Unified Registration System SNPRM

Vol. 76

Wednesday,

No. 207

October 26, 2011

Part IV

Department of Transportation

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Federal Motor Carrier Safety Administration
49 CFR Parts 360, 365, 366, et al.
Unified Registration System; Proposed Rule

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules

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

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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,

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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

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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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
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
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
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)).

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.

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II. Regulatory History
A. Advance Notice of Proposed
Rulemaking
In response to the ICCTA mandate to
develop a unified registration system,

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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) Mexicodomiciled 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 § 360.401 below:

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).

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
TABLE TO § 360.401—UNIFIED REGISTRATION SCHEDULE OF FEES
You must pay
FMCSA

Registration
If you:
(a) Are subject to the registration requirements under § 360.3 and are requesting a new application to operate in interstate
commerce.

$200.

Other Services
If you file a:
(b) Biennial update of registration .................................................................................................................................................
(c) Request for change of name, address, or form of business ...................................................................................................
(d) Request for cancellation of registration ...................................................................................................................................
(e) Request for registration reinstatement .....................................................................................................................................
(f) Designation of process agent ...................................................................................................................................................

Additionally, the Agency proposed
fees for record searching, reviewing,
copying, certifying, and related services

under § 360.419(a) through (d) as
follows:
Description

Fee

(a) Certificate of the Director, Office of Information Management, as to the authenticity of documents .........
(b) Service involved in locating records to be certified and determining their authenticity, including incidental clerical and administrative work.
(c) Photocopies of public documents .................................................................................................................
(d) Search and copying services requiring automated data processing services (ADP), as follows:
(1) Professional staff time to fulfill an ADP request ...................................................................................
(2) Computer searches ...............................................................................................................................

(3) Printing ..................................................................................................................................................

3. Financial Responsibility

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

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No cost.
No cost.
No cost.
$100.
$10.

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.

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$12.
$21 per hour.
$.80 per letter- or legal-size page;
$5 minimum.
$50 per hour.
Current rate for computer service
as determined by the Office of
Information Management (MC–
RIS).
Paper—$.10 per page with a $1
minimum; Electronic media—
Agency’s cost.

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

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freight forwarders. Current 49 CFR
387.303(c) and 387.405(a) require nonexempt 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.

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Self-Insurance Program. The Agency
proposed several changes to the selfinsurance 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 § 360.415(b):

TABLE TO § 360.415(B)—INSURANCE FILING FEES
(1) Financial responsibility service provider filing evidence of minimum level of insurance, surety bond, or trust fund agreement .............................................................................................................................................................................................
(2) Qualification as a self-insurer for bodily injury, property damage, or environmental restoration ..............................................
(3) Qualification as a self-insurer for cargo insurance ....................................................................................................................
(4) Quarterly self-insurance monitoring filing ..................................................................................................................................
(5) Annual self-insurance monitoring filing ......................................................................................................................................
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.
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
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$10
4,200
420
500
(1)

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.

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

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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 forhire 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

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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 Mexicodomiciled motor carrier granted
registration.

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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.

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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.

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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 costeffective for FMCSA than manually
processing applications.

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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
§ 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)

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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 § 360.701. Use of the
Form OCE–46 would be discontinued.
Under proposed § 360.705, FMCSA
would deactivate a motor carrier’s
announcing the withdrawal of the February 1998
NPRM with the intention of addressing the transfer
issue in the URS rulemaking.

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66511

USDOT Registration if the carrier failed
to comply with the financial
responsibility and process agent filing
requirements.
Under proposed § 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

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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

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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 3month 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

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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)).
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
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).

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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 (Mexicodomiciled 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 § 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
§ 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 24month window, the motor carrier would
need to complete such filings directly
with FMCSA.
Proposed § 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 longhaul carriers in the unified system, the
Agency does not propose to include

such carriers at this time. In September
2007, FMCSA began registering Mexicodomiciled 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 crossborder 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 § 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-

66513

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 Mexicodomiciled 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, § 390.107 would direct a nonNorth America-domiciled motor carrier
that requests authority to conduct
interstate commerce within the United
States to § 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

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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 .....................
i. Exempt ...........................

ii. Non-exempt ..................

b. Private carrier ......................
2. Broker .........................................

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17:02 Oct 25, 2011

A person engaged in the transportation of goods or passengers for compensation.
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.
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.
A person who provides transportation of property or passengers, by commercial motor vehicle, and is not a
for-hire motor carrier.
A person who, for compensation, arranges, or offers to arrange, the transportation of property by a non-exempt for-hire motor carrier.

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ENTITIES REQUIRED TO REGISTER UNDER THE UNIFIED REGISTRATION SYSTEM—Continued
Entity

Description

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, breakbulk, 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.
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.
A motor carrier that transports in interstate or intrastate commerce any of the hazardous materials, in the
quantity indicated for each, listed under 49 CFR 385.403.
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.

4. Intermodal equipment provider ...
5. Hazardous Materials Safety Permit applicant.
6. Cargo tank facility .......................

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

Fee

Part I: Registration:
(1) .............................................
(2) .............................................
(3) .............................................
(4) .............................................
(5) .............................................
(6) .............................................
(7) .............................................
Part II: Insurance:
(8) .............................................

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(9) .............................................

An application for USDOT Registration pursuant to 49 CFR part 390,
subpart C.
An application for motor carrier temporary authority issued in response to a national emergency or natural disaster and following
an emergency declaration under § 390.23 of this subchapter.
Biennial update of registration ...............................................................
Request for change of name, address, or form of business ................
Request for cancellation of registration .................................................
Request for registration reinstatement ..................................................
Designation of process agent ................................................................

$300.

A service fee for insurer, surety, or self-insurer accepted certificate of
insurance, surety bond, and other instrument submitted in lieu of a
broker surety bond.

$10 per accepted certificate, surety bond or other instrument
submitted in lieu of a broker surety bond.
[Reserved].

(i) An application for original qualification as self-insurer for bodily injury and property damage insurance (BI&PD).
(ii) An application for original qualification as self-insurer for cargo insurance.
(iii) Fee for quarterly self-insurance monitoring filing ............................
(iv) Fee for annual 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

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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
§ 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 § 360.3(f) to access or
retrieve URS data for its own use.
Proposed paragraph (e)(2) would
exempt any registered entity within

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$100.
$0.
$0.
$0.
$10.
$0.

[Reserved].
[Reserved].
[Reserved].

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 forhire 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

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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 §§ 390.103(a)(2)(i) and
387.303
Private motor carriers hauling
hazardous materials. The SNPRM
retains under § 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
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 nonhazardous 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
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.

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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 § 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
§ 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.
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
10 See

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66515

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.
(§ 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.
(§§ 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

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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 § 387.39). Also, the
Agency would correct an omission in
§ 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 forhire 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
§ 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
§ 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

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agent’s information, including name,
address or contact information.
Amended § 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. (§ 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 § 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
§ 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

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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.

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
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 owneroperator 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 § 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
§ 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.

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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 nonsafety-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

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66517

applicants to demonstrate they are in
compliance with the Americans with
Disabilities Act (ADA) [[Pub. L. 101–
336, Title I, § 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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules

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 NPRM version

MCSA–1 Form—URS SNPRM version

Section A—Business Description
Section B—Motor Carriers
Section C—Hazardous Materials (HM)
Section D—Transportation of Household Goods
Section E—Commercial Zone Operations
Section F—Additional Information
Section G—Safety Certifications
Section H—Certifications
Section I—Cancellation
Section J—Filing Fee Information
Attachments to Section G (Supplemental information required only from
a Mexico-domiciled motor carrier)

Section
Section
Section
Section
Section
Section
Section
Section
Section
Section

A—Business Description
B—General Operational Information
C—Hazardous Materials (HM)
D—Hazardous Materials Permitting
E—Cargo Tank Facility
F—Transportation of Household Goods
G—Transportation of Passengers
H—Scope of Authority
I—Commercial Zone Operations
J—Non-North America-Domiciled Carriers

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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

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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

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in ensuring ADA compliance, FMCSA
will take the following actions:
Æ 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?
Æ 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).
Æ 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.

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Æ 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 § 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 § 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

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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 costbenefit analysis supported the proposal.
Based on its analysis, FMCSA proposes
a mandatory electronic registration

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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 phasein 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
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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 § 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 owneroperators, 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

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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

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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 FTAfunded 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 nonprofit); (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 §§ 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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
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 Americadomiciled 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 § 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
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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
§ 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

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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 § 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
§ 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

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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 § 387.33 to utilize Stateapproved risk pools in order to meet the
State financial responsibility
requirements pursuant to section
31138(e)(4) and proposed § 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

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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 § 365.107(g)
is warranted. During the Hurricane
Katrina relief effort in 2005, FMCSA
received numerous applications for
emergency temporary authority
pursuant to § 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
§ 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

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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

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file proof of liability insurance with
FMCSA;
• A reduction of the current
reinstatement fee for non-exempt forhire 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.

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
• 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

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 .............................................................................
Eliminating Transfer/Name Change Requirements .........................................
New Registrant Fee .........................................................................................
Insurance Filing ...............................................................................................
Process Agent Filing ........................................................................................
Cancellations and Reinstatements ..................................................................
New MCSA–1 Application Form ......................................................................

$538,894
0
0
676,723
25,067,012
60,070
0

$0
0
0
0
0
135,158
0

$0
0
63,583,722
1,691,808
0
0
0

$0
1,854,890
0
0
0
4,808,126
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 forhire 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 .............................................................................
Eliminating Transfer/Name Change Requirements .........................................
New Registrant Fee .........................................................................................
Insurance Filing ...............................................................................................
Process Agent Filing ........................................................................................
Cancellations and Reinstatements ..................................................................
New MCSA–1 Application Form ......................................................................

1,964,186
0
0
0
0
0
1,354,631

36,190,320
0
0
0
3,130,736
0
3,391,089

0
1,854,890
0
0
0
4,808,126
0

0
0
63,583,722
1,691,808
0
0
0

Total Benefits ............................................................................................

3,318,817

42,712,146

6,663,017

65,275,530

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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 10year 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

11 Throughout this section, cargo tank facilities
and IEPs are referred to as ‘‘other entities.’’

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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
Mandatory Electronic Filing .............................................................................
Eliminating Transfer/Name Change Requirements .........................................
New Registrant Fee .........................................................................................
Insurance Filing ...............................................................................................
Process Agent Filing ........................................................................................
Cancellations and Reinstatements ..................................................................
New MCSA–1 Application Form ......................................................................
Net Benefits .....................................................................................................

Agency

$1,425,292
0
0
¥676,723
¥25,067,012
¥60,070
1,354,631
¥23,023,883

Societal Net Benefits ................................................................................

Industry

$36,190,320
0
0
0
3,130,736
¥135,158
3,391,089
42,576,988

Agency

$0
1,854,890
¥63,583,722
¥1,691,808
0
4,808,126
0
¥58,612,513

19,553,105

$0
¥1,854,890
63,583,722
1,691,808
0
¥4,808,126
0
¥58,612,513

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
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.
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
(2014–2023)

Operation classification

Fee
change

Total
(2010 $)

Total
(present value)

Exempt For-Hire Carriers .................................................................
Private Carriers and other entities * .................................................

44,449
235,945

300
300

$13,334,700
70,753,500

$10,083,170
53,500,522

Total ..........................................................................................

280,294

............................

84,088,200

63,583,722

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* Cargo tank facilities and IEPs.

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

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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

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submit additional evidence to support its position
that the application should be approved.
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.

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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

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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 × 15)
annual staff hours saved per State, or
11,250 (225 × 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 × $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 10year 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.

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66525

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 forhire 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.
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 forhire 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,
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.

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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 10year 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

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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, nonexempt 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

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reinstatement fee would be sufficient to
defray Agency processing costs. The
FMCSA calculated savings by nonexempt 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 forhire 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 forhire 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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
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.

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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 nonexempt 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 10year 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.

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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.
The FMCSA proposes to require all
new registrants except a Mexicodomiciled 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
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.
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.

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estimated a 10-year discounted resource
cost savings to industry of $1,354,631.
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.
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
17 Carriers subject to vetting might experience a
more prolonged registration process.

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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 phasein 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
Mandatory Electronic Filing .............................................................................
Eliminating Transfer/Name Change Requirements .........................................
New Registrant Fee .........................................................................................
Insurance Filing ...............................................................................................
Process Agent Filing ........................................................................................
Cancellations and Reinstatements ..................................................................
New MCSA–1 Application Form ......................................................................
Net Benefits .....................................................................................................

$1,425,292
0
0
¥676,723
¥25,067,012
¥60,070
1,354,631
¥23,023,883

Societal Net Benefits ................................................................................

Agency
$36,190,320
0
0
0
3,130,736
¥135,158
3,391,089
42,576,988

19,553,105

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

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$0
1,854,890
¥63,583,722
¥1,691,808
0
4,808,126
0
¥58,612,513

$0
1,854,890
63,583,722
1,691,808
0
4,808,126
0
58,612,513
0

Note: Numbers may not add due to rounding.

VerDate Mar<15>2010

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules

BILLING CODE 4910–EX–C

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
VI. Rulemaking Analyses and Notices

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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

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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 nonexempt 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 subsector (North American Industry
Classification System [NAICS] 484) as
an entity with annual revenue of less
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.

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

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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.
(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. Nonexempt 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 forhire carriers would have the same
replacement reporting and
recordkeeping requirements as nonexempt 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

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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 forhire 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.

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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,

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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 fleetmix 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

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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
currently
approved

OMB Approval No.
2126–NEW
2126–0013
2126–0015
2126–0016
2126–0017
2126–0019

Burden hours
proposed 1

Change

.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................

0
109,005
14,835
55,095
66,960
2,460

127,728
0
69,373
0
81,193
0

127,728
(109,005)
54,538
(55,095)
(14,233)
(2,460)

Total ........................................................................................................................

248,355

278,293

29,938

1 The

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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 × 1.34 hours per form) +
43,560 hours for biennial updates
(261,360 registrants required to file in

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year one × 10 minutes per form, divided
by 60 minutes/hr) + 2,053 hours for
name/address change requests (12,317
requests × 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

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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 × 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

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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 × 10 minutes/60 plus 5
self-insurance filings × 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 Mexicodomiciled 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

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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

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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.

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
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
360.3
360.5

§ 360.3

Fees for registration-related services.
Filing fees.
Updating user fees.

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

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§ 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

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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 computergenerated 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.
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

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66583

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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules

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 quasigovernmental 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) .............................................
(2) .............................................

(3) .............................................
(4) .............................................
(5) .............................................
(6) .............................................
(7) .............................................
Part II: Insurance:
(8) .............................................

(9) .............................................

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§ 360.5

An application for USDOT Registration pursuant to 49 CFR part 390,
subpart C.
An application for motor carrier temporary authority to provide emergency relief in response to a national emergency or natural disaster following an emergency declaration under § 390.23 of this
subchapter.
Biennial update of registration ...............................................................
Request for change of name, address, or form of business ................
Request for cancellation of registration .................................................
Request for registration reinstatemen ...................................................
Designation of process agen .................................................................

$300.

A service fee for insurer, surety, or self-insurer accepted certificate of
insurance, surety bond, and other instrument submitted in lieu of a
broker surety bond.

$10 per accepted certificate, surety bond or other instrument
submitted in lieu of a broker surety bond.
[Reserved].

(i) An application for original qualification as self-insurer for bodily injury and property damage insurance (BI&PD).
(ii) An application for original qualification as self-insurer for cargo insurance.
(iii) Fee for quarterly self-insurance monitoring filing ............................
(iv) Fee for annual self-insurance monitoring filing ...............................

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

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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

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$100.

$0.
$0.
$0.
$10.
$0.

[Reserved].
[Reserved].
[Reserved].

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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules
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.

(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
§ 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 § 365.107 by revising
paragraphs (a)(1) through (3), and
paragraphs (b) through (e), to read as
follows:

PART 365—RULES GOVERNING
APPLICATIONS FOR OPERATING
AUTHORITY

§ 365.107

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 § 365.101 by revising
paragraphs (a) and (h) to read as follows:
§ 365.101
rules.

Applications governed by these

*

*
*
*
*
(a) Applications for certificates of
motor carrier registration to operate as a
motor carrier of property or passengers.
*
*
*
*
*
(h) Applications for Mexicodomiciled 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.
*
*
*
*
*
§ 365.103

[Removed and reserved]

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

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§ 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

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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 nonNorth 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

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66585

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
§ 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 § 365.109 by revising
paragraphs (a)(5) and (6) and (b) to read
as follows:
§ 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 § 365.110 to read as follows:
§ 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

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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / Proposed Rules

New Entrant Safety Assurance Program
in part 385 of this subchapter.
9. Amend § 365.111 by revising
paragraph (a) to read as follows:
§ 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 § 365.119 to read as
follows:
§ 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 § 365.201 to read as
follows:
§ 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 § 365.203 to read as
follows:
§ 365.203

*
*
*
*
(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 § 365.509 by revising
paragraph (a) to read as follows:
§ 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 § 366.1 to read as follows:

[Removed and reserved]

13. Remove and reserve § 365.301.
14. Revise the heading of subpart D to
read as follows:
Subpart D—Changes to an Entity’s
Name or Business Form
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*

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.
§ 365.301

§ 365.507 FMCSA action on the
application.

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

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

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§ 366.1

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

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§ 366.3

Sfmt 4702

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 § 366.4 by revising
paragraph (a) and adding a new
paragraph (c) to read as follows:
§ 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 § 366.5 to read as follows:
§ 366.5

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 § 366. 2 to read as follows:
§ 366.2

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 § 366.3 to read as follows:

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
lllllllllllllllllll
(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 § 366.6 to read as follows:
§ 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

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§ 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

§ 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 § 368.8 to read as follows:
§ 368.8

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

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§ 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 § 368.4 by revising
paragraph (a) to read as follows:

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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 § 385.301 to read as
follows:
§ 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

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CFR parts 365, 368 and 390. Title 49
CFR parts 365 and 368 provide detailed
information about how a Mexicodomiciled motor carrier may obtain
operating authority.
31. Revise § 385.303 to read as
follows:
§ 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 § 385.305 to read as
follows:
§ 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 § 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 § 390.105(b) and 49
CFR part 365 of this subchapter before
operating in interstate commerce.
33. Amend § 385.329 by revising
paragraphs (b)(1), (c)(1) and (d) to read
as follows:
§ 385.329 May a new entrant that has had
its USDOT new entrant registration revoked
and its operations placed out of service
reapply?

*

*
*
(b) * * *

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(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 § 390.105(b) and
49 CFR part 365 of this chapter.
34. Revise § 385.405 to read as
follows:
§ 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 § 385.409 by revising
paragraph (a) to read as follows:

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§ 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 § 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.
*
*
*
*
*

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36. Revise § 385.419 to read as
follows:
§ 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 § 385.421 by revising
paragraphs (a)(1) and (a)(2) to read as
follows:
§ 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
§ 385.405(d)).
*
*
*
*
*
38. Revise § 385.603 to read as
follows:
§ 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

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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 § 385.607 by revising
paragraph (e)(2) to read as follows:
§ 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 § 385.609 by revising
paragraph (a)(2) and removing
paragraph (a)(3) to read as follows:
§ 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 § 385.713 by revising
paragraphs (b)(1), (c)(1), and (d) to read
as follows:
§ 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

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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 § 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 § 387.19 to subpart A to read
as follows:
§ 387.19 Electronic filing of surety bonds,
trust fund agreements, certificates of
insurance and cancellations.

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(a) Insurers of exempt motor carriers,
as defined in § 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
§ 387.323.

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(b) The requirements of this section
do not apply to motor carriers excepted
under § 387.7(b)(3).
44. Revise § 387.33 to read as follows:

66589

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
§ 387.33 Financial responsibility, minimum
government funded, in whole or in part,
levels.
with a grant under 49 U.S.C. 5307, 5310
(a) General limits. The minimum
levels of financial responsibility referred or 5311, including transportation
designed and carried out to meet the
to in § 387.31 of this subpart are hereby
special needs of elderly individuals and
prescribed as follows:
individuals with disabilities, will be the
Schedule of Limits
highest level required for any of the
States in which it operates. Transit
Public Liability
service providers conducting such
For-hire motor carriers of passengers
operations must register as for-hire
operating in interstate or foreign
passenger carriers under part 390,
commerce.
subpart C of this subchapter, identify
the States in which they operate under
Minimum
Vehicle seating capacity
the applicable grants, and certify on
limits
their registration documents that they
have in effect financial responsibility
(1) Any vehicle with a seating
capacity of 16 passengers or
levels in an amount equal to or greater
more, including the driver 1 ...
$5,000,000 than the highest level required by any
(2) Any vehicle with a seating
of the States in which they are operating
capacity of 15 passengers or
under a qualifying grant.
2
less, including the driver .....
1,500,000
45. Amend § 387.39 by revising Form
1 2 Except as provided in § 387.27(b).
MCS–90B to read as follows:
(b) Limits applicable to transit service
§ 387.39 Forms.
providers. Notwithstanding the
*
*
*
*
*
provisions of paragraph (a) of this
section, the minimum level of financial
BILLING CODE 4910–EX–P

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BILLING CODE 4910–EX–C

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*

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

§ 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 § 387.323.
(b) This section does not apply to
motor carriers excepted under
§ 387.31(b)(3).
47. Amend § 387.303 by revising
paragraph (b) to read as follows:

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

*

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

Kind of equipment

Transportation provided

Fleet including only vehicles under 10,001 pounds (4,536
kilograms) GVWR.

Property (non-hazardous) ........................................................

Minimum
limits
$300,000

(ii) Passenger carriers:

PASSENGER CARRIERS: KIND OF EQUIPMENT
Minimum
limits

Vehicle seating capacity
(A) Any vehicle with a seating capacity of 16 passengers or more (including the driver) .............................................................
(B) Any vehicle designed or used to transport 15 passengers or less (including the driver) for compensation ...........................

(2) Motor carriers subject to
§ 387.301(a)(2) are required to have

security for the required minimum
limits as follows:
Minimum
limits

Kind of equipment

Commodity transported

(i) Freight vehicles of 10,001 pounds (4,536 kilograms) or
more GVWR.
(ii) Freight vehicles of 10,001 pounds (4,536 kilograms) or
more GVWR.

Property (non-hazardous) ........................................................

$750,000

Hazardous substances, as defined in § 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 § 173.403 of this title.
Oil listed in § 172.101 of this title; hazardous waste, hazardous materials and hazardous substances defined in
§ 171.8 of this title and listed in § 172.101 of this title, but
not mentioned in (b) above or (d) below.
Any quantity of Division 1.1, 1.2, or 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
§ 173.455 of this title.

5,000,000

(iii) Freight vehicles of 10,001 pounds (4,536 kilograms) or
more GVWR.
(iv) Freight vehicles under 10,001 pounds (4,536 kilograms)
GVWR.

*

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

Forms and procedures.

*

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$5,000,000
1,500,000

*
*
*
*
(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

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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.
*
*
*
*
*

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1,000,000

5,000,000

49. Revise § 387.323 to read as
follows:
§ 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

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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 § 387.403 to read as
follows:
§ 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 § 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 § 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 § 387.413 by revising
paragraph (b) to read as follows:
§ 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 § 387.419 to read as
follows:

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§ 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 § 387.323.
PART 390—FEDERAL MOTOR
CARRIER SAFETY REGULATIONS;
GENERAL
53. The authority citation for part 390
is revised to read as follows:

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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 § 390.3 to read as follows:
§ 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 § 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 § 387.3 or
§ 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 § 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

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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
§§ 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 § 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
§ 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
§ 387.3 of this subchapter.
(4) Subpart C of this part, Unified
Registration System, and § 390.21,
Marking of CMVs, for carriers subject to
the requirements of § 385.403 of this
subchapter. Intrastate motor carriers
operating prior to January 1, 2005, are
excepted from § 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
§ 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

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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 § 390.5 by revising the
definition of ‘‘Exempt motor carrier’’ to
read as follows:
§ 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 § 390.19 to read follows.

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§ 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

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paragraph (a) of this section at the
following times:
(1) Before it begins operations; and
(2) Every 24 months, according to the
following schedule:
USDOT No. ending
in . . .

Must file by last
day of . . .

1
2
3
4
5
6
7
8
9
0

January.
February.
March.
April.
May.
June.
July.
August.
September.
October.

................................
................................
................................
................................
................................
................................
................................
................................
................................
................................

(3) If the next-to-last digit of its
USDOT Number is odd, the motor
carrier shall file its update in every oddnumbered calendar year. If the next-tolast 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

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66593

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 preauthorization safety audit under
§ 365.507 of this subchapter. The
Agency will not issue a USDOT Number
until expiration of the protest period
provided in § 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 § 390.5, along with the
additional information required by
§ 390.21.
57a. Redesignate subpart C, consisting
of §§ 390.40, 390.42, 390.44, and 390.46,
as subpart D, consisting of §§ 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
§ 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.

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(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 § 390.103(a) of this
chapter, unless the applicant is subject
to § 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 selfpropelled CMV, as defined in § 390.5,
along with the additional information
required by § 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:
USDOT No. ending
in . . .

Must file by last
day of . . .

1
2
3
4
5
6

January.
February.
March.
April.
May.
June.

................................
................................
................................
................................
................................
................................

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USDOT No. ending
in . . .

Must file by last
day of . . .

7
8
9
0

July.
August.
September.
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 evennumbered 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
§ 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 § 390.19
of this subchapter.
§ 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
§ 390.101 by electronically filing all the
required USDOT registration and

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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 § 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
§ 390.105(b) and 49 CFR part 365 of this
chapter before operating in interstate
commerce.
§ 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
§ 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 § 365.115 of
this subchapter or—if a protest is
received—after FMCSA denies or rejects
the protest, as applicable.
§ 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)

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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

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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.
§ 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 preauthorization safety audit under
§ 385.607(c) of this subchapter as a
condition for receiving registration
under this part.
58. Amend newly redesignated
§ 390.201 by revising paragraph (a) to
read as follows:
§ 390.201 What responsibilities do
intermodal equipment providers have under
the Federal Motor Carrier Safety
Regulations (49 CFR parts 350–399)?

*

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*

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*

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*

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66595

(a) Identify its operations to the
FMCSA by filing the Form MCSA–1
required by § 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 § 392.9b to read as follows:
§ 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

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