new USDOT Number) 
to undergo a safety audit within 18 months of beginning operation will 
deter carriers from engaging in this practice.
    In addition, motor carriers required to obtain operating authority 
pursuant to 49 CFR parts 390 and 365 may be subject to FMCSA review 
procedures established under 49 CFR 365.109. Currently, FMCSA utilizes 
these procedures for review of applications for household goods motor 
carrier, broker, freight forwarder or passenger carrier authority. 
However, in the future the Agency anticipates expanding the program to 
include applications from all motor carriers that require operating 
authority. Employing procedures established under Sec.  365.109, the 
Agency reviews applications for completeness and for conformity with 
the safety fitness standard. Through this process, if the Agency 
determines that a carrier is not fit, willing and able to comply with 
applicable statutes and regulations, the motor carrier's application 
for operating authority will be rejected. In the event an application 
is rejected, an appeal may be filed with the Agency pursuant to 49 CFR 
365.111. In this SNPRM the Agency proposes revising 49 CFR 365.111 and 
365.203 to provide the address and appropriate office for appeals of 
rejections and for protests.
11. Cancellation, Reinstatement, and Deactivation of USDOT Registration
    In the NPRM, the Agency proposed that a motor carrier seeking to 
reinstate its USDOT Registration more than 2 years after its 
registration was deactivated would be classified as a new entrant. In 
setting the proposed threshold for reclassification of a carrier as a 
new entrant at 2 years, the Agency sought to prevent carriers that go 
in and out of business for very short periods of time from being 
required to re-enter the New Entrant Safety Assurance Program.
    The OOIDA disagreed with the Agency's statement that a carrier that 
has been inactive for more than 2 years is functionally equivalent to a 
new entrant. OOIDA explained that many motor carriers, including owner-
operators, may operate under another carrier's authority for a period 
of time for economic reasons. In these cases, OOIDA believes the Agency 
is not justified in proposing to require the carrier to pay a new 
registration fee and to undergo a new safety audit as a condition for 
activating registration.
    Advocates supported the proposal that carriers that have been 
inactive for more than 2 years be treated as new entrants and be 
required to successfully complete the New Entrant Safety Assurance 
Program.
    Consistent with the new regulatory drafting strategy for the SNPRM, 
the Agency is not proposing to make changes to its New Entrant Safety 
Assurance Program. While the New Entrant Safety Assurance Program is 
triggered by the registration process, it is a separate program whose 
governing regulations are codified under 49 CFR parts 365 and 385. This 
SNPRM addresses cancellation, reinstatement and deactivation of USDOT 
Registration/operating authority only from the standpoint of fees and 
other administrative requirements. The Agency recently published 
revisions to its New Entrant Safety Assurance Program, including 
regulations governing reinstatement. (``New Entrant Safety Assurance 
Process; Final Rule,'' published on December 16, 2008 at 73 FR 76472).
12. Additional Proposals Regarding Special Transit Operations (Federal 
Transit Administration (FTA) Grantees)
    The non-profit organization CTAA, which represents public and 
community-based FTA grantees, generally supported the provisions of the 
NPRM applicable to FTA grantees. However, CTAA suggested that the 
Agency revise the rule to: (1) Clarify that the requirements would 
apply to motor carriers of passengers that participate in interlining 
or through-ticketing arrangements with one or more interstate for-hire 
motor carriers of passengers; (2) designate an Agency point of contact 
to assist FTA grantees in completing their applications; and (3) amend 
proposed Form MCSA-1 to include specific information applicable to FTA 
grantees, including governmental status, transit areas, certification 
of compliance with FTA (not FMCSA) drug and alcohol testing 
regulations, and a statement that FTA grantees need not pay a filing 
fee. CTAA urged FMCSA to permit risk retention groups and other forms 
of pooled insurance as ways to satisfy the Agency's financial 
responsibility requirements. Finally, CTAA stated that the regulations 
should take into account the effect on FTA programs of the last two 
comprehensive reauthorization statutes.
    Greyhound and ABA supported clarifying the status of transit 
providers that operate entirely within one State but participate in 
interline relationships with interstate carriers. They agreed that 
FMCSA should explicitly state that such transit providers are not 
subject to the FMCSA insurance requirements but rather must meet the 
insurance requirements of the States in which they operate.
    The Rhode Island Public Transit Authority (RIPTA) asserted that the 
NPRM offered little relief from what it considers a burdensome and 
confusing system of compliance with FMCSA, the Federal Highway 
Administration (FHWA), and FTA requirements. The Ohio Department of 
Transportation (ODOT) said the Agency must: (1) Clearly define the 
difference between a ``for-hire'' CMV and a public FTA-funded transit 
vehicle that travels across State lines beyond a contiguous 
jurisdiction; (2) address the type of public transportation system that 
is operated by a designated grantee (whether government or private non-
profit); (3) exempt vehicles transporting between 9 and 15 passengers 
and originating and terminating in the same State but traveling through 
an adjacent State for operational convenience; and (4) permit financial 
responsibility requirements to be satisfied through participation in 
shared risk programs, such as Ohio's County Risk Sharing Authority.
    The OOIDA opposed relieving FTA grantees of the requirement to pay 
filing fees, contending the NPRM provides no rationale for relieving 
what are essentially private companies with a government contract of 
their fair share of the cost of the registration program.
    In response to these comments, FMCSA proposes under Sec. Sec.  
390.101(b) and 387.33(b) to clarify the specific URS registration and 
financial responsibility obligations for FTA grantees. Although all FTA 
grantees would be required to register with FMCSA and would receive a 
fee waiver, their financial responsibility requirements could differ, 
depending on the FTA program under which the grantee receives funding. 
The proposed minimum financial responsibility requirement for a grantee 
that provides transportation within a transit service area located in 
more than one State under an agreement with a Federal, State, or local 
government funded, in whole or in part, with a grant under 49 U.S.C. 
5307, 5310 or 5311 is the highest level of financial responsibility 
required for any of the States in which it operates. An FTA grantee 
that receives funding under other grant programs (section 5316 and 5317 
grantees) would be subject to the general financial responsibility 
requirements applicable to for-hire passenger carriers that do not 
receive FTA funding. The different financial responsibility 
requirements are due to the fact that 49 U.S.C. 31138(e)(4) expressly 
exempts section 5307, 5310

[[Page 66521]]

and 5311 grantees from the Federal general financial responsibility 
requirements and instead subjects them to applicable State 
requirements. The exemption does not cover section 5316 and section 
5317 grantees; neither the Transportation Equity Act for the 21st 
Century (TEA-21) [Pub. L. 105-78, 112 Stat. 107, June 9, 1988] nor 
SAFETEA-LU amended 49 U.S.C. 31138 to expressly exclude them from the 
Federal financial responsibility requirements.
    The Agency proposes to incorporate all but one of CTAA's 
recommended changes to Form MCSA-1. The FMCSA could not add a cross 
reference to existing FTA drug and alcohol regulations to the Drug and 
Alcohol Safety Certification because the Drug and Alcohol Safety 
Certifications under Section L of Form MCSA-1 apply only to Mexico- or 
non-North America-domiciled motor carrier applicants--entities that are 
ineligible to receive FTA grants. (See Section L, question 47, III, 1 
on proposed Form MCSA-1).
    With respect to ODOT's suggestion to differentiate between for-hire 
motor carriers and public transit vehicles, and to exempt certain types 
of vehicles and transportation from the URS requirements, the Agency 
notes that public transit vehicles are a subset of for-hire CMVs. 
Accordingly, the Agency declines to distinguish between for-hire motor 
carriers and public transit vehicles for purposes of registration under 
proposed part 390, subpart C. Moreover, the Agency is not authorized to 
grant ODOT's request to exempt from registration requirements those 
vehicles transporting between 9 and 15 passengers and originating and 
terminating in the same State but traveling through an adjacent State 
for operational convenience. The Agency recognizes the limited 
exemption from the Federal minimum financial responsibility 
requirements set forth in proposed Sec.  387.33(b) granted to certain 
public transit operators, pursuant to 49 U.S.C. 31138(e)(4). However, 
the exemption from the minimum financial responsibility requirements 
does not include those operators providing service in more than one 
State from having to file proof of financial responsibility pursuant to 
the minimum levels set by State law.
    The CTAA and ODOT additionally requested that the Agency allow 
transit operators to satisfy financial responsibility requirements 
through shared risk programs. CTAA characterizes such shared risk 
programs as ``risk retention groups and other forms of `pooled' 
insurance * * * .'' In responding to these comments, the Agency must 
first distinguish between risk retention groups and risk pools.
    Risk retention groups (RRGs) are established under the Liability 
Risk Retention Act of 1981 [Pub. L. 97-45, 95 Stat. 949, September 25, 
1981] and are defined at 15 U.S.C. 3901(a)(4). According to a 1987 ICC 
Policy Statement, which authorized the Commission to accept 
certificates of insurance from RRGs, those entities are required by 
Congress to:
    (1) Be chartered or licensed under the laws of a State as a 
liability insurance company and authorized by such State's laws to 
engage in the business of insurance;
    (2) [Not] exclude any person from membership solely for the purpose 
of providing existing members of such group a competitive advantage 
over the excluded person;
    (3) Have as its owners only persons who comprise the membership of 
the Risk Retention Group and who are provided insurance by the group, 
or has as its sole owner an organization which has as its members only 
persons who are members of the Risk Retention Group; and
    (4) Be formed by persons who are engaged in businesses or 
activities similar or related as to the liability to which they are 
exposed by virtue of related, similar or common business, etc.
    Implementation of Liability Risk Retention Act of 1986, Ex Parte 
No. MC-178 (Sub-No. 4), 1987 WL 98199, at *1 (decided Mar. 31, 1987) 
(``ICC Policy Statement''). The ICC Policy Statement indicated that 
RRGs ``are unquestionably insurance companies, and can meet the 
criteria prescribed for insurance * * * companies in 49 CFR 1043.8 * * 
*.'' Id. at *2. Former Sec.  1043.8 is the predecessor to current 49 
CFR 387.315. The FMCSA continues to accept RRG filings.
    Insurance risk pools are typically private associations operated on 
a statewide basis for the benefit of their members. The main 
distinction between risk pools and RRGs is that risk pools do not meet 
the statutory requirements established for RRGs under the Liability 
Risk Retention Act of 1981. The public transit risk pools allow the 
State and municipal transit operators to achieve economies of scale in 
purchasing insurance resulting in lower premiums and other benefits to 
the limited membership. Transit risk pools are generally approved by 
the State and supported by the State Departments of Transportation.
    Unlike RRGs, State and local government risk pools generally have 
not been approved by FMCSA as an acceptable form of insurance pursuant 
to the section 13906 requirement that the Secretary ``register a motor 
carrier under section 13902 only if the registrant files with the 
Secretary a bond, insurance policy or other type of security approved 
by the Secretary * * *.'' The Agency's position has been that risk 
pools do not qualify as a bond or insurance policy, and that a motor 
carrier may meet the financial responsibility requirements through 
self-insurance only if the insured applies for approval under the 
Agency's self-insurance program.
    This issue is complicated by section 31138(e)(4), which exempts 
transit operators receiving Federal grants under 49 U.S.C. 5307, 5310, 
or 5311 from both the amounts and type of financial responsibility that 
must be provided as evidence of compliance with the financial 
responsibility requirement. Section 31138(e)(4) further provides, 
however, that where the transit service area is in more than one State, 
the minimum level of financial responsibility shall be the highest 
level required for any of such States. This requirement has been 
incorporated into proposed Sec.  387.33(b). The above notwithstanding, 
these exempted transit services operators still are subject to 
registration under 49 U.S.C. 13902(b)(2) and are required to register 
and provide proof of insurance pursuant to proposed Sec.  365.109.
    Pursuant to 49 U.S.C. 13906(a)(1), the ``Secretary may register a 
motor carrier under section 13902 only if the registrant files with the 
Secretary a bond, insurance policy, or other type of security approved 
by the Secretary, in an amount not less than such amount as the 
Secretary prescribes pursuant to, or as is required by, sections 31138 
and 31139, and the laws of the State or States in which the registrant 
is operating, to the extent applicable.'' Section 387.301 currently 
permits motor carriers to satisfy their financial responsibility 
requirements by filing proof of such ``other securities'' as the 
Secretary approves.
    This proposed rule expressly addresses registration and insurance 
requirements for certain types of transit operators. It is therefore 
appropriate to resolve confusion that has arisen in this area. The 
Agency recognizes that allowing these transit operators to utilize 
State-approved risk pools would expand the types of security approved 
by the Secretary for certain transit service operators and harmonize 
the provisions of sections 31138(e)(4) and 13906(a)(1) by recognizing 
the State's approved form of financial responsibility for these 
operators. As a

[[Page 66522]]

result, the Agency intends to publish a separate Federal Register 
notice that will describe the Agency's proposed change in policy to 
allow transit service providers that fall under the provisions of 
proposed Sec.  387.33 to utilize State-approved risk pools in order to 
meet the State financial responsibility requirements pursuant to 
section 31138(e)(4) and proposed Sec.  387.33.
13. Temporary Operating Authority
    Former 49 U.S.C. 10928(b) allowed the ICC, which was sunsetted in 
1995, to issue temporary authority to provide transportation to a place 
or in an area having no motor carrier capable of meeting the immediate 
needs of the place or area. Former section 10928(c) permitted the ICC 
to issue emergency temporary authority if, due to emergency conditions, 
there was insufficient time to process an application for temporary 
authority.
    Temporary authority was originally made available because it took 
several months for the former ICC to process applications for permanent 
operating authority, particularly if competing carriers protested the 
application. Following changes in statutory standards which led to 
greatly reduced application processing time, the ICC limited the 
issuance of temporary authority to ``exceptional circumstances (i.e., 
natural disasters or national emergencies) when evidence of immediate 
service need can be specifically documented * * *.'' [See existing 49 
CFR 365.107(g)]. FHWA (and later FMCSA) retained this provision when 
the ICC operating authority regulations were transferred to USDOT in 
1996.
    The ICCTA repealed 49 U.S.C. 10928(b) and (c) and did not enact any 
comparable provisions expressly authorizing the issuance of temporary 
authority. However, the ICCTA does not prohibit the issuance of 
temporary authority and 49 U.S.C. 13905(c) provides that any 
registration issued to motor carriers, freight forwarders, and property 
brokers under chapter 139 shall remain in effect for such period as the 
Secretary determines appropriate by regulation. Therefore, there is 
general statutory authority to continue issuing temporary authority. 
However, the NPRM did not include a provision permitting motor carriers 
to obtain temporary registration or operating authority.
    Greyhound requested that the Agency grant temporary operating 
authority to prevent service disruptions which may occur as a result of 
Greyhound's restructuring its nationwide service. Greyhound believes 
replacement companies will not be able to obtain operating authority 
before it abandons certain routes. Greyhound claimed it provides at 
least 30 days notice before it discontinues a route and cannot provide 
more notification time ``if the restructuring is to be implemented in a 
timely manner.'' Greyhound proposed the Agency adopt a process by which 
emergency temporary authority would become effective immediately upon 
the filing of a temporary authority application and proof of insurance 
and would remain in effect until FMCSA processed the permanent 
application, perhaps 90 days. ABA also supported the Greyhound 
proposal.
    The FMCSA believes that continued issuance of temporary operating 
authority as limited under Sec.  365.107(g) is warranted. During the 
Hurricane Katrina relief effort in 2005, FMCSA received numerous 
applications for emergency temporary authority pursuant to Sec.  
365.107(g) and the Agency believes that having a procedure for the 
issuance of temporary operating authority will enhance future emergency 
relief efforts. However, except in extraordinary circumstances such as 
natural disasters, the Agency does not anticipate many requests for 
such applications. We believe Greyhound overstates the time it takes 
FMCSA to currently process applications for operating authority and its 
comments do not provide a convincing rationale for extending the 
current requirements to prospective ``emergencies'' caused by 
manageable business decisions. Under proposed Sec.  365.107(e), FMCSA 
would grant temporary operating authority only in cases of national 
emergency or natural disaster and following an emergency declaration 
under 49 CFR 390.23. Entities granted temporary operating authority 
would need to file evidence of financial responsibility with the 
Agency.
14. NTSB Recommendation Impacting Cargo Tank Applications and Updates
    After investigating a 2009 incident involving the rollover of a 
truck-tractor and cargo tank semitrailer and the resulting fire, the 
National Transportation Safety Board (NTSB) made 20 draft 
recommendations to four DOT modal administrations, including FMCSA, and 
the American Association of State Highway and Transportation Officials. 
As part of a recommended rollover prevention program, NTSB recommended 
that FMCSA revise the MCS-150 form to require hazardous materials 
carriers to report the number and types of U.S. Department of 
Transportation specification cargo tanks owned or leased by the 
carriers and provide other pertinent data displayed on the 
specification plates of such tanks. NTSB recommended that FMCSA require 
this information to be updated annually. As FMCSA proposes to replace 
the MCS-150 form with the new MCSA-1 form through this rulemaking, the 
Agency believes it would be appropriate to solicit information from the 
public regarding:
    (1) Whether the MCSA-1 form should be revised to incorporate the 
NTSB recommendation;
    (2) Whether the collection of additional information regarding 
cargo tanks would prove useful in connection with a rollover prevention 
program;
    (3) Whether cargo tank carriers should be required to submit 
updated data more frequently than biennially. If so, what event should 
trigger the update requirement;
    (4) What would be the burden associated with collecting additional 
cargo tank information biennially or more frequently;
    (5) Whether there are alternatives for collecting this information; 
and
    (6) Whether this information is already being collected by other 
entities, such as State Departments of Motor Vehicles.

IV. Regulatory Evaluation of the URS SNPRM: Summary of Benefits and 
Costs

A. Summary

    The FMCSA has revised its 2005 NPRM in response to congressional 
mandates included in SAFETEA-LU and in response to comments to the May 
2005 NPRM. In this section of the SNPRM, FMCSA summarizes its 
calculation of the costs and benefits associated with the changes 
included in this proposed rulemaking. Although many of the revisions 
proposed under URS would result in changes to existing fees paid by 
motor carriers (creation of new fees or elimination of existing fees), 
these changes would result in a shifting of fees from one group to 
another and would not result in a net gain (benefit) or loss (cost) 
from a societal perspective. For example, if FMCSA were to eliminate a 
fee previously paid by motor carriers, that group would receive a 
benefit. However, the benefit would be offset by an equal cost to the 
Agency in the form of lost revenues. The FMCSA classified the costs and 
benefits calculated in the regulatory evaluation as either changes in 
fees, resource costs, or benefits. Changes in fees are neutral from a 
societal perspective, but changes in resource costs and benefits result 
in either a cost or a benefit to society. The

[[Page 66523]]

FMCSA estimated the costs and benefits associated with implementing the 
following proposed major URS SNPRM provisions:
     A new requirement for private and exempt for-hire motor 
carriers, cargo tank facilities, and intermodal equipment providers 
(IEPs) to pay FMCSA registration fees; \11\
---------------------------------------------------------------------------

    \11\ Throughout this section, cargo tank facilities and IEPs are 
referred to as ``other entities.''
---------------------------------------------------------------------------

     A new requirement for private carriers and exempt for-hire 
motor carriers to file proof of process agent designations with FMCSA;
     A new requirement for private HM and exempt for-hire motor 
carriers to file proof of liability insurance with FMCSA;
     A reduction of the current reinstatement fee for non-
exempt for-hire motor carriers, brokers and freight forwarders and new 
reinstatement fees for exempt for-hire and private hazmat motor 
carriers;
     Elimination of operating authority transfers and filing 
fees for name changes;
     Introduction of new Form MCSA-1 filing requirements; and
     Mandatory electronic filing of Form MCSA-1.
    Table 1 presents the total costs associated with the URS SNPRM. The 
URS proposal results in an anticipated resource cost to industry of 
$26,342,699 and a resource cost to FMCSA of $135,158 over the 10-year 
analysis period (2014-2023). The total societal cost of the SNPRM is 
thus $26.5 million ($26,342,699 + 135,158). The industry also would 
experience an increase in fees of $65.3 million, and the Agency would 
experience a decrease in fee revenues of $6.7 million.

                                    Table 1--Total Costs of URS Proposed Rule
----------------------------------------------------------------------------------------------------------------
                                                          Resource costs                  Fees paid/lost
               URS Rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................        $538,894              $0              $0              $0
Eliminating Transfer/Name Change Requirements...               0               0               0       1,854,890
New Registrant Fee..............................               0               0      63,583,722               0
Insurance Filing................................         676,723               0       1,691,808               0
Process Agent Filing............................      25,067,012               0               0               0
Cancellations and Reinstatements................          60,070         135,158               0       4,808,126
New MCSA-1 Application Form.....................               0               0               0               0
                                                 ---------------------------------------------------------------
    Total Costs.................................      26,342,699         135,158      65,275,530       6,663,017
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

    Table 2 presents the total benefits of the URS rule for each 
provision. For the industry, total benefits amount to $3.3 million and 
fee savings amount to $6.7 million. For the Agency, total benefits 
amount to $42.7 million and $65.3 million in fees received. This 
proposal would improve the ability of FMCSA safety investigators to 
locate small and medium-sized private and exempt for-hire motor 
carriers for enforcement action because investigators would be able to 
work with the newly-designated process agents to locate hard-to-find 
motor carriers. The Agency believes that a more efficient Compliance, 
Safety, Accountability (CSA) program would lead to increased safety 
benefits. However, to present a conservative estimate of the benefits 
of the URS rule, we only estimate the benefit of time saved by the 
Agency due to a more efficient CSA program.

                                       Table 2--Total Benefits of URS Rule
                                             [10-year present value]
----------------------------------------------------------------------------------------------------------------
                                                             Benefits                   Fees received/saved
               URS rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................       1,964,186      36,190,320               0               0
Eliminating Transfer/Name Change Requirements...               0               0       1,854,890               0
New Registrant Fee..............................               0               0               0      63,583,722
Insurance Filing................................               0               0               0       1,691,808
Process Agent Filing............................               0       3,130,736               0               0
Cancellations and Reinstatements................               0               0       4,808,126               0
New MCSA-1 Application Form.....................       1,354,631       3,391,089               0               0
                                                 ---------------------------------------------------------------
    Total Benefits..............................       3,318,817      42,712,146       6,663,017      65,275,530
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

    The FMCSA calculated the net societal benefits of the proposed rule 
by subtracting the total (industry and Agency) 10-year costs from the 
total 10-year benefits for each provision. The cost to industry 
associated with fee changes is offset by an equal gain to FMCSA due to 
increased revenues from fees. Table 3 presents the net benefits of the 
proposed rule. Net benefits are estimated to be -$23.0 million for the 
industry and $42.6 million for FMCSA. This results in total societal 
net benefits of the URS SNPRM of $19.6 million. The industry would 
experience a total increase in fees of -$58.6 million (including total 
fees paid and fees saved). This increase in fees to the

[[Page 66524]]

industry is offset by a total $58.6 million increase in fees received 
by FMCSA (including fees lost and fees received). FMCSA believes the 
fees and costs of the URS rule would not lead to a reduction in 
competitiveness.

                                   Table 3--Net Benefits of URS Proposed Rule
                                             [10-year present value]
----------------------------------------------------------------------------------------------------------------
                                                           Net benefits                      Net fees
               URS rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................      $1,425,292     $36,190,320              $0              $0
Eliminating Transfer/Name Change Requirements...               0               0       1,854,890      -1,854,890
New Registrant Fee..............................               0               0     -63,583,722      63,583,722
Insurance Filing................................        -676,723               0      -1,691,808       1,691,808
Process Agent Filing............................     -25,067,012       3,130,736               0               0
Cancellations and Reinstatements................         -60,070        -135,158       4,808,126      -4,808,126
New MCSA-1 Application Form.....................       1,354,631       3,391,089               0               0
Net Benefits....................................     -23,023,883      42,576,988     -58,612,513     -58,612,513
                                                 ---------------------------------------------------------------
    Societal Net Benefits.......................            19,553,105                         0
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

B. Calculation of Costs and Benefits

    This section summarizes the calculation of the costs and benefits 
for each URS provision. All costs and benefits were calculated over a 
10-year period in nominal dollars, restated in real 2010 dollars, and 
discounted to present value using a rate of seven percent per Office of 
Management and Budget (OMB) guidelines. A full discussion of the data 
used, assumptions made, and calculations performed can be found in the 
regulatory evaluation contained in the public docket for the URS SNPRM.
1. Proposed New Registration Fees Under the URS
    Currently, only non-exempt for-hire motor carriers, property 
brokers, and freight forwarders must pay a one-time registration fee to 
FMCSA of $300. However, under the URS, FMCSA proposes to require exempt 
for-hire, private motor carriers and other entities to pay a one-time 
registration fee as well. Section 4304 of SAFETEA-LU provides that the 
fee for new registrants shall as nearly as possible cover the costs of 
processing the registration but shall not exceed $300. The FMCSA 
determined that it would need to charge all new registrants the maximum 
allowable fee of $300 because the amount needed to cover the 10-year 
Agency costs associated with processing the registration filings based 
on projections of annual new registrants and Agency processing costs 
exceeds the $300 limit.
    The FMCSA forecasted $360,122,795 in upgrading and operating costs 
of the registration system over the 10-year period from 2014 through 
2023. This total includes the costs to operate the new motor carrier 
licensing and insurance system. The total also includes the cost for 
FMCSA to vet all new registrant for-hire carriers.\12\
---------------------------------------------------------------------------

    \12\ The FMCSA has authority to vet all for-hire carriers, but 
is currently vetting only for-hire household goods and passenger 
carriers. During the vetting process, FMCSA reviews the application 
for completeness and determines if the applicant complies with the 
statutory and regulatory safety fitness requirements. During this 
review, FMCSA staff compares the applicant's data with existing 
carrier data in order to identify noncompliant carriers seeking 
authority under a different name. If an application is incomplete, 
FMCSA will contact the applicant to obtain missing information. If 
FMCSA determines that an applicant is an unsafe carrier or the 
application is materially incomplete, FMCSA will reject the 
application. The applicant is provided an opportunity to appeal the 
rejection and submit additional evidence to support its position 
that the application should be approved.
---------------------------------------------------------------------------

    A portion of these licensing, insurance, and vetting costs will be 
defrayed by fee revenues other than new registrant registration fees. 
The FMCSA estimated fees collected for various insurance filings to be 
$6,943,479 over the 10-year period, and subtracted the 10-year present 
value of other fee revenues ($6,943,479) from the licensing, insurance, 
and vetting cost estimate to arrive at $353,179,316 in present value 
costs that the Agency must recover through the registration fee. The 
FMCSA divided this cost estimate by its projection of dollars collected 
per dollar of fee ($486,678)\13\ to arrive at a fee of $725. Per 
Section 4304 of SAFETEA-LU, FMCSA proposes to charge the maximum 
registration fee permitted by law, $300 per new registrant. Though a 
portion of the fees could cover some of the costs of FMCSA review of 
applications, the $300 fee will not be sufficient to cover all of these 
review costs.
---------------------------------------------------------------------------

    \13\ This number was calculated by multiplying the number of new 
registrants in each year by $1, discounting to find the present 
value, and summing over the 10-year period of the analysis.
---------------------------------------------------------------------------

    The cost to industry associated with the change would be 
$63,583,722 in discounted dollars over the 10-year period (shown in 
Table 4). This cost to industry would be offset by an equal benefit to 
the Agency resulting from the revenues generated through the new 
registration fees.

      Table 4--Proposed Change in FMCSA Registration Fee to New Registrants by Operation and Classification
----------------------------------------------------------------------------------------------------------------
                                           Number  (2014-                                        Total  (present
        Operation classification                2023)          Fee  change     Total  (2010 $)       value)
----------------------------------------------------------------------------------------------------------------
Exempt For-Hire Carriers................            44,449               300       $13,334,700       $10,083,170
Private Carriers and other entities *...           235,945               300        70,753,500        53,500,522
                                         -----------------------------------------------------------------------
    Total...............................           280,294  ................        84,088,200        63,583,722
----------------------------------------------------------------------------------------------------------------
* Cargo tank facilities and IEPs.


[[Page 66525]]

2. Designation of Process Agents
    The FMCSA proposes amending 49 CFR part 366 to require private and 
exempt for-hire carriers to file process agent designation information 
with the Agency. Although, per SAFETEA-LU, carriers will not be 
assessed a fee when filing this information, there is still a cost to 
industry associated with engaging a process agent. The FMCSA estimated, 
based on price quotes available from process agents, that the cost to 
engage a process agent is currently about $35 per carrier. This cost 
was assumed to cover the minimal filing cost to the process agent. No 
processing cost was assumed for FMCSA for this electronic filing.
    The FMCSA calculated $7,199,122 in discounted costs to industry 
associated with new-registrant private and exempt for-hire carrier 
process agent filings for 2014 through 2023.
    The FMCSA assumed that no private and exempt for-hire motor 
carriers with recent activity have designated process agents. The FMCSA 
calculated one-time compliance costs for affected carriers with recent 
activity of $910,546,445 based on its estimate of 253,019 private and 
exempt for-hire carriers with recent activity in 2014.
    Finally, FMCSA, based on discussions with the FMCSA Commercial 
Enforcement Division, estimated that 10 percent of private and exempt 
for-hire motor carriers with recent activity would change their process 
agents each year. The FMCSA calculated discounted costs to industry of 
$7,321,445 associated with re-filing activities over the 10-year 
analysis period. The FMCSA also calculated the Agency resource cost to 
process the carrier process agent changes.
    Non-exempt for-hire motor carriers, brokers and freight forwarders 
currently must file designations of process agents via a ``BOC-3'' 
filing. Under the URS SNPRM, FMCSA proposes to require both private and 
exempt for-hire carriers to make the same filings.
    This proposal would improve the ability of FMCSA safety 
investigators to locate small and medium-sized private and exempt for-
hire motor carriers for enforcement action because investigators would 
be able to work with the newly-designated process agents to locate 
hard-to-find motor carriers. If the time saved were used by safety 
investigators to conduct more Compliance, Safety, Accountability (CSA) 
program interventions, the Agency believes this would lead to increased 
safety benefits. However, to present a conservative estimate of the 
benefits of the URS rule, we only estimate the benefit of time saved by 
the Agency due to a more efficient CSA program.
    The FMCSA investigators sometimes spend 20 hours or more attempting 
to locate motor carriers for enforcement action, and in some cases are 
unable to track down the subject carrier. The FMCSA estimated that the 
availability of process agent information would save field staff an 
average of 15 hours in cases involving hard-to-locate carriers.
    In 2002, States conducted 216 carrier searches per year on average. 
In 2003, FMCSA Division Offices reported between 10 and 100 cases per 
State in which field staff had significant trouble locating a motor 
carrier against whom they wished to take enforcement action, with most 
Division Offices reporting fewer than 25 such instances.
    The FMCSA estimated that 15 enforcement cases per State per year 
(or roughly two thirds of the ``difficult'' cases) would benefit from 
dramatically reduced search costs because of the proposed requirement 
for private and exempt for-hire carriers to designate process agents.
    The estimates of 15 saved hours per difficult case and 15 difficult 
cases per year per division result in 225 (15 x 15) annual staff hours 
saved per State, or 11,250 (225 x 50 States) annual staff hours saved 
in total. Assuming the Agency would allocate all of the annual saved 
staff hours to reducing labor costs, FMCSA estimated the value of this 
annual benefit by multiplying the total annual hours saved (11,250) by 
the Agency wage rate presented above in Section 2. For example, in 
2014, the saved staff hours would benefit the Agency by reducing labor 
costs by $416,585 (11,250 x $37.03).
    The FMCSA projected this annual benefit over the 10-year analysis 
period to arrive at a total benefit of $4.2 million in 2010 dollars. 
The FMCSA discounted this benefit to present value applying a seven 
percent discount rate consistent with the other portions of this 
analysis. The Agency arrived at a total benefit due to reduced labor 
cost (i.e., increased efficiency) of $3.1 million over the 10-year 
analysis period.
    In total, the regulatory changes requiring exempt for-hire and 
private carriers to file process agent designations would result in a 
cost of $25,067,012 to industry and a benefit to the Agency of 
$3,130,736, and thus a societal net benefit of -$21,936,276. The Agency 
invites comments on whether the process agent filing process can be 
made less costly. If there are less costly alternatives, please provide 
specific recommendations along with supporting data.
3. Financial Responsibility
    Under the URS SNPRM, all new registrant exempt for-hire and private 
HM carriers' insurance representatives would need to file evidence of 
financial responsibility with FMCSA, and the carriers would be assessed 
a $10 filing fee.\14\ The FMCSA calculated 10-year fee costs of 
$460,331 to industry using its estimate of new registrant exempt for-
hire and private HM carriers. This $460,331 cost to industry is offset 
by an equal benefit to the Agency resulting from revenues from the new 
fees.
---------------------------------------------------------------------------

    \14\ Section 4304 of SAFETEA-LU caps financial responsibility 
filing fees at $10. The filing fee is paid to FMCSA by the insurance 
company making the filing on behalf of the carrier and is passed on 
to the carrier by the insurance company.
---------------------------------------------------------------------------

    The $10 fee is a transfer from the industry to the Agency, but the 
industry will incur resource costs associated with filing. The FMCSA 
assumed it would take insurance companies a minimal amount of time to 
file the required proof of insurance for each carrier they insure. 
Because these filings are handled electronically, FMCSA assigned a cost 
of only $4 per filing, assuming 10 minutes of time for a clerk. The 
FMCSA calculated the resource cost to new registrant exempt for-hire 
and private HM carriers by multiplying its projection of filing costs 
by its estimate of new registrants over the 10-year period to arrive at 
a total discounted resource cost to industry of $184,132.
    The FMCSA would require existing exempt for-hire and private HM 
carriers to file proof of insurance. Using the Agency's 2008 Motor 
Carrier Management Information System (MCMIS) data, FMCSA estimated 
that in 2014 there will be 48,308 exempt for-hire carriers with recent 
activity and 25,019 private HM carriers with recent activity. The FMCSA 
calculated a discounted cost to industry of $693,890 associated with 
the fees. This cost to industry is offset by an equal benefit to the 
Agency due to the revenues from the fees.
    The FMCSA calculated the resource cost to carriers with recent 
activity by multiplying its $4 filing cost estimate by the total exempt 
for-hire and private HM carriers with recent activity to arrive at a 
discounted resource cost of $733,270.
    Currently, all for-hire motor carriers, property brokers, and HHG 
freight forwarders performing transfer, collection and delivery service 
must maintain current proof of financial responsibility on file with 
FMCSA to remain in ``active'' status. If an insurance company or 
financial institution notifies FMCSA of cancellation of coverage, 
carriers,

[[Page 66526]]

property brokers, and freight forwarders must file evidence of 
replacement coverage before the policy, bond or trust fund termination 
date. Under this proposed rule, exempt for-hire and private HM carriers 
would be subject to the same requirements. There is a $10 fee 
associated with filing proof of replacement financial responsibility.
    Based on 2008 MCMIS data, roughly 8.56 percent of non-exempt for-
hire carriers with recent activity filed proof of replacement liability 
insurance coverage with the Agency. The FMCSA assumed the same portion 
of the exempt for-hire and private HM carriers would file proof of 
replacement insurance following a policy cancellation. The FMCSA thus 
calculated the fees associated with evidence of financial 
responsibility replacement filings resulting from this proposed change 
by multiplying the $10 filing fee by 8.56 percent of the exempt for-
hire and private HM carriers with recent activity each year. This 
calculation resulted in a discounted cost to industry over the 10-year 
analysis period of $498,207. This cost to industry would be offset by 
an equal benefit to the Agency in the form of new fees received.
    The FMCSA calculated the resource cost to carriers with recent 
activity by multiplying its replacement filing cost estimate by 8.56 
percent of the population of exempt for-hire and private HM carriers 
with recent activity. This resulted in a total discounted resource cost 
to operating carriers over the 10-year analysis period of $199,283. 
Again, no costs were attributed to the Agency for these filings.
    Changes in requirements for financial responsibility filings 
resulted in a total 10-year cost to industry of $1,691,808. This cost 
to industry due to changes in requirements, however, is offset by an 
equal benefit to FMCSA for revenues from fees associated with the 
increased number of filings. Therefore, the societal costs due to 
changes in fees are zero. These proposed changes resulted in total 10-
year resource costs to industry of $676,723.
4. Cancellation and Reinstatement of USDOT Numbers/Operating Authority
    As discussed in the previous section, non-exempt for-hire motor 
carriers, property brokers, and certain HHG freight forwarders must 
maintain current proof of financial responsibility (liability 
insurance, bond, or trust fund information) with FMCSA to retain their 
commercial operating authority. If an insurance company or financial 
institution notifies FMCSA of cancellation of coverage, carriers, 
property brokers, and HHG freight forwarders must file evidence of 
replacement coverage before the policy, bond or trust fund termination 
date. The operating authorities of entities that do not file the 
required updates are revoked and these entities must apply for 
reinstatement of their operating authority by making the necessary 
filings. The FMCSA proposes to require exempt for-hire and private HM 
carriers and all freight forwarders providing transfer, collection and 
delivery service to file and maintain proof of liability insurance as a 
condition for obtaining and retaining an active USDOT Number. The FMCSA 
would deactivate the USDOT Number of noncompliant entities, who would 
be required to reactivate their USDOT registrations and resume 
operations subject to FMCSA jurisdiction.
    Under the current system, carriers requesting reinstatement of 
operating authority must file a written request for reinstatement, pay 
an $80 fee (on-line by credit card, by phone with a credit card, or by 
mail with a check) and make the applicable financial responsibility 
filing. Once the payment is received and applicable filings are made, 
the FMCSA information system matches up the payment with the filings 
and automatically issues a reinstatement letter at 5 a.m. on the next 
business day. Under the proposed system, carriers requesting 
reinstatement would make the request electronically using Form MCSA-1, 
pay a $10 fee, and complete applicable filings showing that their 
insurance is back in effect. The Agency aspect of the reinstatement 
process would remain the same under the proposed system.
    The FMCSA discusses these changes below in the following 
categories: (a) Reinstatement for non-exempt for-hire carriers, brokers 
and freight forwarders; and
    (b) Reinstatement for exempt for-hire and private hazmat carriers.
Reinstatement, Non-Exempt For-Hire Carriers, Brokers and Freight 
Forwarders
    Under the current system, non-exempt for-hire carriers, brokers and 
freight forwarders pay an $80 fee and file a written request for 
reinstatement. Under the proposed system, these carriers would request 
reinstatement using Form MCSA-1, pay a $10 fee and make the applicable 
insurance filing. The FMCSA assumed that the cost of this requirement 
is minimal, and is approximately equal to that of filing proof of 
insurance ($4). The Agency determined that it incurs slightly less than 
$10 per request to process reinstatement requests. The $10 
reinstatement fee would be sufficient to defray Agency processing 
costs. The FMCSA calculated savings by non-exempt for-hire carriers, 
brokers and freight forwarders applying for reinstatement by 
multiplying the $70 reduction in fees for these carriers by the number 
of affected carriers to arrive at a 10-year discounted saving of 
$4,958,302. This industry benefit would be offset by an equal cost to 
the Agency due to the loss of revenues from the fees.
Reinstatement, Exempt For-Hire and Private Hazmat Carriers
    Under the current system, exempt for-hire and private hazmat 
carriers do not file insurance-related reinstatements. Under the 
proposed system, these carriers would pay a $10 fee and file updated 
information. Using 2008 MCMIS data, FMCSA calculated that 2.58 percent 
of exempt for-hire and private hazmat carriers would let their 
insurance coverage lapse and later file reinstatement requests. The 
Agency determined that it incurs slightly less than $10 per request to 
process reinstatement requests. The $10 reinstatement fee would be 
sufficient to defray Agency processing costs. The FMCSA calculated fees 
associated with this activity by multiplying the $10 fee by the number 
of affected carriers to arrive at a 10-year discounted cost of 
$150,176. This industry cost would be offset by an equal benefit to the 
Agency due to the gain in revenues from the fees.
    There is a resource cost to industry associated with making these 
reinstatement requests. As above, FMCSA assumed that the costs 
associated with completing the applicable filings would equal the costs 
associated with filing proof of insurance and process agent 
designations ($4). The FMCSA calculated discounted costs to industry of 
$60,070 associated with filing activities over the 10-year analysis 
period.
    The FMCSA calculated discounted costs to the Agency of $135,158 
associated with processing exempt for-hire and private hazmat carrier 
reinstatements over the 10-year analysis period.
Cumulative Reinstatement Costs and Benefits
    Changes in fees for reinstatement of USDOT Numbers and/or 
commercial operating authority resulted in a total 10-year saving to 
industry of $4,808,126. This saving to industry, however, is offset by 
an equal cost to FMCSA in lost revenues from fees associated with 
reinstatements. The proposed changes

[[Page 66527]]

resulted in total 10-year resource costs of $60,070 to industry and 
$135,158 to FMCSA for a total resource cost to society of $195,229.
5. Transfers and Name Changes
    Under the URS, the Agency would no longer require ownership/
management/control certification when processing applicant requests for 
name, address, or form of business changes. Motor carriers will be 
required to report changes in management when completing their Form 
MCSA-1 biennial updates, and would retain their existing USDOT Number. 
No new or replacement USDOT Numbers would be issued. There were 196 
requests for transfers of operating authority filed with FMCSA in 2008. 
Each of the carriers who requested a transfer of operating authority 
paid a $300 filing fee to FMCSA for this activity. Under the URS SNPRM, 
FMCSA would not accept or review transfer requests. Based on the 2008 
data projected to 2014, FMCSA estimated discounted industry benefits of 
$509,168 over 10 years from the elimination of the transfer fee. This 
benefit to industry would be offset by an equal cost to the Agency 
resulting from the loss of revenues from the transfer request filing 
fee.
    The FMCSA proposes to eliminate the $14 filing fee currently 
assessed to non-exempt for-hire motor carriers and others that change 
their business names. This action would result in a cost savings to 
industry and a matching cost to the Agency. In 2008, the Agency 
processed 11,141 name change requests. Based on the 2008 data, 
projected to 2014, FMCSA estimated 10-year discounted benefits to 
industry of $1,345,722 over the 10-year period. This $1,345,722 benefit 
to industry would be offset by an equal cost to the Agency resulting 
from the loss of name change filing fee revenues.
    Elimination of transfer and name change filing fees resulted in a 
total 10-year cost savings to industry of $509,168. The cost savings to 
industry due to changes in filing fees, however, would be offset by an 
equal cost to the Agency resulting from reduced revenues from these 
filing fees. Therefore, the projected societal costs due to elimination 
of the fees are zero. These proposed changes resulted in no resource 
costs to either industry or FMCSA. The total reduction in fees for 
transfers and name changes is the sum of $509,168 and $1,345,722, or 
$1,854,890; this sum is a gain to industry and an equal loss to FMCSA.
6. The New Application Form--MCSA-1
    The new Form MCSA-1 would replace existing FMCSA registration 
forms. There would be a time cost savings for those who presently file 
multiple application forms. New registrant non-exempt for-hire motor 
carriers currently file an OP-1 series form and the MCS-150 form with 
FMCSA. Property brokers and freight forwarders file an OP-1 series form 
only. All other carriers file forms in the MCS-150 series.
    The FMCSA estimated an average completion time of just over 20 
minutes each \15\ for the MCS-150 series forms and 2 hours for the OP-1 
forms. The FMCSA determined that 56.45 percent of new registrants file 
OP-1 series forms, and 92.45 percent of new registrants file MCS-150 
forms. Based on these percentages, FMCSA calculated the current average 
new registrant filing completion time as just under 1 hour and 26 
minutes.
---------------------------------------------------------------------------

    \15\ The MCS-150 form has been estimated to require 20 minutes, 
and the MCS-150B form a slightly longer 26 minutes. Because only 
about 2 percent of carriers file the MCS-150B, the average is very 
close to 20 minutes. There is also an MCS-150C form, but it is much 
less frequently used.
---------------------------------------------------------------------------

    The FMCSA proposes to require all new registrants except a Mexico-
domiciled motor carrier requesting to conduct long-haul operations 
within the United States to file only Form MCSA-1. Based on field 
testing, FMCSA estimated that it would take those new registrants who 
would have used the OP-1 form 2 hours and 10 minutes to complete the 
new form. The FMCSA assumes that the time required for entities who 
would have used only the MCS-150 or 150B would not change if they used 
the MCSA-1 form instead. Multiplying 2 hours and 10 minutes by 56.45 
percent (the percent of new registrants that file OP-1 series forms), 
and adding just over 20 minutes times the difference between 92.45 
percent (the percent of new registrants that file MCS-150 forms) and 
56.45 percent yields just over 1 hour and 20 minutes. Thus, FMCSA 
estimated a weighted average time savings of almost 6 minutes for each 
new registrant (that is, just under 1 hour and 26 minutes minus just 
over 1 hour and 20 minutes).
    Using its adjusted average hourly wage estimate for drivers \16\ 
and its projection of new registrants, FMCSA estimated a 10-year 
discounted resource cost savings to industry of $1,354,631.
---------------------------------------------------------------------------

    \16\ Note: This activity may be performed by someone other than 
a driver. However, FMCSA assumed the person performing the activity 
would earn a wage similar to that of a driver and used the driver 
wage rate as the best indicator of cost for this activity.
---------------------------------------------------------------------------

    The FMCSA also calculated Agency time saved associated with 
processing the new MCSA-1 form. Based on the Agency's estimate that, 
due to reductions in data entry, it would save 20 minutes of processing 
time from not using the OP-1 series form, and its determination that 
56.45 percent of new registrants file the form, FMCSA estimated an 11-
minute time savings per applicant. The FMCSA multiplied the adjusted 
average hourly wage estimate for the Agency by the time saved 
processing the new MCSA-1 form and the number of annual new registrants 
to obtain a 10-year discounted resource cost savings of $3,391,089.
    The proposed changes would result in total 10-year resource cost 
savings to industry of $1,354,621 and resource cost savings to FMCSA of 
$3,391,089. The sum of the resource cost savings to industry and FMCSA 
equals $4,745,720, which is the total benefit to society.
7. Mandatory Electronic Filing of the MCSA-1
    By requiring electronic submissions, FMCSA expects to reduce 
processing costs. Mandating electronic filing would also offer a 
benefit to most carriers through a reduction of the time required for 
them to receive registration and/or operating authority.\17\ Electronic 
submissions have the additional benefit of reducing erroneous data 
through automated data quality checks and increasing the transparency 
of the data included in the URS. The Agency believes that the cost 
savings resulting from reduced labor time and paperwork, and the 
benefits associated with reducing erroneous data and improving data 
transparency, would be difficult to achieve without mandating 
electronic filing. This change, however, could impose a burden on 
entities that do not have the means to file electronically or that do 
not wish to file electronically.
---------------------------------------------------------------------------

    \17\ Carriers subject to vetting might experience a more 
prolonged registration process.
---------------------------------------------------------------------------

    To assess this potential burden, and to determine what alternatives 
would be available to small entities, FMCSA conducted a detailed cost/
benefit analysis, ``Report on Benefits and Costs of Mandatory 
Electronic Filing for FMCSA's Unified Registration System'', which is 
included as Appendix A to the regulatory evaluation. The Agency 
calculated costs and benefits associated with electronic filing by 
using estimates of the amount of time required to file the form and the 
number of expected filers. The present value of the benefits resulting 
from mandatory electronic

[[Page 66528]]

filing is $36,190,320 in benefits to FMCSA and $1,964,186 in benefits 
to industry. The industry also experiences a resource cost of $538,894. 
Thus, the net present value of the benefits associated with requiring 
mandatory electronic filing less the costs results in a total net 
benefit to society of $37,615,613 over a 10-year period.
    The Agency realizes that a mandatory electronic filing requirement 
may involve a change of business practices for a small number of 
regulated entities under its jurisdiction; and with respect to these 
entities, we invite comments about the following questions:
    (1) What would be the impact (benefits or hardships) on applicants 
of a mandatory electronic filing requirement?
    (2) Would these impacts be different 4 years after the publication 
date of this notice? If so, how?
    (3) If the impacts are expected to be adverse, how can they be 
mitigated?
    (4) Should FMCSA provide a phase-in period for complying with the 
mandatory electronic filing requirement? If yes, please recommend 
appropriate phase-in criteria and time periods, stated in terms 
relative to the publication date of the final rule.
    (5) If you believe electronic filing would be burdensome, would the 
benefits of obtaining operating authority more quickly offset any 
potential costs associated with electronic filing?
9. Total Net Benefits From the URS SNPRM
    The FMCSA calculated the net benefits of the proposed rule by 
subtracting the total 10-year cost from the total 10-year benefits for 
each provision. Table 5 presents the net benefits of the proposed rule 
for each provision presented above. The cost to industry associated 
with fee changes is offset by an equal gain to FMCSA due to increased 
revenues from fees. Therefore, the impact to society from the change in 
fees is zero. Net benefits are estimated to be -$23.0 million for the 
industry and $42.6 million for FMCSA. This results in total societal 
net benefits of the URS SNPRM of $19.6 million. The industry would 
experience a total increase in fees of -$58.6 million (including total 
fees paid and fees saved). This increase in fees to the industry is 
offset by a total $58.6 million increase in fees received by FMCSA 
(including fees lost and fees received).

                                   Table 5--Net Benefits of URS Proposed Rule
                                             [10-year present value]
----------------------------------------------------------------------------------------------------------------
                                                           Net benefits                      Net fees
               URS rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................      $1,425,292     $36,190,320              $0              $0
Eliminating Transfer/Name Change Requirements...               0               0       1,854,890       1,854,890
New Registrant Fee..............................               0               0     -63,583,722      63,583,722
Insurance Filing................................        -676,723               0      -1,691,808       1,691,808
Process Agent Filing............................     -25,067,012       3,130,736               0               0
Cancellations and Reinstatements................         -60,070        -135,158       4,808,126       4,808,126
New MCSA-1 Application Form.....................       1,354,631       3,391,089               0               0
Net Benefits....................................     -23,023,883      42,576,988     -58,612,513      58,612,513
                                                 ---------------------------------------------------------------
    Societal Net Benefits.......................            19,553,105
                                                                 0
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

V. Appendix to the Preamble--Proposed Form MCSA-1 and Instructions

BILLING CODE 4910-EX-P

[[Page 66529]]

[GRAPHIC] [TIFF OMITTED] TP26OC11.015


[[Page 66530]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.016


[[Page 66531]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.017


[[Page 66532]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.018


[[Page 66533]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.019


[[Page 66534]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.020


[[Page 66535]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.021


[[Page 66536]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.022


[[Page 66537]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.023


[[Page 66538]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.024


[[Page 66539]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.025


[[Page 66540]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.026


[[Page 66541]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.027


[[Page 66542]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.028


[[Page 66543]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.029


[[Page 66544]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.030


[[Page 66545]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.031


[[Page 66546]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.032


[[Page 66547]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.033


[[Page 66548]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.034


[[Page 66549]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.035


[[Page 66550]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.036


[[Page 66551]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.037


[[Page 66552]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.038


[[Page 66553]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.039


[[Page 66554]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.040


[[Page 66555]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.041


[[Page 66556]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.042


[[Page 66557]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.043


[[Page 66558]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.044


[[Page 66559]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.045


[[Page 66560]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.046


[[Page 66561]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.047


[[Page 66562]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.048


[[Page 66563]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.049


[[Page 66564]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.050


[[Page 66565]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.051


[[Page 66566]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.052


[[Page 66567]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.053


[[Page 66568]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.054


[[Page 66569]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.055


[[Page 66570]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.056


[[Page 66571]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.057


[[Page 66572]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.058


[[Page 66573]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.059


[[Page 66574]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.060


[[Page 66575]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.061


[[Page 66576]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.062


[[Page 66577]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.063


[[Page 66578]]


[GRAPHIC] [TIFF OMITTED] TP26OC11.064

BILLING CODE 4910-EX-C

[[Page 66579]]

VI. Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    The FMCSA has preliminarily determined that this proposed rule is a 
significant regulatory action within the meaning of Executive Order 
12866, and is significant within the meaning of Department of 
Transportation regulatory policies and procedures (DOT Order 2100.5 
dated May 22, 1980; 44 FR 11034, February 26, 1979) because it is 
expected to generate significant public interest. However, it is 
anticipated that the economic impact of the revisions in this SNPRM 
would not exceed the annual $100 million threshold for economic 
significance. The Office of Management and Budget (OMB) has reviewed 
this proposed rule.

Regulatory Flexibility Act

    The Regulatory Flexibility Act [Pub. L. 96-354, 5 U.S.C. 601-612] 
requires Federal agencies to take small businesses' concerns into 
account when developing, writing, publicizing, promulgating, and 
enforcing regulations. To achieve this, the Act requires that agencies 
detail how they have met these concerns through a Regulatory 
Flexibility Analysis (RFA). An initial RFA, which accompanies an NPRM, 
must include six elements. The Agency has listed these elements below 
and addressed each element with regard to FMCSA's SNPRM.
    (1) A description of the reasons why action by the Agency is being 
considered. The FMCSA is taking this action in response to section 103 
of the ICC Termination Act of 1995 (ICCTA), as amended by section 4304 
of SAFETEA-LU, which, among other things, requires the Secretary of 
Transportation (Secretary) to propose regulations to replace four 
current identification and registration systems with a single, online, 
Federal system. The purpose of this proposal is to consolidate and 
simplify current Federal registration processes and to increase public 
accessibility to data about interstate motor carriers, property 
brokers, freight forwarders, and other entities. Pursuant to the 
statutory mandate, FMCSA proposes to charge registration and 
administrative fees that would enable FMCSA to recoup the costs 
associated with processing registration applications and administrative 
filings and maintaining this system.
    (2) A succinct statement of the objectives of, and legal basis for, 
the proposed rule. The ICCTA created a new 49 U.S.C. 13908 directing 
``[t]he Secretary, in cooperation with the States, and after notice and 
opportunity for public comment,'' * * * to ``issue regulations to 
replace the current Department of Transportation identification number 
system, the single State registration system under section 14504, the 
registration system contained in this chapter, and the financial 
responsibility information system under section 13906 with a single, 
on-line, Federal system.''
    Title 49 U.S.C. 13908(d) authorizes the Secretary to establish, 
under sections 9701 of title 31, United States Code, a fee system for 
the Unified Carrier Registration System according to certain guidelines 
providing for fee limits for registration, filing evidence of financial 
responsibility and filing information regarding agents for service of 
process.
    These directives specifically require FMCSA to undertake some of 
the actions in this proposal. The remaining related changes facilitate 
the smooth operation of a unified Federal on-line registration system.
    (3) A description and, where feasible, an estimate of the number of 
small entities to which the proposed rule would apply. The FMCSA would 
subject all motor carriers engaging in interstate commerce (private, 
exempt and non-exempt for-hire) to this proposal.
    Not all carriers are required to report their revenue to the 
Agency; but all carriers are required to provide the Agency with the 
number of power units they operate when they apply for operating 
authority and to update this figure biennially. Because FMCSA does not 
have direct revenue figures, power units serve as a proxy to determine 
the carrier size that would qualify as a small business given the SBA's 
revenue threshold. In order to produce this estimate, it is necessary 
to determine the average revenue generated by a power unit. With 
regards to truck power units, the Agency determined in the 2003 Hours 
of Service Rulemaking RIA \18\ that a power unit produces about 
$172,000 in revenue annually (adjusted for inflation).\19\ The Small 
Business Administration (SBA) defines a small entity in the truck 
transportation sub-sector (North American Industry Classification 
System [NAICS] 484) as an entity with annual revenue of less than $25.5 
million [13 CFR 121.201].\20\ This equates to 148 power units 
($25,500,000/$172,000). Thus, FMCSA considers motor carriers with 148 
power units or less to be a small business for SBA purposes.
---------------------------------------------------------------------------

    \18\ Regulatory Analysis for: Hours of Service of Drivers; 
Driver Rest and Sleep for Safe Operations, Final Rule-Federal Motor 
Carrier Safety Administration. 68 FR 22456-Published 4/23/2003.
    \19\ The 2000 TTS Blue Book of Trucking Companies, number 
adjusted to 2008 dollars for inflation.
    \20\ U.S. Small Business Administration Table of Small Business 
Size Standards matched to North American Industry Classification 
(NAIC) System codes, effective August 22, 2008. See NAIC subsector 
484, Truck Transportation.
---------------------------------------------------------------------------

    With regards to bus power units, the Agency conducted a preliminary 
analysis to estimate the average number of power units (PUs) for a 
small entity earning $7 million annually, based on an assumption that a 
passenger carrying CMV generates annual revenues of $150,000. This 
estimate compares reasonably to the estimated average annual revenue 
per power unit for the trucking industry ($172,000). A lower estimate 
was used because buses generally do not accumulate as many vehicle 
miles traveled (VMT) per power units as trucks,\21\ and it is assumed 
therefore that they would generate less revenue on average. The 
analysis concluded that passenger carriers with 47 PUs or fewer 
($7,000,000 divided by $150,000/PU = 46.7 PU) would be considered small 
entities. The Agency then looked at the number and percentage of 
passenger carriers registered with FMCSA that would fall under that 
definition (of having 47 PUs or less). The results show that 28,838 
\22\ (or 99%) of all active registered passenger carriers have 47 PUs 
or less. Therefore, the overwhelming majority of passenger carriers 
would be considered small entities.
---------------------------------------------------------------------------

    \21\ FMCSA Large Truck and Bus Crash Facts 2008, Tables 1 and 
20; http://fmcsa.dot.gov/facts-research/LTBCF2008/Index-2008Large 
TruckandBusCrashFacts.aspx
    \22\ FMCSA MCMIS snapshot on 2/19/2010.
---------------------------------------------------------------------------

    FMCSA believes that this 150 power unit figure would be applicable 
to private carriers as well: Because the sizes of the fleets they are 
able to sustain are indicative of the overall size of their operations, 
large CMV fleets can generally only be managed by large firms. There is 
a risk, however, of overstating the number of small businesses because 
the operations of some large non-truck or bus firms may require only a 
small number of CMVs.
    The FMCSA believes the proposed rule would affect roughly 600,000 
small carriers with recent activity annually on an ongoing basis.\23\ 
The Agency expects a larger number of affected entities in the first 
year of the analysis period when exempt for-hire carriers with

[[Page 66580]]

recent activity and private carriers with recent activity make 
administrative filings for the first time. The estimated first-year 
costs of the URS rule on new entrants would be equal to 0.250 percent 
of average revenue for a trucking motor carrier and 0.287 percent of 
average revenue for a passenger motor carrier. The first-year costs of 
the URS SNPRM on carriers with recent activity would be equal to 0.079 
percent of average revenue for a trucking motor carrier and 0.091 
percent of average revenue for a passenger motor carrier. The URS rule 
is thus not expected to have a significant economic impact on small new 
entrants and carriers with recent activity.
---------------------------------------------------------------------------

    \23\ This population estimate originates from tables 1 and 2, 
above. FMCSA used the median year estimate to account for the net 
growth in new entrants and the carriers with recent activity.
---------------------------------------------------------------------------

    (4) A description of the projected reporting, recordkeeping, and 
other compliance requirements of the proposed rule, including an 
estimate of the classes of small entities that will be subject to the 
requirements and the type of professional skills necessary for 
preparation of the report or record. This proposed rule primarily 
concerns submission of information to FMCSA in support of registration. 
While this includes recordkeeping and reporting for non-exempt for-hire 
carriers, there would only be the replacement of one type of reporting 
with another. Therefore, there would be no increase in reporting or 
recordkeeping requirements for non-exempt for-hire carriers. Non-exempt 
for-hire carriers are already required to pay a $300 registration fee, 
so there would be no change in financial burden for these entities as a 
result of the Agency's implementation of the proposed rule. Private and 
exempt for-hire carriers would have the same replacement reporting and 
recordkeeping requirements as non-exempt for-hire carriers regarding 
general registration but would also have to designate a process agent 
for the first time under the proposed rule. Exempt for-hire and private 
hazmat carriers would have to file proof of insurance for the first 
time. These requirements would be new but would not impose significant 
reporting or recordkeeping requirements on the affected entities, as 
the filings would be made by insurance companies on the carriers' 
behalf. New entrant exempt for-hire carriers, private carriers, and 
other entities are not currently required to pay a registration fee but 
would be required to pay a $300 registration fee under the proposed 
rule. For nearly all affected entities, this fee would represent a 
small fraction (well below one percent, even for very small firms that 
do little more than operate a single truck) of their annual revenues; 
on an annualized basis the cost would be even smaller. The FMCSA would 
require property brokers and freight forwarders to register with FMCSA 
and obtain USDOT Numbers under the proposed rule, which is a new 
requirement. However, these entities already register with FMCSA and 
the USDOT Number would simply be a replacement for the MC Numbers or FF 
Numbers currently issued to brokers and freight forwarders, 
respectively. Therefore, FMCSA does not believe the new reporting or 
recordkeeping requirements would impose any significant burden. Like 
non-exempt for-hire carriers, new entrant brokers and freight 
forwarders are currently required to pay a $300 registration fee, so 
there would be no change in financial burden on these entities.
    The FMCSA does not expect that any special skills for new 
registrants would be necessary beyond the ability to access the 
Internet and respond to questions with information about their 
organization and operations.
    (5) An identification, to the extent practicable, of all relevant 
Federal rules that may duplicate, overlap, or conflict with the 
proposed rule. The FMCSA is aware of Federal rules that may duplicate 
this SNPRM to some extent for hazardous materials motor carriers 
required to register. Although some basic identification information 
may be filed with both FMCSA and the Pipeline and Hazardous Materials 
Safety Administration (PHMSA), another USDOT modal administration, 
there is no conflict. PHMSA requires shippers and transporters of 
certain types and quantities of hazardous materials to register in its 
Hazardous Materials Registration System. Transportation modes required 
to register with PHMSA include motor carriers, airlines, ship lines, 
and railroads. The PHMSA Hazardous Materials Registration System cannot 
be combined with URS because entities other than those under FMCSA 
jurisdiction must register in PHMSA's system.
    (6) A description of any significant alternatives to the proposed 
rule which minimize any significant impacts on small entities. The 
Agency did not identify any significant alternatives to the rule that 
could lessen the burden on small entities without compromising its 
goals or the Agency's statutory mandate. Because small businesses are 
such a large part of the demographic the Agency regulates, providing 
alternatives to small business to permit noncompliance with FMCSA 
regulations is not feasible and not consistent with sound public 
policy.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 [Pub. L. 104-4; 2 U.S.C. 
1532] 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 $141.3 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 FMCSA 
has preliminarily determined that the changes proposed in this SNPRM 
would not have an impact of $141.3 million or more in any one given 
year.

National Environmental Policy Act

    The Agency analyzed this proposed rule for the purpose of the 
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et 
seq.) and preliminarily determined under our environmental procedures 
Order 5610.1, issued March 1, 2004 (69 FR 9680), that this action is 
categorically excluded (CE) under Appendix 2, paragraphs 6.e and 6.h of 
the Order from further environmental documentation. The CE under 
Appendix 2, paragraph 6.e relates to establishing regulations and 
actions taken pursuant to the requirements concerning applications for 
operating authority and certificates of registration. The CE under 
Appendix 2, paragraph 6.h relates to establishing regulations and 
actions taken pursuant to the requirements implementing procedures to 
collect fees that will be charged for motor carrier registrations and 
insurance for the following activities: (1) Application filings; (2) 
records searches; and (3) reviewing, copying, certifying, and related 
services. In addition, the Agency believes that this proposed action 
includes no extraordinary circumstances that would have any effect on 
the quality of the human environment. Thus, the SNPRM does not require 
an environmental assessment or an environmental impact statement.
    The FMCSA also has analyzed this SNPRM under the Clean Air Act, as 
amended (CAA), sec. 176(c) (42 U.S.C. 7401 et seq.), and implementing 
regulations promulgated by the Environmental Protection Agency. 
Approval of this proposal is exempt from the CAA's general conformity 
requirement because it involves policy development and rulemaking 
activities regarding registration of regulated entities with FMCSA for 
commercial,

[[Page 66581]]

safety and financial responsibility purposes. See 40 CFR 
93.153(c)(2)(vi). The proposed changes would not result in any 
emissions increases nor would they have any potential to result in 
emissions that are above the general conformity rule's de minimis 
emission threshold levels. Moreover, it is reasonably foreseeable that 
the proposed changes would not increase total CMV mileage or change the 
routing of CMVs, how CMVs operate, or the CMV fleet-mix of motor 
carriers. This SNPRM was mandated under sec. 103 of the ICCTA. It would 
consolidate and simplify the Federal registration processes and 
increase public accessibility to data about interstate and foreign 
motor carriers, property brokers, freight forwarders and other 
entities.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal Agency must obtain approval from OMB for each 
collection of information it conducts, sponsors, or requires through 
regulations. The FMCSA analyzed this proposal and preliminarily 
determined that its implementation would streamline the information 
collection burden on motor carriers and other regulated entities, 
relative to the baseline, or current paperwork collection processes. 
This includes streamlining the FMCSA registration, insurance and 
designation of process agent filing processes and implementing 
mandatory electronic online filing of these applications, as well as 
eliminating some outdated filing requirements. The above information 
collection burden reductions would be partially offset in later years 
because FMCSA plans to implement new filing requirements upon certain 
groups of carriers/entities within the industry during the first year. 
This is primarily due to the assumption that all existing private and 
exempt for-hire carriers would file proof of process agent designation 
in the first year and the existing private motor carriers transporting 
hazardous materials interstate and exempt-for-hire carriers would file 
evidence of insurance, as a result of the new requirements set forth in 
this SNPRM. However, once the initial process agent and insurance 
filing requirements for existing carriers are met, the overall net 
result would be a more streamlined process in future years for FMCSA 
registration of motor carrier, broker, freight-forwarder and other 
applicants the Agency regulates.
    This proposal would create a new information collection to cover 
the requirements set forth in proposed FMCSA Form MCSA-1. There are 
also five approved information collections that would be affected by 
this SNPRM as follows: (1) OMB Control No. 2126-0013, titled ``Motor 
Carrier Identification Report;'' (2) OMB Control No. 2126-0015, titled 
``Designation of Agents, Motor Carriers, Brokers and Freight 
Forwarders;'' (3) OMB Control No. 2126-0016, titled ``Licensing 
Application for Motor Carrier Operating Authority;'' (4) OMB Control 
No. 2126-0017, titled ``Financial Responsibility, Trucking, and Freight 
Forwarding;'' and (5) OMB Control No. 2126-0019, titled ``Application 
for Certificate of Registration for Foreign Motor Carriers and Foreign 
Motor Private Carriers.'' The proposed new MCSA-1 Form would replace 
the forms covered by 2126-0013, 0016, and 0019. The proposed rule would 
also increase the number of entities that would be required to file 
information on process agents (2126-0015) and insurance coverage (2126-
0017).
    The total burden for the five approved information collections 
noted above is 248,355 hours. The table below captures the current and 
proposed burden hours associated with the five approved information 
collections.

                               Current and Proposed Information Collection Burdens
----------------------------------------------------------------------------------------------------------------
                                                             Burden hours
                     OMB Approval No.                          currently       Burden hours          Change
                                                               approved        proposed \1\
----------------------------------------------------------------------------------------------------------------
2126-NEW.................................................                 0           127,728           127,728
2126-0013................................................           109,005                 0          (109,005)
2126-0015................................................            14,835            69,373            54,538
2126-0016................................................            55,095                 0           (55,095)
2126-0017................................................            66,960            81,193           (14,233)
2126-0019................................................             2,460                 0            (2,460)
                                                          ------------------------------------------------------
    Total................................................           248,355           278,293            29,938
----------------------------------------------------------------------------------------------------------------
\1\ The estimates in this column reflect first year information collection burdens. Many of these information
  collections would significantly decrease in later years.

    An explanation of how each of the six information collections shown 
above would be affected by this proposal is provided below.
    OMB Control No. 2126-NEW. Unified Registration System, Form MCSA-1. 
The new form would replace the forms covered by three existing 
information collections. The estimated time to complete the form for 
new entrants, file biennial updates, and request changes is 127,728 
burden hours [82,115 hours for new registrants (61,280 new motor 
carriers, brokers, freight forwarders, and other entities x 1.34 hours 
per form) + 43,560 hours for biennial updates (261,360 registrants 
required to file in year one x 10 minutes per form, divided by 60 
minutes/hr) + 2,053 hours for name/address change requests (12,317 
requests x 0.167 hours)].
    OMB Control No. 2126-0013. Motor Carrier Identification Report, 
Applications for USDOT Number. The Agency anticipates that all of the 
requirements under this information collection covering the MCS-150, 
MCS-150B, and MCS-150C forms would be folded into OMB Control No. 2126-
NEW (see above) and the forms replaced by the MCSA-1.
    OMB Control No. 2126-0015. Designation of Agents, Motor Carriers, 
Brokers, and Freight Forwarders. This information collection, which 
requires motor carriers and others to file the name of process agents 
that can be served with legal papers, is currently approved at 14,835 
burden hours. This information collection would increase to 69,373 
burden hours [327,226 new filers x 10 minutes per filing/60 minutes/
hr]. This increase is due to FMCSA's proposal to extend the designation 
of process agent filing requirement to include private motor carriers 
and exempt for-hire motor carriers. The FMCSA assumes that no existing 
private or exempt for-hire motor carriers currently have process agents 
on file and that all would

[[Page 66582]]

designate agents with FMCSA as a result of the proposed requirements 
set forth in this SNPRM.
    OMB Control No. 2126-0016. Licensing Applications for Motor Carrier 
Operating Authority. This information collection, which covers for-hire 
carriers, freight forwarders and property brokers, is currently 
approved at 55,095 burden hours. Under this proposal, all requirements 
included in this information collection would be folded into OMB 
Control No. 2126-NEW (see above) and the forms replaced by the MCSA-1. 
Basic identification information that registrants complete on these 
forms and MCS-150 forms will only need to be completed once under the 
proposed rule.
    OMB Control No. 2126-0017. Financial Responsibility--Motor 
Carriers, Freight Forwarders and Brokers. This information collection, 
which in almost all cases requires insurers to file a certification of 
coverage for certain entities, is currently approved at 66,960 burden 
hours. Changes would be required to this information collection due to 
FMCSA's proposal to require exempt for-hire motor carriers and private 
interstate motor carriers of hazardous materials to file proof of 
liability insurance with FMCSA. As all but a few of these filings are 
electronic (self-insurance filings will still be done on paper), the 
time required would be adjusted downward to reflect the efficiencies 
gained. The revised burden would be 81,193 hours [485,956 filings x 10 
minutes/60 plus 5 self-insurance filings x 40 hrs]
    OMB Control No. 2126-0019. Application for Certificate of 
Registration for Foreign Motor Carriers and Foreign Motor Private 
Carriers. Under this proposal, the requirements included in this 
approved information collection for the OP-2 form, which covers 
operating authority for Mexico-domiciled carriers that operate solely 
in the commercial zones on the border, would be folded into OMB Control 
No. 2126-NEW (see above), resulting in a net decrease of 2,460 burden 
hours. The FMCSA will discontinue this information collection after the 
final rule is approved for this rulemaking.
    The proposals contained in this SNPRM, affecting five currently 
approved information collections and one new information collection, 
would result in a net increase of 10,787 burden hours in the Agency's 
information collection budget for the first year.
    Additional information collection activity and possibly additional 
OMB forms may be identified and developed as the rulemaking process 
proceeds. If so, an analysis of any additional information collection 
activity would be developed by FMCSA. The Agency also would seek OMB 
approval for any additional burdens proposed, if not already covered by 
existing OMB approvals given to the Agency.

Executive Order 12630 (Taking of Private Property)

    This proposed rule would not affect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

Executive Order 12988 (Civil Justice Reform)

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

Executive Order 13045 (Protection of Children)

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (April 23, 1997, 62 FR 19885), requires 
that agencies issuing economically significant rules, which also 
concern an environmental health or safety risk that an Agency has 
reason to believe may disproportionately affect children, must include 
an evaluation of the environmental health and safety effects of the 
regulation on children. Section 5 of Executive Order 13045 directs an 
Agency to submit for a covered regulatory action an evaluation of its 
environmental health or safety effects on children. The FMCSA has 
preliminarily determined that this proposed rule is not a covered 
regulatory action as defined under Executive Order 13045. This 
determination is based upon the fact that this proposed rule is not 
economically significant under Executive Order 12866, because the 
changes proposed in this rule would not have an impact of $100 million 
or more in any one given year. This proposal would not constitute an 
environmental health risk or safety risk that would disproportionately 
affect children.

Executive Order 13132 (Federalism)

    This proposed rule has been analyzed in accordance with the 
principles and criteria in Executive Order 13132, dated August 4, 1999 
(64 FR 43255, August 10, 1999). The FMCSA consulted with State 
licensing agencies participating in its PRISM program to discuss 
anticipated impacts of the May 2005 NPRM upon their operations. The 
Agency has taken into consideration their comments in its 
decisionmaking process for this SNPRM. Thus, FMCSA has preliminarily 
determined that this proposal would not have significant Federalism 
implications or limit the policymaking discretion of the States.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this program.

Executive Order 13211 (Energy Supply, Distribution, or Use)

    The FMCSA has analyzed this proposed rule under Executive Order 
13211, ``Actions Concerning Regulations That Significantly Affect 
Energy Supply, Distribution, or Use.'' This proposal is not a 
significant energy action within the meaning of section 4(b) of the 
Executive Order. This proposal is a procedural action, is not 
economically significant, and would not have a significant adverse 
effect on the supply, distribution, or use of energy.

Privacy Impact Analysis

    The FMCSA conducted a privacy impact assessment of this rule as 
required by section 522(a)(5) of division H of the FY 2005 Omnibus 
Appropriations Act, Pub. L. 108-447, 118 Stat. 3268 (Dec. 8, 2004) [set 
out as a note to 5 U.S.C. 552a]. The assessment considers any impacts 
of the final rule on the privacy of information in an identifiable form 
and related matters. The FMCSA has determined that this SNPRM would 
impact the handling of PII. The FMCSA has also determined the risks and 
effects the rulemaking might have on collecting, storing, and sharing 
PII and has examined and evaluated protections and alternative 
information handling processes in order to mitigate potential privacy 
risks. The PIA for this proposed rulemaking is available for review in 
the docket for this rulemaking.

List of Subjects

49 CFR Part 360

    Administrative practice and procedure, Brokers, Buses, Freight 
forwarders, Hazardous materials transportation, Highway safety, 
Insurance, Motor carriers, Motor vehicle safety, Moving of household 
goods, Penalties, Reporting and recordkeeping requirements, Surety 
bonds.

[[Page 66583]]

49 CFR Part 365

    Administrative practice and procedure, Brokers, Buses, Freight 
forwarders, Motor carriers, Moving of household goods.

49 CFR Part 366

    Brokers, Motor carriers, Freight forwarders, Process agents.

49 CFR Part 368

    Administrative practice and procedure, Insurance, Motor carriers.

49 CFR Part 385

    Administrative practices and procedure, Highway safety, Motor 
carriers, Motor vehicle safety, Reporting and recordkeeping 
requirements.

49 CFR Part 387

    Buses, Freight, Freight forwarders, Hazardous materials 
transportation, Highway safety, Insurance, Intergovernmental relations, 
Motor carriers, Motor vehicle safety, Moving of household goods, 
Penalties, Reporting and recordkeeping requirements, Surety bonds.

49 CFR Part 390

    Highway safety, Intermodal transportation, Motor carriers, Motor 
vehicle safety, reporting and recordkeeping requirements.

49 CFR Part 392

    Highway safety, Motor carriers.

    For reasons set forth in the preamble, FMCSA proposes to amend 
title 49, Code of Federal Regulations, chapter III, as follows:
    1. Revise part 360 to read as follows:

PART 360--FEES FOR MOTOR CARRIER REGISTRATION AND INSURANCE

Sec.
360.1 Fees for registration-related services.
360.3 Filing fees.
360.5 Updating user fees.

    Authority: 31 U.S.C. 9701; 49 U.S.C. 13908; and 49 CFR 1.73.


Sec.  360.1  Fees for registration-related services.

    Certifications and copies of public records and documents on file 
with the Federal Motor Carrier Safety Administration (FMCSA) will be 
furnished on the following basis, pursuant to USDOT Freedom of 
Information Act regulations at 49 CFR Part 7:
    (a) Certificate of the Director, Office of Management and 
Information Services, as to the authenticity of documents, $12;
    (b) Service involved in locating records to be certified and 
determining their authenticity, including clerical and administrative 
work incidental thereto, at the rate of $21 per hour;
    (c) Copies of the public documents, at the rate of $.80 per letter 
size or legal size exposure. A minimum charge of $5 will be made for 
this service; and
    (d) Search and copying services requiring information technology 
(IT), as follows:
    (1) A fee of $50 per hour for professional staff time will be 
charged when it is required to fulfill a request for electronic data.
    (2) The fee for computer searches will be set at the current rate 
for computer service. Information on those charges can be obtained from 
the Office of Information Technology (MC-RI).
    (3) Printing shall be charged at the rate of $.10 per page of 
computer-generated output with a minimum charge of $1. There will also 
be a charge for the media provided (e.g., CD ROMs) based on the 
Agency's costs for such media.
    (e) Exception. No fee shall be charged under this section to the 
following entities:
    (1) Any Agency of the Federal Government or a State government or 
any political subdivision of any such government for access to or 
retrieval of information and data from the Unified Carrier Registration 
System for its own use; or
    (2) Any representative of a motor carrier, motor private carrier, 
leasing company, broker, or freight forwarder (as each is defined in 49 
U.S.C. 13102) for the access to or retrieval of the individual 
information related to such entity from the Unified Carrier 
Registration System for the individual use of such entity.


Sec.  360.3  Filing fees.

    (a) Manner of payment. (1) Except for the insurance fees described 
in the next sentence, all filing fees will be payable at the time the 
application, petition, or other document is electronically filed. The 
service fee for insurance, surety or self-insurer accepted certificate 
of insurance, surety bond or other instrument submitted in lieu of a 
broker surety bond must be charged to an insurance service account 
established by FMCSA in accordance with paragraph (a)(2) of this 
section.
    (2) Billing account procedure. A request must be submitted to the 
Office of Enforcement and Compliance, Commercial Enforcement Division 
(MC-ECC) at http://www.fmcsa.dot.gov to establish an insurance service 
fee account.
    (i) Each account will have a specific billing date within each 
month and a billing cycle. The billing date is the date that the bill 
is prepared and printed. The billing cycle is the period between the 
billing date in one month and the billing date in the next month. A 
bill for each account which has activity or an unpaid balance during 
the billing cycle will be sent on the billing date each month. Payment 
will be due 20 days from the billing date. Payments received before the 
next billing date are applied to the account. Interest will accrue in 
accordance with 31 CFR 901.9.
    (ii) The Federal Claims Collection Standards, including disclosure 
to consumer reporting agencies and the use of collection agencies, as 
set forth in 31 CFR part 901 will be utilized to encourage payment 
where appropriate.
    (iii) An account holder who files a petition in bankruptcy or who 
is the subject of a bankruptcy proceeding must provide the following 
information to the Office of Enforcement and Compliance, Commercial 
Enforcement Division (MC-ECC) at http://www.fmcsa.dot.gov:
    (A) The filing date of the bankruptcy petition;
    (B) The court in which the bankruptcy petition was filed;
    (C) The type of bankruptcy proceeding;
    (D) The name, address, and telephone number of its representative 
in the bankruptcy proceeding; and
    (E) The name, address, and telephone number of the bankruptcy 
trustee, if one has been appointed.
    (3) Fees will be payable through the U.S. Department of the 
Treasury secure payment system, Pay.gov and are made directly from the 
payor's bank account or by credit/debit card.
    (b) Any filing that is not accompanied by the appropriate filing 
fee will be rejected.
    (c) Fees not refundable. Fees will be assessed for every filing 
listed in the schedule of fees contained in paragraph (f) of this 
section, subject to the exceptions contained in paragraphs (d) and (e) 
of this section. After the application, petition, or other document has 
been accepted for filing by FMCSA, the filing fee will not be refunded, 
regardless of whether the application, petition, or other document is 
granted or approved, denied, rejected before docketing, dismissed, or 
withdrawn.
    (d) Multiple authorities. (1) A separate filing fee is required for 
each type of authority sought in each transportation mode, such as 
broker authority for motor property carriers.
    (2) Separate fees will be assessed for the filing of temporary 
operating authority applications as provided in paragraph (f)(2) of 
this section, regardless of whether such applications

[[Page 66584]]

are related to an application for corresponding permanent operating 
authority.
    (e) Waiver or reduction of filing fees. It is the general policy of 
the Federal Motor Carrier Safety Administration not to waive or reduce 
filing fees except as follows:
    (1) Filing fees are waived for an application which is filed by a 
Federal government agency, or a State or local government entity. For 
purposes of this section the phrases ``Federal government agency'' or 
``government entity'' do not include a quasi-governmental corporation 
or government subsidized transportation company.
    (2) Filing fees are waived for a motor carrier of passengers that 
receives a grant from the Federal Transit Administration either 
directly or through a third-party contract to provide passenger 
transportation under an agreement with a State or local government 
pursuant to 49 U.S.C. section 5307, 5310, 5311, 5316 or 5317.
    (3) The FMCSA will consider other requests for waivers or fee 
reductions only in extraordinary situations and in accordance with the 
following procedure:
    (i) When to request. At the time that a filing is submitted to 
FMCSA the applicant may request a waiver or reduction of the fee 
prescribed in this part. Such request should be addressed to the 
Director, Office of Information Technology.
    (ii) Basis. The applicant must show the waiver or reduction of the 
fee is in the best interest of the public, or that payment of the fee 
would impose an undue hardship upon the requestor.
    (iii) FMCSA action. The Director, Office of Information Technology, 
will notify the applicant of the decision to grant or deny the request 
for waiver or reduction.
    (f) Schedule of filing fees:

------------------------------------------------------------------------
      Type of proceeding                                       Fee
------------------------------------------------------------------------
Part I: Registration:
    (1).......................  An application for      $300.
                                 USDOT Registration
                                 pursuant to 49 CFR
                                 part 390, subpart C.
    (2).......................  An application for      $100.
                                 motor carrier
                                 temporary authority
                                 to provide emergency
                                 relief in response to
                                 a national emergency
                                 or natural disaster
                                 following an
                                 emergency declaration
                                 under Sec.   390.23
                                 of this subchapter.
    (3).......................  Biennial update of      $0.
                                 registration.
    (4).......................  Request for change of   $0.
                                 name, address, or
                                 form of business.
    (5).......................  Request for             $0.
                                 cancellation of
                                 registration.
    (6).......................  Request for             $10.
                                 registration
                                 reinstatemen.
    (7).......................  Designation of process  $0.
                                 agen.
Part II: Insurance:
    (8).......................  A service fee for       $10 per accepted
                                 insurer, surety, or     certificate,
                                 self-insurer accepted   surety bond or
                                 certificate of          other
                                 insurance, surety       instrument
                                 bond, and other         submitted in
                                 instrument submitted    lieu of a
                                 in lieu of a broker     broker surety
                                 surety bond.            bond.
    (9).......................  (i) An application for  [Reserved].
                                 original
                                 qualification as self-
                                 insurer for bodily
                                 injury and property
                                 damage insurance
                                 (BI&PD).
                                (ii) An application     [Reserved].
                                 for original
                                 qualification as self-
                                 insurer for cargo
                                 insurance.
                                (iii) Fee for           [Reserved].
                                 quarterly self-
                                 insurance monitoring
                                 filing.
                                (iv) Fee for annual     [Reserved].
                                 self-insurance
                                 monitoring filing.
------------------------------------------------------------------------

Sec.  360.5  Updating user fees.

    (a) Update. Each fee established in this subpart may be updated, as 
deemed necessary by FMCSA.
    (b) Publication and effective dates. Notice of updated fees will be 
published in the Federal Register in a final rule and will become 
effective 30 days after publication.
    (c) Payment of fees. Any person submitting a filing for which a 
filing fee is established must pay the fee applicable on the date of 
the filing or request for services.
    (d) Method of updating fees. Each fee shall be updated by updating 
the cost components comprising the fee. However, fees shall not exceed 
the maximum amounts established by law. Cost components shall be 
updated as follows:
    (1) Direct labor costs shall be updated by multiplying base level 
direct labor costs by percentage changes in average wages and salaries 
of FMCSA employees. Base level direct labor costs are direct labor 
costs determined by the cost study in Regulations Governing Fees For 
Service, 1 I.C.C. 2d 60 (1984), or subsequent cost studies. The base 
period for measuring changes shall be April 1984 or the year of the 
last cost study.
    (2) Operations overhead shall be developed on the basis of current 
relationships existing on a weighted basis, for indirect labor 
applicable to the first supervisory work centers directly associated 
with user fee activity. Actual updating of operations overhead will be 
accomplished by applying the current percentage factor to updated 
direct labor, including current governmental overhead costs.
    (3)(i) Office general and administrative costs shall be developed 
on the basis of current levels costs, i.e., dividing actual office 
general and administrative costs for the current fiscal year by total 
office costs for the office directly associated with user fee activity. 
Actual updating of office general and administrative costs will be 
accomplished by applying the current percentage factor to updated 
direct labor, including current governmental overhead and current 
operations overhead costs.
    (ii) The FMCSA general and administrative costs shall be developed 
on the basis of current level costs; i.e., dividing actual FMCSA 
general and administrative costs for the current fiscal year by total 
Agency expenses for the current fiscal year. Actual updating of FMCSA 
general and administrative costs will be accomplished by applying the 
current percentage factor to updated direct labor, including current 
governmental overhead, operations overhead and office general and 
administrative costs.
    (4) Publication costs shall be adjusted on the basis of known 
changes in the costs applicable to publication of

[[Page 66585]]

material in the Federal Register or FMCSA Register.
    (e) Rounding of updated fees. (1) Updated fees shall be rounded in 
the following manner:
    (i) Fees between $1 and $30 will be rounded to the nearest $1;
    (ii) Fees between $30 and $100 will be rounded to the nearest $10;
    (iii) Fees between $100 and $999 will be rounded to the nearest 
$50; and
    (iv) Fees above $1,000 will be rounded to the nearest $100.
    (2) This rounding procedure excludes copying, printing and search 
fees.

PART 365--RULES GOVERNING APPLICATIONS FOR OPERATING AUTHORITY

    2. The authority citation for part 365 is revised to read as 
follows:

    Authority: 5 U.S.C. 553 and 559; 49 U.S.C. 13101, 13301, 13901-
13906, 13908, 14708, 31138, and 31144; 49 CFR 1.73.

    3. Amend Sec.  365.101 by revising paragraphs (a) and (h) to read 
as follows:


Sec.  365.101  Applications governed by these rules.

* * * * *
    (a) Applications for certificates of motor carrier registration to 
operate as a motor carrier of property or passengers.
* * * * *
    (h) Applications for Mexico-domiciled motor carriers to operate in 
foreign commerce as for hire or private motor carriers of property 
(including exempt items) between Mexico and all points in the United 
States. Under NAFTA Annex 1, page I-U-20, a Mexico-domiciled motor 
carrier may not provide point-to-point transportation services, 
including express delivery services, within the United States for goods 
other than international cargo.
* * * * *


Sec.  365.103  [Removed and reserved]

    4. Remove and reserve Sec.  365.103.
    5. Revise Sec.  365.105 to read as follows:


Sec.  365.105  Starting the application process: Form MCSA-1, FMCSA 
Registration/Update (USDOT Number--Operating Authority Application)

    (a) Each applicant must apply for operating authority by 
electronically filing Form MCSA-1, FMCSA Registration/Update (USDOT 
Number--Operating Authority Application), to request authority pursuant 
to 49 U.S.C. 13902, 13903 or 13904 to operate as described in 
paragraphs (a)(1) through (a)(3) of this section as a:
    (1) Motor carrier of property or passengers,
    (2) Broker of general commodities or household goods, or
    (3) Freight forwarder of general commodities or household goods.
    (b) A separate filing fee in the amount set forth at 49 CFR 
360.3(f) is required for each type of authority sought in Sec.  
365.105(a).
    (c) Form MCSA-1 is an electronic application and is available, 
including complete instructions, from the FMCSA Web site at http://
www.fmcsa.dot.gov (Keyword ``MCSA-1'').
    6. Amend Sec.  365.107 by revising paragraphs (a)(1) through (3), 
and paragraphs (b) through (e), to read as follows:


Sec.  365.107  Types of applications.

    (a) * * *
    (1) Motor carrier of property (except household goods).
    (2) Broker of general commodities or household goods.
    (3) Certain types of motor carrier of passenger applications as 
described in Form MCSA-1.
    (b) Motor carrier of passenger ``public interest'' applications as 
described in Form MCSA-1.
    (c) Intrastate motor passenger applications under 49 U.S.C. 
13902(b)(3) as described in Form MCSA-1.
    (d) Motor carrier of household goods applications, including 
Mexico- or non-North America-domiciled carrier applicants. In addition 
to meeting the fitness standard under paragraph (a) of this section, an 
applicant seeking authority to operate as a motor carrier of household 
goods must:
    (1) Provide evidence of participation in an arbitration program and 
provide a copy of the notice of the arbitration program as required by 
49 U.S.C. 14708(b)(2);
    (2) Identify its tariff and provide a copy of the notice of the 
availability of that tariff for inspection as required by 49 U.S.C. 
13702(c);
    (3) Provide evidence that it has access to, has read, is familiar 
with, and will observe all applicable Federal laws relating to consumer 
protection, estimating, consumers' rights and responsibilities, and 
options for limitations of liability for loss and damage; and
    (4) Disclose any relationship involving common stock, common 
ownership, common management, or common familial relationships between 
the applicant and any other motor carrier, freight forwarder, or broker 
of household goods within 3 years of the proposed date of registration.
    (e) Temporary authority (TA) for motor carriers. These applications 
require a finding that there is or soon will be an immediate 
transportation need that cannot be met by existing carrier service.
    (1) Applications for TA will be entertained only when an emergency 
declaration has been made pursuant to Sec.  390.23 of this subchapter.
    (2) Temporary authority must be requested by filing Form MCSA-1 
with the Division Office that has jurisdiction over the State in which 
the applicant's principal place of business is located.
    (3) Applications for temporary authority are not subject to 
protest.
    (4) Motor carriers granted temporary authority must comply with 
financial responsibility requirements under part 387 of this 
subchapter.
    (5) Only a U.S.-domiciled motor carrier is eligible to receive 
temporary authority.
    7. Amend Sec.  365.109 by revising paragraphs (a)(5) and (6) and 
(b) to read as follows:


Sec.  365.109  FMCSA review of the application.

    (a) * * *
    (5) All applicants must file the appropriate evidence of financial 
responsibility within 90 days from the date notice of the application 
is published in the FMCSA Register:
    (i) Form BMC-91 or 91X or BMC 82 surety bond--Bodily injury and 
property damage (motor property and passenger carriers; and freight 
forwarders that provide pickup or delivery service directly or by using 
a local delivery service under their control),
    (ii) Form BMC-84--Surety bond or Form BMC-85--trust fund agreement 
(property brokers of general commodities and household goods).
    (iii) Form BMC-34 or BMC 83 surety bond--Cargo liability (household 
goods motor carriers and household goods freight forwarders).
    (6) Applicants also must submit Form BOC-3--Designation of Agents--
Motor Carriers, Brokers and Freight Forwarders--within 90 days from the 
date notice of the application is published in the FMCSA Register.
* * * * *
    (b) A summary of the application will be published in the FMCSA 
Register to give notice to the public in case anyone wishes to oppose 
the application.
    8. Add Sec.  365.110 to read as follows:


Sec.  365.110  New Entrant Safety Assurance Program.

    For motor carriers operating commercial motor vehicles as defined 
in 49 U.S.C. 31132, operating authority obtained under procedures in 
this part does not become permanent until the applicant satisfactorily 
completes the

[[Page 66586]]

New Entrant Safety Assurance Program in part 385 of this subchapter.
    9. Amend Sec.  365.111 by revising paragraph (a) to read as 
follows:


Sec.  365.111  Appeals to rejections of the application.

    (a) An applicant has the right to appeal rejection of the 
application. The appeal must be filed at the FMCSA, Office of the 
Director of Information Technology, 1200 New Jersey Ave., SE., 
Washington, DC 20590, within 10 days of the date of the letter of 
rejection.
* * * * *
    10. Revise Sec.  365.119 to read as follows:


Sec.  365.119  Opposed applications.

    If the application is opposed, opposing parties are required to 
send a copy of their protest to the applicant and to FMCSA. All 
protests must include statements made under oath (verified statements). 
There are no personal appearances or formal hearings.
    11. Revise Sec.  365.201 to read as follows:


Sec.  365.201  Definitions.

    A person wishing to oppose a request for authority files a protest. 
A person filing a valid protest is known as a protestant.
    12. Revise Sec.  365.203 to read as follows:


Sec.  365.203  Time for filing.

    A protest shall be filed (received at the FMCSA, Office of the 
Associate Administrator for Research and Information Technology, 1200 
New Jersey Ave., SE., Washington, DC 20590) within 10 days after notice 
of the application appears in the FMCSA Register. A copy of the protest 
shall be sent to applicant's representative at the same time. Failure 
to timely file a protest waives further participation in the 
proceeding.


Sec.  365.301  [Removed and reserved]

    13. Remove and reserve Sec.  365.301.
    14. Revise the heading of subpart D to read as follows:

Subpart D--Changes to an Entity's Name or Business Form


Sec. Sec.  365.401, 365.403, 365.405, 365.407, 365.409, and 
365.411  [Removed and reserved]

    15. Remove and reserve Sec. Sec.  365.401, 365.403, 365.405, 
365.407, 365.409, and 365.411.
    16. Amend Sec.  365.507 by revising the heading and paragraph 
(e)(2) to read as follows


Sec.  365.507  FMCSA action on the application.

* * * * *
    (e) * * *
    (2) Electronically file Form BOC-3--Designation of Agents--Motor 
Carriers, Brokers and Freight Forwarders, as required by part 366 of 
this subchapter; and
* * * * *
    17. Amend Sec.  365.509 by revising paragraph (a) to read as 
follows:


Sec.  365.509  Requirement to notify FMCSA of change in applicant 
information.

    (a) A motor carrier subject to this subpart must notify FMCSA of 
any changes or corrections to the information in Section A of Form 
MCSA-1--FMCSA Registration/Update (USDOT Number--Operating Authority 
Application), or Form BOC-3--Designation of Agents--Motor Carriers, 
Brokers and Freight Forwarders, during the application process or after 
having been granted provisional operating authority. The carrier must 
notify FMCSA in writing within 20 days of the change or correction.
* * * * *

PART 366--DESIGNATION OF PROCESS AGENT

    18. The authority citation for part 366 is revised to read as 
follows:

    Authority: 49 U.S.C. 502, 503, 13303, 13304 and 13908; and 49 
CFR 1.73.

    19. Revise Sec.  366.1 to read as follows:


Sec.  366.1  Applicability.

    These rules, relating to the filing of designations of persons upon 
whom court or Agency process may be served, govern for-hire and private 
motor carriers, brokers, freight forwarders and, as of the moment of 
succession, their fiduciaries (as defined at 49 CFR 387.319(a)).
    20. Revise Sec.  366. 2 to read as follows:


Sec.  366.2  Form of designation.

    (a) Designations shall be made on Form BOC-3--Designation of 
Agents--Motor Carriers, Brokers and Freight Forwarders. Only one 
completed current form may be on file. It must include all States for 
which agent designations are required. One copy must be retained by the 
carrier, broker or freight forwarder at its principal place of 
business.
    (b) Private motor carriers and for-hire motor carriers engaged in 
transportation exempt from economic regulation by FMCSA under 49 U.S.C. 
chapter 135 that are registered with FMCSA as of [insert effective date 
of the final rule] must file a Form BOC-3 designation by no later than 
[insert date 180 days from compliance date of final rule]. Failure to 
file a designation in accordance with this paragraph will result in 
deactivation of the carrier's USDOT Number.
    21. Revise Sec.  366.3 to read as follows:


Sec.  366.3  Eligible persons.

    All persons (as defined at 49 U.S.C. 13102(18)) designated must 
reside or maintain an office in the State for which they are 
designated. If a State official is designated, evidence of his or her 
willingness to accept service of process must be furnished.
    22. Amend Sec.  366.4 by revising paragraph (a) and adding a new 
paragraph (c) to read as follows:


Sec.  366.4  Required States.

    (a) Motor carriers. Every motor carrier (of property or passengers, 
including a private carrier) shall make a designation for each State in 
which it is authorized to operate and for each State traversed during 
such operations. Every motor carrier (including a private carrier) 
operating in the United States in the course of transportation between 
points in a foreign country shall file a designation for each State 
traversed.
* * * * *
    (c) Freight forwarders. Every freight forwarder shall make a 
designation for each State in which its offices are located or in which 
contracts will be written.
    23. Revise Sec.  366.5 to read as follows:


Sec.  366.5  Blanket designations.

    Where an association or corporation has filed with the FMCSA a list 
of process agents for each State, motor carriers (including private 
carriers), brokers and freight forwarders may make the required 
designations by using the following statement:
    Those persons named in the list of process agents on file with the 
Federal Motor Carrier Safety Administration by
-----------------------------------------------------------------------
(name of association or corporation) and any subsequently filed 
revisions thereof, for the States in which this carrier is or may be 
authorized to operate (or arrange) as an entity of motor vehicle 
transportation, including States traversed during such operations, 
except those States for which individual designations are named.
    24. Revise Sec.  366.6 to read as follows:


Sec.  366.6  Cancellation or change.

    (a) A designation may be canceled or changed only by a new 
designation except that, where a motor carrier (including a private 
carrier), broker or freight forwarder ceases to be subject to

[[Page 66587]]

Sec.  366.4 in whole or in part for 1 year, designation is no longer 
required and may be canceled without making another designation.
    (b) A change to a designation, such as name, address, or contact 
information, must be reported to FMCSA within 20 days of the change.

PART 368--APPLICATION FOR A CERTIFICATE OF REGISTRATION TO OPERATE 
IN MUNICIPALITIES IN THE UNITED STATES ON THE UNITED STATES-MEXICO 
INTERNATIONAL BORDER OR WITHIN THE COMMERCIAL ZONES OF SUCH 
MUNICIPALITIES

    25. The authority citation for part 368 is revised to read as 
follows:

    Authority: 49 U.S.C. 13301, 13902 and 13908; Pub. L. 106-159, 
113 Stat. 1748; and 49 CFR 1.73.

    26. Amend Sec.  368.3 by revising paragraphs (a), (b), and (f), and 
removing and reserving paragraph (e), to read as follows:


Sec.  368.3  Applying for a certificate of registration.

    (a) If you wish to obtain a certificate of registration under this 
part, you must electronically file an application that includes the 
following:
    (1) Form MCSA-1--FMCSA Registration/Update (USDOT Number--
(Operating Authority Application).
    (2) Form BOC-3--Designation of Agents--Motor Carriers, Brokers and 
Freight Forwarders or indicate on the application that the applicant 
will use a process agent service that will submit the Form BOC-3 
electronically.
    (b) The FMCSA will only process your application for a Certificate 
of Registration if it meets the following conditions:
    (1) The application must be completed in English;
    (2) The information supplied must be accurate and complete in 
accordance with the instructions to Form MCSA-1 and Form BOC-3.
    (3) The application must include all the required supporting 
documents and applicable certifications set forth in the instructions 
to Form MCSA-1 and Form BOC-3.
* * * * *
    (e) [Reserved]
    (f) Form MCSA-1 is an electronic application and is available, 
including complete instructions, from the FMCSA Web site at http://
www.fmcsa.dot.gov (Keyword ``MCSA-1'').
    27. Amend Sec.  368.4 by revising paragraph (a) to read as follows:


Sec.  368.4  Requirement to notify FMCSA of change in applicant 
information.

    (a) You must notify FMCSA of any changes or corrections to the 
information in Section A of Form MCSA-1--FMCSA Registration/Update 
(USDOT Number--Operating Authority Application), or the Form BOC-3, 
Designation of Agents-Motor Carriers, Brokers and Freight Forwarders, 
during the application process or while you have a Certificate of 
Registration. You must notify FMCSA in writing within 20 days of the 
change or correction.
* * * * *
    28. Revise Sec.  368.8 to read as follows:


Sec.  368.8  Appeals.

    An applicant has the right to appeal denial of the application. The 
appeal must be in writing and specify in detail why the Agency's 
decision to deny the application was wrong. The appeal must be filed 
with the FMCSA, Office of the Director of Information Technology within 
20 days of the date of the letter denying the application. The decision 
of the Director will be the final Agency order.

PART 385--SAFETY FITNESS PROCEDURES

    29. The authority citation for part 385 is revised to read as 
follows:

    Authority: 49 U.S.C. 113, 504, 521(b), 5105(e), 5109, 5113, 
13901-13905, 13908, 31136, 31144, 31148, 31151, and 31502; Sec. 350 
of Pub. L. 107-87; and 49 CFR 1.73.

    30. Revise Sec.  385.301 to read as follows:


Sec.  385.301  What is a motor carrier required to do before beginning 
interstate operations?

    (a) Before a motor carrier of property or passengers begins 
interstate operations, it must register with FMCSA and receive a USDOT 
Number. In addition, for-hire motor carriers must obtain operating 
authority from FMCSA, unless providing transportation exempt from the 
Title 49 U.S.C. chapter 139 commercial registration requirements. Both 
the USDOT Number and operating authority are obtained by following 
registration procedures described in 49 CFR part 390, subpart C. Title 
49 CFR part 365 provides detailed instructions for obtaining operating 
authority.
    (b) This subpart applies to motor carriers domiciled in the United 
States and Canada.
    (c) The regulations in this subpart do not apply to a Mexico-
domiciled motor carrier. A Mexico-domiciled motor carrier of property 
or passengers must register with FMCSA by following the registration 
procedures described in 49 CFR parts 365, 368 and 390. Title 49 CFR 
parts 365 and 368 provide detailed information about how a Mexico-
domiciled motor carrier may obtain operating authority.
    31. Revise Sec.  385.303 to read as follows:


Sec.  385.303  How does a motor carrier register with the FMCSA?

    A motor carrier registers with FMCSA by completing Form MCSA-1, 
which is an electronic application that must be completed on-line at 
the FMCSA Web site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1''). 
Complete instructions for the Form MCSA-1 also are available at the 
same location.
    32. Revise Sec.  385.305 to read as follows:


Sec.  385.305  What happens after the FMCSA receives a request for new 
entrant registration?

    (a) The applicant for new entrant registration will be directed to 
the FMCSA Internet Web site (http://www.fmcsa.dot.gov) to secure and/or 
complete the application package online.
    (b) The application package will include the following:
    (1) Educational and technical assistance material regarding the 
requirements of the FMCSRs and HMRs, if applicable.
    (2) Form MCSA-1--FMCSA Registration/Update (USDOT Number--Operating 
Authority Application). This form is used to obtain both a USDOT Number 
and operating authority.
    (c) Upon completion of the application form, the new entrant will 
be issued an inactive USDOT Number. An applicant may not begin 
operations nor mark a commercial motor vehicle with the USDOT Number 
until after the date of the Agency's written notice that the USDOT 
Number has been activated. Violations of this section may be subject to 
the penalties under Sec.  392.9b(b) of this subchapter.
    (d) For-hire motor carriers, unless providing transportation exempt 
from the Title 49 U.S.C. chapter 139 commercial registration 
requirements, must obtain operating authority as prescribed under Sec.  
390.105(b) and 49 CFR part 365 of this subchapter before operating in 
interstate commerce.
    33. Amend Sec.  385.329 by revising paragraphs (b)(1), (c)(1) and 
(d) to read as follows:


Sec.  385.329  May a new entrant that has had its USDOT new entrant 
registration revoked and its operations placed out of service reapply?

* * * * *
    (b) * * *

[[Page 66588]]

    (1) Submit an updated Form MCSA-1.
* * * * *
    (c) * * *
    (1) Submit an updated Form MCSA-1.
* * * * *
    (d) If the new entrant is a for-hire motor carrier subject to the 
registration provisions of Title 49 U.S.C. chapter 139 and also has had 
its operating authority revoked, it must re-apply for operating 
authority as set forth in Sec.  390.105(b) and 49 CFR part 365 of this 
chapter.
    34. Revise Sec.  385.405 to read as follows:


Sec.  385.405  How does a motor carrier apply for a safety permit?

    (a) Application form. (1) To apply for a new safety permit or 
renewal of the safety permit, a motor carrier must complete and submit 
Form MCSA-1--FMCSA Registration/Update (USDOT Number--Operating 
Authority Application) and meet the requirements under 49 CFR part 390, 
subpart C.
    (2) The Form MCSA-1 also will also satisfy the requirements for 
obtaining and renewing a USDOT Number.
    (b) Where to get forms and instructions. Form MCSA-1 is an 
electronic application and is available, including complete 
instructions, from the FMCSA Web site at http://www.fmcsa.dot.gov 
(Keyword ``MCSA-1'').
    (c) Signature and certification. An official of the motor carrier 
must sign and certify that the information is correct on each form the 
motor carrier submits.
    (d) Updating information. A motor carrier holding a safety permit 
must report to FMCSA any change in the information on its Form MCSA-1 
within 20 days of the change. The motor carrier must use Form MCSA-1 to 
report the new information.
    35. Amend Sec.  385.409 by revising paragraph (a) to read as 
follows:


Sec.  385.409  When may a temporary safety permit be issued to a motor 
carrier?

    (a) Temporary safety permit. If a motor carrier does not meet the 
criteria of Sec.  385.407(a), FMCSA may issue it a temporary safety 
permit. To obtain a temporary safety permit a motor carrier must 
certify on Form MCSA-1 that it is operating in full compliance with the 
HMRs, with the FMCSRs, and/or comparable State regulations, whichever 
is applicable; and with the minimum financial responsibility 
requirements in part 387 of this subchapter or in State regulations, 
whichever is applicable.
* * * * *
    36. Revise Sec.  385.419 to read as follows:


Sec.  385.419  How long is a safety permit effective?

    Unless suspended or revoked, a safety permit (other than a 
temporary safety permit) is effective for two years, except that:
    (a) A safety permit will be subject to revocation if a motor 
carrier fails to submit a renewal application (Form MCSA-1) in 
accordance with the schedule set forth for filing Form MCSA-1 in part 
390 subpart C of this subchapter; and
    (b) An existing safety permit will remain in effect pending FMCSA's 
processing of an application for renewal if a motor carrier submits the 
required application (Form MCSA-1) in accordance with the schedule set 
forth in part 390 subpart C of this subchapter.
    37. Amend Sec.  385.421 by revising paragraphs (a)(1) and (a)(2) to 
read as follows:


Sec.  385.421  Under what circumstances will a safety permit be subject 
to revocation or suspension by FMCSA?

    (a) * * *
    (1) A motor carrier fails to submit a renewal application (Form 
MCSA-1) in accordance with the schedule set forth in part 390 subpart C 
of this subchapter.
    (2) A motor carrier provides any false or misleading information on 
its application form (Form MCSA-1) or as part of updated information it 
is providing on Form MCSA-1 (see Sec.  385.405(d)).
* * * * *
    38. Revise Sec.  385.603 to read as follows:


Sec.  385.603  Application.

    (a) Each applicant applying under this subpart must submit an 
application that consists of:
    (1) Form MCSA-1, FMCSA Registration/Update (USDOT Number--Operating 
Authority Application); and
    (2) A notification of the means used to designate process agents, 
either by submission in the application package of Form BOC-3, 
Designation of Agents--Motor Carriers, Brokers and Freight Forwarders, 
or a letter stating that the applicant will use a process agent service 
that will submit the Form BOC-3 electronically.
    (b) The FMCSA will process an application only if it meets the 
following conditions:
    (1) The application must be completed in English.
    (2) The information supplied must be accurate, complete, and 
include all required supporting documents and applicable certifications 
in accordance with the instructions to Form MCSA-1 and Form BOC-3.
    (3) The application must include the filing fee payable to the 
FMCSA in the amount set forth at 49 CFR 360.3(f)(1).
    (4) The application must be signed by the applicant.
    (c) An applicant must electronically file Form MCSA-1.
    (d) Form MCSA-1 is an electronic application and is available, 
including complete instructions, from the FMCSA Web site at http://
www.fmcsa.dot.gov (Keyword ``MCSA-1'').
    39. Amend Sec.  385.607 by revising paragraph (e)(2) to read as 
follows:


Sec.  385.607  FMCSA action on the application.

* * * * *
    (e) * * *
    (2) File or have its process agent(s) electronically submit, Form 
BOC-3--Designation of Agents--Motor Carriers, Brokers and Freight 
Forwarders, as required by part 366 of this subchapter.
* * * * *
    40. Amend Sec.  385.609 by revising paragraph (a)(2) and removing 
paragraph (a)(3) to read as follows:


Sec.  385.609  Requirement to notify FMCSA of change in applicant 
information.

    (a) * * *
    (2) A motor carrier subject to this subpart must notify FMCSA of 
any changes or corrections to the information in Section A of Form 
MCSA-1 that occur during the application process or after the motor 
carrier has been granted new entrant registration. The motor carrier 
must report the changes or corrections within 20 days of the change. 
The motor carrier must use Form MCSA-1 to report the new information.
* * * * *
    41. Amend Sec.  385.713 by revising paragraphs (b)(1), (c)(1), and 
(d) to read as follows:


Sec.  385.713  Reapplying for new entrant registration.

* * * * *
    (b) * * *
    (1) Submit an updated Form MCSA-1, FMCSA Registration/Update (USDOT 
Number--Operating Authority Application);
* * * * *
    (c) * * *
    (1) Submit an updated Form MCSA-1, FMCSA Registration/Update (USDOT 
Number--Operating Authority Application);
* * * * *
    (d) If the new entrant is a for-hire carrier subject to the 
registration

[[Page 66589]]

provisions under 49 U.S.C. 13901 and also has had its operating 
authority revoked, it must reapply for operating authority as set forth 
in Sec.  390.105(b) and 49 CFR part 365 of this subchapter.

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR 
CARRIERS

    42. The authority citation for part 387 is revised to read as 
follows:

    Authority: 49 U.S.C. 13101, 13301, 13906, 13908, 14701, 31138, 
and 31139; and 49 CFR 1.73.

    43. Add Sec.  387.19 to subpart A to read as follows:


Sec.  387.19  Electronic filing of surety bonds, trust fund agreements, 
certificates of insurance and cancellations.

    (a) Insurers of exempt motor carriers, as defined in Sec.  390.5 of 
this subchapter, and private motor carriers that transport hazardous 
materials in interstate commerce must file certificates of insurance, 
surety bonds, and other securities and agreements with FMCSA 
electronically in accordance with the requirements and procedures set 
forth at Sec.  387.323.
    (b) The requirements of this section do not apply to motor carriers 
excepted under Sec.  387.7(b)(3).
    44. Revise Sec.  387.33 to read as follows:


Sec.  387.33  Financial responsibility, minimum levels.

    (a) General limits. The minimum levels of financial responsibility 
referred to in Sec.  387.31 of this subpart are hereby prescribed as 
follows:

Schedule of Limits

Public Liability

    For-hire motor carriers of passengers operating in interstate or 
foreign commerce.

------------------------------------------------------------------------
                                                               Minimum
                  Vehicle seating capacity                      limits
------------------------------------------------------------------------
(1) Any vehicle with a seating capacity of 16 passengers or   $5,000,000
 more, including the driver \1\............................
(2) Any vehicle with a seating capacity of 15 passengers or    1,500,000
 less, including the driver \2\............................
------------------------------------------------------------------------
1 2 Except as provided in Sec.   387.27(b).

    (b) Limits applicable to transit service providers. Notwithstanding 
the provisions of paragraph (a) of this section, the minimum level of 
financial responsibility for a motor vehicle used to provide 
transportation services within a transit service area located in more 
than one State under an agreement with a Federal, State, or local 
government funded, in whole or in part, with a grant under 49 U.S.C. 
5307, 5310 or 5311, including transportation designed and carried out 
to meet the special needs of elderly individuals and individuals with 
disabilities, will be the highest level required for any of the States 
in which it operates. Transit service providers conducting such 
operations must register as for-hire passenger carriers under part 390, 
subpart C of this subchapter, identify the States in which they operate 
under the applicable grants, and certify on their registration 
documents that they have in effect financial responsibility levels in 
an amount equal to or greater than the highest level required by any of 
the States in which they are operating under a qualifying grant.
    45. Amend Sec.  387.39 by revising Form MCS-90B to read as follows:


Sec.  387.39  Forms.

* * * * *
BILLING CODE 4910-EX-P

[[Page 66590]]

[GRAPHIC] [TIFF OMITTED] TP26OC11.065

BILLING CODE 4910-EX-C

[[Page 66591]]

* * * * *
    46. Add Sec.  387.43 to read as follows:


Sec.  387.43  Electronic filing of surety bonds, trust fund agreements, 
certificates of insurance and cancellations.

    (a) Insurers of for-hire motor carriers of passengers must file 
certificates of insurance, surety bonds, and other securities and 
agreements electronically in accordance with the requirements and 
procedures set forth at Sec.  387.323.
    (b) This section does not apply to motor carriers excepted under 
Sec.  387.31(b)(3).
    47. Amend Sec.  387.303 by revising paragraph (b) to read as 
follows:


Sec.  387.303  Security for the protection of the public: Minimum 
limits.

* * * * *
    (b)(1) Motor carriers subject to Sec.  387.303(a)(1) are required 
to have security for the required minimum limits as follows:
    (i) Small freight vehicles:

------------------------------------------------------------------------
                                    Transportation
       Kind of equipment               provided          Minimum  limits
------------------------------------------------------------------------
Fleet including only vehicles   Property (non-                  $300,000
 under 10,001 pounds (4,536      hazardous).
 kilograms) GVWR.
------------------------------------------------------------------------

    (ii) Passenger carriers:

                  Passenger Carriers: Kind of Equipment
------------------------------------------------------------------------
               Vehicle seating capacity                  Minimum  limits
------------------------------------------------------------------------
(A) Any vehicle with a seating capacity of 16                 $5,000,000
 passengers or more (including the driver)............
(B) Any vehicle designed or used to transport 15               1,500,000
 passengers or less (including the driver) for
 compensation.........................................
------------------------------------------------------------------------

     (2) Motor carriers subject to Sec.  387.301(a)(2) are required to 
have security for the required minimum limits as follows:

------------------------------------------------------------------------
       Kind of equipment         Commodity transported   Minimum limits
------------------------------------------------------------------------
(i) Freight vehicles of 10,001  Property (non-                  $750,000
 pounds (4,536 kilograms) or     hazardous).
 more GVWR.
(ii) Freight vehicles of        Hazardous substances,          5,000,000
 10,001 pounds (4,536            as defined in Sec.
 kilograms) or more GVWR.        171.8 of this title,
                                 transported in cargo
                                 tanks, portable
                                 tanks, or hopper-type
                                 vehicles with
                                 capacities in excess
                                 of 3,500 water
                                 gallons, or in bulk
                                 explosives Division
                                 1,1, 1.2 and 1.3
                                 materials. Division
                                 2.3, Hazard Zone A
                                 material; in bulk
                                 Division 2.1 or 2.2;
                                 or highway route
                                 controlled quantities
                                 of a Class 7
                                 material, as defined
                                 in Sec.   173.403 of
                                 this title.
(iii) Freight vehicles of       Oil listed in Sec.             1,000,000
 10,001 pounds (4,536            172.101 of this
 kilograms) or more GVWR.        title; hazardous
                                 waste, hazardous
                                 materials and
                                 hazardous substances
                                 defined in Sec.
                                 171.8 of this title
                                 and listed in Sec.
                                 172.101 of this
                                 title, but not
                                 mentioned in (b)
                                 above or (d) below.
(iv) Freight vehicles under     Any quantity of                5,000,000
 10,001 pounds (4,536            Division 1.1, 1.2, or
 kilograms) GVWR.                1.3 material; any
                                 quantity of a
                                 Division 2.3, Hazard
                                 Zone A, or Division
                                 6.1, Packing Group I,
                                 Hazard Zone A
                                 material; or highway
                                 route controlled
                                 quantities of Class 7
                                 material as defined
                                 in Sec.   173.455 of
                                 this title.
------------------------------------------------------------------------

* * * * *
    48. Amend Sec.  387.313 by revising paragraphs (b) and (d) to read 
as follows:


Sec.  387.313  Forms and procedures.

* * * * *
    (b) Filing and copies. Certificates of insurance, surety bonds, and 
notices of cancellation must be filed with the FMCSA.
* * * * *
    (d) Cancellation notice. Except as provided in paragraph (e) of 
this section, surety bonds, certificates of insurance and other 
securities or agreements shall not be cancelled or withdrawn until 30 
days after written notice has been submitted to http://fmcsa.dot.gov on 
the prescribed form (Form BMC-35, Notice of Cancellation Motor Carrier 
Policies of Insurance under 49 U.S.C. 13906, and BMC-36, Notice of 
Cancellation Motor Carrier and Broker Surety Bonds, as appropriate) by 
the insurance company, surety or sureties, motor carrier, broker or 
other party thereto, as the case may be, which period of thirty (30) 
days shall commence to run from the date such notice on the prescribed 
form is filed with FMCSA at http://fmcsa.dot.gov.
* * * * *
    49. Revise Sec.  387.323 to read as follows:


Sec.  387.323  Electronic filing of surety bonds, trust fund 
agreements, certificates of insurance and cancellations.

    (a) Insurers must electronically file forms BMC 34, BMC 35, BMC 36, 
BMC 82, BMC 83, BMC 84, BMC 85, BMC 91, and BMC 91X in accordance with 
the requirements and procedures set forth in paragraphs (b) through (d) 
of this section.
    (b) Each insurer must obtain authorization to file electronically 
by registering with the FMCSA. An individual account number and

[[Page 66592]]

password for computer access will be issued to each registered insurer.
    (c) Filings must be transmitted online via the Internet at http://
fmcsa.dot.gov.
    (d) All registered insurers agree to furnish upon request to the 
FMCSA a copy of any policy (or policies) and all certificates of 
insurance, endorsements, surety bonds, trust fund agreements, proof of 
qualification to self-insure or other insurance filings.
    50. Revise Sec.  387.403 to read as follows:


Sec.  387.403  General requirements.

    (a) Cargo. A household goods freight forwarder may not operate 
until it has filed with FMCSA an appropriate surety bond, certificate 
of insurance, qualifications as a self-insurer, or other securities or 
agreements, in the amounts prescribed at Sec.  387.405, for loss of or 
damage to household goods.
    (b) Public liability. A freight forwarder may not perform transfer, 
collection, and delivery service until it has filed with the FMCSA an 
appropriate surety bond, certificate of insurance, qualifications as a 
self-insurer, or other securities or agreements, in the amounts 
prescribed at Sec.  387.405, conditioned to pay any final judgment 
recovered against such freight forwarder for bodily injury to or the 
death of any person, or loss of or damage to property (except cargo) of 
others, or, in the case of freight vehicles described at 49 CFR 
387.303(b)(2), for environmental restoration, resulting from the 
negligent operation, maintenance, or use of motor vehicles operated by 
or under its control in performing such service.
    51. Amend Sec.  387.413 by revising paragraph (b) to read as 
follows:


Sec.  387.413  Forms and procedures.

* * * * *
    (b) Procedure. Certificates of insurance, surety bonds, and notices 
of cancellation must be electronically filed with the FMCSA.
* * * * *
    52. Revise Sec.  387.419 to read as follows:


Sec.  387.419  Electronic filing of surety bonds, certificates of 
insurance and cancellations.

    Insurers must electronically file certificates of insurance, surety 
bonds, and other securities and agreements and notice of cancellation 
in accordance with the requirements and procedures set forth at Sec.  
387.323.

PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL

    53. The authority citation for part 390 is revised to read as 
follows:

    Authority: 49 U.S.C. 508, 13301, 13902, 13908, 31132, 31133, 
31136, 31502, 31504; sec. 114, Pub. L. 103-311, 108 Stat. 1673, 
1677; secs. 217, 229; Pub. L. 106-159, 113 Stat. 1748, 1767, 1773; 
and 49 CFR 1.73.

    54. Revise Sec.  390.3 to read as follows:


Sec.  390.3  General applicability.

    (a) The rules in subchapter B of this chapter are applicable to all 
employers, employees, and commercial motor vehicles, which transport 
property or passengers in interstate commerce.
    (b) The rules in part 383, Commercial Driver's License Standards; 
Requirements and Penalties, are applicable to every person who operates 
a commercial motor vehicle, as defined in Sec.  383.5 of this 
subchapter, in interstate or intrastate commerce and to all employers 
of such persons.
    (c) The rules in part 387, Minimum Levels of Financial 
Responsibility for Motor Carriers, are applicable to motor carriers as 
provided in Sec.  387.3 or Sec.  387.27 of this subchapter.
    (d) Additional requirements. Nothing in subchapter B of this 
chapter shall be construed to prohibit an employer from requiring and 
enforcing more stringent requirements relating to safety of operation 
and employee safety and health.
    (e) Knowledge of and compliance with the regulations. (1) Every 
employer shall be knowledgeable of and comply with all regulations 
contained in this subchapter which are applicable to that motor 
carrier's operations.
    (2) Every driver and employee shall be instructed regarding, and 
shall comply with, all applicable regulations contained in this 
subchapter.
    (3) All motor vehicle equipment and accessories required by this 
subchapter shall be maintained in compliance with all applicable 
performance and design criteria set forth in this subchapter.
    (f) Exceptions. Unless otherwise specifically provided, the rules 
in this subchapter do not apply to--
    (1) All school bus operations as defined in Sec.  390.5;
    (2) Transportation performed by the Federal government, a State, or 
any political subdivision of a State, or an agency established under a 
compact between States that has been approved by the Congress of the 
United States;
    (3) The occasional transportation of personal property by 
individuals not for compensation and not in the furtherance of a 
commercial enterprise;
    (4) The transportation of human corpses or sick and injured 
persons;
    (5) The operation of fire trucks and rescue vehicles while involved 
in emergency and related operations;
    (6) The operation of commercial motor vehicles designed or used to 
transport between 9 and 15 passengers (including the driver), not for 
direct compensation, provided the vehicle does not otherwise meet the 
definition of a commercial motor vehicle, except that motor carriers 
operating such vehicles are required to comply with Sec. Sec.  390.15, 
390.21(a) and (b)(2), 390.101 and 390.103.
    (7) Either a driver of a commercial motor vehicle used primarily in 
the transportation of propane winter heating fuel or a driver of a 
motor vehicle used to respond to a pipeline emergency, if such 
regulations would prevent the driver from responding to an emergency 
condition requiring immediate response as defined in Sec.  390.5.
    (g) Motor carriers that transport hazardous materials in intrastate 
commerce. The rules in the following provisions of subchapter B of this 
chapter apply to motor carriers that transport hazardous materials in 
intrastate commerce and to the motor vehicles that transport hazardous 
materials in intrastate commerce:
    (1) Part 385, subparts A and E, for carriers subject to the 
requirements of Sec.  385.403 of this subchapter.
    (2) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings, of this subchapter.
    (3) Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers, to the extent provided in Sec.  387.3 of this subchapter.
    (4) Subpart C of this part, Unified Registration System, and Sec.  
390.21, Marking of CMVs, for carriers subject to the requirements of 
Sec.  385.403 of this subchapter. Intrastate motor carriers operating 
prior to January 1, 2005, are excepted from Sec.  390.101.
    (h) Intermodal equipment providers. The rules in the following 
provisions of subchapter B of this chapter apply to intermodal 
equipment providers:
    (1) Subpart F, Intermodal Equipment Providers, of Part 385, Safety 
Fitness Procedures.
    (2) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings.
    (3) Part 390, Federal Motor Carrier Safety Regulations; General, 
except Sec.  390.15(b) concerning accident registers.
    (4) Part 393, Parts and Accessories Necessary for Safe Operation.
    (5) Part 396, Inspection, Repair, and Maintenance.
    (i) Brokers. The rules in the following provisions of subchapter B 
of this chapter apply to brokers that are

[[Page 66593]]

required to register with the Agency pursuant to 49 U.S.C. chapter 139.
    (1) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings.
    (2) Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers, to the extent provided in subpart C.
    (3) Subpart C of this part, Unified Registration System
    (j) Freight forwarders. The rules in the following provisions of 
subchapter B of this chapter apply to freight forwarders that are 
required to register with the Agency pursuant to 49 U.S.C. chapter 139.
    (1) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings.
    (2) Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers, to the extent provided in subpart D of this part.
    (3) Subchapter C of this part, Unified Registration System.
    (k) Cargo tank facilities. The rules in Subpart C of this part, 
Unified Registration System, apply to each cargo tank and cargo tank 
motor vehicle manufacturer, assembler, repairer, inspector, tester, and 
design certifying engineer that is subject to registration requirements 
under 49 CFR 107.502 and 49 U.S.C. 5108.
    55. Amend Sec.  390.5 by revising the definition of ``Exempt motor 
carrier'' to read as follows:


Sec.  390.5  Definitions.

* * * * *
    Exempt motor carrier means a person engaged in transportation 
exempt from economic regulation by the Federal Motor Carrier Safety 
Administration (FMCSA) under 49 U.S.C. chapter 135. ``Exempt motor 
carriers'' are subject to the safety regulations set forth in this 
subchapter.
* * * * *
    56. Revise Sec.  390.19 to read follows.


Sec.  390.19  Motor carrier identification reports for certain Mexico-
domiciled motor carriers.

    (a) Applicability. A Mexico-domiciled motor carrier requesting 
authority to provide transportation of property or passengers in 
interstate commerce between Mexico and points in the United States 
beyond the municipalities and commercial zones along the United Sates-
Mexico international border must file Form MCS-150 with FMCSA as 
follows:
    (b) Filing schedule. Each motor carrier must file the appropriate 
form under paragraph (a) of this section at the following times:
    (1) Before it begins operations; and
    (2) Every 24 months, according to the following schedule:

------------------------------------------------------------------------
                                             Must file by last  day of .
        USDOT No. ending  in . . .                       . .
------------------------------------------------------------------------
1.........................................  January.
2.........................................  February.
3.........................................  March.
4.........................................  April.
5.........................................  May.
6.........................................  June.
7.........................................  July.
8.........................................  August.
9.........................................  September.
0.........................................  October.
------------------------------------------------------------------------

    (3) If the next-to-last digit of its USDOT Number is odd, the motor 
carrier shall file its update in every odd-numbered calendar year. If 
the next-to-last digit of the USDOT Number is even, the motor carrier 
shall file its update in every even-numbered calendar year.
    (c) Availability of forms. The Form MCS-150 and complete 
instructions are available from the FMCSA Web site at http://
www.fmcsa.dot.gov (Keyword ``MCS-150''); from all FMCSA Service Centers 
and Division offices nationwide; or by calling 1-800-832-5660.
    (d) Where to file. The Form MCS-150 must be filed with FMCSA Office 
of Information Management. The form may be filed electronically 
according to the instructions at the Agency's Web site, or it may be 
sent to Federal Motor Carrier Safety Administration, Office of 
Information Management, MC-RIO, 1200 New Jersey Avenue, SE., 
Washington, DC 20590.
    (e) Special instructions. A motor carrier should submit the Form 
MCS-150 along with its application for operating authority (OP-1(MX)), 
to the appropriate address referenced on that form, or may submit it 
electronically or by mail separately to the address mentioned in 
paragraph (d) of this section.
    (f) Only the legal name or a single trade name of the motor carrier 
may be used on the Form MCS-150.
    (g) A motor carrier that fails to file the Form MCS-150 or 
furnishes misleading information or makes false statements upon the 
form, is subject to the penalties prescribed in 49 U.S.C. 521(b)(2)(B).
    (h)(1) Upon receipt and processing of the form described in 
paragraph (a) of this section, FMCSA will issue the motor carrier or 
intermodal equipment provider an identification number (USDOT Number).
    (2) A Mexico-domiciled motor carrier seeking to provide 
transportation of property or passengers in interstate commerce between 
Mexico and points in the United States beyond the municipalities and 
commercial zones along the United States-Mexico international border 
must pass the pre-authorization safety audit under Sec.  365.507 of 
this subchapter. The Agency will not issue a USDOT Number until 
expiration of the protest period provided in Sec.  365.115 of this 
subchapter or--if a protest is received--after FMCSA denies or rejects 
the protest.
    (3) The motor carrier must display the number on each self-
propelled CMV, as defined in Sec.  390.5, along with the additional 
information required by Sec.  390.21.
    57a. Redesignate subpart C, consisting of Sec. Sec.  390.40, 
390.42, 390.44, and 390.46, as subpart D, consisting of Sec. Sec.  
390.201, 390.203, 390.205, and 390.207.
    57b. Add a new subpart C to read as follows:
Subpart C--Unified Registration System
Sec.
390.101 USDOT Registration.
390.102 PRISM State registration/biennial updates.
390.103 Special requirements for registration.
390.105 Other governing regulations.
390.107 Pre-authorization safety audit.

Subpart C--Unified Registration System


Sec.  390.101  USDOT Registration.

    (a) Purpose. This section establishes who must register with FMCSA 
under the Unified Registration System, the filing schedule, and general 
information pertaining to persons subject to the Unified Registration 
System registration requirements.
    (b) Applicability. (1) Except as provided in paragraph (g) of this 
section, each motor carrier (including a private motor carrier, an 
exempt for-hire motor carrier, a non-exempt for-hire motor carrier, and 
a motor carrier of passengers that participates in a through ticketing 
arrangement with one or more interstate for-hire motor carriers of 
passengers), intermodal equipment provider, broker and freight 
forwarder subject to the requirements of 49 CFR chapter III, subchapter 
B must file Form MCSA-1 with FMCSA in order to:
    (i) Identify its operations with the Federal Motor Carrier Safety 
Administration for safety oversight, as authorized under 49 U.S.C. 
31144, as applicable;
    (ii) Obtain operating authority required under Title 49 U.S.C. 
chapter 139, as applicable; and
    (iii) Obtain a hazardous materials safety permit as required under 
49 U.S.C. 5109, as applicable.

[[Page 66594]]

    (2) A cargo tank and cargo tank motor vehicle manufacturer, 
assembler, repairer, inspector, tester, and design certifying engineer 
that is subject to registration requirements under 49 CFR 107.502 and 
49 U.S.C. 5108 must satisfy those requirements by electronically filing 
Form MCSA-1 with FMCSA.
    (c) General. (1)(i) A person that fails to file Form MCSA-1 
pursuant to paragraph (d)(1) of this section is subject to the 
penalties prescribed in 49 U.S.C. 521(b)(2)(B) or 49 U.S.C. 14901(a), 
as appropriate.
    (ii) A person that fails to complete biennial updates to the 
information on Form MCSA-1 pursuant to paragraph (d)(2) of this section 
is subject to the penalties prescribed in 49 U.S.C. 521(b)(2)(B) or 49 
U.S.C. 14901(a), as appropriate, and inactivation of its USDOT Number.
    (iii) A person that furnishes misleading information or makes false 
statements upon Form MCSA-1 is subject to the penalties prescribed in 
49 U.S.C. 521(b)(2)(B), 49 U.S.C. 14901(a) or 49 U.S.C. 14907, as 
appropriate.
    (2) Upon receipt and processing of Form MCSA-1, FMCSA will issue 
the applicant an inactive identification number (USDOT Number). FMCSA 
will activate the USDOT Number after completion of applicable 
administrative filings pursuant to Sec.  390.103(a) of this chapter, 
unless the applicant is subject to Sec.  390.103(b). An applicant may 
not begin operations nor mark a commercial motor vehicle with the USDOT 
Number until after the date of the Agency's written notice that the 
USDOT Number has been activated.
    (3) The motor carrier must display a valid USDOT Number on each 
self-propelled CMV, as defined in Sec.  390.5, along with the 
additional information required by Sec.  390.21.
    (d) Filing schedule. Each person listed under paragraph (b) of this 
section must electronically file Form MCSA-1 at the following times:
    (1) Before it begins operations; and
    (2) Every 24 months as prescribed in paragraph (d)(3) or (d)(4) of 
this section, as applicable.
    (3) Persons assigned a USDOT Number prior to [Insert final rule 
compliance date] must file an updated Form MCSA-1 every 24 months, 
according to the following schedule:

------------------------------------------------------------------------
                                             Must file by last  day of .
        USDOT No. ending  in . . .                       . .
------------------------------------------------------------------------
1.........................................  January.
2.........................................  February.
3.........................................  March.
4.........................................  April.
5.........................................  May.
6.........................................  June.
7.........................................  July.
8.........................................  August.
9.........................................  September.
0.........................................  October.
------------------------------------------------------------------------


If the next-to-last digit of its USDOT Number is odd, the person must 
file its update in every odd-numbered calendar year. If the next-to-
last digit of the USDOT Number is even, the person must file its update 
in every even-numbered calendar year.
    (4) Persons assigned a USDOT Number on or after [Insert final rule 
compliance date] must file an updated Form MCSA-1 every 24 months, 
according to the date of Agency's written notice that the USDOT Number 
has been activated pursuant to Sec.  390.101(c)(2).
    (5) When there is a change in legal name, form of business, or 
address. A registered entity must notify the Agency of a change in 
legal name, form of business, or address within 20 days of the change 
by filing an updated Form MCSA-1 reflecting the revised information.
    (e) Availability of form. Form MCSA-1 is an electronic application 
and is available, including complete instructions, from the FMCSA Web 
site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1'').
    (f) Where to file. Persons subject to the registration requirements 
under this subpart must electronically file Form MCSA-1 on the FMCSA 
Web site at http://www.fmcsa.dot.gov.
    (g) Exception. The rules in this subpart do not govern the 
application by a Mexico-domiciled motor carrier to provide 
transportation of property or passengers in interstate commerce between 
Mexico and points in the United States beyond the municipalities and 
commercial zones along the United States-Mexico international border. 
The applicable procedures governing transportation by Mexico-domiciled 
motor carriers are provided in Sec.  390.19 of this subchapter.


Sec.  390.102  PRISM State registration/biennial updates.

    (a) A motor carrier that registers its vehicles in a State that 
participates in the Performance and Registration Information Systems 
Management (PRISM) program (authorized under section 4004 of the 
Transportation Equity Act for the 21st Century [Pub. L. 105-178, 112 
Stat. 107]) alternatively may satisfy the requirements set forth in 
Sec.  390.101 by electronically filing all the required USDOT 
registration and biennial update information with the State Driver 
Licensing Agency (SDLA) according to its policies and procedures, 
provided the SDLA has integrated the USDOT registration/update 
capability into its vehicle registration program.
    (b) If the SDLA procedures do not allow a motor carrier to file the 
Form MCSA-1 or to submit updates within the periods specified in Sec.  
390.101(a)(2), a motor carrier must complete such filings directly with 
FMCSA.
    (c) A for-hire motor carrier, unless providing transportation 
exempt from Title 49 U.S.C. chapter 139 commercial registration 
requirements, must obtain operating authority as prescribed under Sec.  
390.105(b) and 49 CFR part 365 of this chapter before operating in 
interstate commerce.


Sec.  390.103  Special requirements for registration.

    (a)(1) General. A person applying to operate as a motor carrier, 
broker or freight forwarder under this subpart must make the additional 
filings described in paragraphs (a)(2) and (a)(3) of this section as a 
condition for registration under this subpart within 90 days of the 
date on which the application is filed:
    (2) Evidence of financial responsibility. (i) A person that 
registers to conduct operations in interstate commerce as a for-hire 
motor carrier, a broker or a freight forwarder must file evidence of 
financial responsibility as required under part 387, subparts C and D 
of this subchapter.
    (ii) A person that registers to transport hazardous materials as 
defined in Sec.  383.5 of this subchapter in interstate commerce must 
file evidence of financial responsibility as required under part 387, 
subpart C of this subchapter.
    (3) Designation of agent for service of process. All motor carriers 
(both private and for-hire), brokers and freight forwarders required to 
register under this subpart must designate an agent for service of 
process (a person upon whom court or Agency process may be served) 
following the rules in part 366 of this subchapter:
    (b) The Agency will not activate a USDOT Number until expiration of 
the protest period provided in Sec.  365.115 of this subchapter or--if 
a protest is received--after FMCSA denies or rejects the protest, as 
applicable.


Sec.  390.105  Other governing regulations.

    (a) Motor carriers. (1) A motor carrier granted registration under 
this part must successfully complete the applicable New Entrant Safety 
Assurance Program as described in paragraphs (a)(1)(i)

[[Page 66595]]

through (a)(1)(iv) of this section as a condition for permanent 
registration:
    (i) A U.S.- or Canada-domiciled motor carrier is subject to the new 
entrant safety assurance program under 49 CFR part 385, subpart D.
    (ii) A Mexico-domiciled motor carrier is subject to the safety 
monitoring program under 49 CFR part 385, subpart B.
    (iv) A Non-North America-domiciled motor carrier is subject to the 
safety monitoring program under 49 CFR part 385, subpart I.
    (2) [Reserved]
    (b) Brokers, freight forwarders and non-exempt for-hire motor 
carriers. (1) A broker or freight forwarder must obtain operating 
authority pursuant to part 365 of this subchapter as a condition for 
obtaining USDOT Registration.
    (2) A motor carrier registering to engage in transportation that is 
not exempt from economic regulation by FMCSA must obtain operating 
authority pursuant to part 365 of this subchapter as a condition for 
obtaining USDOT Registration.
    (c) Intermodal equipment providers. An intermodal equipment 
provider is subject to the requirements of subpart D of this part.
    (1) Only the legal name or a single trade name of the motor carrier 
or intermodal equipment provider may be used on the Form MCSA-1.
    (2) The intermodal equipment provider must identify each unit of 
interchanged intermodal equipment by its assigned USDOT Number.
    (d) Hazardous materials safety permit applicants. A person who 
applies for a hazardous materials safety permit is subject to the 
requirements of part 385, subpart E of this subchapter.
    (e) Cargo tank facilities. A cargo tank facility is subject to the 
requirements of 49 CFR part 107, subpart F, 49 CFR part 172, subpart H, 
and 49 CFR part 180.


Sec.  390.107  Pre-authorization safety audit.

    A non-North America-domiciled motor carrier seeking to provide 
transportation of property or passengers in interstate commerce within 
the United States must pass the pre-authorization safety audit under 
Sec.  385.607(c) of this subchapter as a condition for receiving 
registration under this part.
    58. Amend newly redesignated Sec.  390.201 by revising paragraph 
(a) to read as follows:


Sec.  390.201  What responsibilities do intermodal equipment providers 
have under the Federal Motor Carrier Safety Regulations (49 CFR parts 
350-399)?

* * * * *
    (a) Identify its operations to the FMCSA by filing the Form MCSA-1 
required by Sec.  390.101.
* * * * *

PART 392--DRIVING OF COMMERCIAL MOTOR VEHICLES

    59. The authority citation for part 392 is revised to read as 
follows:

    Authority: 49 U.S.C. 521, 13902, 13908, 31136, 31502; and 49 CFR 
1.73.

    60. Add Sec.  392.9b to read as follows:


Sec.  392.9b  USDOT Registration.

    (a) USDOT Registration required. A motor vehicle providing 
transportation must not be operated without a USDOT Registration and an 
active USDOT Number.
    (b) Penalties. If it is determined that the motor carrier 
responsible for the operation of such a vehicle is operating in 
violation of paragraph (a) of this section, it may be subject to 
penalties in accordance with 49 U.S.C. 521 and inactivation of its 
USDOT Number.

    Issued on: October 11, 2011.
Anne S. Ferro,
Administrator.
[FR Doc. 2011-26958 Filed 10-25-11; 8:45 am]
BILLING CODE 4910-EX-P

